Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-30 - Open Space Taxation Act rules › Section 458-30-200 - Definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule provides definitions for the terms used in
			 conjunction with land classified under the Open Space Taxation Act, codified as
			 chapter 84.34 RCW. The terms listed in this rule are intended to act in concert
			 with each other as appropriate.
(2)
Definitions.
For purposes of land classified under chapter 84.34
			 RCW, the following definitions apply:
(a)
			 "Additional tax" means the additional property taxes that will be collected
			 when classification is withdrawn or removed from land classified under chapter
			 84.34 RCW.
(b) "Affidavit" means
			 the real estate excise tax affidavit required by chapters 82.45 RCW and 458-61
			 WAC. The affidavit will be prescribed by the department and furnished to county
			 treasurers. This form is used by landowners to report sales or transfers of
			 classified land. The owner or transferor and the purchaser or transferee, or
			 agents of each, must sign the affidavit under penalty of perjury.
(c) "Agreement" means an agreement executed
			 between an owner and the granting authority regarding the classification or
			 reclassification of land as either open space or timber land under chapter
			 84.34 RCW.
(d) "Agricultural
			 product" means livestock and plants that are produced for commercial purposes
			 and includes any agricultural, horticultural, or aquacultural produce or crop;
			 the raising of livestock, poultry, bees, or fur-bearing animals; or the
			 production of milk, eggs, wool, fur, meat, honey, or other substances obtained
			 therefrom. When used in relation to livestock or furbearing animals used for
			 food or fiber, "raising" means breeding or increasing the value, size, or
			 weight of the animal. Agricultural product does not include cannabis, useable
			 cannabis, or cannabis-infused products as those terms are defined in
			 RCW
			 69.50.101.
(e) "Applicant" means the owner who submits
			 an application for classification or reclassification of land under chapter
			 84.34 RCW.
(f) "Application" means
			 an application for classification or reclassification of land under chapter
			 84.34 RCW.
(g) "Approval" means a
			 determination by the granting authority that land qualifies for classification
			 or reclassification under chapter 84.34 RCW.
(h) "Appurtenance" refers to something used
			 with, and related to or dependent upon another thing; that is, something that
			 belongs to something else, an adjunct. The thing appurtenant is strictly
			 necessary and essential to the proper use and enjoyment of the land, as well as
			 useful or necessary for carrying out the purposes for which the land was
			 classified under chapter 84.34 RCW.
(i) In
			 terms of farm and agricultural land, an appurtenance is something used for a
			 particular sort of farm and is widely and routinely used in the operation of
			 the commercial agricultural enterprise.
(ii) For example, an appurtenance may be an
			 outhouse, barn, or tool shed or it may be equipment used for a particular
			 purpose or task, such as tools, instruments, or machinery.
(i) "Aquaculture" means the growing and
			 harvesting of marine or fresh water flora or fauna in a soil or water medium
			 for commercial agricultural purposes.
(j) "Assessor" means the county assessor or
			 any agency or person who is authorized to act on behalf of the
			 assessor.
(k) "Assessment year"
			 means the year in which the property is listed and valued by the assessor and
			 precedes the year in which the taxes on the property are due and
			 payable.
(l) "Change in use" means
			 a direct action taken by an owner that actually changes the use of, or has
			 started changing the use of, classified land to a use that is not in compliance
			 with the conditions of the agreement executed between the owner and the
			 granting authority or to a use that is otherwise not in compliance with the
			 provisions of chapter 84.34 RCW.
(m) "Classified land" means a parcel(s) of
			 land that has been approved by the appropriate granting authority for taxation
			 under chapter 84.34 RCW.
(n)
			 "Commercial agricultural purposes" means the use of farm and agricultural land
			 on a continuous and regular basis, prior to and subsequent to application for
			 classification or reclassification, that demonstrates that the owner or lessee
			 is engaged in and intends to obtain through lawful means, a monetary profit
			 from cash income by producing an agricultural product.
An owner or lessee must engage in commercial agricultural
				activities on the land to demonstrate a commercial agricultural purpose.
(o) "Contiguous" means land that
			 adjoins and touches other land owned by the same owner or held under the same
			 ownership. Land that is an integral part of a farming operation is considered
			 contiguous even though the land may be separated by a public road, railroad,
			 right of way, or waterway.
For purposes of this subsection (2)(o):
(i) "Same ownership" means owned by the same
			 person or persons, except that parcels owned by different persons are deemed
			 held by the same ownership if the parcels are:
(A) Managed as part of a single operation;
			 and
(B) Owned by:
(I) Members of the same family;
(II) Legal entities that are wholly owned by
			 members of the same family; or
(III) An individual who owns at least one of
			 the parcels and a legal entity or entities that own the other parcel or parcels
			 if the entity or entities are wholly owned by that individual, members of his
			 or her family, or that individual and members of his or her
			 family.
