SENATE BILL REPORT

                            HB 1324

   AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 22, 1993

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

SPONSORS: 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

Majority Report:  Do pass. 

     Signed by Senators Rinehart, Chairman; Spanel, Vice Chairman; Bauer, Cantu, Gaspard, Jesernig, Moyer, Quigley, Roach, Snyder, Sutherland, West, and Wojahn.

Staff:  Terry Wilson (786‑7715)

Hearing Dates: March 22, 1993

BACKGROUND:

The property of nonprofit charitable organizations is generally exempt from property tax if the property is used for a charitable purpose.  Some of the exempt nonprofit organizations provide character-building, benevolent, protective and rehabilitative social services.  However, nonprofit organizations that raise money for nonprofit charitable organizations are not exempt from property tax.

SUMMARY:

The property owned by nonprofit organizations which is used to solicit gifts, donations, or grants 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.Be exempt from income tax under Section 501(c)(3) of the federal Internal Revenue Code;

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.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

TESTIMONY FOR:

This currently applies to the facility owned by United Way.

TESTIMONY AGAINST:  None

TESTIFIED:  Representative Cothern, sponsor (pro)