[WSBARP] Yet another County recording issue

Fri Aug 21 10:21:20 PDT 2020

Hello All,

It is an RCW that has been around many years. Any time you sell or transfer
land that has been classified as open space, timberlands or agricultural
use you need to pay attention to either RCW 84.33 or 84.34. It also applies
to property of historical significance under RCW 84.26. The program allows
the Assessor to assess at a current use rate that is a lower value than FMV
thereby significantly reducing the taxes paid annually, but upon sale the
seller must pay what is called the compensating tax which is a look back
over the past 7 years. Look at RCW 84.34.108 and specifically at subsection
(a) The amount of additional tax is equal to the difference between the
property tax paid as "open space land," "farm and agricultural land," or
"timberland" and the amount of property tax otherwise due and payable for
the seven years last past had the land not been so classified; and b) The
amount of applicable interest is equal to the interest upon the amounts of
the additional tax paid at the same statutory rate charged on delinquent
property taxes from the dates on which the additional tax could have been
paid without penalty if the land had been assessed at a value without
regard to this chapter;

Take time to review the REET provision below that should have been read by
whoever filled out and/or signed the REET. You should also review the
related RCWs:

Is this property designated as forest land per chapter 84.33 RCW?

Is this property classified as current use (open space, farm and

agricultural, or timber) land per chapter 84.34 RCW?

Is this property receiving special valuation as historical property

per chapter 84.26 RCW?

If any answers are yes, complete as instructed below.

*(1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE)*

NEW OWNER(S): To continue the current designation as forest land or

classification as current use (open space, farm and agriculture, or timber)
land,

*you must sign on (3) below*. The county assessor must then determine if the

land transferred continues to qualify and will indicate by signing below.
If the

land no longer qualifies or you do not wish to continue the designation or

classification, it will be removed and the compensating or additional taxes
will

be due and payable by the seller or transferor at the time of sale. (RCW

84.33.140 or RCW 84.34.108). Prior to signing (3) below, you may contact

your local county assessor for more information.

This land does does not qualify for continuance.

DEPUTY ASSESSOR DATE

Any attorney that engages in the sale or transfer or vacant real property
should be award of these provisions.

Sincerely,

Tom

Thomas J. Westbrook

Attorney at Law

Rodgers Kee Card & Strophy, P.S.

324 West Bay Drive NW, Suite 201

Olympia, Washington  98502

Phone: 360-352-8311

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Email: tjw at buddbaylaw.com

Skype: thomas.westbrook

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*From:* wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
*On Behalf Of *Jeanne Dawes
*Sent:* Friday, August 21, 2020 9:50 AM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* Re: [WSBARP] Yet another County recording issue

In Spokane County, the auditor will not record a deed for property that is
in open space unless the assessor has either approved a continuance of the
open space (which is applied for by the buyer), or the property is pulled
from open space and the compensating tax paid.  The parties need to agree
as to who pays the compensating tax, if the exemption is being terminated.
It’s not always the seller.  If the buyer is going to discontinue the use
for which the open space exemption is granted, it may be the buyer to pays
the compensating tax.  I believe there is a WAC regulation applicable to
all counties.  Don’t have the cite off the top of my head.

*Jeanne*

*Jeanne J.* *Dawes*

Attorney at Law

Gore & Grewe, P.S.

103 E. Indiana Avenue, Suite A

Spokane, WA 99207-2317

Voice:  509-326-7500

Fax:      509-326-7503

jjdawes at goregrewe.com

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*From:* wsbarp-bounces at lists.wsbarppt.com *On Behalf Of *Craig Gourley
*Sent:* Thursday, August 20, 2020 3:44 PM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* [WSBARP] Yet another County recording issue

Listmates.  Your wisdom is sought.  Facts – trustee sells property at
auction.  Buyer pays trustee.  Trustee prepares trustee’s deed but county
refuses to record it because land is open space and County is demanding
signing of a continuation of open space use or payment of all the back
taxes as a condition of recording.  Lender wants their money but trustee
can record the deed.

Seems to me that the deed should be recorded and County can attach their
lien for taxes.  The only requirement to pay taxes as a condition of
recording that I am aware of is when dividing land, like a BLA.   Thoughts
?  I am guessing that once again the treasurer is exceeding their
authority.

*Gourley Law Group*

*Snohomish Escrow*

*The Exchange Connection*

1002 10th Street / PO Box 1091

Snohomish, WA 98291

360.568.5065

360.568.8092  fax

*Craig at glgmail.com <Craig at glgmail.com>*

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