Source: http://lawfilesext.leg.wa.gov/law/wsr/2009/14/09-14-137.htm
Timestamp: 2020-03-30 14:36:24
Document Index: 561361222

Matched Legal Cases: ['§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458', '§ 458']

WSR 09-14-137
[ Filed July 1, 2009, 11:28 a.m. ]
Title of Rule and Other Identifying Information: WAC 458-16-280 Art, scientific, and historical collections, 458-16-282 Musical, dance, artistic, dramatic and literary associations, 458-19-070 Procedure to adjust consolidated levy rate for taxing districts when the statutory aggregate dollar rate limit is exceeded, 458-19-075 Constitutional one percent limit calculation, 458-30-230 Application for open space classification, 458-30-232 Application for timber land classification, 458-30-295 Removal of classification, 458-30-300 Additional tax -- Withdrawal or removal from classification, and 458-30-700 Designated forest land -- Removal -- Change in status -- Compensating tax.
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Kim M. Qually, Department of Revenue, P.O. Box 47467, Olympia, WA 98504-7467, fax (360) 664-0693, e-mail kimq@dor.wa.gov , AND RECEIVED BY August 31, 2009.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department is proposing to amend these to reflect the current content of the underlying statutes.
• WAC 458-16-280 and 458-16-282, which describe the property tax exemptions for art, scientific, and historical collections and for musical, dance, artistic, dramatic, and literary associations, are being amended to incorporate changes in the authorizing statute. The changes to RCW 84.36.060 allow the exempt property to be used by entities not entitled to receive a property tax exemption.
• WAC 458-19-070 and 458-19-075, which outline the process used in prorationing property tax levies under RCW 84.52.043 and 84.52.010, are being updated to include new property tax levies and the correct order for prorationing property tax levies.
• Recent changes to RCW 84.34.037 and 84.34.041 require the amendment of WAC 458-30-230 and 458-30-232 because there is a new procedure that may be used when classifying land as open space land under RCW 84.34.037 and timber land under RCW 84.34.041.
• WAC 458-30-295 and 458-30-300 are being amended because of recent legislative changes to RCW 84.34.108, regarding the removal of land from classification under chapter 84.34 RCW, and to RCW 84.33.140 and 84.33.145, regarding the removal of land from designation under chapter 84.33 RCW.
Reasons Supporting Proposal: The statutes authorizing these rules have been amended. RCW 84.36.060, interpreted in WAC 458-16-280 and 458-16-282, was amended by section 1, chapter 58, Laws of 2009, and section 1, chapter 121, Laws of 2003. RCW 84.52.043, interpreted in WAC 458-19-070, was amended by section 6, chapter 551, Laws of 2009. RCW 84.52.010, interpreted in WAC 458-19-075, was amended by section 7, chapter 551, Laws of 2009 and section 26, chapter 54, Laws of 2007. RCW 84.34.037, interpreted in WAC 458-30-230, was amended by section 13, chapter 350, Laws of 2009. RCW 84.34.041, interpreted in WAC 458-30-232, was amended by section 14, chapter 350, Laws of 2009. RCW 84.34.108, interpreted in WAC 458-30-295 and 458-30-300, was amended by sections 2 and 3, chapter 246, Laws of 2009, section 2, chapter 255, Laws of 2009, section 3, chapter 354, Laws of 2009, section 2, chapter 513, Laws of 2009, section 25, chapter 54, Laws of 2007, and section 6, chapter 170, Laws of 2003. RCW 84.33.140 and 84.33.145, interpreted in WAC 458-30-700, were amended by section 2, chapter 246, Laws of 2009, section 3, chapter 255, Laws of 2009, and sections 2 and 4, chapter 354, Laws of 2009. The rules are being amended to reflect the current text of the underlying statutes.
Statutory Authority for Adoption: RCW 84.08.070, 84.34.141, 84.36.865, 84.52.0502.
Statute Being Implemented: RCW 84.33.140, 84.33.145, 84.34.037, 84.34.041, 84.34.108, 84.36.060, 84.52.043, 84.52.010.
Name of Agency Personnel Responsible for Drafting: Kim M. Qually, 1025 Union Avenue S.E., Suite #400, Olympia, WA, (360) 570-6113; Implementation and Enforcement: Brad Flaherty, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5860.
OTS-2454.1
AMENDATORY SECTION(Amending WSR 99-18-008, filed 8/19/99, effective 9/19/99)
WAC 458-16-280 Art, scientific, and historical collections. (1) Introduction. This section explains the property tax exemption available under the provisions of RCW 84.36.060 to art, scientific, or historical collections.
(3) Exemption for existing property. All art, scientific, or historical collections owned by associations maintaining and exhibiting the collections to the general public and not for profit, together with all real and personal property owned by these associations and used exclusively to secure, maintain, and exhibit the collections, shall be exempt from taxation under the following conditions:
(b) The organization, association, or corporation organized and operated for artistic, scientific, or historical purposes must receive a substantial part of its income from a governmental entity or through direct or indirect contributions of money, real or personal property, or services from the general public. Admission or entrance fees derived from exercising or performing its purpose or function shall not be included within the figures used to calculate "a substantial part" of the organization's, association's, or corporation's income.
(a) Acceptable proof of a specific and active building or remodeling program shall include, but is not limited to, the following items:
(b) Property under construction shall not qualify for exemption during this interim period if the property is used by, loaned to, or rented to a for-profit organization or business enterprise.
(5) Use of exempt property by entities not entitled to a property tax exemption. As a general rule, exempt property may not be used by an entity not entitled to receive a property tax exemption under this chapter. The use of exempt property by an ineligible entity will nullify the exemption for the assessment year. However, the property exemption will not be nullified if:
(6) Additional requirements. Any organization, association, or corporation ((that applies)) applying for a property tax exemption under this section must also comply with the provisions of WAC 458-16-165. WAC 458-16-165 sets forth additional conditions and requirements that must be complied with to obtain a property tax exemption pursuant to RCW 84.36.060.
[Statutory Authority: RCW 84.36.865 and 84.36.060. 99-18-008, § 458-16-280, filed 8/19/99, effective 9/19/99. Statutory Authority: RCW 84.08.010, 84.08.070 and chapter 84.36 RCW. 94-07-008, § 458-16-280, filed 3/3/94, effective 4/3/94. Statutory Authority: RCW 84.36.865. 86-12-034 (Order PT 86-2), § 458-16-280, filed 5/30/86; 85-05-025 (Order PT 85-1), § 458-16-280, filed 2/15/85; 81-21-009 (Order PT 81-13), § 458-16-280, filed 10/8/81; Order PT 77-2, § 458-16-280, filed 5/23/77; Order PT 76-2, § 458-16-280, filed 4/7/76. Formerly WAC 458-12-235.]
WAC 458-16-282 Musical, dance, artistic, dramatic and literary associations. (1) Introduction. This section explains the property tax exemption available under the provisions of RCW 84.36.060 to organizations, associations, or corporations engaged in the production and performance of musical, dance, artistic, dramatic, or literary works.
(3) Exemption. All real and personal property owned by or leased to a nonprofit organization, association, or corporation engaged in the production and performance of musical, dance, artistic, dramatic, or literary works for the benefit of the general public and not for profit shall be exempt from taxation under the following conditions:
(c) The organization, association, or corporation organized and operated for musical, dance, artistic, dramatic, literary, or educational purposes must receive a substantial portion of its income from a governmental entity or from direct or indirect contributions of money, real or personal property, or services from the general public. Admission or entrance fees derived from producing or performing musical, dance, artistic, dramatic, literary, or educational works shall not be included within the figures used to calculate "a substantial part" of the organization's, association's or corporation's income.
(ii) Any organization that relies on services donated by the general public for a substantial portion of its support must maintain records identifying the individuals who donate their services and the number of hours they donate. The value of donated time will be calculated by using the federal minimum wage standard.
