Maycumber, Koster Introduce Legislation To Help Landowners Impacted By Hirst

Legislation introduced last week in Olympia could, according to supporters, save land owners impacted by the Hirst decision.  The bill introduced by Republican representatives John Koster of Arlington and Jacquelin Maycumber of Republic could  lower tax payments for those who have their property values drop due to the court’s water decision.

Under House Bill 2195, if water supply to any real property is impacted by a federal or state appellate court ruling, the property must be reassessed within one year by the county assessor to reflect the true and fair market value after the water ruling.  If taxes have been paid at the higher rate, the legislation requires the difference to be refunded.  The state would be required to pay counties for the costs of reassessment.The state would also be responsible to pay counties to provide a report of the number of parcels with reduced value and the extent of the tax shift.  Reassessments are traditionally conducted every three to six years, depending upon the county.

“The Hirst decision effectively eliminates the category of permit-exempt wells and effectively halts the ability of landowners to dig wells,” said Koster. “Because of this ruling, many counties are already refusing to issue building permits unless the property owner can hire a hydrologist to prove that not one drop of water from a well would affect in-stream flows. That’s nearly impossible to prove.”

“Without water, there is no development. Without water, banks will not issue loans on those properties. So those lands become worthless, or at best, significantly lose their market value,” said Maycumber.

“We strongly feel that if a court decision has removed the ability of a landowner to access water for the property and the property value has plummeted because of the ruling, the owner should not be taxed at the rate before devaluation,” added Koster.

“This legislation would ensure immediate property tax relief to the landowner affected by the ruling, reflecting the true value of that property once the water ruling has taken effect,” noted Maycumber.

“We’ve been warning this Hirst decision could have far-reaching effects, not just to property owners affected by the inability of using water on their property, but it will be extremely costly to every property owner with water. As these land values plummet, so will the tax collections on those properties. So it will create a tax shift. Everyone else’s property tax bills will significantly increase to compensate for the lost revenue in every county in Washington,” said Koster, a former Snohomish County councilman.

In addition to property tax relief for affected landowners, the two lawmakers hope their bill would create greater public awareness to all property owners about the effects of such rulings that diminish property values on rural and undeveloped land.

“We want every landowner in the state of Washington, whether or not they have water, and whether they live in rural Washington or downtown Seattle, to know the full implications of the Hirst decision and understand that if Hirst is allowed to stand, it will adversely affect them in some way,” concluded Koster.

The bill has been referred to the House Finance Committee.

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