The Proposal – Thurston County Pilot Project and a JLARC Review to Evaluate its Effectiveness
If the farm residence is integral to the farming operation then the land under the farm residence should be valued at current use, not fair market value. Farms 10 acres and under are required to prove a farm income of at least $10,000 in order to qualify for current use for the land under the farm residence, in addition to establishing engagement in commercial agriculture. The chart shows the proposed changes (highlighted in italics). The smaller the farm, the higher the expectation for income to protect the public’s interest in assuring the tax program is not abused and that the farm residence is a part of the working farm.
|Size of Farm||Farms under 5 acres||Farms 5 acres to 10 acres||Farms 10 to 20 acres||Farms 20 acres and over|
|Commercial Activity in the form of Cash Money||Existing law||Existing law||Existing law||Existing law|
|Farm Residence must be integral to the classified lands||Treatment extended by 2SHB 1437||Treatment extended by 2SHB 1437||Treatment extended by 2SHB 1437||Existing law|
|Income requirements for underlying program||$1500 for the farmExisting law||$200 per acreExisting law||$200 per acreExisting law||None – existing law|
|Income requirements if seeking “integral” treatment||$10,000 for the farm-requirement added by SHB 1437||$10,000 for the farm-requirement added by SHB 1437||None – similar to large farms||None – existing law|