(4) Exemption for property under construction or soon to be used for an exempt purpose. Property that is being constructed, remodeled, or otherwise prepared to be used by associations engaged in the production and performance of musical, dance, artistic, dramatic, literary, or educational works, may qualify for exemption under certain circumstances. A nonprofit organization, association, or corporation seeking an exemption for property not currently being used for an exempt purpose, may qualify if the property will be used for an exempt purpose within a reasonable period of time and proof is submitted that a reasonably specific and active program is being carried out to enable the property to be used by associations engaged in the production and performance of musical, dance, artistic, dramatic, literary, or educational works.
[Statutory Authority: RCW 84.36.865 and 84.36.060. 99-18-008, § 458-16-282, filed 8/19/99, effective 9/19/99. Statutory Authority: RCW 84.08.010, 84.08.070 and chapter 84.36 RCW. 94-07-008, § 458-16-282, filed 3/3/94, effective 4/3/94. Statutory Authority: RCW 84.36.865. 86-12-034 (Order PT 86-2), § 458-16-282, filed 5/30/86; 85-05-025 (Order PT 85-1), § 458-16-282, filed 2/15/85; 81-21-010 (Order PT 81-14), § 458-16-282, filed 10/8/81.]
OTS-2455.1
AMENDATORY SECTION(Amending WSR 06-02-008, filed 12/22/05, effective 1/22/06)
WAC 458-19-070 Procedure to adjust consolidated levy rate for taxing districts when the statutory aggregate dollar rate limit is exceeded. (1) Introduction. The aggregate of all regular levy rates of junior taxing districts and senior taxing districts, other than the state and other specifically identified districts, cannot exceed five dollars and ninety cents per thousand dollars of assessed value in accordance with RCW 84.52.043. When the county assessor finds that this limit has been exceeded, the assessor recomputes the levy rates and establishes a new consolidated levy rate in the manner set forth in RCW 84.52.010. This ((rule)) section describes the prorationing process used to establish a consolidated levy rate when the assessor finds the statutory aggregate levy rate exceeds five dollars and ninety cents. If prorationing is required, the five dollar and ninety cents limit is reviewed before the constitutional one percent limit.
(d) Levies ((for financing affordable housing for very low-income households under RCW 84.52.105;
(f) Levies for criminal justice purposes under RCW 84.52.135;
(g) Levies for emergency medical care or emergency medical services under RCW 84.52.069;
(h) Levies by or for county ferry districts under RCW 36.54.130;
(i) The portion of fire protection district levies protected under RCW 84.52.125; and
(j) The portion of metropolitan park district levies protected under RCW 84.52.120)) by or for county ferry districts under RCW 36.54.130;
(j) Levies for criminal justice purposes under RCW 84.52.135; and
(k) Levies for transit-related purposes by a county with a population of one million five hundred thousand or more under section 5, chapter 551, Laws of 2009.
As opposed to the order contained in RCW 84.52.010, which lists the taxing districts that are the first to have their levy rates reduced or eliminated, this ((rule)) section is written in reverse order; that is, it lists the taxing districts that must be first either fully or partially funded. If the statutory aggregate dollar rate is exceeded, then the levy rates for taxing districts within a particular tier must be reduced or eliminated on a pro rata basis. The proration factor, which is multiplied by each levy rate within the tier, is obtained by dividing the dollar rate remaining available to the taxing districts in that tier as a group by the sum of the levy rates originally certified by or for all of the taxing districts within the tier.
(g) Step seven: Subtract from the remaining levy capacity the levy rate, if any, for flood control zone districts under RCW 86.15.160.
(h) Step eight: Subtract from the remaining levy capacity the levy rates, if any, for city transportation authorities under RCW 35.95A.100, park and recreation service areas under RCW 36.68.525, park and recreation districts under RCW 36.69.145, and cultural arts, stadium, and convention districts under RCW 67.38.130((, park and recreation districts under RCW 36.69.145, and park and recreation service areas under RCW 36.68.525)) on a pro rata basis until the remaining levy capacity equals zero.
DISTRICT ORIGINAL LEVY RATE PRORATION FACTOR FINAL LEVY RATE REMAINING LEVY CAPACITY
County Road 1.8000
2.2500 NONE
NONE 1.8000
Hospital .5000
.5000 NONE
NONE .5000
Fire .2000 NONE .2000 .150
Hospital .1125
.2500 .4138
.4138 .0466
Totals 6.1125 5.90
[Statutory Authority: RCW 84.52.010, 84.52.043, and 84.52.0502. 06-02-008, § 458-19-070, filed 12/22/05, effective 1/22/06. Statutory Authority: RCW 84.08.010, 84.08.070, 84.48.080, 84.55.060, 84.52.0502, chapters 84.52 and 84.55 RCW, and RCW 34.05.230(1). 02-24-015, § 458-19-070, filed 11/25/02, effective 12/26/02. Statutory Authority: RCW 84.55.060 and 84.08.070. 94-07-066, § 458-19-070, filed 3/14/94, effective 4/14/94.]
WAC 458-19-075 Constitutional one percent limit calculation. (1) Introduction. The total amount of all regular property tax levies that can be applied against taxable property is limited to one percent of the true and fair value of the property in money. The one percent limit is stated in Article VII, section 2 of the state Constitution and the enabling statute, RCW 84.52.050. The constitutional one percent limit is based upon the amount of taxes actually levied on the true and fair value of the property, not the dollar rate used in computing property taxes. This ((rule)) section explains how to determine if the constitutional one percent limit is being exceeded and the sequence in which levy rates will be reduced or eliminated in accordance with RCW 84.52.010 if the constitutional one percent limit is exceeded. The constitutional one percent calculation is made after the assessor ensures that the statutory aggregate dollar rate limit is not exceeded.
(a) First, add all the regular levy rates, except the rates for port and public utility districts, in the tax code area, to arrive at a combined levy rate for that tax code area. "Regular levy rates" in this context means the levy rates that remain after prorationing under RCW 84.52.043 has occurred. The levy rates for port and public utility districts are not included in this computation because they are not subject to the constitutional one percent limit. The following regular levy rates are used to calculate the combined levy rate of any particular tax code area:
(ii) ((The levy rate for financing affordable housing for very low-income households under RCW 84.52.105;
(iii) The levy rate for acquiring conservation futures under RCW 84.34.230;
(iv) The levy rate for criminal justice purposes under RCW 84.52.135;
(v) The levy rate for emergency medical care or emergency medical services under RCW 84.52.069;
(vi) The levy rate by or for county ferry districts under RCW 36.54.130;
(vii) The levy rate for the portion of fire protection district levies protected under RCW 84.52.125; and
(viii) The levy rate for the portion of metropolitan park district levies protected under RCW 84.52.120)) Levies by or for county ferry districts under RCW 36.54.130;
(viii) Levies for criminal justice purposes under RCW 84.52.135; and
(ix) The levy rate for transit-related purposes by a county with a population of one million five hundred thousand or more under section 5, chapter 551, Laws of 2009.
(3) Prorationing - constitutional one percent limit. RCW 84.52.010 sets forth the prorationing order in which levy rates are to be reduced or eliminated when the constitutional one percent limit is exceeded. The order contained in this statute begins with the taxing districts that are the first to have their levy rates either reduced or eliminated. Taxing districts that are at the same level within the prorationing order are grouped together in tiers. Levy rates are reduced or eliminated on a pro rata basis within each tier of taxing district levies until the combined levy rate no longer exceeds one percent of the true and fair value of property.