(ii)
			 "Family" includes only:
(A) An individual and
			 his or her spouse or domestic partner, child, stepchild, adopted child,
			 grandchild, parent, stepparent, grandparent, cousin, or sibling;
(B) The spouse or domestic partner of an
			 individual's child, stepchild, adopted child, grandchild, parent, stepparent,
			 grandparent, cousin, or sibling;
(C) A child, stepchild, adopted child,
			 grandchild, parent, stepparent, grandparent, cousin, or sibling of the
			 individual's spouse or the individual's domestic partner; and
(D) The spouse or domestic partner of any
			 individual described in (o)(i)(B)(III) of this subsection.
(p) "County financial
			 authority" and "financial authority" mean the treasurer or any agency or person
			 charged with the responsibility of billing and collecting property
			 taxes.
(q) "County legislative
			 authority" means the county commission, council, or other legislative
			 body.
(r) "County recording
			 authority" means the auditor or any agency or person charged with the recording
			 of documents.
(s) "Current" and
			 "currently" means as of the date on which property is to be listed and valued
			 by the assessor.
(t) "Current use
			 value" means the taxable value of a parcel of land placed on the assessment
			 rolls following its classification or reclassification under chapter 84.34
			 RCW.
(u) "Department" means the
			 department of revenue.
(v) "Farm
			 and agricultural conservation land" means either:
(i) Land previously classified as farm and
			 agricultural land that no longer meets the criteria and is reclassified as open
			 space land; or
(ii) Traditional
			 farmland that is not classified under chapter 84.33 or 84.34 RCW, has not been
			 irrevocably devoted to a use inconsistent with agricultural uses, and has a
			 high potential for returning to commercial agriculture.
(w) "Farm and agricultural land" means:
(i) Any parcel of land 20 or more acres in
			 size or multiple parcels of land that are contiguous and total 20 or more acres
			 in size when the lands are:
(A) Primarily used
			 to produce agricultural products for commercial agricultural
			 purposes;
(B) Enrolled in the
			 federal conservation reserve program or its successor administered by the
			 United States Department of Agriculture; or
(C) Primarily used for other commercial
			 agricultural purposes as established by rule.
(ii) Any parcel of land or contiguous parcels
			 of land at least five acres, but less than 20 acres in size that are primarily
			 used for commercial agricultural purposes, and produce a gross income equal to:
(A) One hundred dollars or more in cash per
			 acre per year for three of the five calendar years preceding the date of
			 application for classification when the application was made prior to January
			 1, 1993; or
(B) Two hundred dollars
			 or more in cash per acre per year for three of the five calendar years
			 preceding the date of application for classification when the application is
			 made on or after January 1, 1993.
For the purposes of meeting the minimum gross income
				requirements as described in (w)(ii)(A) and (B) of this subsection for leased
				classified farm and agricultural land, the owner may use either the cash income
				received from leasing his or her classified farm and agricultural land, or the
				cash income received by the lessee for the production of the agricultural
				product on the owner's classified farm and agricultural land.
(iii) Any parcel of land or
			 contiguous parcels of land at least five acres, but less than 20 acres in size
			 that are primarily used for commercial agricultural purposes and that have:
(A) Standing crops with an expectation of
			 harvest within seven years and a demonstrable investment in the production of
			 those crops equivalent to $100 or more per acre in the current or previous
			 calendar year; or
(B) Standing
			 crops of short rotation hardwoods with an expectation of harvest within 15
			 years and a demonstrable investment in the production of those crops equivalent
			 to $100 or more per acre in the current or previous calendar year.
For the purposes of meeting the minimum investment requirements
				as described in (w)(iii)(A) and (B) of this subsection for leased classified
				farm and agricultural land, the owner may use either the cash income received
				from leasing his or her classified farm and agricultural land, or the cash
				income invested by the lessee in the production of the standing crop on the
				owner's classified farm and agricultural land.
(iv) Any parcel of land or contiguous parcels
			 of land less than five acres in size that are primarily used for commercial
			 agricultural purposes, and produce a gross income equal to:
(A) One thousand dollars or more in cash per
			 year for three of the five calendar years preceding the date of application for
			 classification when the application was made prior to January 1, 1993;
			 or
(B) One thousand five hundred
			 dollars or more in cash per year for three of the five calendar years preceding
			 the date of application for classification when the application is made on or
			 after January 1, 1993.
