SENATE BILL REPORT

SB 5175

BYSenators Hansen, Barr, Bauer, Benitz and Newhouse

Modifying definition of farm and agricultural land for property tax purposes.

Senate Committee on Agriculture

Senate Hearing Date(s):January 23, 1987; February 10, 1987; January 14, 1988

Senate Staff:Tom McDonald (786-7404)

AS OF JANUARY 4, 1988

BACKGROUND:

Under the Open Space Act, a farm owner may apply to have his/her farm and agricultural land designated as "open space" and assessed for property taxes at current use value rather than highest and best use value.  Farm and agricultural land includes "... the land on which appurtenances necessary to the production, preparation or sale of the agricultural products exist in conjunction with the lands producing such product."

The Department of Revenue has determined that the farm owner's homesite or residence is not within the definition of agricultural land and thus the Department is assessing the farm owner's homesite at a higher potential use value.  The Joint Administrative Rules Review Committee has issued a notice objecting to the Department's determination and has stated that a farm owner's homesite is "necessary" and should be included in the open space parcel.

SUMMARY:

The farm owner's residence, as well as migratory farm labor accommodations, bunk houses, stockyards, barns, machine sheds and other structures are specifically listed as appurtenances to be considered agricultural land and as such qualify as open space for current use assessment. 

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 4, 1988