If the constitutional one percent limit is exceeded, the following levies are to be reduced or eliminated in the following order until the combined levy rate no longer exceeds the maximum effective levy rate:
(a) The levy rate for transit-related purposes by a county with a population of one million five hundred thousand or more under section 5, chapter 551, Laws of 2009;
(((b))) (c) The levy rate for criminal justice purposes imposed under RCW 84.52.135;
(((c))) (d) The levy rate for county ferry districts under RCW 36.54.130;
(((d))) (e) The ((twenty-five cents per thousand dollars of assessed value)) levy rate for metropolitan park districts protected under RCW 84.52.120;
(((e))) (f) The levy rates for levies used for acquiring conservation futures under RCW 84.34.230, financing affordable housing for very low-income households under RCW 84.52.105, ((acquiring conservation futures under RCW 84.34.230,)) and any portion of a levy rate for emergency medical care or emergency medical services under RCW 84.52.069 in excess of thirty cents per thousand dollars of assessed value are reduced on a pro rata basis or eliminated;
(((f))) (g) The levy rate for the first thirty cents per thousand dollars for emergency medical care or emergency medical services under RCW 84.52.069;
(((g))) (h) The levy rates for city transportation authorities under RCW 35.95A.100, park and recreation service areas under RCW 36.68.525, park and recreation districts under RCW 36.69.145, and cultural arts, stadium, and convention districts under RCW 67.38.130((, park and recreation districts under RCW 36.69.145, and park and recreation service areas under RCW 36.68.525)) are reduced on a pro rata basis or eliminated;
(((h))) (i) The levy rate for flood control zone districts under RCW 86.15.160;
(((i))) (j) The levy rates for all other junior taxing districts, except fire protection districts under RCW 52.16.140 and 52.16.160, regional fire protection service authorities under RCW 52.26.140, library districts under RCW 27.12.050 and 27.12.150, and the first fifty cents per thousand dollars of assessed value for metropolitan park districts under RCW 84.52.120 and for public hospital districts under RCW 70.44.060(6) are reduced on a pro rata basis or eliminated;
(((j))) (k) The levy rate of the first fifty cents per thousand dollars of assessed value for metropolitan park districts created on or after January 1, 2002 under RCW 35.61.210;
(((k))) (l) The levy rates for fire protection districts under RCW 52.16.140 and 52.16.160, and regional fire protection service authorities under RCW 52.26.140 (1)(b) and (c) are reduced on a pro rata basis or eliminated;
(((l))) (m) The levy rates for fire protection ((districts)) service authorities under RCW 52.16.130, regional fire protection districts under RCW 52.26.140 (1)(a), library districts under RCW 27.12.050 and 27.12.150, the first fifty cents per thousand dollars of assessed value for metropolitan park districts created before January 1, 2002, under RCW 35.61.210, and ((the levy rate for first fifty cents per thousand dollars of assessed value)) for public hospital districts under RCW 70.44.060(6) ((and for metropolitan park districts under RCW 35.61.210 created before January 1, 2002,)) are reduced on a pro rata basis or eliminated;
(((m))) (n) The levy rates for the county, county road district, and ((a)) for city or town purposes are reduced on a pro rata basis or eliminated; and
(((n))) (o) The levy rate for the state for the support of common schools.
[Statutory Authority: RCW 84.52.010, 84.52.043, and 84.52.0502. 06-02-008, § 458-19-075, filed 12/22/05, effective 1/22/06. Statutory Authority: RCW 84.08.010, 84.08.070, 84.48.080, 84.55.060, 84.52.0502, chapters 84.52 and 84.55 RCW, and RCW 34.05.230(1). 02-24-015, § 458-19-075, filed 11/25/02, effective 12/26/02. Statutory Authority: RCW 84.55.060 and 84.08.070. 94-07-066, § 458-19-075, filed 3/14/94, effective 4/14/94.]
OTS-2456.2
AMENDATORY SECTION(Amending WSR 95-21-002, filed 10/4/95, effective 11/4/95)
WAC 458-30-230 Application for open space classification. (1) Introduction. This section explains the application process for an applicant who seeks to have land classified or reclassified as open space land under RCW 84.34.020(1).
(2) Where to submit. An application for classification or reclassification of land as open space shall be made to the county legislative authority of the county in which the land is located.
(3) Granting authority. The identity of the entity that will act as the granting authority shall be determined by the location of the land the applicant seeks to classify or reclassify as open space land. The granting authority shall be determined as follows:
(a) If the parcel(s) of land is located in an unincorporated area of the county, the county legislative authority shall be the granting authority.
(b) If the parcel(s) of land is located in an incorporated area of the county, a copy of the application for classification or reclassification shall be forwarded to the city legislative authority in which the land is located. ((The)) Applications must be acted upon by:
(i) A granting authority ((shall be)) composed of three members of the county legislative authority and three members of the city legislative authority in a meeting where members may be physically absent but participating through a telephonic connection; or
(4) Application process. An application for classification or reclassification of a parcel(s) of land as open space land shall be processed as follows:
(a) Comprehensive land use plan. The granting authority shall determine whether or not the land is located in an area designated as "open space" by an official comprehensive land use plan adopted by a city or county and zoned accordingly.
(i) If the land is in an area subject to a comprehensive plan, the application for classification or reclassification shall be treated in the same manner as a proposed amendment to that plan.
(ii) If the land is in an area not subject to a comprehensive plan, a public hearing on the application shall be conducted. A notice of this hearing shall be announced once by publication in a newspaper of general circulation in the region, city, or county at least ten days before the hearing. The owner who submitted the application for classification or reclassification that is the subject of the public hearing shall be notified in writing of the date, time, and location of this hearing.
(b) Factors to consider. In determining whether an application for classification or reclassification as open space land should be approved, the granting authority:
(i) May take particular notice of the benefits to the general welfare of preserving the current use of the parcel(s) of land described in the application; and
(ii) Shall consider the following:
(A) The revenue loss or tax shift that will result from granting the application;
(B) Whether granting the application for classification or reclassification of land under RCW 84.34.020 (1)(b) will:
(I) Conserve or enhance natural, cultural, or scenic resources;
(II) Protect streams, stream corridors, wetlands, natural shorelines, and aquifers;
(III) Protect soil resources, unique or critical wildlife, and native plant habitat;
(IV) Promote conservation principles by example or by offering educational opportunities;
(V) Enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations or sanctuaries, or other open spaces;
(VI) Enhance recreation opportunities;
(VII) Preserve historic and archaeological sites;
(VIII) Preserve visual quality along highway, road, and street corridors or scenic vistas; or
(IX) Affect any other factors relevant in weighing benefits to the general welfare of preserving the current use of the land; and
(C) Whether granting the application for classification or reclassification of land as farm and agricultural conservation land (RCW 84.34.020 (1)(c)) will:
(I) Either preserve land previously classified as farm and agricultural land under RCW 84.34.020(2) or preserve traditional farmland not classified under chapter 84.33 or 84.34 RCW;
(II) Preserve land with a potential for returning to commercial agriculture; and
(III) Affect any other factors relevant in weighing general benefits of preserving the current use of the property.
(iii) In addition to the foregoing concerns, the granting authority shall consider:
(A) The existence of any mining claim or mining lease on the land, and if such a claim or lease will seriously interfere with the considerations stated in (b)(i) and (ii) of this subsection. If the granting authority determines serious interference will occur, it may deny the application in whole or in part. If a mining claim or mining lease is obtained after the land is classified or reclassified, the same determination must be made in deciding whether serious interference will occur; and
(B) The zoning of the parcel(s) of land at the time the application for classification or reclassification is filed.
(5) Approval or denial of application. The granting authority shall either approve or disapprove the application within six months of the date the completed application was received by the county legislative authority.
(b) In approving the application in whole or in part, the granting authority may also require that certain conditions be met including, but not limited to, the granting of easements. As a condition of granting an application for open space classification, the granting authority may not require public access on land classified under RCW 84.34.020 (1)(b)(iii) to promote the conservation of wetlands.
(c) If approved, valuation of the land at its current use value shall begin on January 1 of the year following the year the application was filed. However, any application approved on or after July 1 of any year shall cause the land to be listed on the assessment roll at its current use value on January 1 of the following assessment year.
(d) When the application for classification or reclassification as open space has been approved, the granting authority shall prepare an agreement. See WAC 458-30-240 for a detailed description of this agreement.
