S-3870               _______________________________________________

                                                   SENATE BILL NO. 6292

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Zimmerman, Bauer, Smith, Conner and DeJarnatt

Read first time 1/18/88 and referred to Committee on Ways & Means.

AN ACT Relating to property tax exemptions for public assembly halls and meeting places; and amending RCW 84.36.037.

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

        Sec. 1.  Section 2, chapter 141, Laws of 1981 as amended by section 80, chapter 505, Laws of 1987 and RCW 84.36.037 are each amended to read as follows:

          Real or personal property owned by a nonprofit organization, association, or corporation in connection with the operation of a public assembly hall or meeting place is exempt from taxation.  The area exempt under this section includes the building or buildings, the land under the buildings, and an additional area necessary for parking, not exceeding a total of one acre:  PROVIDED, That for property essentially unimproved except for restroom facilities and structures on such property which has been used primarily for annual community celebration events for at least ten years, such exempt property shall not exceed twenty-nine acres.

          To qualify for this exemption the property must be used exclusively for public gatherings and be available to all organizations or persons desiring to use the property, but the owner may impose conditions and restrictions which are necessary for the safekeeping of the property and promote the purposes of this exemption.  Membership shall not be a prerequisite for the use of the property.

          The use of the property for pecuniary gain or to promote business activities((, except fund raising activities conducted by a nonprofit organization,)) nullifies the exemption otherwise available for the property for the assessment year, except for fund raising activities conducted by a nonprofit organization, or annual community celebration events if the proceeds of the events are used exclusively for the purposes for which the nonprofit organization, association, or corporation is organized, or the loan or rental of property otherwise exempt under this section to a private concessionaire or to any person for use as a concession in conjunction with the activities permitted under this section if the concessionaire charges are subject to agreement and the rental income, if any, is reasonable and is devoted solely to the operation and maintenance of the property.  The exemption is not nullified by the collection of rent or donations if the amount is reasonable and does not exceed maintenance and operation expenses created by the user.

          The department of revenue shall narrowly construe this exemption.