BP BHEAD INT S [atlas:bill]

AN ACT Relating to current use valuation; amending RCW 84.34.070 and 36.70B.230; adding a new section to chapter 36.70A RCW; adding a new chapter to Title 84 RCW; recodifying RCW 36.70B.230; and repealing RCW 35.63.240, 35A.63.260, and 36.70.495.

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

NEW SECTION. Sec. 1. This chapter creates a new system of classifying agricultural land for property tax purposes as agricultural land with long-term commercial significance where the true and fair value of the land is based upon its current use. This new current use valuation program applies to eligible land automatically and is in addition to the voluntary farm and agricultural land valuation program under chapter 84.34 RCW.

NEW SECTION. Sec. 2. (1) Land shall be classified as agricultural land with long‑term commercial significance if: (a) The land is designated as agricultural land under RCW 36.70A.170(1) by a county, city, or town planning under RCW 36.70A.040; (b) the land is devoted primarily to agricultural uses specified under RCW 36.70A.030(2) and not used for residential purposes, industrial purposes, or other commercial purposes; and (c) the county, city, or town has adopted its development regulations under RCW 36.70A.060 conserving agricultural land designated under RCW 36.70A.170(1).

(2) The assessor shall automatically classify or reclassify land meeting the requirements of this section based upon information submitted to the assessor by counties, cities, and towns under RCW 36.70B.230 (as recodified by this act). The manifest error provisions of RCW 84.48.065 apply to the classification or reclassification of land as agricultural land with long‑term commercial significance.

(3) The true and fair value of agricultural land with long‑term commercial significance for property tax purposes shall be the current use value of the land determined in the same manner as the current use value of land classified as farm and agricultural land is determined under chapter 84.34 RCW.

(4) The owner of any land eligible for classification or reclassification as agricultural land with long‑term commercial significance that is not so classified or reclassified by the assessor under subsection (2) of this section may submit a written request to the assessor requesting the land be classified or reclassified as agricultural land with long‑term commercial significance together with proof that the land meets the requirements of this section. The assessor shall investigate the request and either deny or approve the request within thirty days of the date the request was received. The assessor shall give written notice of the denial or approval to the owner requesting the classification or reclassification. A denial may be appealed to the board of equalization of the county in which the property is located, in accordance with RCW 84.40.038, within thirty days of the date the notice of denial is mailed.

(5) Eligible land classified as farm and agricultural land under chapter 84.34 RCW shall be reclassified as agricultural land with long‑term commercial significance. Land classified or designated as forest land under chapter 84.33 RCW shall not be classified as agricultural land with long‑term commercial significance, even if it meets the requirements of this section. Land classified as open space land or timber land under RCW 84.34.020 (1) or (3) shall not be classified as agricultural land with long‑term commercial significance, even if it meets the requirements of this section. However, the owner of open space farm and agricultural conservation land under RCW 84.34.020(1)(c) may submit an application requesting the land be reclassified as agricultural land with long‑term commercial significance and the assessor shall so reclassify this land if it meets the requirements of this section.

NEW SECTION. Sec. 3. (1) The classification or reclassification of land as agricultural land with long-term commercial significance shall be removed if either: (a) The county, city, or town removes the designation of the land under RCW 36.70A.170(1); or (b) the use of the land changes to a use not permitted for designation as agricultural land with long-term commercial significance.

Land removed from classification as agricultural land with long-term commercial significance shall be valued at its true and fair value under RCW 84.40.030 unless it is reclassified under another current use valuation program under chapter 84.33 or 84.34 RCW.

(2) Land classified as agricultural land with long-term commercial significance that was not reclassified to that status from farm and agricultural land or open space farm and agricultural conservation land under chapter 84.34 RCW is not subject to any additional tax, penalty, and interest if removed from classification as agricultural land with long-term commercial significance.

(3) However, land classified as agricultural land with long-term commercial significance that was reclassified to that status from farm and agricultural land or open space farm and agricultural conservation land under chapter 84.34 RCW is subject to additional tax, penalty, and interest, if the land is removed from classification as agricultural land with long-term commercial significance as follows:

(a) The additional tax, penalty, and interest shall be calculated in the same manner as set forth under RCW 84.34.108 and 84.34.080 for removing land from classification as farm and agricultural land or open space farm and agricultural conservation land under chapter 84.34 RCW, except for each year the land remains classified as agricultural land with long-term commercial significance one year of the additional tax, penalty, and interest shall be abated. Additional tax, penalty, and interest shall not be imposed if the reclassified land remains classified as agricultural land with long-term commercial significance for at least seven years.

