Current use FAQs

How is land used as the principal residence of the farm operator or owner or employee housing valued?

The answer is found in RCW 84.34.065 and WAC 458-30-317. The land on which the principal residence of a farm operator or owner of farm and agricultural land or the housing for farm and agricultural employees is situated is valued in the following manner:

  • The land: The prior's year average value of classified farm and agricultural land in the county; plus the value of land improvements used to serve the residence or housing, such as sewer, water, and power. However, if the use of the residence or housing for employees is not integral to the farming operation, the land on which the residence or housing stands must be valued at its true and fair value in accordance with WAC 458-07-030.
  • The principal residence or housing for employees: The building(s) used by the farm operator or owner as his or her principal residence and building(s) used to provide shelter to farm and agricultural employees are valued at true and fair value in accordance with WAC 458-07-030.
  • Outbuildings: The lands on which, barns, machine sheds, and similar type structures are located are not considered a principal residence and/or employee housing. However, the land upon which these structures stand may be classified and assessed as farm and agricultural land. The buildings(s) must be valued at true and fair value in accordance with WAC 458-07-030.

Land on which the farm owner's or operator's residence is located and land on which the housing for farm and agricultural employees is located must be revalued only in the assessment year when the land is being revalued in accordance with the county's revaluation cycle.

Note: The land under a primary residence and/or employee housing can only receive the reduced valuation if the land, including the residence and/or employee housing, is at least 20 acres in size, is on or contiguous to the classified parcel, and is integral to the farming operation being conducted on the classified land.

Is additional tax, interest, and penalty due when the land is withdrawn or removed because it no longer qualifies as the principal place of residence for the farm operator or owner or as employee housing?

No. Additional tax, interest, and penalty are not imposed if farm and agricultural land classified under RCW 84.34.020 (2)(f) is withdrawn or removed from classification. RCW 84.34.108 (6) (g)

A parcel is being sold that has been in the Current Use farm and ag land classification since 1985. The grantor or seller is the spouse of the deceased owner, who had 50% interest and passed away on June 15th, 2009. The parcel was transferred through probate to the surviving spouse on January 5, 2010. The surviving spouse elected to continue in the classification. The surviving spouse became ill recently and can no longer farm. The parcel is being sold, as of July 1st, 2010, to a housing developer who does not want the classification to continue. Does this sale qualify for the exception (2-year death benefit) from additional tax, interest and penalty found in RCW 84.34.108 (6)(k)?

Yes. The sale to the housing developer is within 2 years of the date of death of an owner who held at least a 50% ownership in the land, the heir or devisee is the one selling the land, and the land had been continuously classified since 1993 (classified in 1985). At the time of sale or transfer, the new purchaser (the housing developer) will not sign the notice of continuance and the land will be removed from classification without the imposition of additional tax, interest and penalty. WAC 458-30-300 (5) (k)

Note: If the heir or devisee elects to remove the parcel from classification, then the additional tax, interest and penalty will be due unless the removal meets one of the exceptions in RCW 84.34.108(6).

The removal of a parcel from classification should be thought of as a two-part question. The first question is whether the parcel should be removed from classification and the second question is whether the additional tax, interest and penalty are due. In the example above, the death of the spouse did not cause the removal but the sale to the housing developer did because the notice of continuance was not signed. Additional tax, interest, and penalty is not imposed on the seller because the removal meets the exception described in RCW 84.34.108(6)(k).

Is timber land classified under chapter 84.34 RCW and forest land designated under chapter 84.33 RCW re-valued each year?

Regardless of a county's revaluation cycle, timber land and forest land are revalued each year using the tables in WAC 458-40-540.

Is the assessor required to send a revaluation notice when forest land designated under chapter 84.33 RCW is re-valued each year?

No. RCW 84.40.045 states in part, that the assessor must give notice of any change in the true and fair value of real property for the tract or lot of land and any improvements thereon no later than thirty days after appraisal: PROVIDED, That no such notice shall be mailed during the period from January 15 to February 15 of each year: PROVIDED FURTHER, That no notice need be sent with respect to changes in valuation of forest land made pursuant to chapter 84.33 RCW.

When tribally owned land is removed from either the current use program or from designated forest land is additional tax, interest, and penalty, or compensating tax due?

No. Based on the Ninth Circuit Court of Appeals decision involving the Quinault Indian Nation, the taxes imposed on a seller when land is removed from classification under chapter 84.34 RCW or designation under chapter 84.33 RCW resembles more of an excise tax instead of a tax for ad valorem purposes; therefore, the tax does not fall within the limited scope of permissible taxation allowed under the General Allotment Act.

If land classified in the current use program or designated as forest land is sold or transferred to a nonprofit organization or a nonprofit nature conservancy, does it have to be removed from classification or designation?

No. Land may be eligible for exempt status under Chapter 84.36 RCW and be classified as current use under Chapter 84.34 RCW or designated as forest land under Chapter 84.33 RCW. However, when classified or designated land is sold or transferred to a nonprofit organization or a nonprofit nature conservancy, a notice of continuance must be signed by the purchaser and the land must continue to meet the eligibility requirements of both programs if the application for exempt status under Chapter 84.36 RCW is approved by the Department of Revenue.

If land classified in the current use program or designated as forest land is sold or transferred that is automatically exempt from ad valorem taxation, such as the government, does it have to be removed from classification or designation?

Yes. According to RCW 84.34.108(1)(b) and RCW 84.33.140(5)(b), the sale or transfer of land to an ownership making the land exempt from ad valorem taxation, means the land must be removed from classification under chapter 84.34 RCW or designation under chapter 84.33 RCW. If land is sold or transferred to an entity that is automatically exempt from ad valorem taxation, such as the federal, state, or local government, the land is not eligible to be classified in the current use program or designated as forest land. If the removal does not meet one of the exceptions listed in RCW 84.34.108(6) or RCW 84.33.140(13) or (14), additional tax, interest, and penalty, or compensating tax is imposed on the seller. Unlike a sale or transfer of land to a nonprofit organization or nonprofit nature conservancy, land sold or transferred to an entity that is automatically (not requiring the approval of an exemption through the Department of Revenue) exempt from ad valorem taxation, must be removed from classification or designation.

Is public access required for land classified as open space?

Sometimes. The county legislative authority may not require public access on land classified for the purposes of promoting the conservation of wetlands; however, public access may be required for open space land used for other purposes.

When eligibility requirements under chapter 84.34 RCW or chapter 84.33 RCW change due to legislation, do participants have to comply with the new requirements or do they comply with the requirements in place at the time their application was originally approved?

Unless the law allows an exception, all participants must meet the new requirements. Examples of exceptions would be the lower gross income requirements for farm and agricultural land in which the application was made with the granting authority prior to January 1, 1993 and the application of the two year death benefit for land that was classified or designated continuously since 1993.