H-1397.1 _______________________________________________
HOUSE BILL 2051
_______________________________________________
State of Washington 56th Legislature 1999 Regular Session
By Representatives Morris, Quall, Barlean, Anderson, Ogden, Linville and D. Schmidt
Read first time 02/15/1999. Referred to Committee on Finance.
AN ACT Relating to tax exemptions for nonprofit camps and nonprofit retreat centers; amending RCW 82.04.363; reenacting and amending RCW 84.36.805 and 84.36.810; adding a new section to chapter 84.36 RCW; and providing an effective date.
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:
All real and personal property owned by a nonprofit organization, association, or corporation qualified for exemption under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is operated as a camp facility or retreat center is exempt from property tax if the following conditions are met:
(1) The property is used by:
(a) A nonprofit organization, association, or corporation that is qualified for exemption under section 501(c)(3) or (c)(4) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3) or (c)(4));
(b) A corporation organized under an act of congress that is an instrumentality of the United States and is qualified for exemption under section 501(c)(1) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(1));
(c) An instrumentality of the United States, the state, a county, a city or town, a municipal corporation, or other foreign sovereign nations;
(d) A nonprofit recognized church or a nonprofit recognized religious denomination or member congregation of such a denomination; or
(e) The nonprofit organization, association, or corporation that owns the subject property;
(2) The property must be wholly used as a camp or retreat facility; and
(3) The use of the property for pecuniary gain or to promote business activities, except as provided in this section, nullifies the exemption otherwise available for the property for the assessment year. The exemption is not nullified by:
(a) The collection of rent or donations if the amount is reasonable and does not exceed maintenance and operation expenses created by the user;
(b) Fund-raising activities conducted by a nonprofit organization; or
(c) The use of the property for pecuniary gain or to promote business activities for periods of not more than three days in a year.
Sec. 2. RCW 84.36.805 and 1998 c 311 s 25, 1998 c 202 s 3, and 1998 c 184 s 2 are each reenacted and amended to read as follows:
(1)
In order to ((be exempt pursuant to RCW 84.36.030, 84.36.035, 84.36.037,
84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.046, 84.36.047, 84.36.050,
84.36.060, 84.36.350, 84.36.480, 84.36.550, and 84.36.042)) qualify for
an exemption under this chapter, the nonprofit organizations, associations
or corporations ((shall)) must satisfy the ((following))
conditions((:)) in this section.
(((1)))
(2) The property ((is)) must be used exclusively for the
actual operation of the activity for which exemption is granted, unless
otherwise provided, 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 exemptions under RCW 84.36.030(4) ((and)),
84.36.037, and section 1 of this act, 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)))
(3) The property ((is)) must be 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. This
property need not be irrevocably dedicated if it is leased or rented to those
qualified for exemption ((pursuant to RCW 84.36.035, 84.36.040, 84.36.041,
84.36.043, 84.36.045, 84.36.046, or 84.36.042 or those qualified for exemption
as an association engaged in the production or performance of musical, dance,
artistic, dramatic, or literary works pursuant to RCW 84.36.060)) under
this chapter for leased property, 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)))
(4) The facilities and services ((are)) must be available
to all regardless of race, color, national origin or ancestry((;)).
(((4)))
(5) The organization, association, or corporation ((is)) must
be duly licensed or certified where such licensing or certification is
required by law or regulation((;)).
(((5)))
(6) Property sold to organizations, associations, or corporations with
an option to be repurchased by the seller shall not qualify for exempt status((;)).
(((6)))
(7) The ((director of the)) department ((of revenue))
shall have access to its books in order to determine whether ((such)) the
nonprofit 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, 84.36.041,
84.36.043, 84.36.045, 84.36.046, 84.36.047, 84.36.050, 84.36.060, 84.36.350,
84.36.480, and 84.36.042)) under this chapter.
(8) This section does not apply to exemptions granted under RCW 84.36.020, 84.36.032, 84.36.250, and 84.36.260.
Sec. 3. RCW 84.36.810 and 1998 c 311 s 26 and 1998 c 202 s 4 are each reenacted and amended to read as follows:
(1)
Upon cessation of a use under which an exemption has been granted pursuant to
RCW 84.36.030, 84.36.037, 84.36.040, 84.36.041, 84.36.042, 84.36.043,
84.36.046, 84.36.050, 84.36.060, 84.36.550, and ((84.36.042)) section
1 of this act, the county treasurer shall collect all taxes which would
have been paid had the property not been exempt during the three years
preceding, or the life of such exemption, if such be less, together with the
interest at the same rate and computed in the same way as that upon delinquent
property taxes. ((Where)) When the property has been granted an
exemption for more than ten consecutive years, taxes and interest shall
not be assessed under this section.
(2)
Subsection (1) of this section applies only when ownership of the property is
transferred or when fifty-one percent or more of the area of the property ((has
lost)) loses its exempt status. The additional tax under subsection
(1) of this section shall not be imposed if the cessation of use resulted
solely from:
(a)
Transfer to a nonprofit organization, association, or corporation for a use
which also qualifies and is granted exemption under ((the provisions of))
this chapter ((84.36 RCW));
(b) A taking through the exercise of the power of eminent domain, or sale or transfer to an entity having the power of eminent domain in anticipation of the exercise of such power;
(c) Official action by an agency of the state of Washington or by the county or city within which the property is located which disallows the present use of such property;
(d) A natural disaster such as a flood, windstorm, earthquake, or other such calamity rather than by virtue of the act of the organization, association, or corporation changing the use of such property;
(e) Relocation of the activity and use of another location or site except for undeveloped properties of camp facilities exempted under RCW 84.36.030;
(f)
Cancellation of a lease on leased property that had been exempt under ((RCW
84.36.040, 84.36.041, 84.36.043, 84.36.046, 84.36.060, or 84.36.042)) this
chapter; or
(g)
A change in the exempt portion of a home for the aging under RCW 84.36.041(3),
as long as some portion of the home remains exempt((;
(h)
The conversion of a full exemption of a home for the aging to a partial
exemption or taxable status or the conversion of a partial exemption to taxable
status under RCW 84.36.041(8))).
Sec. 4. RCW 82.04.363 and 1997 c 388 s 1 are each amended to read as follows:
This chapter does not apply to amounts received by a nonprofit organization from the sale or furnishing of the following items at a camp or conference center conducted on property exempt from property tax under RCW 84.36.030 (1), (2), or (3) or section 1 of this act:
(1) Lodging, conference and meeting rooms, camping facilities, parking, and similar licenses to use real property;
(2) Food and meals;
(3) Books, tapes, and other products that are available exclusively to the participants at the camp, conference, or meeting and are not available to the public at large.
NEW SECTION. Sec. 5. Section 4 of this act takes effect October 1, 1999.
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