(b) Additional tax, penalty, and interest under this subsection is not due if the land is reclassified as farm and agricultural land or open space farm and agricultural conservation land under chapter 84.34 RCW immediately upon being removed from classification as agricultural land with long-term commercial significance.

NEW SECTION. Sec. 4. The provisions of RCW 84.34.300 through 84.34.380, relating to exemptions from special benefit assessments, apply to agricultural land with long-term commercial significance.

NEW SECTION. Sec. 5. The department shall adopt rules consistent with this chapter as are necessary or desirable to permit the effective administration of this chapter.

Sec. 6. RCW 84.34.070 and 1992 c 69 s 10 are each amended to read as follows:

(1) When land has once been classified under this chapter, it shall remain under such classification and shall not be applied to other use except as provided by subsection (2) of this section for at least ten years from the date of classification and shall continue under such classification until and unless withdrawn from classification after notice of request for withdrawal shall be made by the owner. During any year after eight years of the initial ten-year classification period have elapsed, notice of request for withdrawal of all or a portion of the land may be given by the owner to the assessor or assessors of the county or counties in which such land is situated. In the event that a portion of a parcel is removed from classification, the remaining portion must meet the same requirements as did the entire parcel when such land was originally granted classification pursuant to this chapter unless the remaining parcel has different income criteria. Within seven days the assessor shall transmit one copy of such notice to the legislative body which originally approved the application. The assessor or assessors, as the case may be, shall, when two assessment years have elapsed following the date of receipt of such notice, withdraw such land from such classification and the land shall be subject to the additional tax and applicable interest due under RCW 84.34.108. Agreement to tax according to use shall not be considered to be a contract and can be abrogated at any time by the legislature in which event no additional tax or penalty shall be imposed.

(2) The following reclassifications are not considered withdrawals or removals and are not subject to additional tax under RCW 84.34.108:

(a) Reclassification between lands under RCW 84.34.020 (2) and (3);

(b) Reclassification of land classified under RCW 84.34.020 (2) or (3) or chapter 84.33 RCW to open space land under RCW 84.34.020(1);

(c) Reclassification of land classified under RCW 84.34.020 (2) or (3) to forest land classified under chapter 84.33 RCW; ((~~and~~))

(d) Reclassification of farm and agricultural land classified under RCW 84.34.020(2), or open space farm and agricultural conservation land classified under RCW 84.34.020(1)(c), to agricultural land of long-term commercial significance under section 2 of this act; and

(e) Reclassification of land classified as open space land under RCW 84.34.020(1)(c) and reclassified to farm and agricultural land under RCW 84.34.020(2) if the land had been previously classified as farm and agricultural land under RCW 84.34.020(2).

(3) Applications for reclassification shall be subject to applicable provisions of RCW 84.34.037, 84.34.035, 84.34.041, and chapter 84.33 RCW.

(4) The income criteria for land classified under RCW 84.34.020(2) (b) and (c) may be deferred for land being reclassified from land classified under RCW 84.34.020 (1)(c) or (3), or chapter 84.33 RCW into RCW 84.34.020(2) (b) or (c) for a period of up to five years from the date of reclassification.

Sec. 7. RCW 36.70B.230 and 1996 c 254 s 6 are each amended to read as follows:

By July 31, ((~~1997, a local government~~)) 1998, every county or city planning under RCW 36.70A.040 shall provide to the county assessor a copy of ((~~the local government's~~)) its comprehensive plan and development regulations in effect on July 1st of that year and shall thereafter provide any amendments to the plan and regulations that were adopted before July 31st of each following year. The plans and regulations provided to the assessor must include the agricultural land designated under RCW 36.70A.170 and the regulations adopted under RCW 36.70A.060 conserving the designated land.

A county or city that initially plans under RCW 36.70A.040 after the effective date of this section shall provide a copy of its comprehensive plan and development regulations to the county assessor by July 31st of the year immediately following the year the county or city initially became subject to RCW 36.70A.040.

NEW SECTION. Sec. 8. The following acts or parts of acts are each repealed:

(1) RCW 35.63.240 and 1996 c 254 s 3;

(2) RCW 35A.63.260 and 1996 c 254 s 4; and

(3) RCW 36.70.495 and 1996 c 254 s 5.

NEW SECTION. Sec. 9. RCW 36.70B.230, as amended by this act, is recodified as a new section in chapter 36.70A RCW.

NEW SECTION. Sec. 10. Sections 1 through 5 of this act constitute a new chapter in Title 84 RCW.