_____________________________________________
ENGROSSED SENATE BILL 5169
_____________________________________________| State of Washington | 62nd Legislature | 2011 Regular Session |
By Senators Rockefeller, Kilmer, and ShinRead first time 01/17/11. Referred to Committee on Economic Development, Trade & Innovation.
AN ACT Relating to encouraging economic development by exempting
certain counties from the forest land compensating tax; amending RCW
84.33.145; and reenacting and amending RCW 84.33.140.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 84.33.140 and 2009 c 354 s 2, 2009 c 255 s 3, and 2009
c 246 s 2 are each reenacted and amended to read as follows:
(1) When land has been designated as forest land under RCW
84.33.130, a notation of the designation ((shall)) must be made each
year upon the assessment and tax rolls. A copy of the notice of
approval together with the legal description or assessor's parcel
numbers for the land ((shall)) must, at the expense of the applicant,
be filed by the assessor in the same manner as deeds are recorded.
(2) In preparing the assessment roll as of January 1, 2002, for
taxes payable in 2003 and each January 1st thereafter, the assessor
((shall)) must list each parcel of designated forest land at a value
with respect to the grade and class provided in this subsection and
adjusted as provided in subsection (3) of this section. The assessor
((shall)) must compute the assessed value of the land using the same
assessment ratio applied generally in computing the assessed value of
other property in the county. Values for the several grades of bare
forest land ((shall be)) are as follows:
LAND
GRADE | OPERABILITY
CLASS | VALUES
PER ACRE |
| | 1 | $234 |
| 1 | 2 | 229 |
| | 3 | 217 |
| | 4 | 157 |
| | 1 | 198 |
| 2 | 2 | 190 |
| | 3 | 183 |
| | 4 | 132 |
| | 1 | 154 |
| 3 | 2 | 149 |
| | 3 | 148 |
| | 4 | 113 |
| | 1 | 117 |
| 4 | 2 | 114 |
| | 3 | 113 |
| | 4 | 86 |
| | 1 | 85 |
| 5 | 2 | 78 |
| | 3 | 77 |
| | 4 | 52 |
| | 1 | 43 |
| 6 | 2 | 39 |
| | 3 | 39 |
| | 4 | 37 |
| | 1 | 21 |
| 7 | 2 | 21 |
| | 3 | 20 |
| | 4 | 20 |
| 8 | | 1 |
(3) On or before December 31, 2001, the department ((shall)) must
adjust by rule under chapter 34.05 RCW, the forest land values
contained in subsection (2) of this section in accordance with this
subsection, and ((shall)) must certify the adjusted values to the
assessor who will use these values in preparing the assessment roll as
of January 1, 2002. For the adjustment to be made on or before
December 31, 2001, for use in the 2002 assessment year, the department
((shall)) must:
(a) Divide the aggregate value of all timber harvested within the
state between July 1, 1996, and June 30, 2001, by the aggregate harvest
volume for the same period, as determined from the harvester excise tax
returns filed with the department under RCW 84.33.074; and
(b) Divide the aggregate value of all timber harvested within the
state between July 1, 1995, and June 30, 2000, by the aggregate harvest
volume for the same period, as determined from the harvester excise tax
returns filed with the department under RCW 84.33.074; and
(c) Adjust the forest land values contained in subsection (2) of
this section by a percentage equal to one-half of the percentage change
in the average values of harvested timber reflected by comparing the
resultant values calculated under (a) and (b) of this subsection.
(4) For the adjustments to be made on or before December 31, 2002,
and each succeeding year thereafter, the same procedure described in
subsection (3) of this section ((shall)) must be followed using
harvester excise tax returns filed under RCW 84.33.074. However, this
adjustment ((shall)) must be made to the prior year's adjusted value,
and the five-year periods for calculating average harvested timber
values ((shall)) must be successively one year more recent.
