[WSBARP] RCW 84.34.070 - Conversion from Farmland by a Non-Profit Org - Compensating Tax - Withdrawal from classification

[Josh Grant]

When you quit using open space  farmland as a farm, there is a recapture of taxes not paid in the past I believe it is 7 years.  I know of no way around that.  If someone does have a way to do it, please put on list.

From: Rob Rowley 
Sent: Thursday, August 10, 2017 3:42 PM
To: WSBA RPPT 
Subject: [WSBARP] RCW 84.34.070 - Conversion from Farmland by a Non-Profit Org - Compensating Tax - Withdrawal from classification

Assume 10 acre parcel which has always been farmland (wheat) is about to be sold to an adjoining nonprofit organization who currently qualifies for reduced property taxes.  Purchasing nonprofit organization wants to avoid the over $20,000 in compensating tax recapture which will be due when converted from farmland to a new usage by the nonprofit organization.



In speaking to the clerk in the assessor's office who specializes in open space she indicates there is no mechanism for this sale to be exempt from recapture.  After the sale the nonprofit can apply for a reduction in future property taxes with the Department of Revenue. I’m familiar with this process.



Your thoughts?





Robert R. Rowley | Attorney at Law

7 S. Howard St, Suite 218

Spokane, WA  99201

Telephone: (509) 252-5074

Mobile: (509) 994-1143

Facsimile: (509) 928-3084

Email: rob at rowleylegal.com

Web Site: www.rowleylegal.com



Practice concentrated on business, real estate and general legal matters in Washington and Idaho.







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