The Act states that it is in the best interest of the State to maintain, preserve, conserve, and otherwise continue in existence adequate open space lands for the production of food, fiber, and forest crops and to assure the use and enjoyment of natural resources and scenic beauty for the economic and social well-being of the State and its citizens. Upon removal of classification, an additional tax, interest and penalty shall be due.

The law provides for three classifications:

Open Space Land - Land retained in its natural state. Land that would enhance, protect or preserve natural areas, i.e. parks, sanctuaries, historic sites, scenic resources, streams, beaches.

Farm and Agricultural Land - Land primarily devoted to the production of livestock or agricultural commodities for commercial purposes.

Timber Land - Land in any contiguous ownership of five acres or more, which is primarily devoted to the growth, and harvest of timber for commercial purposes.

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Forest Land Programs: Land in any contiguous ownership of 20 acres or more, which is primarily devoted to the growth, and harvest of timber for commercial purposes..

Should the owner change the use of the land, the full tax status shall be restored and a compensating tax shall be assessed and billed. The compensating tax is the difference between the tax levied on the forest land and an amount equal to the new assessed value multiplied by the current levy rate multiplied by a number of years designated as forest land, not to exceed 9, plus the prorated portion of the current year.

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RCW 84.70 allows the Assessor-Treasurer to reduce the assessed value of damaged property as of the date of destruction when notified by the property owner. An application must be filed within three years of the date of destruction or reduction in value.

Damaged or Destroyed Property Exemptions

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Substitute House Bill (SHB) 1906, now codified under RCW 84.36.630 states that machinery and equipment owned by a farmer and used exclusively in growing and producing agricultural products is exempt from property taxes levied by the state. The farmer will continue to pay local property taxes on the machinery and equipment. The equipment must be used during the calendar year for which the claim for exemption is made. The claim for exemption must be filed annually, on a Department of Revenue form, with the Personal Property Affidavit by April 30th. This exemption first applies for the 2003 property taxes. For definitions of 'Farmer' and 'Agricultural product' refer to RCW 82.04.213.

Application Form for Exemption of Farm Machinery and Equipment

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Owners of qualified historic properties may apply for Special Valuation that subtracts certain rehabilitation costs from the assessed value of the property for a period of no more than 10 years. These costs must be at least 25% of the assessed value of the structure prior to rehabilitation and be incurred during the two years prior to application.

The application can be obtained online or from the Assessor-Treasurer's Office. The completed application along with the Assessor fee of $150.00 should be submitted to the Assessor-Treasurer's Office by October 1 to be considered for Special Valuation in the following year and tax reduction the year after that. The Local Review Board will approve or deny the application and may have a processing fee as well. RCW 84.26

Application Form for Historic Property Special Valuation

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Property owned by taxing districts are exempt from property taxes. These taxing districts include the State, County, Cities and Towns, Ports, School Districts, Fire Protection Districts, or Municipal Water Districts. The Assessor-Treasurer's Office identifies such properties by assigning each an exempt property code, maintains the ownership, property descriptions and tax status. RCW 84.36.010

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Property owned by cemeteries and non-profit organizations may apply to the Washington State Department of Revenue for property tax exemption. The initial application for exemption must be made within 60 days of purchase or conversion of the property to an exempt use. The application must be filed annually with the Department of Revenue between January 1 and March 31. The Assessor-Treasurer's Office identifies such properties with an exempt property code, maintains the ownership, property descriptions and tax status. RCW 84.36.020-060

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This program is available to citizens who are at least 61 years old on December 31 of the year they apply OR retired from regular gainful employment by reason of a disability, with an income of $35,000 or less. Exemptions must be renewed once every six years unless there is a change in status or income. Proof of income is required in addition to the information requested on the application form. Proof of disability is also required.

The exemption freezes the value of the residence as of January 1 of the initial application year, exempts all excess levies, and may exempt a portion of regular levies. The Assessor-Treasurer will continue to establish the market value of the property on an annual basis. Your taxes will be calculated on the lesser of market value or frozen value.

Senior Citizen and Disabled Person Exemption Forms and Explanation

Application Form for Senior Citizen and Disabled Person Exemption

An 8 or 12 year program that provides tax relief for new construction or rehabilitation of multifamily housing located within designated areas of the cities with a population of 15,000 or more. Tax relief applies only to the value of the residential housing units. The land and non-residential improvements continue to be taxed at the regular rate. RCW 84.14

For more information contact, Bonney Lake City Administrator (253) 447-4307, Lakewood Community Development Dept at 253-589-2489, Puyallup City Attorney's office at (253) 841-5598, Tacoma Economic Development Department at (253) 591-5221 and University Place Development Services Dept (253) 460-2519

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