Open space incidental use

AN ACT Relating to providing tax relief for certain incidental 1
uses on open space land; and amending RCW 84.34.020 and 84.34.108.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 84.34.020 and 2014 c 125 s 2 are each amended to 4
read as follows: 5
The definitions in this section apply throughout this chapter 6
unless the context clearly requires otherwise. 7
(1) "Open space land" means (a) any land area so designated by an 8
official comprehensive land use plan adopted by any city or county 9
and zoned accordingly, or (b) any land area, the preservation of 10
which in its present use would (i) conserve and enhance natural or 11
scenic resources, or (ii) protect streams or water supply, or (iii) 12
promote conservation of soils, wetlands, beaches or tidal marshes, or 13
(iv) enhance the value to the public of abutting or neighboring 14
parks, forests, wildlife preserves, nature reservations or 15
sanctuaries or other open space, or (v) enhance recreation 16
opportunities, or (vi) preserve historic sites, or (vii) preserve 17
visual quality along highway, road, and street corridors or scenic 18
vistas, or (viii) retain in its natural state tracts of land not less 19
than one acre situated in an urban area and open to public use on 20
such conditions as may be reasonably required by the legislative body 21
H-0461.1
HOUSE BILL 1261
State of Washington 69th Legislature 2025 Regular Session
By Representatives Low, Berg, Peterson, and Nance
Read first time 01/14/25. Referred to Committee on Finance.
p. 1 HB 1261
granting the open space classification, or (c) any land meeting the 1
definition of farm and agricultural conservation land under 2
subsection (8) of this section. As a condition of granting open space 3
classification, the legislative body may not require public access on 4
land classified under (b)(iii) of this subsection for the purpose of 5
promoting conservation of wetlands. 6
(2) "Farm and agricultural land" means: 7
(a) Any parcel of land that is ((twenty)) 20 or more acres or 8
multiple parcels of land that are contiguous and total ((twenty)) 20 9
or more acres: 10
(i) Devoted primarily to the production of livestock or 11
agricultural commodities for commercial purposes; 12
(ii) Enrolled in the federal conservation reserve program or its 13
successor administered by the United States department of 14
agriculture; or 15
(iii) Other similar commercial activities as may be established 16
by rule; 17
(b)(i) Any parcel of land that is five acres or more but less 18
than ((twenty)) 20 acres devoted primarily to agricultural uses, 19
which has produced a gross income from agricultural uses equivalent 20
to, as of January 1, 1993: 21
(A) ((One hundred dollars )) $100 or more per acre per year for 22
three of the five calendar years preceding the date of application 23
for classification under this chapter for all parcels of land that 24
are classified under this subsection or all parcels of land for which 25
an application for classification under this subsection is made with 26
the granting authority prior to January 1, 1993; and27
(B) On or after January 1, 1993, ((two hundred dollars )) $200 or 28
more per acre per year for three of the five calendar years preceding 29
the date of application for classification under this chapter;30
(ii) For the purposes of (b)(i) of this subsection, "gross income 31
from agricultural uses" includes, but is not limited to, the 32
wholesale value of agricultural products donated to nonprofit food 33
banks or feeding programs; 34
(c) Any parcel of land of less than five acres devoted primarily 35
to agricultural uses which has produced a gross income as of January 36
1, 1993, of: 37
(i) ((One thousand dollars)) $1,000 or more per year for three of 38
the five calendar years preceding the date of application for 39
classification under this chapter for all parcels of land that are 40
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classified under this subsection or all parcels of land for which an 1
application for classification under this subsection is made with the 2
granting authority prior to January 1, 1993; and 3
(ii) On or after January 1, 1993, ((fifteen hundred dollars )) 4
$1,500 or more per year for three of the five calendar years 5
preceding the date of application for classification under this 6
chapter. Parcels of land described in (b)(i)(A) and (c)(i) of this 7
subsection will, upon any transfer of the property excluding a 8
transfer to a surviving spouse or surviving state registered domestic 9
partner, be subject to the limits of (b)(i)(B) and (c)(ii) of this 10
subsection; 11
(d) Any parcel of land that is five acres or more but less than 12
((twenty)) 20 acres devoted primarily to agricultural uses, which 13
meet one of the following criteria: 14
(i) Has produced a gross income from agricultural uses equivalent 15
to ((two hundred dollars )) $200 or more per acre per year for three 16
of the five calendar years preceding the date of application for 17
classification under this chapter; 18
(ii) Has standing crops with an expectation of harvest within 19
seven years, except as provided in (d)(iii) of this subsection, and a 20
demonstrable investment in the production of those crops equivalent 21
