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Additional Information - Farm & Ag
The Assessor is required to maintain two values for each parcel that is classified. The first is the value that would be placed on the land if it was not classified. This is commonly referred to as the “fair market value.” The second is the current use land value based on its current use, not highest and best use.
In determining the current use value of farm and agricultural land, the Assessor considers the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years. This earning or productive capacity is the “net cash rental” and is capitalized by a “rate of interest” charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes.
You may request the land to be reclassified (subject to all applicable qualifications for each classification) to the Current Use Program outlined in Chapter 84.34 RCW, without paying the compensating tax.
Land classified as Farm and Agricultural may be reclassified as:
- Open-Open Space Land (defined under RCW 84.34.20 (1))
- Farm and Agricultural Conservation Land (defined under RCW 84.34.020 (8)(a))
- Designated Forest Land (DFL) (defined under RCW 84.33)
- Current Use Timber Land (defined under RCW 84.34.020 (3))
Reclassification Application Fee:
Reclassification from Farm and Agricultural Land to DFL
| The application fee to reclassify to Designated Forest Land is $350 and is non-refundable. Please include the fee with your application and make the check payable to "San Juan County Treasurer". |
Reclassification from Farm & Ag to Open Space Land, Farm & Agricultural Conservation Land, or Current Use Timber Land
Please contact San Juan County Community Development for the application fee to reclassify to Open Space Land, Farm & Agricultural Conservation Land, and Current Use Timber Land. Please direct all questions regarding the application process and status of your application to Community Development.
The contact information for Community Development is:
| Physical Address: | Mailing Address: | Phone Number: |
| Community Development 135 Rhone Street Friday Harbor, WA 98250 | Community Development PO Box 947 Friday Harbor, WA 98250 |
Reclassification Application:
Reclassification Application Process (WAC 458-30-325)
The application for reclassification must be made within 30 days from the from the date of removal from Farm and Agricultural Land status.
- Application: Change of Classification 64 00060 (Download, Fill-in)
- Attachments: Please see the table below for Attachments to the Application.
| Reclassification Request | Attachments to Application | Reclassification Approval Authority |
|---|---|---|
| Open-Space Land | Rev 64 0021 | Community Development |
| Farm & Agricultural Conservation Land | Community Development | |
| Designated Forest Land | Rev 62 0021 or Rev 62 0110 Forest Mgmt Plan | Assessor |
| Current Use Timber Land | Rev 64 0109 or Rev 64 0111 Timber Mgmt Plan | Community Development |
The Assessor may require an owner of classified land to submit data regarding the use of the land, productivity of typical crops, income and expense data, and similar information regarding continued eligibility.
How can the owner remove land from Farm & Agricultural classification?
1. The owner chooses to remove the land and the owner notifies the Assessor in writing.
- The 2017 Legislature passed Substitute House Bill (SHB) 1747 (Effective date July 23, 2017).
- The bill allows a withdrawal request to be made immediately when the land has been classified for at least ten years.
- The bill no longer requires a two-year waiting period or advance notice by the owner to the Assessor to waive the 20 percent penalty on the additional tax and interest.
- Additional tax and interest are imposed as provided in RCW 84.34.070.
- The bill does not permit withdrawal of the land from the program if the Assessor has given the owner written notice of removal because the land no longer meets the criteria for classification.
- Notice to the Assessor is provided by completing the "Notice of Request to Withdraw Current Use Assessment Classification" 64 0027 (download, fill-in)
- For additional information on the 2017 Legislative Update, please click WA DOR Property Tax Special Notice.
2. The owner sells or transfers the land to ownership that makes the land exempt from ad valorem taxation.
3. The owner sells or transfers the land to a new owner and the new owner does not sign a notice of forest land continuance.
How can the Assessor remove land from Farm & Ag classification?
The Assessor determines, after giving the owner written notice and an opportunity to be heard, that the land is no longer primarily used for and devoted to commercial farming activity.
When is Removal of Land not Subject to Compensating Tax?
The additional tax, applicable interest, and penalty shall not be imposed if the removal of classification results solely from:
- The land is transferred to a government entity in exchange for other land located in the State of Washington,
- Land taken through the exercise of the power of eminent domain or sale of transferred in anticipation of the exercise of such power was received in writing or by other official action,
- A natural disaster changes the use of such land,
- Official action by the state, county, or city disallows the present use of such land,
- Transfer of land to a church when such land would qualify for exemptions granted thereto,
- Acquisition of property interests by state agencies or agencies or organizations qualified under RCW 84.34.210 and 64.04.130 (See RCW 84.34.108(5f)),
- Removal of land classified as farm and agricultural land on which housing for employees and/or principal place of residence is sited, or
- The sale or transfer of land within two years after the death of the owner of at least a fifty percent interest in the land if the land has been assessed and valued as classified under this chapter continuously since 1993.
Compensating Tax
Upon removal, you will be required to pay to compensate tax unless the removal meets one of the exceptions outlined in RCW 84.33.140(13) or (14).
- Land Classified for a Minimum of 10 Years: The amount of compensating tax is the difference between the tax levied in the current use value and the tax that would have been levied on the true and fair value plus interest at the same statutory rate charged on delinquent property taxes for the last 7 years.
- Land Classified less than the Minimum 10-year Period: Land whose classification is removed due to a change to a nonconforming use, or whose classification is removed prior to the minimum 10-year period, shall be liable to pay the additional tax and interest described above in item 1, plus a penalty equal to 20% of the sum of the additional tax and interest. The additional tax, interest, and penalty shall be paid for a maximum of 7 years.
New Owner Wants to Continue Farm and Agricultural Classification
If farm and agricultural land is sold or transferred to a new owner and the new owner wants the land to continue its classification, the new owner must sign a Notice of Continuance and submit an approvable Farm Management Plan to the Assessor. If the Notice of Continuance is not signed by the new owner and attached to the real estate excise tax affidavit, all additional taxes will become due and payable by the seller or transferor at time of sale.
The Auditor will not accept an instrument of conveyance regarding classified land for filing or recording unless the new owner has signed the Notice of Continuance or the additional tax has been paid, as evidenced by the real estate excise tax stamp affixed thereto by the treasurer.
The Assessor has 15 calendar days, from the date all documentation is received, to determine whether the land will continue to qualify as Farm and Agricultural Land.
New Owner is an Heir or Devisee of a Deceased Owner and Wants to Continue Farm and Agricultural Land
The new owner must submit a Notice of Continuance. The new owner is not required to sign the Notice of Continuance.
The Assessor has 15 calendar days, from the date all documentation is received, to determine whether the land will continue to qualify as Farm and Agricultural Land.
New Owner Does Not Want to Continue Farm & Ag Land Classification
If the new owner(s) does not want to continue the classification or designation, all additional tax, interest and penalty or compensating tax calculated pursuant to RCW 84.34.108 or RCW 84.33.140 will be due and payable by the seller or transferor at the time of sale. Payment in full is required before the conveyance can be recorded or filed.