Definition of timberland

AN ACT Relating to the definition of timberland for the purposes 1
of determining the real property excise tax for a governmental 2
entity; and amending RCW 82.45.060. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.45.060 and 2019 c 424 s 1 are each amended to 5
read as follows: 6
(1) There is imposed an excise tax upon each sale of real 7
property. 8
(a) Through December 31, 2019, the rate of the tax imposed under 9
this section is 1.28 percent of the selling price.10
(b) Beginning January 1, 2020, except as provided in (c) of this 11
subsection, the rate of the tax imposed under this section is as 12
follows: 13
(i) 1.1 percent of the portion of the selling price that is less 14
than or equal to five hundred thousand dollars; 15
(ii) 1.28 percent of the portion of the selling price that is 16
greater than five hundred thousand dollars and equal to or less than 17
one million five hundred thousand dollars; 18
(iii) 2.75 percent of the portion of the selling price that is 19
greater than one million five hundred thousand dollars and equal to 20
or less than three million dollars; 21
Z-0138.2
SENATE BILL 5385
State of Washington 69th Legislature 2025 Regular Session
By Senators Chapman, Nobles, and Saldaña; by request of Department of
Natural Resources
Read first time 01/21/25. Referred to Committee on Agriculture &
Natural Resources.
p. 1 SB 5385
(iv) Three percent of the portion of the selling price that is 1
greater than three million dollars. 2
(c) The sale of real property that is classified as timberland or 3
agricultural land is subject to the tax imposed under this section at 4
a rate of 1.28 percent of the selling price. 5
(2) Beginning July 1, 2022, and every fourth year thereafter:6
(a) The department must adjust the selling price threshold in 7
subsection (1)(b)(i) of this section to reflect the lesser of the 8
growth of the consumer price index for shelter or five percent. If 9
the growth is equal to or less than zero percent, the current selling 10
price threshold continues to apply. 11
(b) The department must adjust the selling price thresholds in 12
subsection (1)(b)(ii) through (iv) of this section by the dollar 13
amount of any increase in the selling price threshold in subsection 14
(1)(b)(i) of this section. 15
(c) The department must publish updated selling price thresholds 16
by September 1, 2022, and September 1st of every fourth year 17
thereafter. Updated selling price thresholds will apply beginning 18
January 1, 2023, and January 1st every fourth year thereafter. 19
Adjusted selling price thresholds must be rounded to the nearest one 20
thousand dollars. No changes may be made to adjusted selling price 21
thresholds once such adjustments take effect. 22
(d) The most recent selling price threshold becomes the base for 23
subsequent adjustments. 24
(e) The department must report adjustments to the selling price 25
thresholds to the fiscal committees of the legislature, beginning 26
December 1, 2022, and December 1st every fourth year thereafter.27
(3)(a) The department must publish guidance to assist sellers in 28
properly classifying real property on the real estate excise tax 29
affidavit for purposes of determining the proper amount of tax due 30
under this section. Real property with multiple uses must be 31
classified according to the property's predominant use. The 32
department's guidance must include factors for use in determining the 33
predominant use of real property. 34
(b) County treasurers are not responsible for verifying that the 35
seller has properly classified real property reported on a real 36
estate excise tax affidavit. The department is solely responsible for 37
such verification as part of its audit responsibilities under RCW 38
82.45.150. 39
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(4)(a) Beginning July 1, 2013, and ending December 31, 2019, an 1
amount equal to two percent of the proceeds of this tax must be 2
deposited in the public works assistance account created in RCW 3
43.155.050, an amount equal to four and one -tenth percent must be 4
deposited in the education legacy trust account created in RCW 5
83.100.230, an amount equal to one and six-tenths percent must be 6
deposited in the city-county assistance account created in RCW 7
43.08.290, and the remainder must be deposited in the general fund.8
(b) Beginning January 1, 2020, amounts collected from the tax 9
imposed under this section must be deposited as provided in RCW 10
82.45.230. 11
(5) The definitions in this subsection apply throughout this 12
section unless the context clearly requires otherwise.13
(a) "Agricultural land" means farm and agricultural land and farm 14
and agricultural conservation land, as those terms are defined in RCW 15
84.34.020, including any structures on such land. 16
(b) "Consumer price index for shelter" means the most current 17
seasonally adjusted index for the shelter expenditure category of the 18
consumer price index for all urban consumers (CPI-U) as published by 19
July 31st by the bureau of labor statistics of the United States 20
department of labor. 21
(c) "Growth of the consumer price index for shelter" means the 22
percentage increase in the consumer price index for shelter as 23
measured from data published by the bureau of labor statistics of the 24
United States department of labor by July 31st for the most recent 25
three-year period for the selling price threshold adjustment in 2022, 26
and the most recent four-year period for subsequent selling price 27
threshold adjustments. 28
(d) "Timberland" means land ((classified under chapter 84.34 RCW 29
or designated under chapter 84.33 RCW)), including any structures and 30
standing timber on such land, and standing timber sold apart from the 31
land upon which it sits, that is either:32
(i) Classified under chapter 84.34 RCW;33
(ii) Designated under chapter 84.33 RCW; or34
(iii) Transferred or sold to a governmental entity if the 35
governmental entity manages the land in the same manner as designated 36
forestland under chapter 84.33 RCW or property classified as 37
timberland under chapter 84.34 RCW. The governmental entity must 38
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comply with the requirements under RCW 84.33.140(13)(j) or 1
84.34.108(6)(m). 2
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