The bill amends RCW 82.45.060 to clarify the definition of "timberland" for the purposes of determining the real estate excise tax applicable to governmental entities. The new definition specifies that timberland includes land with standing timber and structures, and it can be classified under chapter 84.34 RCW, designated under chapter 84.33 RCW, or transferred to a governmental entity that manages the land similarly to designated forestland or classified timberland. Additionally, the governmental entity must adhere to specific requirements outlined in RCW 84.33.140(13)(j) or 84.34.108(6)(m).

The bill also maintains the existing structure of the real estate excise tax, which imposes varying rates based on the selling price of real property, with a specific rate of 1.28 percent for timberland and agricultural land. Furthermore, it establishes a process for adjusting selling price thresholds every four years based on the consumer price index for shelter, ensuring that the tax structure remains responsive to economic changes. The department is tasked with publishing guidance for property classification and reporting adjustments to the legislature, while county treasurers are not responsible for verifying property classifications on tax affidavits.

Statutes affected:
Original Bill: 82.45.060