Current through Register Vol. 24-06, March 15, 2024
(1)
Introduction. Under
RCW
84.34.020(2)(d) the land on
which the principal residence of the farm operator or owner of farm and
agricultural land is situated and the housing for farm and agricultural
employees is situated may be classified as farm and agricultural land.
This section explains the criteria that must be met to include
this type of residence or employee housing within the farm and agricultural
land classification and the procedure used to value a classified residence or
housing.
(2)
Definitions. For purposes of this section, the following
definitions apply:
(a) "Farm employee or farm
and agricultural employee" means an individual who is employed on farm and
agricultural land on a full-time basis or a seasonal or migratory worker who
works on farm and agricultural land only during the planting, growing, and/or
harvesting seasons.
(i) For purposes of this
section, "full-time basis" refers to an individual who is employed at least
twenty-five hours per week on farm and agricultural land.
(ii) The term 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.
For example, housing occupied by a person who works full time
at a foundry and who works on a farm only two weeks per year helping with the
wheat harvest should not be granted classification.
(b) "Integral" means that which is
central to or inherent in the use or operation of classified farm and
agricultural land for commercial agricultural purposes. For purposes of this
section, 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 commercial
agricultural business.
(c) "True
and fair value" means the value of a parcel of land placed on the assessment
rolls at its highest and best use without regard to its current use value. The
term also refers to market value; that is, the amount of money a buyer willing
but not obligated to buy would pay to a seller willing but not obligated to
sell for the real property.
(3)
Requirements for
classification. The land on which the principal residence of a farm
operator or the owner of land is situated and the housing for farm or
agricultural employees is situated may be classified as farm and agricultural
land if it meets the following conditions:
(a) The land on which the residence or
housing stands is twenty or more acres or multiple parcels that are contiguous
and total twenty or more acres; and
(i)
Primarily used to produce livestock or agricultural products for commercial
purposes; or
(ii) Enrolled in the
federal Conservation Reserve Program or its successor administered by the
United States Department of Agriculture; and
(b) The use of the residence or housing is
integral to the use of the classified land for commercial agricultural
purposes.
(4)
Examples.
(a) On a parcel of
land twenty acres or more, there are two dwellings: One is the principal
residence of the farm operator or owner of classified farm and agricultural
land and the second is inhabited by the owner's son who is employed full time
at a foundry in town and works on the farm only during harvest time. The land
on which the principal residence is situated may be classified as farm and
agricultural land if the use of the dwelling is integral to the use of the
classified land. The land on which the second home is situated may not be
included within the farm and agricultural land classification because it is not
inhabited by a farm employee as defined in subsection (2) of this
section.
(b) On a parcel of land
twenty acres or more, there are two dwellings: One is the principal residence
of the farm operator or owner of farm and agricultural land and the second is
inhabited by seasonal farm workers who work on the farm only during harvest
time. The land on which both dwellings are situated may be classified as farm
and agricultural land if the use of the dwellings are integral to the use of
the classified land.
(c) On a
parcel of classified land that is twenty acres, there is one dwelling. This
dwelling is occupied by the owner of the classified land but the owner does not
run the farm. The farm is leased to a cooperative that conducts the commercial
agricultural activities of the farm from central administrative headquarters
that are not located on the classified land. The land on which this dwelling
stands may not be classified as farm and agricultural land because the use of
the dwelling is not integral to the commercial agricultural purposes of the
farm.
(5)
Valuation.
(a) The land. 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 shall be valued in the following manner:
(i) The prior's year average value of
classified farm and agricultural land in the county; plus
(ii) The value of land improvements used to
serve the residence or housing, such as sewer, water, and power.
(iii) 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 shall be valued at its true and fair value in
accordance with WAC 458-12-301.
(b) 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 shall be valued at its true and fair value in accordance
with WAC 458-12-301.
(c) Excluded
structures. The land on which storeyards, barns, machine sheds, and similar
type structures are located shall not be considered as part of the principal
residence of the farm operator or owner nor housing for farm and agricultural
employees. However, the land upon which these structures stand may be
classified as farm and agricultural land generally.
(6)
Withdrawal or removal.
Additional tax, interest, and penalty, if owed, are not imposed if farm and
agricultural land classified under
RCW
84.34.020(2)(d) is withdrawn
or removed from classification.
(7)
Effect of 1992 legislation on county revaluation cycle. 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 shall be revalued in
accordance with the 1992 legislative changes, described in subsection (5) of
this section, only in the assessment year when the land is being revalued in
accordance with the county's revaluation cycle.
Statutory Authority: RCW 84.08.110,
84.08.070,
84.34.141 and
84.34.360. 95-21-002, §
458-30-317, filed 10/4/95, effective
11/4/95.