[WSBARP] Questions: Agricultural Exemption for Property Taxes and Gifting Land

[Carmen Rowe]

On the agricultural/property tax piece, see below.

He'll need to make a certain amount of money ( depending on size of
property), and before applying for a change, must do so at least 3 years
before applying (3 out of 5 immediately prior years).

As helpful, an area around the house can be exempted from this
calculation - for example, I had a 10 acre piece, but only had to show $200
x 9 acres, with 1 acre set aside as the residential/non-agricultural piece.

https://apps.leg.wa.gov/RCW/default.aspx?cite=84.34

Farm & Agricultural Land Means:

   - A parcel of land, or contiguous parcels of land, in one ownership of
   twenty or more acres devoted primarily to the production of livestock or
   agricultural commodities for commercial purposes, or enrolled in the
   Federal Conservation Reserve program or its successor administered by the
   United States Department of Agriculture.
   - Any parcel of land, or contiguous parcels, of five acres or more but
   less than twenty acres, devoted primarily to agricultural uses, which have
   produced a gross income from agricultural uses equivalent to two hundred
   dollars or more per acre each year for three of the five calendar years
   preceding the date of application for classification under this chapter, or
   - Any parcel of land, or contiguous parcels, that are less than five
   acres devoted primarily to agricultural uses which has produced a gross
   income of fifteen hundred dollars or more each year for three of the five
   calendar years preceding the date of application for classification under
   this chapter.
   - Agricultural lands also include non-contiguous parcels from one to
   five acres, but otherwise constituting an integral part of farming
   operations conducted on the land.



Carmen Rowe



Phone: (360) 669-3576 (direct cell)
Email:  Carmen at GryphonLawGroup.com

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>
> Message: 3
> Date: Wed, 11 Oct 2023 09:00:29 -0700
> From: Nicole Potebnya <nicole at tephralaw.com>
> To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> Subject: [WSBARP] Questions: Agricultural Exemption for Property Taxes
>         and     Gifting Land
> Message-ID: <31d585b03cbcf84aa5d7e525cb5428d4 at mail.gmail.com>
> Content-Type: text/plain; charset="utf-8"
>
> Dear Listserv:
>
>
>
> PC bought 100 acres of undeveloped land in Thurston County.  PC intends to
> subdivide, build a home on its parcel and gift at least 3-4 parcels to
> adult children to build homes on.  PC intends to have livestock, as well.
>
>
>
> Question 1:  What kind of standards does the PC need to meet to obtain and
> keep an agricultural exemption for property tax purposes?
>
>
>
> Question 2:  What is a tax friendly way for PC to gift the parcels to
> children to build their homes on?  Perhaps part of an estate planning
> structure?
>
>
>
> Any assistance would be appreciated in answering the above questions.
>
>
>
> All My Best,
>
> Nicole
>
>
>
> Nicole M. Potebnya
>
> *Attorney at Law*
>
> direct: 360-507-8924
>
>
>
> P.O. BOX 6550
>
> OLYMPIA, WA 98507
>
> (360) 507-8920
>
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