SB 5983 Washington Senate · 2025-2026 Regular Session

Exempting land classified under current use that is sold or transferred to a governmental entity from additional tax in certain circumstances.

This bill (SB 5983) modifies Washington state property tax rules for land classified under "current use" (like farm, agricultural, or timberland). It specifically exempts land from additional tax penalties when sold or transferred to a governmental entity (e.g., a county or state agency) for the same use as before. Currently, such sales to private owners trigger retroactive taxes for up to 7 years, but this bill removes that penalty for government transfers. The change directly affects landowners selling to governments and the governments purchasing such land, ensuring they avoid paying back taxes they would otherwise owe under the current system.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 6, 2026 Last action Feb 26, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Bill → Substitute Bill · 4 edits

MODERATE

This bill updates the title and sponsorship details of a Senate bill regarding tax exemptions for land transferred to government entities. It modifies the rules for when a government entity can keep land classified as timber or forestland without paying additional taxes, specifically requiring the entity to manage the land similarly to private timber operations and provide updated management plans. The changes also clarify that land sold to a government entity must be developed for a use eligible for tax classification if the sale is intended to help the original owner develop other classified property.

Scope change

The bill's scope remains focused on RCW 84.34.108 (timberland classification) and RCW 82.32.805/808 (tax exemptions), but the specific criteria for government entity exemptions have been expanded and clarified.

ELIGIBILITY

Added a requirement that land sold to a government entity must be developed for a use eligible for tax classification if the sale is intended to enable the original landowner to develop other classified property.

REQUIREMENT

Clarified that the combined acreage of land removed from classification due to development and land removed due to the sale to a government entity cannot exceed 20 percent of the total classified acres.

Explicitly stated that if a government entity fails to manage the land as required or sells/transfers it, the additional tax becomes due from the current government owner unless another exception applies.

TECHNICAL

Updated the bill header to reflect it as a 'Substitute Bill' with new bill number S-4186.1 and revised sponsorship attribution.

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Full legislative history

Actions timeline

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Key actions

Committee

Jan 22, 2026

Upper · Passed

Minority; without recommendation.

upper

Jan 22, 2026

Upper · Passed

Executive action taken in the Senate Committee on Local Government at 1:30 PM.

upper

Jan 15, 2026

Upper · Passed

Public hearing in the Senate Committee on Local Government at 1:30 PM.

upper

1 primary · 2 co-sponsors