FINAL BILL REPORT

                  HB 1324

                          C 79 L 93

                     Synopsis as Enacted

Brief Description:  Providing property tax exemptions for charitable fund‑raising organizations.

By Representatives Cothern, Wood, G. Cole, Horn, Wang, Brumsickle, Ogden, Miller, Leonard, Brough, J. Kohl, Ludwig, Dellwo, Kremen, Basich, Jones, Chappell, Shin, Johanson, Rayburn and Mielke.

House Committee on Revenue

Senate Committee on Ways & Means

Background:  The property of nonprofit charitable organizations is generally exempt from property tax if the property is used for a charitable purpose.  Nonprofit organizations that raise money for nonprofit charitable organizations are not exempt from property tax.

Summary:  The property of certain volunteer nonprofit charitable fund-raising organizations is exempt from property tax.  To qualify for the exemption the organization must:

(1)be organized for nonsectarian purposes;

(2)be affiliated with a state or national organization;

(3)possess an exemption under Internal Revenue Code section 501(c)(3);

  (4)be governed by a volunteer board of directors; and

(5)use the gifts, donations, and grants for character-building, benevolent, protective, or rehabilitative social services for persons of all ages or distribute the gifts, donations, or grants to at least five other nonprofit nonsectarian organizations that provide character-building, benevolent, protective, or rehabilitative social services for persons of all ages.

Votes on Final Passage:

House  94 1

Senate 45 2

Effective:  July 25, 1993