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Hinkle tries to protect
horse boarding
operations from excessive back taxes
13th
District representative asks DOR to act quickly to help farmers
Horse boarding operations
around the state could face excessive back taxes if a state Department
of Revenue (DOR) interpretation of a 1971 rule does not change.
Rep.
Bill Hinkle took the concerns of potentially-impacted farmers to
Olympia today in the first of two public hearings on the issue.
The issue centers on the definition of commercial agricultural purposes
in Washington Administrative Code (WAC) 458-30-200. The rule requires
that an owner’s land must be used for the feeding, breeding, managing,
and selling of livestock to be eligible for a tax exemption. The DOR’s
interpretation is that an owner must be engaged in all four activities
to be eligible.
Many horse boarding operations that received the tax exemption over the
years could be forced to pay tens of thousands of dollars in back taxes.
Hinkle thinks this outcome would be unfair.
“Agricultural industries represent the largest employer in our state. In
uncertain economic times, it’s vital that the Department of Revenue act
quickly to protect farmers who could be facing huge and unnecessary tax
bills,” said Hinkle, R-Cle Elum. “We have farmers who have been working
hard and in good faith, and they should not be punished.”
The DOR is collecting comments and information on what farming
activities are being carried out, whether or not they constitute
commercial agricultural purposes, and their impact on the preservation
of farmland. It is also evaluating the rule to see if more flexibility
can be determined in eligibility.
Another solution could be found in the Open Space Taxation Act – a law
designed to protect and preserve farm and agricultural lands. According
to chapter 84.34 of the Revised Code of Washington (RCW), if land was
previously classified as farm and agricultural land and no longer meets
the criteria for classification, an owner can apply to have the land
reclassified as farm and agricultural conservation land or possibly as
open space land.
“This is another unfortunate example of the Growth Management Act
failing to adequately preserve and protect farm and agricultural lands.
And, quite frankly, why many people have come to distrust government,”
said Hinkle. “One way or another, I’m asking the Department of Revenue
to help these farmers.”
The next DOR stakeholder meeting is scheduled for the first week of
December in Yakima. From there, it plans to begin the formal rule-making
process.
“We have to protect those who raise horses in this state,” said Hinkle.
“Because whether you raise horses or cattle, when you come to the back
porch after a long day your boots still smell the same.”
Hinkle is encouraging people to share their views with the DOR and
contact him if they have any questions. He can be reached at (509)
933-1238.
# # #
For more information, contact:
John Handy, Assistant
Communications Director - (360) 786-5758
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