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

HB 2140 exempts land classified under Washington's current-use property tax program (e.g., farmland, forestland) from additional taxes when sold or transferred to a governmental entity. This directly affects landowners selling to governments (like counties or schools) and the governments purchasing such land. The bill amends tax code to clarify that these transfers do not trigger the usual penalty tax, which normally applies when classified land changes ownership. The key provision removes the requirement to pay retroactive taxes for up to seven years (four years for farmland after 2025) when land is sold to a government for continued use. This is a procedural tax code adjustment with no new spending or regulations.