H-3083              _______________________________________________

                                                   HOUSE BILL NO. 1710

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Niemi, Allen, Miller and Sayan

Read first time 1/22/86 and referred to Committee on Ways & Means.

AN ACT Relating to property tax exemptions; and amending RCW 84.36.805.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 7, chapter 40, Laws of 1973 2nd ex. sess. as last amended by section 7, chapter 220, Laws of 1984 and RCW 84.36.805 are each amended to read as follows:

          In order to be exempt pursuant to RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350, and 84.36.480, the nonprofit organizations, associations or corporations shall satisfy the following conditions:

           (1)  The property is used exclusively for the actual operation of the activity for which exemption is granted and does not exceed an amount reasonably necessary for that purpose, except:

          (a) The loan or rental of the property does not subject the property to tax if:

          (i) The rents and donations received for the use of the portion of the property are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented; and

          (ii) Except for the exemption under RCW 84.36.037, the property would be exempt from tax if owned by the organization to which it is loaned or rented;

          (b) The use of the property for fund-raising activities does not subject the property to tax if the fund-raising activities are consistent with the purposes for which the exemption is granted;

           (2)  The property is irrevocably dedicated to the purpose for which exemption has been granted, and on the liquidation, dissolution, or abandonment by said organization, association, or corporation, said property will not inure directly or indirectly to the benefit of any shareholder or individual, except a nonprofit organization, association, or corporation which too would be entitled to property tax exemption:  PROVIDED, That the provision of this subsection shall not apply to those qualified for exemption pursuant to RCW 84.36.040 or 84.36.060 if the property used for the purpose stated is either leased or rented, but only if under the terms of the lease or rental agreement the nonprofit organization, association, or corporation receives the benefit of the exemption;

           (3)  The facilities and services are available to all regardless of race, color, national origin or ancestry;

           (4)  The organization, association, or corporation is duly licensed or certified where such licensing or certification is required by law or regulation;

           (5)  Property sold to organizations, associations, or corporations with an option to be repurchased by the seller shall not qualify for exempt status;

           (6)  The director of the department of revenue shall have access to its books in order to determine whether such organization, association, or corporation is exempt from taxes within the intent of RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350, and 84.36.480.