For the purposes of meeting the minimum gross income
				requirements as described in (w)(iv)(A) and (B) of this subsection for leased
				classified farm and agricultural land, the owner may use either the cash income
				received from leasing his or her classified farm and agricultural land, or the
				cash income received by the lessee for the production of the agricultural
				product on the owner's classified farm and agricultural land.
(v) Farm and agricultural land
			 also includes:
(A) Land on which employee
			 housing or the principal residence of the farm owner or operator is located, if
			 the housing or residence is on or contiguous to a classified farm and
			 agricultural land parcel of 20 acres or more or multiple parcels that are
			 contiguous and total 20 acres or more, and the use of the housing or residence
			 is integral to the use of the classified farm and agricultural land for
			 commercial agricultural purposes;
(B) Land on which appurtenances necessary for
			 the production, preparation, or sale of the agricultural products are situated
			 when the appurtenances are used in conjunction with the land(s) producing
			 agricultural products, such as a machinery maintenance shed or a shipping
			 facility located on farm and agricultural land that produces the products to be
			 shipped;
(C) Land incidentally used
			 for an activity or enterprise that is compatible with commercial agricultural
			 purposes as long as the incidental use does not exceed 20 percent of the
			 classified land. An incidental use of classified farm and agricultural land may
			 include, but is not limited to, wetland preservation, a gravel pit, a farm
			 woodlot, or a produce stand;
(D) A
			 noncontiguous parcel of land from one to five acres in size that constitutes an
			 integral part of the commercial agricultural operation being conducted on land
			 qualifying as "farm and agricultural land." As used in this paragraph,
			 noncontiguous means not adjoining or touching but held by the same ownership as
			 defined in
			 RCW
			 84.34.020;
(E) Land used primarily for equestrian
			 related activities for which a charge is made including, but not limited to,
			 stabling, training, riding, clinics, schooling, shows, or grazing for feed and
			 that otherwise meets the requirements in (w)(i), (ii), or (iv) of this
			 subsection; or
(F) Land used
			 primarily for horticultural purposes including growing plants in the ground or
			 in a container, regardless of whether under a structure, such as a greenhouse,
			 subject to the following:
(I) The land is not
			 primarily used for the storage, care, or selling of plants purchased from other
			 growers for retail sale;
(II) If
			 the land is less than five acres and used primarily to grow plants in
			 containers, such land does not qualify as "farm and agricultural land" if more
			 than 25 percent of the land used primarily to grow plants in containers is open
			 to the general public for on-site retail sales;
(III) If more than 20 percent of the land
			 used for growing plants in containers is covered by pavement, none of the paved
			 area is eligible for classification as "farm and agricultural land." However,
			 this limitation does not prevent up to 20 percent of the paved area from
			 qualifying as "incidental use" as described in (bb) of this subsection;
			 and
(IV) If the land classified
			 under (w)(v)(F) of this subsection, in addition to any contiguous land
			 classified under (w) of this subsection, is less than 20 acres, it must meet
			 the applicable income or investment requirements described in (w)(ii), (iii),
			 or (iv) of this subsection.
(x) "Farm employee or farm and agricultural
			 employee" means an individual who is employed on farm and agricultural land on
			 a fulltime basis or a seasonal or migratory worker who works on farm and
			 agricultural land only during the planting, growing, and/or harvesting seasons.
			 For purposes of (x) of this subsection, "full-time basis" refers to an
			 individual who is employed at least 25 hours per week on farm and agricultural
			 land. It does not include a person who is employed full time by a business
			 activity that is not conducted on classified farm and agricultural land and who
			 only works occasional weekends or during the harvest season on classified farm
			 and agricultural land.
(y) "Farm
			 woodlot" means an area of land within a parcel(s) of classified farm and
			 agricultural land that is used in a manner compatible with commercial
			 agricultural purposes including, but not limited to, the growing and cutting of
			 trees for the use of the owner or the sheltering of livestock.
