BILL REQ. #:  H-3573.6 

READ FIRST TIME 02/11/14.   

     AN ACT Relating to small farms under the current use property tax program for farm and agricultural lands; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature recognizes the increasing diversity of Washington state agriculture, the growing number of smaller farms, and the important contributions that all farms make to the state's economy and the state's ability to produce food, fiber, and forest crops locally.
     (2) The legislature intends, through the study and report required in section 2 of this act, to evaluate:
     (a) The ongoing viability of small farms and the impact the open space program has on small farms;
     (b) The potential modification to the existing income thresholds for small farms; and
     (c) The fiscal impact and other consequences of extending current use valuation to home sites for smaller farms.
     (3) It is the legislature's further intent to adopt legislation during the 2015 session substantially conforming to the recommendations embodied in the report required under section 2 of this act.

NEW SECTION.  Sec. 2   (1) The state conservation commission and office of farmland preservation, in coordination with the department of revenue, must conduct a study and prepare a report to the legislature, by December 1, 2014, as provided in this section. The primary objectives of the study are to evaluate and make recommendations on improving the viability of small farms under the current use program and extending current use valuation for home sites for small farms. The commission's report must also include recommendations for updated program eligibility requirements, if appropriate. The commission must develop its recommendations consistent with the following goals:
     (a) To promote current use assessment practices in accord with the legislature's intent in RCW 84.34.010, which maintain, preserve, conserve, and otherwise continue in existence adequate open space lands for the production of food, fiber, and forest crops;
     (b) To ensure the current use farm and agricultural program for small farm operations benefits these bona fide small farm operations without subsidizing unintended parties; and
     (c) To evaluate whether the current income thresholds for farming operations less than twenty acres should be updated.
     (2) The report must include proposed draft legislation to accomplish the commission's recommendation. The report may also include an evaluation of the economic impact of farming and agricultural production on the state's overall economy, with particular focus on small scale agricultural production using a food and agriculture hub approach.
     (3) In preparing the report, the state conservation commission and office of farmland preservation must form and consult with an agricultural current use stakeholder group, including representatives of statewide farm associations, the Washington State University cooperative extension program, small and large farm advocates, county officials including county assessors and county commissioners, other academic institutions, and the agriculture and fiscal committees of the legislature. Nonpartisan legislative staff on the appropriate fiscal committees must provide assistance in researching and compiling data used in the preparation of the report.