Bill > SB5385

This bill amends the definition of timberland for real estate excise tax purposes, expanding the classification to include land transferred or sold to a governmental entity that manages the land in the same manner as designated forestland or timberland. Specifically, the bill modifies the existing definition of timberland to add a third category: land transferred to a governmental entity that commits to managing the property under the same forestry or agricultural land conservation guidelines as outlined in existing state law (chapters 84.33 and 84.34 RCW). The governmental entity must also comply with specific reporting and management requirements related to forest or agricultural land. This change provides more flexibility in how timberland can be defined for tax purposes, potentially allowing more types of land transfers to qualify for the lower 1.28 percent excise tax rate, which is significantly lower than the graduated rates applied to other real estate sales (which can range from 1.1 percent to 3 percent depending on the property's selling price). The bill clarifies that this definition applies to the land itself, any structures on the land, and potentially standing timber sold separately from the land.

Agriculture and Natural Resources, Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5385&Year=2025&Initiative=false