(z) "Granting authority" means the
			 appropriate agency or official that acts on an application for classification
			 or reclassification under chapter 84.34 RCW. The granting authority for:
(i) Open space land classification under
			 RCW
			 84.34.020(1) and
			 84.34.037 is the county
			 legislative authority. However, for applications within an incorporated area of
			 a county, the granting authority is made up of three members of the county
			 legislative authority and three members of the city legislative authority in
			 the county in which the land is located in a meeting where members may be
			 physically absent but participating through telephonic connection or separate
			 affirmative acts by both the county and city legislative authorities where both
			 affirm the entirety of the application either without modification or with
			 identical modifications;
(ii) Farm
			 and agricultural land classification under
			 RCW
			 84.34.020(2) and
			 84.34.035 is the assessor or the
			 assessor's designee; and
(iii)
			 Timber land classification under
			 RCW
			 84.34.020(3) and
			 84.34.041 is the county
			 legislative authority. However, for applications within an incorporated area of
			 a county, the granting authority is made up of three members of the county
			 legislative authority and three members of the city legislative authority in
			 the county in which the land is located in a meeting where members may be
			 physically absent but participating through telephonic connection or separate
			 affirmative acts by both the county and city legislative authorities where both
			 affirm the entirety of the application either without modification or with
			 identical modifications.
(aa) "Gross income" means cash income derived
			 from commercial agricultural purposes, as defined in (n) of this subsection.
			 Gross income includes payments received from the United States Department of
			 Agriculture for participating in a crop reduction or acreage set-aside program
			 when such payments are based on the productive capacity of the land. It also
			 includes the wholesale value of agricultural products produced from any parcel
			 of classified land of at least five acres but less than 20 acres in which the
			 agricultural products are donated to nonprofit food banks or feeding programs.
			 The term does not include the following:
(i)
			 The value of any products produced on the land and consumed by the owner or
			 lessee;
(ii) Cash income derived
			 from leases for the use of the land for noncommercial agricultural
			 purposes;
(iii) Payments for soil
			 conservation programs; or
(iv) The
			 value represented from an exchange of goods or services for other goods or
			 services (bartering).
(bb) "Incidental use" means a use of land
			 classified as farm and agricultural land or timber land that is compatible with
			 commercial agricultural purposes or the commercial growing and harvesting of
			 timber. Incidental use for land classified as farm and agricultural land cannot
			 exceed 20 percent of the total classified land, while incidental use for timber
			 land cannot exceed 10 percent of the total classified land. An incidental use
			 may include, but is not limited to, wetland preservation, a gravel pit, a farm
			 woodlot, or a produce stand.
(cc)
			 "Integral" means that which is central to or inherent in the use or operation
			 of classified farm and agricultural land for commercial agricultural purposes.
			 To be considered integral to the farming operation, the residence of the farm
			 operator or owner and/or housing for farm employees must be the place(s) from
			 which the farmer conducts his/her commercial agricultural business.
(dd) "Interest" means the amount of
			 applicable interest upon additional tax.
(ee) "Net cash rental" means the earning or
			 productive capacity of farm and agricultural land less the production costs
			 customarily or typically paid by an owner or landlord. See WAC
			 458-30-260 for a more detailed
			 explanation of net cash rental.
(ff) "Notice of continuance" means the notice
			 signed when land classified under chapter 84.34 RCW is sold or transferred if
			 the new owner of the land intends to continue the classified use of the land
			 and elects to have the land remain classified under chapter 84.34 RCW. This
			 notice is part of the real estate excise tax affidavit or may be a separate
			 document prepared by the department and attached to this affidavit.
(gg) "Open space land" means one of the
			 following:
(i) Any parcel(s) of land so
			 designated by an official comprehensive land use plan adopted by any city or
			 county and zoned accordingly;
(ii)
			 Any parcel(s) of land, by preserving it in its present use would either:
(A) Conserve and enhance natural or scenic
			 resources;
(B) Protect streams or
			 water supply;
(C) Promote
			 conservation of soils, wetlands, beaches, or tidal marshes;
(D) Enhance the value to the public of
			 abutting or neighboring parks, forests, wildlife preserves, nature reservations
			 or sanctuaries, or other open space;
(E) Enhance recreation
			 opportunities;
(F) Preserve
			 historic sites;
(G) Preserve visual
			 quality along highway, road, or street corridors, or scenic vistas;
(H) Retain in its natural state, tracts of
			 land of not less than one acre in size situated in an urban area and open to
			 public use on such conditions as may be reasonably required by the granting
			 authority; or
(iii) Any
			 parcel(s) of farm and agricultural conservation land.
(hh) "Owner" means:
(i) Any person(s) having a fee interest in a
			 parcel of land; or
(ii) The
			 contract vendee when the land is subject to a real estate contract.
(ii) "Parcel of land" means a
			 property identified as such on the assessment roll. For purposes of chapter
			 84.34 RCW and this WAC chapter, a parcel does not include any land area not
			 owned by the applicant including, but not limited to, a public road, right of
			 way, railroad, or waterway.
(jj)
			 "Penalty" means the amount due when land is removed from classification under
			 chapter 84.34 RCW. The amount of the penalty is equal to 20 percent of the
			 additional tax and interest calculated in accordance with
			 RCW
			 84.34.080 or
			 84.34.108.