(e) The granting or denial of an application for classification or reclassification as open space land is a legislative determination and shall be reviewable only for arbitrary and capricious actions.
(6) Public benefit rating system. When an application for classification or reclassification under RCW 84.34.020 (1)(b) and (c) is submitted regarding land that is subject to a public benefit rating system adopted under RCW 84.34.055, the county legislative authority shall rate the parcel(s) of land in accordance with the public benefit rating system to determine whether the application should be approved or denied.
Land that was classified under RCW 84.34.020 (1)(b) or (c) prior to the adoption of a public benefit rating system does not have to requalify for classification under the criteria of the public benefit rating system. The land shall not be removed from classification by an assessor. This land may be rated according to the public benefit rating system as appropriate. (See WAC 458-30-330((, 458-30-335, and 458-30-340)) for more information about the public benefit rating system.)
(7) Record retention. The granting authority shall keep a record of each application, agreement, and records relating to each agreement.
[Statutory Authority: RCW 84.08.110, 84.08.070, 84.34.141 and 84.34.360. 95-21-002, § 458-30-230, filed 10/4/95, effective 11/4/95. Statutory Authority: RCW 84.08.010(2), 84.34.141 and chapter 84.34 RCW. 88-23-062 (Order PT 88-12), § 458-30-230, filed 11/15/88.]
WAC 458-30-232 Application for timber land classification. Introduction. This ((rule)) section explains the application process used by an applicant who seeks to have land classified or reclassified as timber land under RCW 84.34.020(3).
Definition. For purposes of this ((rule)) section, the following definitions apply:
(1) "Stand of timber" means a stand of trees that will yield log and/or fiber:
(a) Suitable in size and quality for the production of lumber, plywood, pulp, or other forest products; and
(b) Of sufficient value to cover at least all the costs of harvest and transportation to available markets.
(2) "Timber management plan" means a plan prepared by a professional forester, or by another person who has adequate knowledge of timber management practices, concerning the use of the land to grow and harvest timber. Such a plan includes the following elements:
(a) A legal description of the land;
(b) A statement that the timber land is held in contiguous ownership of at least five acres and is primarily devoted to and used to grow and harvest timber;
(c) A brief description of the timber on the timber land or, if the timber has been recently harvested, the owner's plan to restock the land with timber;
(d) A statement about whether the timber land is also used to graze livestock;
(f) If the land has been recently harvested or supports a growth of brush and noncommercial type timber, a description of the owner's plan to restock the timber land within three years.
(3) Where to submit. An application for classification or reclassification of land as timber land under RCW 84.34.020(3) is submitted to the county legislative authority of the county in which the land is located.
(4) Granting authority. The identity of the entity that will act as the granting authority will be determined by the location of the land the applicant seeks to classify or reclassify as timber land. The granting authority will be determined as follows:
(b) If the parcel(s) of land is located in an incorporated area, a copy of the application for classification is forwarded to the city legislative authority in which the land is located. ((The)) Applications must be acted upon by:
(i) A granting authority ((is)) composed of three members of the county legislative body and three members of the city legislative authority in a meeting where members may be physically absent but participating through a telephonic connection; or
(b) Information that must accompany application. An application for classification or reclassification of a parcel(s) of land as timber land is made on forms prepared by the department. An application must include the following information and be accompanied by a timber management plan as defined in subsection (2) of this ((rule)) section:
(i) The land does not contain a stand of timber as defined in subsection (1) of this ((rule)) section, as well as in chapter 76.09 RCW, and WAC 222-16-010. This reason alone is not sufficient to deny the application if:
(6) Public hearing required. An application for classification of land as timber land will be approved or denied after a public hearing on the application is held. A notice of this hearing is to be announced once by publication in a newspaper of general circulation in the region, city, or county at least ten days before the hearing. The owner who submitted the application for classification or reclassification is to be notified in writing of the date, time, and location of the public hearing.
(7) Timber management plan required. A timber management plan must be filed with the county legislative authority either:
(a) When an application for classification is submitted; or
(b) Within sixty days of the date an application for reclassification under chapter 84.34 RCW or from designated forest land under chapter 84.33 RCW is received. The application for reclassification will be accepted, but may not be processed until the timber management plan is received. If this plan is not received within sixty days of the date the application for reclassification is received, the application will be denied.
(c) If circumstances require it, the assessor may allow an extension of time for submitting a timber management plan when an application for classification or reclassification is received. The applicant will be notified of this extension in writing. When the assessor extends the filing deadline for a timber management plan, the county legislative authority should delay processing the application until this plan is received. If this plan is not received by the date set by the assessor, the application for classification or reclassification will be automatically denied.
(8) Approval or denial of application. The granting authority will either approve or disapprove the application for classification or reclassification within six months of the date it is received by the county legislative authority.
(c) The granting or denial of an application for classification as open space land or reclassification is a legislative determination and is reviewable only for arbitrary and capricious actions.
[Statutory Authority: RCW 84.34.141, 84.34.020, and 84.34.030. 02-20-041, § 458-30-232, filed 9/24/02, effective 10/25/02. Statutory Authority: RCW 84.08.110, 84.08.070, 84.34.141 and 84.34.360. 95-21-002, § 458-30-232, filed 10/4/95, effective 11/4/95.]
WAC 458-30-295 Removal of classification. (1) Introduction. This ((rule)) section discusses the circumstances that may cause land to be removed from classification and the actions an assessor takes to remove the land, in whole or in part, from classification under chapter 84.34 RCW.
(2) General requirement - removal process. If land classified under chapter 84.34 RCW is applied to a use other than the one for which classification is granted, the owner must notify the assessor of the change in use within sixty days of the change. If the new use of the land does not qualify for classification under chapter 84.34 RCW, the land must be removed from classification and, in most cases, additional tax, interest, and a penalty are imposed. Land may be totally or partially removed from classification depending on the reason(s) for the removal. See WAC 458-30-300 for details about the additional tax, interest, and penalty imposed when land is removed.
(3) Circumstances that cause removal of land from classification. When any of the following actions occur, the assessor shall remove all or a portion of the land from classification:
(a) Receipt of a written notice from the owner directing the assessor to remove the land from classification;
(b) Sale or transfer of the land to an owner that makes the land exempt from property taxes, except a transfer resulting from a default in loan payments made to or secured by a governmental agency that intends to or is required by law or regulation to resell the land for the same use as before;
(c) Any change in use that occurs after a request to withdraw classification is made under RCW 84.34.070 and before the actual withdrawal of the classification occurs;
(d) Sale or transfer of classified land to a new owner who is required to pay property tax and who does not sign the notice of classification continuance, except a transfer to an owner who is an heir or devisee of a deceased owner;
(e) Failure of an owner to respond to a request from the assessor for data regarding the use of the land, productivity of typical crops, and similar information pertinent to continued classification and assessment of the land (see RCW 84.34.121 and WAC 458-30-270);
(f) The assessor denies an owner's request for reclassification and the land no longer meets the criteria under which it was originally classified; ((or))
(g) The assessor determines, based on field inspections, analysis of income and expense data, or any other reasonable evidence, that the land no longer meets the criteria for classification under chapter 84.34 RCW; or
(h) The assessor discovers that the land was classified under chapter 84.34 RCW in error.
(i) Example 1. During an on-site inspection, the assessor discovers that classified farm and agricultural land has been paved over and is used as a parking lot for school buses.
(ii) Example 2. Based on information released at a public meeting of the county planning commission, the assessor learns that an owner of classified timber land has harvested all timber from the land, the land has been platted, public services such as roads, sewers, and domestic water supply have been made available to the platted land, and houses have been built on the land. This information has led the assessor to conclude that the use of the land has changed or that the land no longer meets the criteria for classification as timber land.