(5) Land graded, assessed, and valued as forest land ((shall)) must
continue to be so graded, assessed, and valued until removal of
designation by the assessor upon the occurrence of any of the
following:
(a) Receipt of notice from the owner to remove the designation;
(b) Sale or transfer to an ownership making the land exempt from ad
valorem taxation;
(c) Sale or transfer of all or a portion of the land to a new
owner, unless the new owner has signed a notice of forest land
designation continuance, except transfer to an owner who is an heir or
devisee of a deceased owner, ((shall)) does not, by itself, result in
removal of designation. The signed notice of continuance ((shall))
must be attached to the real estate excise tax affidavit provided for
in RCW 82.45.150. The notice of continuance ((shall)) must be on a
form prepared by the department. If the notice of continuance is not
signed by the new owner and attached to the real estate excise tax
affidavit, all compensating taxes calculated under subsection (11) of
this section ((shall become)) are due and payable by the seller or
transferor at time of sale. The auditor ((shall)) may not accept an
instrument of conveyance regarding designated forest land for filing or
recording unless the new owner has signed the notice of continuance or
the compensating tax has been paid, as evidenced by the real estate
excise tax stamp affixed thereto by the treasurer. The seller,
transferor, or new owner may appeal the new assessed valuation
calculated under subsection (11) of this section to the county board of
equalization in accordance with the provisions of RCW 84.40.038.
Jurisdiction is hereby conferred on the county board of equalization to
hear these appeals;
(d) Determination by the assessor, after giving the owner written
notice and an opportunity to be heard, that:
(i) The land is no longer primarily devoted to and used for growing
and harvesting timber. However, land ((shall)) may not be removed from
designation if a governmental agency, organization, or other recipient
identified in subsection (13) or (14) of this section as exempt from
the payment of compensating tax has manifested its intent in writing or
by other official action to acquire a property interest in the
designated forest land by means of a transaction that qualifies for an
exemption under subsection (13) or (14) of this section. The
governmental agency, organization, or recipient ((shall)) must annually
provide the assessor of the county in which the land is located
reasonable evidence in writing of the intent to acquire the designated
land as long as the intent continues or within sixty days of a request
by the assessor. The assessor may not request this evidence more than
once in a calendar year;
(ii) The owner has failed to comply with a final administrative or
judicial order with respect to a violation of the restocking, forest
management, fire protection, insect and disease control, and forest
debris provisions of Title 76 RCW or any applicable rules under Title
76 RCW; or
(iii) Restocking has not occurred to the extent or within the time
specified in the application for designation of such land.
(6) Land ((shall)) may not be removed from designation if there is
a governmental restriction that prohibits, in whole or in part, the
owner from harvesting timber from the owner's designated forest land.
If only a portion of the parcel is impacted by governmental
restrictions of this nature, the restrictions cannot be used as a basis
to remove the remainder of the forest land from designation under this
chapter. For the purposes of this section, "governmental restrictions"
includes: (a) Any law, regulation, rule, ordinance, program, or other
action adopted or taken by a federal, state, county, city, or other
governmental entity; or (b) the land's zoning or its presence within an
urban growth area designated under RCW 36.70A.110.
(7) The assessor ((shall have)) has the option of requiring an
owner of forest land to file a timber management plan with the assessor
upon the occurrence of one of the following:
(a) An application for designation as forest land is submitted; or
(b) Designated forest land is sold or transferred and a notice of
continuance, described in subsection (5)(c) of this section, is signed.
(8) If land is removed from designation because of any of the
circumstances listed in subsection (5)(a) through (c) of this section,
the removal ((shall apply)) applies only to the land affected. If land
is removed from designation because of subsection (5)(d) of this
section, the removal ((shall apply)) applies only to the actual area of
land that is no longer primarily devoted to the growing and harvesting
of timber, without regard to any other land that may have been included
in the application and approved for designation, as long as the
remaining designated forest land meets the definition of forest land
contained in RCW 84.33.035.