(kk) "Planning authority" means the local
			 government agency empowered by the appropriate legislative authority to develop
			 policies and proposals relating to land use.
(ll) "Primary use" means the existing use of
			 a parcel or parcels of land so prevalent that when the characteristic use of
			 the land is evaluated a conflicting or nonrelated use appears to be very
			 limited or excluded. The primary use of a parcel does not represent a specific
			 percentage of the total classified land.
(mm) "Qualification of land" means the
			 approval of an application for classification or reclassification of land by a
			 granting authority in accordance with chapter 84.34 RCW.
(nn) "Rating system" means a public benefit
			 rating system adopted for classified open space land according to
			 RCW
			 84.34.055.
(oo) "Reclassification" means the process by
			 which land classified under chapter 84.34 or 84.33 RCW is changed from one
			 classification to a different classification established by chapter 84.34 RCW
			 or into forest land as described in chapter 84.33 RCW. For example, land
			 classified as farm and agricultural land under
			 RCW
			 84.34.020(2)  may be
			 reclassified as open space land under
			 RCW
			 84.34.020(1).
(pp) "Removal" or "removed" means land
			 classified under chapter 84.34 RCW is removed from classification by the
			 assessor because the owner requests removal, the new owner fails to sign the
			 notice of continuance, the assessor does not approve a notice of continuance,
			 or the land is no longer being used for the purpose for which classification
			 was granted.
(qq) "Sale of
			 ownership" means the conveyance of the ownership of a parcel of land in
			 exchange for valuable consideration.
(rr) "Standing crop" includes short rotation
			 hardwoods, Christmas trees, vineyards, fruit trees, or other perennial crops
			 that:
(i) Are planted using agricultural
			 methods normally used in the commercial production of that particular crop;
			 and
(ii) Typically do not produce
			 harvestable quantities in the initial years after planting.
(ss) "Tax year" means the year
			 when property tax is due and payable.
(tt) "Timber land" means any parcel of land,
			 five or more acres in size, or multiple parcels of land that are contiguous and
			 total five or more acres in size, that are primarily used for the commercial
			 growth and harvesting of forest crops.
(i)
			 Timber land refers only to the land and also includes:
(A) Land incidentally used for an activity or
			 enterprise that is compatible with the commercial growing and harvesting of
			 timber as long as the incidental use does not exceed 10 percent of the
			 classified land; and
(B) Land on
			 which appurtenances necessary for the production, preparation, or sale of
			 commercial timber products are situated when the appurtenances are used in
			 conjunction with the land(s) producing timber products.
(ii) Timber land does not include:
(A) Land listed on the assessment roll as
			 designated forest land according to chapter 84.33 RCW;
(B) Land on which nonforest crops are
			 located; or
(C) Land used as a
			 residential home site.
(uu) "Timber management plan" is synonymous
			 with a "forest management plan" and details an owner's plan regarding the
			 management of classified timber land including, but not limited to, the
			 planting, growing and/or harvesting of timber. The elements of such a plan are
			 set forth in WAC
			 458-30-232.
(vv) "Transfer" means the conveyance of the
			 ownership of a parcel of land without an exchange of valuable consideration and
			 may include situations where classified land is donated to an owner,
			 corporation, partnership, or limited liability corporation.
(ww) "True and fair value" is the value of a
			 parcel of land placed on the assessment rolls at its highest and best use
			 without regard to its current use. The term also refers to market value, that
			 is, the amount of money a buyer of property willing, but not obligated to buy
			 would pay a seller of property willing but not obligated to sell, taking into
			 consideration all uses to which the property is adapted and might reasonably be
			 applied.
(xx) "Withdrawal" or
			 "withdrawn" means action taken by the owner of land classified under chapter
			 84.34 RCW by filing a notice of request to withdraw the land from
			 classification under the current use program in compliance with
			 RCW
			 84.34.070. Once land has been classified
			 under chapter 84.34 RCW, it must remain classified for at least 10 assessment
			 years from the date of classification. After the initial 10-year classification
			 period has elapsed, the owner may file a notice of request to withdraw all or a
			 portion of the land from classification with the assessor of the county in
			 which the land is located. Land is withdrawn from classification as a result of
			 a voluntary act by the owner. However, if the assessor has given written notice
			 of removal as provided in
			 RCW
			 84.34.108(1)(d)(i) for all
			 or a portion of the land prior to the owner providing the assessor with a
			 request for withdrawal, then the land will be removed from
			 classification.