(4) Procedure when an assessor discovers a change in use. If the assessor determines that the land is not being used for a classified use, the assessor must ((notify)) provide the owner ((in writing)) a written notice regarding this determination ((and)); e.g., the Notice of Intent to Remove Current Use Classification form. The assessor may not remove the land from classification until the owner has had an opportunity to respond to the assessor's determination.
(a) The owner must respond, in writing, to the assessor's inquiry about the use of the classified land no later than thirty calendar days following the postmark date the assessor's inquiry was mailed to the owner.
(b) If the parcel in question is classified open space land or timber land, the assessor may ask, but is not required to ask, the granting authority to provide reasonable assistance in determining whether the classified land continues to meet the criteria for classification. The granting authority shall provide this assistance within thirty days of receiving the assessor's request for assistance (see RCW 84.34.108(1)).
(c) Unless the owner demonstrates to the assessor that the classified use of the land has not changed, the assessor will remove the land from classification and impose additional tax, interest, and penalty from the date of the change in use (see RCW 84.34.080 and 84.34.108).
(5) Procedure for partial removal. If the use of only a portion of the classified land has changed and it no longer qualifies for classification under chapter 84.34 RCW, the assessor will remove the nonqualifying portion of the classified land. The remaining parcel must satisfy the same requirements the entire parcel was required to meet when the land was originally granted classification unless different criteria are required by statute because of the reduced size of the land that remains classified.
(a) The assessor may ask the owner of the parcel that will remain classified to submit information relevant to its continuing eligibility under chapter 84.34 RCW. See WAC 458-30-270 for more details.
(b) If the parcel is classified farm and agricultural land, the assessor will verify that the remaining portion meets the requirements of RCW 84.34.020(2).
(c) If the parcel is classified open space or timber land, the assessor will consult with the granting authority before determining whether the remaining portion meets the requirements of RCW 84.34.020 (1) or (3). The granting authority and assessor may ask the owner to submit pertinent data for this determination.
(d) The assessor may segregate the portion of land from which classification is being removed for valuation and taxation purposes.
(6) Transactions that do not cause land to be removed from classification. Land cannot be removed from classification solely because of:
(b) The creation, sale, or transfer of a ((fee interest or a)) conservation easement ((for the riparian open space program)) of private forest lands within unconfined channel migration zones or containing critical habitat for threatened or endangered species under RCW 76.09.040.
(7) Notice to owner. Within thirty days of the removal of land from classification, the assessor must notify the owner in writing of the reason(s) for removal. The removal notice must explain the steps an owner needs to follow if he or she wants to appeal the removal decision, including when a notice of appeal must be filed, where an appeal petition may be obtained, and how to contact the county board of equalization.
(8) Right of appeal. The seller, transferor, or owner of classified land may appeal the removal from classification to the board of equalization of the county in which the land is located. The appeal must be filed within thirty calendar days (or up to sixty days if such a time limit has been adopted by the county legislative authority) of the date the notice of removal was mailed by the assessor or given to the owner, or on or before July 1st of the year of removal, whichever is later (RCW 84.40.038).
(9) Assessor's duty after removal. Unless the removal is reversed on appeal, the assessor places the land on the assessment roll at its true and fair value determined in accordance with the county's approved revaluation plan. The value on the date of removal is the true and fair value as of January 1st of the year of removal. The assessment roll lists both the assessed value of the land before and after the removal of classification. Taxes for the current tax year are prorated according to the portion of the year to which each assessed value applies.
(10) Possible segregation after removal. If only a portion of the land is being removed from classification, the assessor must segregate the affected portion for valuation and tax purposes.
(11) Additional tax, interest, and penalty are due when land is removed. The additional tax, interest, and penalty imposed by RCW 84.34.080 and 84.34.108 are due ((when land is removed from classification)) and payable to the treasurer thirty days after the owner is notified of the amount due, unless the removal is the result of one of the exempt circumstances or transactions listed in RCW 84.34.108(6). (See WAC 458-30-300.)
[Statutory Authority: RCW 84.34.141. 01-24-030, § 458-30-295, filed 11/27/01, effective 12/28/01. Statutory Authority: RCW 84.08.110, 84.08.070, 84.34.141 and 84.34.360. 95-21-002, § 458-30-295, filed 10/4/95, effective 11/4/95. Statutory Authority: RCW 84.08.010 and 84.08.070. 90-24-087, § 458-30-295, filed 12/5/90, effective 1/5/91. Statutory Authority: RCW 84.08.010(2), 84.34.141 and chapter 84.34 RCW. 88-23-062 (Order PT 88-12), § 458-30-295, filed 11/15/88.]
AMENDATORY SECTION(Amending WSR 07-21-097, filed 10/18/07, effective 11/18/07)
WAC 458-30-300 Additional tax -- Withdrawal or removal from classification. (1) Introduction. This ((rule)) section outlines the withdrawal and removal procedures, events that trigger removal, and how to calculate the additional property tax ("additional tax"), interest, and penalty that may be imposed because land is withdrawn or removed from classification. When land is withdrawn or removed additional tax and interest are due. A twenty percent penalty is also due when land is removed from classification (see RCW 84.34.108 and 84.34.070(2)).
(2) Duties of assessor and treasurer. As soon as possible after determining that the land no longer qualifies for classification under chapter 84.34 RCW ((or)), the use of the land has changed, or the land was classified under chapter 84.34 RCW in error, the assessor must ((notify)) provide the owner ((in writing)) a written notice regarding this determination and of his or her intent to remove the land from classification; e.g., the Notice of Intent to Remove Current Use Classification form. The assessor may not remove the land from classification until the owner has had an opportunity to be heard on the issue of removal.
(c) Unless the removal is reversed on appeal, the assessor revalues the affected land with reference to its true and fair value on ((the date)) January 1st of the year of removal from classification. The assessment roll will list the assessed value of the land before and after the removal from classification. Taxes will be allocated to the part of the year to which each assessed value applies; that is, current use and true and fair value.
(d) The assessor computes the amount of additional tax, interest, and penalty, unless the removal is the result of one of the circumstances listed in subsection (5) of this ((rule)) section.
(ii) The use of the land has changed and the change in use was the result of one of the circumstances listed in RCW 84.34.108(6). See subsection (5) of this ((rule for a detailed list of these circumstances)) section.
(5) Exceptions. No additional tax, interest, or penalty will be imposed if the withdrawal or removal from classification ((was the result of one or more)) resulted solely from any of the following ((circumstances)):
(d) Official action by an agency of the state of Washington or by the county or city in which the land is located disallowing the current use of classified land. For the purposes of this ((rule)) section, "official action" includes: City ordinances, zoning restrictions, Growth Management Act, Shoreline Management Act, and Environmental Policy Act;
(f) Acquisition of property interests by public agencies or private organizations qualified under RCW 84.34.210 or 64.04.130 for the conservation purposes specified therein. See subsection (6) of this ((rule)) section for a listing of these agencies, organizations, and purposes. However, when the property interests are no longer used for one of the purposes enumerated in RCW 84.34.210 or 64.04.130, additional tax, interest, and penalty will be imposed on the owner of the property at that time;
(g) Removal of land granted classification as farm and agricultural land under RCW 84.34.020 (2)(((d))) (f) because the principal residence of the farm operator or owner and/or housing for farm and agricultural employees was situated on it. This exception applies only to the land upon which the housing is located even if this portion of the agricultural enterprise has not been allocated a separate parcel number for assessment and tax purposes;
(h) Removal of classification after a statutory exemption is enacted that would exempt the land from property tax and the landowner submits a written request to the assessor to remove the land from classification. This exception applies only to newly enacted exemptions that would cause classified land to go from taxable to exempt status. For example, in 1999 the legislature created a new property tax exemption for property used for agricultural research and education programs. ((Subsequently,)) If the owner of such land subsequently requests removal of the land from classification, no additional tax, interest or penalty are imposed because of this new property tax exemption authorized by RCW 84.36.570((.));
(j) The creation, sale, or transfer of a ((fee interest or a)) conservation easement ((for the riparian open space program)) of private forest lands within unconfined channel migration zones or containing critical habitat for threatened or endangered species under RCW 76.09.040;
(ii) The land has been continuously assessed and valued as ((classified or)) designated forest land under chapter 84.33 RCW or classified under chapter 84.34 RCW since 1993. The date of death shown on the death certificate begins the two-year period for sale or transfer; ((or))
(7) Removal of classification from land that was previously ((classified or)) designated forest land under chapter 84.33 RCW. Land that was previously ((classified or)) designated as forest land under chapter 84.33 RCW may be reclassified under chapter 84.34 RCW at the ((request of the land owner)) owner's request made no later than thirty days after removal of the land from designation. If such land is subsequently removed from the current use program before the land has been classified under chapter 84.34 RCW for at least ten assessment years, a combination of compensating tax imposed under chapter 84.33 RCW and additional tax, interest, and penalty imposed under chapter 84.34 RCW is due. RCW 84.33.145 explains the way in which these taxes are to be calculated.
