S-2427               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5387

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Conner, Craswell, Johnson, McDonald, Garrett, Stratton, Anderson, Rasmussen and Hayner)

Read first time 3/9/87.

AN ACT Relating to church-related property tax exemptions; and amending RCW 84.36.020 and 84.36.800.

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

        Sec. 1.  Section 84.36.020, chapter 15, Laws of 1961 as last amended by section 12, chapter 291, Laws of 1975 1st ex. sess. and RCW 84.36.020 are each amended to read as follows:

          The following property shall be exempt from taxation:

          All lands, and buildings required for necessary administration and maintenance, used, or to the extent used, exclusively for public burying grounds or cemeteries without discrimination as to race, color, national origin or ancestry;

          All churches and the ground, not exceeding five acres in area, upon which a church of any nonprofit recognized religious denomination is or shall be built, together with a parsonage, convent, ((and)) buildings and improvements required for the maintenance and safeguarding of such property, and equipment.  The area exempted shall in any case include all ground covered by the church, parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property and the structures and ground necessary for street access, parking, light, and ventilation, but the area of unoccupied ground exempted in such cases, in connection with church, parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property, shall not exceed the equivalent of one hundred twenty by one hundred twenty feet except where additional unoccupied land may be required to conform with state or local codes, zoning, or licensing requirements.  The parsonage and convent need not be on land contiguous to the church property.  To be exempt the property must be wholly used for church purposes:  PROVIDED, That the loan or rental of property otherwise exempt under this paragraph to a nonprofit organization, association, or corporation, or school for use for an eleemosynary activity shall not nullify the exemption provided in this paragraph if the rental income, if any, is reasonable and is devoted solely to the operation and maintenance of the property.

        Sec. 2.  Section 6, chapter 40, Laws of 1973 2nd ex. sess. as amended by section 3, chapter 141, Laws of 1981 and RCW 84.36.800 are each amended to read as follows:

          As used in RCW 84.36.020, 84.36.030, 84.36.040, 84.36.050, 84.36.060, 84.36.037, and 84.36.800 through 84.36.865:

          (1) "Church purposes" means the use of real and personal property ((owned)) by a nonprofit religious organization for religious worship or related administrative, educational, eleemosynary, and social activities:  PROVIDED, That if the property is leased to the organization, the benefit of the exemption inures to the organization.  This definition is to be broadly construed;

          (2) "Convent" means a house or set of buildings occupied by a community of clergymen or nuns devoted to religious life under a superior;

          (3) "Hospital" means any portion of a hospital building, or other buildings in connection therewith, used as a residence for persons engaged or  employed in the operation of a hospital, or operated as a portion of the hospital unit;

          (4) "Nonprofit" means an organization, association or corporation no part of the income of which is paid directly or indirectly to its members, stockholders, officers, directors or trustees except in the form of services rendered by the organization, association, or corporation in accordance with its purposes and bylaws and the salary or compensation paid to officers of such organization, association or corporation is for actual services rendered and compares to the salary or compensation of like positions within the public services of the state;

          (5) "Parsonage" means a residence occupied by a clergyman who is designated for a particular  congregation and who holds regular services therefor.