BILL REQ. #:  S-3713.1 

Read first time 01/12/2006.   Referred to Committee on Agriculture & Rural Economic Development.

     AN ACT Relating to a property tax exemption for land used for growing agricultural crops used in the production of biodiesel feedstock; and adding a new section to chapter 84.36 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 84.36 RCW to read as follows:
     (1) Land used for growing agricultural crops used in the production of biodiesel feedstock is exempt from the state property tax levied in RCW 84.52.065, to the extent provided in subsection (2) of this section, if the assessed value of the land is determined pursuant to chapter 84.34 RCW.
     (2)(a) Land used primarily for growing agricultural crops used in the production of biodiesel feedstock is exempt from the state property tax levied in RCW 84.52.065.
     (b) For land used to primarily grow agricultural crops, including crops used in the production of biodiesel feedstock, and such crops are grown on a rotational basis, the value of the land exempt from the state property tax levied in RCW 84.52.065 is the assessed value of the land multiplied by a fraction. The fraction is equal to one divided by the number of different crops in the rotational cycle, unless the rotational cycle is less than one year in which case the fraction is equal to one.
     (c) For land used to primarily grow agricultural crops and several different types of crops are grown at the same time at various locations on the land, the value of the land exempt from the state property tax levied in RCW 84.52.065 is the assessed value of the land multiplied by a fraction. The numerator of this fraction is the value of the agricultural crops sold for use in the production of biodiesel feedstock, for the previous calendar year. The denominator of this fraction is the value of all agricultural crops grown on the land, for the previous calendar year. A person taking an exemption under this subsection (2)(c) shall report the value of agricultural crops sold the previous calendar year to the county assessor by February 1 of each calendar year in which the exemption will be taken. A person taking an exemption under this subsection (2)(c) must initially apply for the exemption in the preceding calendar year.
     (3) Claims for exemption under this section, including the annual reporting of the value of agricultural crops for persons taking an exemption under subsection (2)(c) of this section, shall be filed with the county assessor on forms prescribed by the department and furnished by the assessor. The assessor shall verify and approve claims as the assessor determines to be justified and in accordance with this section. An initial claim for exemption under this section shall be for taxes due and payable in the year following the year in which the claim is filed.
     (4) The department may adopt rules necessary to administer this section.
     (5) For the purposes of this section, "biodiesel feedstock" has the same meaning as provided in RCW 84.36.635.