[Statutory Authority: RCW 84.33.140, 84.34.055, 84.34.108, 84.34.141, and 84.08.070. 07-21-097, § 458-30-300, filed 10/18/07, effective 11/18/07. Statutory Authority: RCW 84.34.141. 01-24-030, § 458-30-300, filed 11/27/01, effective 12/28/01. Statutory Authority: RCW 84.08.110, 84.08.070, 84.34.141 and 84.34.360. 95-21-002, § 458-30-300, filed 10/4/95, effective 11/4/95. Statutory Authority: RCW 84.08.010 and 84.08.070. 90-24-087, § 458-30-300, filed 12/5/90, effective 1/5/91. Statutory Authority: RCW 84.08.010(2), 84.34.141 and chapter 84.34 RCW. 88-23-062 (Order PT 88-12), § 458-30-300, filed 11/15/88.]
WAC 458-30-700 Designated forest land -- Removal -- Change in status -- Compensating tax. (1) Introduction. This ((rule)) section describes what events trigger the removal of land from designated forest land status under chapter 84.33 RCW, the procedures followed for removal, and the resulting compensating tax.
(2) Events triggering the removal of designated forest land status. The assessor must remove forest land from its designated forest land status when:
(a) The owner submits a written request to remove the owner's land from designated forest land status;
(b) The owner sells or transfers the land to an individual or entity exempt from property tax because of that individual's or entity's ownership;
(c) The assessor determines that the land is no longer primarily devoted to and used for growing and harvesting timber;
(d) The owner has failed to comply with a final administrative or judicial order made because of the violation of the restocking, forest management, fire protection, insect and disease control and forest debris provisions of Title 76 RCW or the rules that implement Title 76 RCW;
(e) Restocking has not occurred to the extent or within the time specified in the application for designation of the land; ((or))
(f) The owner sells or transfers forest land to a new owner who has not signed a notice of continuance, except when the new owner is the heir or devisee of a deceased owner. RCW 84.33.140(5); or
(g) The assessor discovers that the land was designated under chapter 84.33 RCW in error.
(3) How to retain designated forest land status when the land is sold or transferred. When designated forest land is sold or transferred, the new owner may retain designated forest land status by filing a signed notice of continuance with the deed. The notice of continuance may be signed as part of the real estate excise tax (REET) affidavit or as a separate form if the county has decided it will require owners to submit both the REET affidavit and an attached separate notice of continuance. If multiple owners own the land, all owners or their agent(s) must sign the notice of continuance. A notice of continuance is not required for a new owner to retain designated forest land status when the new owner inherits the property.
(a) The owner may obtain the notice of continuance form and a real estate excise tax (REET) affidavit from the county. The county assessor's office has the notice of continuance form and the county treasurer's office has the REET affidavit.
The notice of continuance may also be obtained on the internet at http://dor.wa.gov under property tax, "forms."
(b) After the new owner signs the notice of continuance as part of the REET affidavit and, if required, the separate notice, the REET affidavit and notice must be submitted to the assessor for approval. The assessor may also require the owner to submit a timber management plan before approving the notice of continuance.
(i) The assessor signs the REET affidavit and indicates whether the land will or will not qualify to continue as designated forest land.
(ii) An assessor signs the REET affidavit and approves the land for continued classification if:
(A) The owner provides a complete and accurate notice of continuance signed by the new owner demonstrating that the forest land will continue to qualify as designated forest land; and
(B) At the assessor's option, the new owner provides a timber management plan for the property.
(iii) The assessor is allowed up to fifteen days to confirm that the information upon the notice is complete and accurate. The assessor may use this time to confirm that the timber management plan provides:
(A) The correct legal description for the forest land;
(B) The new owner's statement that the forest land is owned by the same person, consists of twenty or more contiguous acres, and is primarily devoted to and used to grow and harvest timber;
(C) A statement about whether the land is used to graze livestock;
(D) A brief description of the timber stands located on the land;
(F) If the land has been recently harvested or supports a growth of brush and noncommercial type timber, a description of the owner's plan to restock the forest land within three years.
A timber management plan may contain, but is not required to contain, any other information that the harvester needs for its own business purposes (i.e., a statement of goals for managing the land or identifying resource protection areas on the land (like riparian buffer areas along a stream or an unstable slope) that limit harvesting activities).
(iv) If the assessor determines that the notice of continuance or the timber management plan is not accurate or complete, the owner may resubmit the corrected information to the assessor.
(v) If the assessor determines that the land does not qualify to continue as designated forest land, the assessor removes the land upon the date of the conveyance and provides the owner with a notice of removal containing reason(s) for the removal and the amount of compensating taxes owed.
(c) Once the assessor signs the notice of continuance as part of the REET affidavit and the separate notice of continuance, if required, the notice(s) are then submitted to the treasurer. Before the treasurer can stamp the REET affidavit as approved for recording, the treasurer collects any REET due because of the transfer, and collects all compensating tax if the land does not qualify for continuance as designated forest land because it was denied continuance by the assessor. The county recording clerk must not accept any deeds or other transfer documents unless the treasurer has stamped the REET affidavit.
(d) A notice of continuance is not required when the transfer of the forest land is to a new owner who is an heir or devisee, however, the new owner must continue to meet the requirements of designated forest land to avoid removal from designation. The treasurer determines that a transfer is by inheritance because the claim for the inheritance exemption is filled out on the REET affidavit with supporting documentation. The treasurer should notify the assessor when forest land has been transferred by inheritance without a notice of continuance.
(4) Assessor decisions and procedures. Before removing the land from its designated forest land status, the assessor follows certain procedures and takes into account circumstances that may delay or prevent removal.
(a) The assessor must determine:
(i) The actual area of land to be removed from forest land status;
(ii) Whether the land has been exempted from an unretired special benefit assessment;
(iii) The true and fair value of the area being removed as of January 1st of the year of removal from designation;
(iv) Forest land value for the area to be removed;
(v) The last levy rate that applied for that area; and
(vi) The amount of time the land has been designated ((and classified)) as forest land, including the number of days up to the date of removal for the current year of removal.
(b) The assessor may require the owner to provide a legal description of the land area intended for removal when the landowner requests removal of owner's land from designated forest land status.
(c) The remaining land outside of the affected removal area continues to be designated as forest land if the owner retains twenty or more contiguous acres primarily devoted to and used for growing and harvesting timber. If the remaining land fails to meet the forest land definition because there are less than twenty contiguous acres primarily devoted to and used for growing and harvesting timber, the owner may request reclassification as timber land under the open space program in chapter 84.34 RCW.
(d) The assessor must provide the owner with a written notice and an opportunity to be heard by the assessor, or the assessor's deputy, when the assessor intends to remove the land because it is no longer primarily devoted to and used for growing and harvesting timber. RCW 84.33.140 (5)(d). Each county assessor may set his or her own procedure for giving a landowner this notice and opportunity to be heard so long as it is done in a reasonable and consistent manner that ensures due process for each owner.
