H-4542.1 _______________________________________________
HOUSE BILL 2963
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State of Washington 52nd Legislature 1992 Regular Session
By Representatives Ogden, Winsley, Peery, Nelson, Franklin and Anderson
Read first time 02/05/92. Referred to Committee on Housing/Revenue.
AN ACT Relating to a tax exemption for improvements to affordable housing; and adding a new section to chapter 84.36 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 84.36 RCW to read as follows:
(1) Any physical improvements to affordable housing developments upon real property shall be exempt from taxation for the three assessment years subsequent to the completion of the improvements. As used in this section, affordable housing development has the same meaning as in section 103(2)(a), chapter ..., Laws of 1992 (HB 2484). In order to qualify for the property tax exemption, the property must meet the following requirements:
(a) The affordable housing development must be either owned or leased by an organization eligible to receive assistance through the Washington housing trust fund under chapter 43.185 RCW or owned by a tenant-based organization as defined in section 103, chapter ..., Laws of 1992 (HB 2484);
(b) The affordable housing development must contain two or more residential dwelling units;
(c) The value of the improvements to the affordable housing development must exceed twenty percent of the current assessed value of the original structure; and
(d) The rent paid by very low-income and low-income households in dwelling units identified in this subsection shall be considered affordable rent as defined in section 103, chapter ..., Laws of 1992 (HB 2484).
(2) Application for the exemption granted by this section must be made prior to the improvements being made. The application shall be made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor. This exemption may not be claimed more than once in a five-year period.
(3) The department of revenue, in consultation with the department of community development, shall adopt such rules as are necessary and convenient to properly administer the provisions of this section.
(4) The department of revenue shall grant a property tax exemption under this section for affordable housing developments that are approved by the department of community development. The department of revenue shall keep a running total of exemptions granted under this section during each fiscal biennium.
(5) Applications and any other information received by the county assessor under this section shall be confidential. However, the department of community development and the department of revenue may conduct such audits of the administration of this section, and the claims for exemptions filed under this section, as they consider necessary.
(6) Any applicant knowingly signing a false application for an exemption under this section shall have the exemption revoked under the provisions of RCW 84.36.845.