to ((one hundred dollars )) $100 or more per acre in the current or 22
previous calendar year. For the purposes of this subsection 23
(2)(d)(ii), "standing crop" means Christmas trees, vineyards, fruit 24
trees, or other perennial crops that: (A) Are planted using 25
agricultural methods normally used in the commercial production of 26
that particular crop; and (B) typically do not produce harvestable 27
quantities in the initial years after planting; or28
(iii) Has a standing crop of short rotation hardwoods with an 29
expectation of harvest within ((fifteen)) 15 years and a demonstrable 30
investment in the production of those crops equivalent to ((one 31
hundred dollars )) $100 or more per acre in the current or previous 32
calendar year; 33
(e) Any lands including incidental uses as are compatible with 34
agricultural purposes, including wetlands preservation, provided such 35
incidental use does not exceed ((twenty)) 20 percent of the 36
classified land and the land on which appurtenances necessary to the 37
production, preparation, or sale of the agricultural products exist 38
in conjunction with the lands producing such products. Agricultural 39
lands also include any parcel of land of one to five acres, which is 40
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not contiguous, but which otherwise constitutes an integral part of 1
farming operations being conducted on land qualifying under this 2
section as "farm and agricultural lands"; 3
(f) The land on which housing for employees and the principal 4
place of residence of the farm operator or owner of land classified 5
pursuant to (a) of this subsection is sited if: The housing or 6
residence is on or contiguous to the classified parcel; and the use 7
of the housing or the residence is integral to the use of the 8
classified land for agricultural purposes; 9
(g) Any land that is used primarily for equestrian related 10
activities for which a charge is made, including, but not limited to, 11
stabling, training, riding, clinics, schooling, shows, or grazing for 12
feed and that otherwise meet the requirements of (a), (b), or (c) of 13
this subsection; or 14
(h) Any land primarily used for commercial horticultural 15
purposes, including growing seedlings, trees, shrubs, vines, fruits, 16
vegetables, flowers, herbs, and other plants in containers, whether 17
under a structure or not, subject to the following:18
(i) The land is not primarily used for the storage, care, or 19
selling of plants purchased from other growers for retail sale;20
(ii) If the land is less than five acres and used primarily to 21
grow plants in containers, such land does not qualify as "farm and 22
agricultural land" if more than ((twenty-five)) 25 percent of the 23
land used primarily to grow plants in containers is open to the 24
general public for on-site retail sales; 25
(iii) If more than ((twenty)) 20 percent of the land used for 26
growing plants in containers qualifying under this subsection (2)(h) 27
is covered by pavement, none of the paved area is eligible for 28
classification as "farm and agricultural land" under this subsection 29
(2)(h). The eligibility limitations described in this subsection 30
(2)(h)(iii) do not affect the land's eligibility to qualify under (e) 31
of this subsection; and 32
(iv) If the land classified under this subsection (2)(h), in 33
addition to any contiguous land classified under this subsection, is 34
less than ((twenty)) 20 acres, it must meet the applicable income or 35
investment requirements in (b), (c), or (d) of this subsection.36
(3) "Timberland" means any parcel of land that is five or more 37
acres or multiple parcels of land that are contiguous and total five 38
or more acres which is or are devoted primarily to the growth and 39
harvest of timber for commercial purposes. Timberland means the land 40
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only and does not include a residential homesite. The term includes 1
land used for incidental uses that are compatible with the growing 2
and harvesting of timber but no more than ((ten)) 10 percent of the 3
land may be used for such incidental uses. It also includes the land 4
on which appurtenances necessary for the production, preparation, or 5
sale of the timber products exist in conjunction with land producing 6
these products. 7
(4) "Current" or "currently" means as of the date on which 8
property is to be listed and valued by the assessor.9
(5) "Owner" means the party or parties having the fee interest in 10
land, except that where land is subject to real estate contract 11
"owner" means the contract vendee. 12
(6)(a) "Contiguous" means land adjoining and touching other 13
property held by the same ownership. Land divided by a public road, 14
but otherwise an integral part of a farming operation, is considered 15
contiguous. 16
(b) For purposes of this subsection (6): 17
(i) "Same ownership" means owned by the same person or persons, 18
except that parcels owned by different persons are deemed held by the 19
same ownership if the parcels are: 20
(A) Managed as part of a single operation; and21
(B) Owned by: 22
(I) Members of the same family; 23
(II) Legal entities that are wholly owned by members of the same 24