(e) An assessor may not remove forest land merely because an owner subdivides the land into separate parcels, if contiguous parcels of the subdivided land still add up to at least twenty contiguous acres, remain in the same ownership, and continue to be primarily devoted to and used for growing and harvesting timber. An assessor may ask an owner of designated forest land if the use of the land has changed when the owner subdivides a tract of designated forest land into separate parcels.
(f) If the assessor determines the land is no longer primarily devoted to and used for growing and harvesting timber, but there is a pending acquisition by an entity that would qualify for exemption from compensating tax under subsection (6)(e) of this ((rule)) section, the assessor must not remove the land from its designated forest land status. RCW 84.33.140 (5)(d)(i). In order to prevent removal, the government entity or other qualified recipient must provide written proof to the assessor of its intent to acquire the land or documentation that demonstrates the transaction will qualify for an exemption from compensating tax under subsection (6)(e) of this ((rule)) section. The entity acquiring the land must provide this written proof within sixty days of a request by the assessor. Thereafter, once a year, the governmental entity or other recipient must provide the assessor of the county in which the land is located written evidence of its intent to acquire the land. This written evidence must be provided on or before December 31st of each year or at an earlier date if the assessor makes a written request for such information. RCW 84.33.140 (5)(d)(i). Upon the assessor's written request, the information must be provided within sixty days from the date the assessor mails or hands the request to the owner or the postmark date of the request, if later.
(g) The assessor must not remove forest land from its designation if a governmental restriction is imposed on the land that prohibits, in whole or in part, the harvesting of timber.
(i) If only a portion of the forest land is impacted by the governmental restriction, the assessor cannot use the restriction as a basis to remove the remainder of the land from its designated forest land status.
(ii) A governmental restriction 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.
(5) Removal proceedings. After determining that a triggering event causing removal has occurred, the assessor must provide timely written notice(s) to the taxpayer. RCW 84.33.140 (5)(d) (written notice and opportunity to be heard), RCW 84.33.140(9) (notice of removal). Upon receiving the notice of removal, the landowner may appeal the removal and/or apply for reclassification of the land to the open space program under chapter 84.34 RCW. If the owner chooses to appeal the removal, the appeal must be filed within thirty days of the postmark date for the notice or by July 1st of the year of removal, whichever is later. If the owner chooses to apply for reclassification, they must do so within thirty days of the postmark date of the notice.
(a) When does the land get removed from the designated forest land status? If the removal is a result of a sale or transfer, the assessor removes the land on the date of sale or transfer provided in the legal conveyance. If the removal is based upon a determination or discovery made about the land by the assessor or at the request of the owner, the assessor removes the land on the date shown on the notice of removal mailed to the owner.
(b) Notice of removal. The assessor uses the notice of removal to notify the owner that the land has been removed from designated forest land status. Within thirty days of removing land from designated forest land status, the assessor must mail a notice of removal to the owner with the reasons for the removal. The owner, seller, or transferor may appeal the removal to the county board of equalization.
(i) If the property is being removed because the assessor has determined the land is no longer primarily devoted to and used for growing and harvesting timber, the assessor provides two notices. First, the assessor must notify the taxpayer of his or her intent to remove the property and give the owner an opportunity to be heard. The assessor may require the owner to provide pertinent information about the land and its use in the response to the assessor's first notice. When the assessor determines that the property still does not qualify as designated forest land after the first notice is sent, the assessor mails the owner the second notice, the notice of removal, but only after:
(A) The owner declines the opportunity to be heard;
(B) The owner fails to timely respond to the first notice; or
(C) The assessor has received and considered the owner's timely response to the notice of intent to remove and nevertheless concludes that the property is no longer primarily devoted to growing and harvesting timber.
(ii) If the removal is based upon an owner's request for removal, upon receipt of a request for removal from an owner, the assessor sends the notice of removal to the owner showing the compensating tax and recording fee due.
(iii) The notice provides the reason(s) for removing the land from designation and the date of the removal. RCW 84.33.140(9). The notice includes the compensating tax calculated in ((rule section)) subsection (6) of this section and the necessary recording fees to be paid. It also includes the due date for payment, along with the landowner's rights to appeal the removal or the true and fair value at the time of removal, and the owner's right to apply for the land to be reclassified under chapter 84.34 RCW. The county must use the notice of removal form prepared by the department.
(iv) The assessor must also provide written notice of the removal to any local government filing a notice regarding a special benefit assessment under RCW 84.33.210 within a reasonable time after the assessor's decision to remove the land. The assessor may provide a simple statement with the legal description of the land, the name of the landowner, and the date of removal, if he or she includes a copy of the notice sent to the landowner. RCW 84.33.230.
(c) What happens when an owner chooses to appeal the removal? Unless the removal is reversed upon appeal, the assessor continues the process to remove the property from designated forest land status. The assessor may choose to delay collection of the compensating tax and recording fee until the appeal is decided. However, if the assessor postpones the collection of the compensating tax and recording fee, the assessor must notify the treasurer to temporarily delay collection. The assessor must also notify the owner that if the determination to remove is upheld, then interest will be due from the date the compensating tax and recording fee were due.
(i) If the removal is reversed upon appeal, the assessor shall reinstate the land as designated forest land, discharge any lien placed against the land, revise any assessments made against the property during the interim, refund the recording fee paid, and refund or cancel any compensating taxes and interest paid or owing.
(ii) If the removal is upheld upon an appeal in which the assessor has delayed collection, the compensating tax and recording fee are due immediately with interest accrued from the date the tax and fee were originally due. Upon receiving notice of the decision upholding the removal, the assessor must immediately notify the treasurer to collect any unpaid compensating taxes, fees, and interest on the land.
(d) What happens when an owner applies to have the land reclassified under chapter 84.34 RCW? If an application for reclassification is submitted by the owner ((within)) no later than thirty days after the notice of removal ((has been)) was mailed, the forest land is not removed from classification until the application for reclassification under chapter 84.34 RCW is denied or later removed from classification under RCW 84.34.108. RCW 84.33.145(1).
(i) ((The assessor processes)) An application for reclassification is processed in the same manner as ((it processes)) an initial application for classification under chapter 84.34 RCW.
(ii) A timber management plan must be filed with the county legislative authority within sixty days of the date the application for reclassification under this chapter or from designated ((forestland)) forest land under chapter 84.33 RCW is received. The application for reclassification will be accepted, but may not be processed until this plan is received.
(A) If this plan is not received within sixty days of the date the application for reclassification is received, the application will be denied.
(B) If circumstances require it, the assessor may allow an extension of time for submitting a timber management plan when an application for reclassification is received. The applicant will be notified of this extension in writing. When the assessor extends the filing deadline for this plan, the county legislative authority may delay processing the application until the plan is received. If the timber management plan is not received by the date set by the assessor, the application for reclassification will be automatically denied.
(iii) When the owner sells or transfers land (or a portion of the land) while an application for reclassification is pending, an assessor may accept a notice of continuation, and allow the owner to revise the application for reclassification to reflect the name of the new owner of the property.
(iv) If the application for reclassification under chapter 84.34 RCW is approved, the assessor shall transfer the property to its new classification.
(v) If the application for reclassification under chapter 84.34 RCW is denied, the assessor must record the removal notice and inform the treasurer's office to immediately begin collection of the compensating tax and the recording fee.
(6) Compensating tax. Compensating tax is imposed when land is removed from its designated forest land status. This tax recaptures taxes that would have been paid on the land if it had been assessed and taxed at its true and fair value instead of the forest land value.
(a) Calculating the compensating tax. The assessor uses the current year's levy rate, the forest land value, and the true and fair value for the area to be removed from forest land status to calculate the compensating tax. The compensating tax consists of two parts: The recapture of taxes for previous years that the land was ((classified or)) designated as forest land, up to a maximum of nine years; and the recapture of taxes for the portion of the current year up to the date of removal in the year the land is removed from designation. RCW 84.33.140(11).
