SENATE BILL REPORT

SB 6653

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of January 29, 2010

Title: An act relating to a property tax exemption for property owned by a nonprofit organization and used for the purpose of a farmers market.

Brief Description: Concerning a property tax exemption for property owned by a nonprofit organization and used for the purpose of a farmers market.

Sponsors: Senators Jacobsen and Shin.

Brief History:

Committee Activity: Agriculture & Rural Economic Development: 2/01/10.

SENATE COMMITTEE ON AGRICULTURE & RURAL ECONOMIC DEVELOPMENT

Staff: Sam Thompson (786-7413)

Background: All property in Washington is subject to property taxation unless specifically exempted.

Nonprofit public assembly halls or meeting places are exempt from property taxation if used exclusively for public gatherings and available for use by all organizations or persons. Generally, use for business activities nullifies the exemption. However, the exemption is not nullified by:

The Department of Revenue must narrowly construe the exemption.

Summary of Bill: Nonprofit public assembly halls or meeting places are permitted to retain their exemption from property taxation if used by qualifying farmers markets. All income from rental or use by qualifying farmers' markets must be used for capital improvements, maintenance and operations, or exempt purposes.

A qualifying farmers market is an entity that sponsors a regular assembly of vendors at a defined location for promoting the sale of agricultural products grown or produced in Washington directly to the consumer and:

The exemption applies to taxes levied for collection beginning in 2011 and thereafter.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.