The bill amends existing laws concerning the compensating tax on land designated as forestland or timberland when sold to governmental entities. It introduces provisions that exempt compensating taxes if the land is sold or transferred to a governmental entity that intends to manage it similarly to designated forestland or timberland. New legal language requires the governmental entity to provide the county assessor with a timber management plan or a notice of intent to manage the land accordingly, and mandates that this management plan be updated at least once every revaluation cycle. Additionally, the county is authorized to collect a fee for filing the plan. If the governmental entity fails to manage the land as required or sells or transfers it, the compensating tax will be due from the current government owner unless specific exceptions apply.

The bill also addresses the classification and taxation of land, particularly regarding the removal of land from its current use classification. It requires a notice of continuance to be signed by the new owner and attached to the real estate excise tax affidavit; failure to do so will result in additional taxes, interest, and penalties due from the seller at the time of sale. The legislation clarifies the appeal process for assessed valuations and the criteria for land classification, ensuring that the county board of equalization can hear such appeals. New exceptions to the imposition of additional taxes are included for sales or transfers to governmental entities that manage the land as designated forestland or timberland, contingent upon the submission of a management plan to the county assessor.

Statutes affected:
Original Bill: 84.33.140, 84.34.108
Substitute Bill: 84.33.140, 84.34.108
Bill as Passed Legislature: 84.33.140, 84.34.108
Session Law: 84.33.140, 84.34.108