Hinkle and Warnick propose bill for tax relief

WASHINGTON — Rep. Judy Warnick, R-Moses Lake and Rep. Bill Hinkle, R-Cle Elum, proposed a bill to prevent horse boarders from paying current and back taxes on their property.

Washington’s Current Use Program is not clear about the payment of property taxes with regard to horse boarding facilities, which could lead to agribusiness owners paying back taxes, according to the lawmakers.

“Our bill expands the definition of ‘commercial agricultural purpose’ to include horse boarding and other, more modern agribusiness uses such as piglet and calf breeding,” Hinkle stated. “Our agriculture industry, and the businesses that support that industry, are constantly growing and changing. Our laws need to keep pace to reflect these changes.”

The tax relief program is part of the state’s open space program where landowners are encouraged to leave their land underdeveloped.

“As a horse boarder myself, I can’t imagine the back taxes I and others would have to pay to keep our businesses going,” Warnick stated. “The law was intended to encourage the open space of land. Horses need space like any other farm animal, whether they’re being raised or boarded for the winter. I look forward to correcting this law.”

The Department of Revenue began reviewing the Current Use Program after is appeared some agribusiness owners were claiming the tax relief, who did not qualify for the program, the law makers advised. The state is not collecting taxes from the businesses in question while the program is in the process of potential change.

“We’re thankful the department was willing to sit down and work this out on behalf of our expanding agribusiness,” Hinkle stated. “But we need a more permanent, more clearly-defined solution than what they’re capable of coming up with. We specifically need to protect our small businesses from having to pay huge amounts of back taxes due to no fault of their own.”