(9) Within thirty days after the removal of designation as forest
land, the assessor ((shall)) must notify the owner in writing, setting
forth the reasons for the removal. The seller, transferor, or owner
may appeal the removal to the county board of equalization in
accordance with the provisions of RCW 84.40.038.
(10) Unless the removal is reversed on appeal a copy of the notice
of removal with a notation of the action, if any, upon appeal, together
with the legal description or assessor's parcel numbers for the land
removed from designation ((shall)) must, at the expense of the
applicant, be filed by the assessor in the same manner as deeds are
recorded and a notation of removal from designation ((shall)) must
immediately be made upon the assessment and tax rolls. The assessor
((shall)) must revalue the land to be removed with reference to its
true and fair value as of January 1st of the year of removal from
designation. Both the assessed value before and after the removal of
designation ((shall)) must be listed. Taxes based on the value of the
land as forest land ((shall be)) are assessed and payable up until the
date of removal and taxes based on the true and fair value of the land
((shall be)) are assessed and payable from the date of removal from
designation.
(11) Except as provided in subsection (5)(c), (13), or (14) of this
section, a compensating tax ((shall be)) is imposed on land removed
from designation as forest land. The compensating tax ((shall be)) is
due and payable to the treasurer thirty days after the owner is
notified of the amount of this tax. As soon as possible after the land
is removed from designation, the assessor ((shall)) must compute the
amount of compensating tax and mail a notice to the owner of the amount
of compensating tax owed and the date on which payment of this tax is
due. The amount of compensating tax ((shall be)) is equal to the
difference between the amount of tax last levied on the land as
designated forest land and an amount equal to the new assessed value of
the land multiplied by the dollar rate of the last levy extended
against the land, multiplied by a number, in no event greater than
nine, equal to the number of years for which the land was designated as
forest land, plus compensating taxes on the land at forest land values
up until the date of removal and the prorated taxes on the land at true
and fair value from the date of removal to the end of the current tax
year.
(12) Compensating tax, together with applicable interest thereon,
((shall)) becomes a lien on the land, which ((shall attach)) attaches
at the time the land is removed from designation as forest land and
((shall have)) has priority ((to)) and ((shall)) must be fully paid and
satisfied before any recognizance, mortgage, judgment, debt,
obligation, or responsibility to or with which the land may become
charged or liable. The lien may be foreclosed upon expiration of the
same period after delinquency and in the same manner provided by law
for foreclosure of liens for delinquent real property taxes as provided
in RCW 84.64.050. Any compensating tax unpaid on its due date
((shall)) will thereupon become delinquent. From the date of
delinquency until paid, interest ((shall be)) is charged at the same
rate applied by law to delinquent ad valorem property taxes.
(13) The compensating tax specified in subsection (11) of this
section ((shall)) may not be imposed if the removal of designation
under subsection (5) of this section resulted solely from:
(a) Transfer to a government entity in exchange for other forest
land located within the state of Washington;
(b) A taking through the exercise of the power of eminent domain,
or sale or transfer to an entity having the power of eminent domain in
anticipation of the exercise of such power;
(c) A donation of fee title, development rights, or the right to
harvest timber, to a government agency or organization qualified under
RCW 84.34.210 and 64.04.130 for the purposes enumerated in those
sections, or the sale or transfer of fee title to a governmental entity
or a nonprofit nature conservancy corporation, as defined in RCW
64.04.130, exclusively for the protection and conservation of lands
recommended for state natural area preserve purposes by the natural
heritage council and natural heritage plan as defined in chapter 79.70
RCW or approved for state natural resources conservation area purposes
as defined in chapter 79.71 RCW. At such time as the land is not used
for the purposes enumerated, the compensating tax specified in
subsection (11) of this section ((shall be)) is imposed upon the
current owner;
(d) The sale or transfer of fee title to the parks and recreation
commission for park and recreation purposes;
(e) Official action by an agency of the state of Washington or by
the county or city within which the land is located that disallows the
present use of the land;
(f) The creation, sale, or transfer of forestry riparian easements
under RCW 76.13.120;
(g) The creation, sale, or transfer of a conservation easement of
private forest lands within unconfined channel migration zones or
containing critical habitat for threatened or endangered species under
RCW 76.09.040;
(h) The sale or transfer of land within two years after the death
of the owner of at least a fifty percent interest in the land if the
land has been assessed and valued as classified forest land, designated
as forest land under this chapter, or classified under chapter 84.34
RCW continuously since 1993. The date of death shown on a death
certificate is the date used for the purposes of this subsection
(13)(h); or
(i)(i) The discovery that the land was designated under this
chapter in error through no fault of the owner. For purposes of this
subsection (13)(i), "fault" means a knowingly false or misleading
statement, or other act or omission not in good faith, that contributed
to the approval of designation under this chapter or the failure of the
assessor to remove the land from designation under this chapter.