family; or 25
(III) An individual who owns at least one of the parcels and a 26
legal entity or entities that own the other parcel or parcels if the 27
entity or entities are wholly owned by that individual, members of 28
his or her family, or that individual and members of his or her 29
family. 30
(ii) "Family" includes only: 31
(A) An individual and his or her spouse or domestic partner, 32
child, stepchild, adopted child, grandchild, parent, stepparent, 33
grandparent, cousin, or sibling; 34
(B) The spouse or domestic partner of an individual's child, 35
stepchild, adopted child, grandchild, parent, stepparent, 36
grandparent, cousin, or sibling; 37
(C) A child, stepchild, adopted child, grandchild, parent, 38
stepparent, grandparent, cousin, or sibling of the individual's 39
spouse or the individual's domestic partner; and 40
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(D) The spouse or domestic partner of any individual described in 1
(b)(ii)(C) of this subsection (6). 2
(7) "Granting authority" means the appropriate agency or official 3
who acts on an application for classification of land pursuant to 4
this chapter. 5
(8) "Farm and agricultural conservation land" means either:6
(a) Land that was previously classified under subsection (2) of 7
this section, that no longer meets the criteria of subsection (2) of 8
this section, and that is reclassified under subsection (1) of this 9
section; or 10
(b) Land that is traditional farmland that is not classified 11
under chapter 84.33 or 84.34 RCW, that has not been irrevocably 12
devoted to a use inconsistent with agricultural uses, and that has a 13
high potential for returning to commercial agriculture.14
(9)(a) "Agritourism activity" means any activity carried out on a 15
farm whose primary use is agriculture and that allows members of the 16
general public, for recreational, entertainment, or educational 17
purposes, to view or enjoy rural activities.18
(b)(i) "Agritourism activity" must be incidental to and 19
compatible with the required growing and production of agriculture on 20
classified farm and agricultural land.21
(ii) "Agritourism activity" includes: Farming; historic, 22
cultural, and on-site educational programs; recreational farming 23
programs that may include on-site hospitality services; guided and 24
self-guided tours; petting zoos; farm festivals; corn mazes; harvest-25
your-own operations; hayrides; barn parties; horseback riding; 26
fishing; and camping.27
(iii) "Agritourism activity" includes celebratory gatherings and 28
events, including birthday parties, graduation parties, and weddings.29
(10) "Appurtenance" means something used with, and related to or 30
dependent upon, another thing that is strictly necessary and 31
essential to the proper use and enjoyment of the land, as well as 32
useful or necessary for carrying out the purposes for which the land 33
is classified under this chapter.34
(11) "Incidental use" means a use of land classified as farm and 35
agricultural land that is compatible with commercial agricultural 36
purposes. "Incidental use" for land classified as farm and 37
agricultural land cannot exceed 20 percent of the total classified 38
land. An "incidental use" may include, but is not limited to, 39
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agritourism activities, wetland preservation, a gravel pit, a farm 1
woodlot, or a produce stand. 2
(12) "Primary use" means the existing use of a parcel or parcels 3
of land so prevalent that when the characteristic use of the land is 4
evaluated a conflicting or nonrelated use appears to be very limited 5
or excluded. The primary use of a parcel does not represent a 6
specific percentage of the total classified land.7
Sec. 2. RCW 84.34.108 and 2024 c 109 s 2 are each amended to 8
read as follows: 9
(1) When land has once been classified under this chapter, a 10
notation of the classification must be made each year upon the 11
assessment and tax rolls and the land must be valued pursuant to RCW 12
84.34.060 or 84.34.065 until removal of all or a portion of the 13
classification by the assessor upon occurrence of any of the 14
following: 15
(a) Receipt of notice from the owner to remove all or a portion 16
of the classification; 17
(b) Sale or transfer to an ownership, except a transfer that 18
resulted from a default in loan payments made to or secured by a 19
governmental agency that intends to or is required by law or 20
regulation to resell the property for the same use as before, making 21
all or a portion of the land exempt from ad valorem taxation;22
(c) Sale or transfer of all or a portion of the land to a new 23
owner, unless the new owner has signed a notice of classification 24
continuance, except transfer to an owner who is an heir or devisee of 25
a deceased owner or transfer by a transfer on death deed does not, by 26
itself, result in removal of classification. The notice of 27
continuance must be on a form prepared by the department. If the 28
notice of continuance is not signed by the new owner and attached to 29
the real estate excise tax affidavit, all additional taxes, 30
applicable interest, and penalty calculated pursuant to subsection 31
(4) of this section become due and payable by the seller or 32