(i) The compensating tax for the previous years is calculated by determining the difference between the amount of taxes assessed at the forest land value for the removal area and the amount of taxes that would have been paid if the land had been valued at its true and fair value in the year of removal. That difference is multiplied by the number of years the land was ((classified or)) designated as forest land up to a maximum of nine years.
(ii) The compensating tax for the portion of the year of removal from January 1st to the date of removal is calculated by determining the difference between the amount of taxes assessed at the forest land value and the taxes that would have been paid if the land had been valued at its true and fair value for the portion of the year up to the removal date.
(b) Formulas for calculating taxes after removal:
(i) Calculation of prior year's compensating tax:
(ii) Calculation of current year's taxes to date of removal:
÷ 365 =
(A) $ x x = $
Market value Levy rate Proration factor
(B) $ x x = $
Forest land value Levy rate Proration factor
(c) The assessor notifies the treasurer of the amount of compensating tax and the due date for the tax by providing the treasurer a copy of the removal notice. Compensating tax is due and payable to the county treasurer thirty days after the assessor mails to the owner the notice of removal informing the owner of the reasons for removal and the amount of compensating tax due. RCW 84.33.140(11). However, when property is sold or transferred, any compensating tax owed must be paid to the county treasurer before recording the conveyance. The county recording authority will not accept any instrument transferring the land, unless the compensating tax was paid or was not owed.
(d) What happens if the compensating tax is not paid on the due date? If the compensating tax is not paid by the due date, the tax is considered delinquent. Interest, set at the statutory rate for delinquent property taxes specified in RCW 84.56.020, will accrue against the amount of the outstanding taxes from the due date until the entire amount owing is paid. Unpaid compensating tax and interest becomes a lien on the land. RCW 84.60.020.
(i) This lien attaches at the time the forest land is removed from designation.
(ii) The lien has priority over any recognizance, mortgage, judgment, debt, obligation, or responsibility against the land.
(iii) This lien must be fully paid before any other recognizance, mortgage, judgment, debt, obligation, or responsibility may be charged against the land.
(iv) The lien can be foreclosed upon expiration of the same period after delinquency and in the same manner as liens for delinquent real property taxes are foreclosed under RCW 84.64.050. RCW 84.33.140(12).
(e) Compensating tax is not imposed on land removed from the forest land designation if the removal resulted solely from any of the following:
(i) A transfer to a government entity in exchange for other forest land within Washington state;
(ii) A transfer under either the power of eminent domain or upon the threat of eminent domain by an entity with the power of eminent domain that intends to exercise this power. The entity must threaten to exercise eminent domain in writing or demonstrate this threat by some other official action;
(iii) A donation of fee title, development rights, or the right to harvest timber in order to protect, preserve, maintain, improve, restore, limit the future use, or conserve the property for public use or enjoyment (see RCW 84.34.210 and 64.04.130). Provided, this donation is made to a:
(iv) The sale or transfer of fee title to a government entity (see the governmental entities listed ((above)) in ((clause (iii) of this rule)) subsection (6)(e)(iii) of this section) 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 advisory council under its established natural heritage plan as defined in chapter 79.70 RCW (natural area preserves). However, if the land is no longer used to protect and conserve the area for state natural area preserve purposes, or fails to comply with the terms of a natural heritage plan, compensating tax will be imposed on the owner of the land at that time;
(v) A sale or transfer of fee title to the state's parks and recreations commission for park and recreation purposes;
(vi) An official action of an agency of the state of Washington or the county or city in which the land is located disallowing the current use of the land. "Official action" includes city ordinances, zoning restrictions, the Growth Management Act, the Shoreline Management Act, and the Environmental Policy Act;
(vii) The creation, sale, or transfer of forestry riparian easements under RCW 76.13.120;
(viii) The creation, sale, or transfer of a ((fee interest or a)) conservation easement ((for the riparian open space program)) of private forest lands within unconfined channel migration zones or containing critical habitat for threatened or endangered species under RCW 76.09.040;
(ix) In a county with a population of more than ((one million (i.e., King County))) six hundred thousand, a transfer of a property interest to a government entity, or to a nonprofit historic preservation corporation or nonprofit nature conservancy corporation (as these corporations are defined in RCW 64.04.130) and the property interest being transferred is to:
(A) Protect or enhance public resources; or
(B) Preserve, maintain, improve, restore, limit the future use of, or otherwise to conserve for public use or enjoyment. When the land is no longer being used for any of these purposes, the owner of the land at the time will be required to pay compensating tax. RCW 84.33.140 (12) and (13); ((or))
(x) The sale or transfer of forest land within two years after the death of an owner who held at least a fifty percent interest in the land if:
(A) The individual(s) or entity(s) who received the land from the deceased owner is selling or transferring the land; and
(B) The land has been continuously assessed and valued as ((classified or)) designated forest land under chapter 84.33 RCW or classified under chapter 84.34 RCW since 1993. The date of death shown on the death certificate begins the two-year period for sale or transfer; or
(xi) The assessor discovers that the land was designated under chapter 84.33 RCW in error through no fault of the owner;
(A) For purposes of this subsection, "fault" means a knowingly false or misleading statement, or other act or omission not in good faith, that contributed to the approval of the application for designation or the failure of the assessor to remove the land from designation;
(B) This exception does not apply if an independent basis for removal exists. An example of an independent basis for removal includes the land is no longer devoted to and used for the growing and harvesting of timber.
(7) When will the land be assessed at its true and fair value and the taxes become payable? The land will be assessed at its true and fair value on the date it is removed from forest land status. The assessor revalues the land removed from designated forest land status with reference to its true and fair value on January 1st in the year of removal. RCW 84.33.140(10). The property tax for the remainder of the year following the date of removal is based on land's true and fair value.
(a) To calculate the increase the assessor must determine the number of days remaining in the year from the date of removal. The increase in property tax is due on the same due date as all other property taxes are due for the year (generally, April 30th and October 1st of the current year. See RCW 84.56.020).
(b) Formula for calculating the increase in property taxes for the remainder of the year in which the land is being removed:
(c) If the taxes for the year of removal have not yet been billed, the tax should be recalculated based on the true and fair value of the land removed for the portion of the year following the date of removal.
(d) An owner may appeal the true and fair value of the land used to calculate the increase in the remaining current year's taxes or the compensating taxes within thirty days of the notice (or up to sixty days if such time limit has been adopted by the county legislative authority) or on or before July 1st, whichever is later. RCW 84.40.038.
(8) What happens when forest land reclassified under chapter 84.34 RCW is later removed from that classification before ten years have passed? If reclassified forest land is later removed, a combination of compensating tax and additional tax will be imposed unless the basis for removal is one of the circumstances listed as exempt from additional tax under RCW 84.34.108(6).
(a) The amount of compensating tax is equal to the difference, if any, between the amount of property tax last levied on the land as designated forest land and an amount equal to the new true and fair value of the land when removed from classification under RCW 84.34.108 multiplied by the dollar rate of the last property tax levy extended against the land, multiplied by
(i) The number of years the land was ((classified or)) designated as forest land under chapter 84.33 RCW, if the total number of years the land was ((classified or)) designated under chapter 84.33 RCW 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 ((classified or)) designated under chapter 84.33 RCW and classified under chapter 84.34 RCW is at least ten.
[Statutory Authority: RCW 84.33.140, 84.34.055, 84.34.108, 84.34.141, and 84.08.070. 07-21-097, § 458-30-700, filed 10/18/07, effective 11/18/07. Statutory Authority: RCW 84.34.141, 84.34.020, and 84.34.030. 02-20-041, § 458-30-700, filed 9/24/02, effective 10/25/02. Statutory Authority: RCW 82.32.300, 84.33.096, and 84.33.140. 02-05-043, § 458-30-700, filed 2/13/02, effective 3/16/02.]