(ii) For purposes of this subsection (13), the discovery that land
was designated under this chapter in error through no fault of the
owner is not the sole reason for removal of designation under
subsection (5) of this section if an independent basis for removal
exists. An example of an independent basis for removal includes the
land no longer being devoted to and used for growing and harvesting
timber.
(14) In a county with a population of more than six hundred
thousand inhabitants or in a county with a population of at least two
hundred forty-five thousand inhabitants that borders Puget Sound as
defined in RCW 90.71.010, the compensating tax specified in subsection
(11) of this section ((shall)) may not be imposed if the removal of
designation as forest land under subsection (5) of this section
resulted solely from:
(a) An action described in subsection (13) of this section; or
(b) A transfer of a property interest to a government entity, or to
a nonprofit historic preservation corporation or nonprofit nature
conservancy corporation, as defined in RCW 64.04.130, to protect or
enhance public resources, or to preserve, maintain, improve, restore,
limit the future use of, or otherwise to conserve for public use or
enjoyment, the property interest being transferred. At such time as
the property interest is not used for the purposes enumerated, the
compensating tax ((shall be)) is imposed upon the current owner.
Sec. 2 RCW 84.33.145 and 2009 c 354 s 4 are each amended to read
as follows:
(1) If no later than thirty days after removal of designation the
owner applies for classification under RCW 84.34.020 (1), (2), or (3),
then the designated forest land ((shall)) may not be considered removed
from designation for purposes of the compensating tax under RCW
84.33.140 until the application for current use classification under
chapter 84.34 RCW is denied or the property is removed from
classification under RCW 84.34.108. Upon removal of classification
under RCW 84.34.108, the amount of compensating tax due under this
chapter ((shall be)) is equal to:
(a) The difference, if any, between the amount of tax last levied
on the land as designated forest land and an amount equal to the new
assessed valuation of the land when removed from classification under
RCW 84.34.108 multiplied by the dollar rate of the last levy extended
against the land, multiplied by
(b) A number equal to:
(i) The number of years the land was designated under this chapter,
if the total number of years the land was designated under this chapter
and classified under chapter 84.34 RCW is less than ten; or
(ii) Ten minus the number of years the land was classified under
chapter 84.34 RCW, if the total number of years the land was designated
under this chapter and classified under chapter 84.34 RCW is at least
ten.
(2) Nothing in this section authorizes the continued designation
under this chapter or defers or reduces the compensating tax imposed
upon forest land not transferred to classification under subsection (1)
of this section which does not meet the definition of forest land under
RCW 84.33.035. Nothing in this section affects the additional tax
imposed under RCW 84.34.108.
(3) In a county with a population of more than six hundred thousand
inhabitants or in a county with a population of at least two hundred
forty-five thousand inhabitants that borders Puget Sound as defined in
RCW 90.71.010, no amount of compensating tax is due under this section
if the removal from classification under RCW 84.34.108 results from a
transfer of property described in RCW 84.34.108(6).
--- END ---