transferor at time of sale. The auditor may not accept an instrument 33
of conveyance regarding classified land for filing or recording 34
unless the new owner has signed the notice of continuance or the 35
additional tax, applicable interest, and penalty has been paid, as 36
evidenced by the real estate excise tax stamp affixed thereto by the 37
treasurer. The seller, transferor, or new owner may appeal the new 38
assessed valuation calculated under subsection (4) of this section to 39
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the county board of equalization in accordance with the provisions of 1
RCW 84.40.038. Jurisdiction is hereby conferred on the county board 2
of equalization to hear these appeals; 3
(d)(i) Determination by the assessor, after giving the owner 4
written notice and an opportunity to be heard, that all or a portion 5
of the land no longer meets the criteria for classification under 6
this chapter. The criteria for classification pursuant to this 7
chapter continue to apply after classification has been granted.8
(ii) The granting authority, upon request of an assessor, must 9
provide reasonable assistance to the assessor in making a 10
determination whether the land continues to meet the qualifications 11
of RCW 84.34.020 (1) or (3). The assistance must be provided within 12
((thirty)) 30 days of receipt of the request. 13
(2) Land may not be removed from classification because of:14
(a) The creation, sale, or transfer of forestry riparian 15
easements under RCW 76.13.120; ((or))16
(b) The creation, sale, or transfer of a fee interest or a 17
conservation easement for the riparian open space program under RCW 18
76.09.040;19
(c) The occurrence of celebratory gatherings and events, 20
including birthday parties, graduation parties, and weddings on the 21
land; or22
(d) The construction of small supporting structures, gravel 23
parking lots, or de minimis alterations to an existing appurtenance 24
on the land that are deemed by the department to be integral for 25
agritourism activities or other incidental uses of the land. The 26
department must determine what "integral for agritourism activities" 27
means through rule making according to chapter 34.05 RCW.28
(3) Within ((thirty)) 30 days after the removal of all or a 29
portion of the land from current use classification under subsection 30
(1) of this section, the assessor must notify the owner in writing, 31
setting forth the reasons for the removal. The seller, transferor, or 32
owner may appeal the removal to the county board of equalization in 33
accordance with the provisions of RCW 84.40.038. The removal notice 34
must explain the steps needed to appeal the removal decision, 35
including when a notice of appeal must be filed, where the forms may 36
be obtained, and how to contact the county board of equalization.37
(4) Unless the removal is reversed on appeal, the assessor must 38
revalue the affected land with reference to its true and fair value 39
on January 1st of the year of removal from classification. Both the 40
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assessed valuation before and after the removal of classification 1
must be listed and taxes must be allocated according to that part of 2
the year to which each assessed valuation applies. Except as provided 3
in subsection (6) of this section, an additional tax, applicable 4
interest, and penalty must be imposed, which are due and payable to 5
the treasurer ((thirty)) 30 days after the owner is notified of the 6
amount of the additional tax, applicable interest, and penalty. As 7
soon as possible, the assessor must compute the amount of additional 8
tax, applicable interest, and penalty and the treasurer must mail 9
notice to the owner of the amount thereof and the date on which 10
payment is due. The amount of the additional tax, applicable 11
interest, and penalty must be determined as follows:12
(a) The amount of additional tax is equal to the difference 13
between the property tax paid as "open space land," "farm and 14
agricultural land," or "timberland" and the amount of property tax 15
otherwise due and payable for the ((seven)) four years last past had 16
the land not been so classified; 17
(b) The amount of applicable interest is equal to the interest 18
upon the amounts of the additional tax paid at the same statutory 19
rate charged on delinquent property taxes from the dates on which the 20
additional tax could have been paid without penalty if the land had 21
been assessed at a value without regard to this chapter;22
(c) The amount of the penalty is as provided in RCW 84.34.080. 23
The penalty may not be imposed if the removal satisfies the 24
conditions of RCW 84.34.070. 25
(5) Additional tax, applicable interest, and penalty become a 26
lien on the land. The lien attaches at the time the land is removed 27
from classification under this chapter and has priority to and must 28
be fully paid and satisfied before any recognizance, mortgage, 29
judgment, debt, obligation, or responsibility to or with which the 30
land may become charged or liable. This lien may be foreclosed upon 31
expiration of the same period after delinquency and in the same 32
manner provided by law for foreclosure of liens for delinquent real 33
property taxes as provided in RCW 84.64.050. Any additional tax 34
unpaid on the due date is delinquent as of the due date. From the 35
date of delinquency until paid, interest must be charged at the same 36
rate applied by law to delinquent ad valorem property taxes.37
(6) The additional tax, applicable interest, and penalty 38
specified in subsection (4) of this section may not be imposed if the 39
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removal of classification pursuant to subsection (1) of this section 1
resulted solely from: 2
(a) Transfer to a government entity in exchange for other land 3
located within the state of Washington; 4
(b)(i) A taking through the exercise of the power of eminent 5
domain, or (ii) sale or transfer to an entity having the power of 6
eminent domain in anticipation of the exercise of such power, said 7
entity having manifested its intent in writing or by other official 8
action; 9
(c) A natural disaster such as a flood, windstorm, earthquake, 10
wildfire, or other such calamity rather than by virtue of the act of 11
the landowner changing the use of the property; 12
(d) Official action by an agency of the state of Washington or by 13
the county or city within which the land is located which disallows 14
the present use of the land; 15
(e) Transfer of land to a church when the land would qualify for 16
exemption pursuant to RCW 84.36.020; 17
(f) Acquisition of property interests by state agencies or 18
agencies or organizations qualified under RCW 84.34.210 and 64.04.130 19
for the purposes enumerated in those sections. At such time as these 20
property interests are not used for the purposes enumerated in RCW 21
84.34.210 and 64.04.130 the additional tax specified in subsection 22
(4) of this section must be imposed; 23
(g) Removal of land classified as farm and agricultural land 24
under RCW 84.34.020(2)(f); 25
(h) Removal of land from classification after enactment of a 26
statutory exemption that qualifies the land for exemption and receipt 27
of notice from the owner to remove the land from classification;28
(i) The creation, sale, or transfer of forestry riparian 29
easements under RCW 76.13.120; 30
(j) The creation, sale, or transfer of a conservation easement of 31
private forestlands within unconfined channel migration zones or 32
containing critical habitat for threatened or endangered species 33
under RCW 76.09.040; 34
(k) The sale or transfer of land within two years after the death 35
of the owner of at least a ((fifty)) 50 percent interest in the land 36
if the land has been assessed and valued as classified forestland, 37
designated as forestland under chapter 84.33 RCW, or classified under 38
this chapter continuously since 1993. The date of death shown on a 39
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death certificate is the date used for the purposes of this 1
subsection (6)(k); 2
(l)(i) The discovery that the land was classified under this 3
chapter in error through no fault of the owner. For purposes of this 4
subsection (6)(l), "fault" means a knowingly false or misleading 5
statement, or other act or omission not in good faith, that 6
contributed to the approval of classification under this chapter or 7
the failure of the assessor to remove the land from classification 8
under this chapter. 9
(ii) For purposes of this subsection (6), the discovery that land 10
was classified under this chapter in error through no fault of the 11
owner is not the sole reason for removal of classification pursuant 12
to subsection (1) of this section if an independent basis for removal 13
exists. Examples of an independent basis for removal include the 14
owner changing the use of the land or failing to meet any applicable 15
income criteria required for classification under this chapter; or16
(m) The sale or transfer to a governmental entity if the 17
governmental entity manages the land in the same manner as designated 18
forestland under chapter 84.33 RCW, or as property classified as 19
timberland under this chapter, and the governmental entity provides 20
the county assessor with a timber management plan or a notice of 21
intent to manage the land as required under this subsection (6)(m). 22
The governmental entity must provide an updated timberland or 23
forestland management plan to the county assessor at least once every 24
revaluation cycle. The county is authorized to collect a fee from the 25
governmental entity for the filing of the forestland or timberland 26
management plan in accordance with the county's fee schedule. When 27
the land is not managed as required under this subsection (6)(m), or 28
when the governmental entity sells or transfers the land at any time, 29
the additional tax specified in subsection (4) of this section is due 30
from the current government owner, unless the change in use of the 31
land, sale or transfer, meets one of the other exceptions in this 32
subsection (6). 33
(7) An assessor may waive or a county treasurer refund, according 34
to chapter 84.69 RCW, any additional tax, applicable interest, and 35
penalty specified in subsection (4) of this section that is owed or 36
previously paid by a person.37
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