HOUSE BILL REPORT

                  HB 2067

             As Reported By House Committee On:

                           Finance

Title:  An act relating to property tax exemptions for nonprofit arts, scientific, or historical organizations.

Brief Description:  Extending property tax exemptions for nonprofit arts, scientific, or historical organizations.

Sponsors:  Representatives Foreman and Mastin.

Brief History:

  Committee Activity:

Finance:  3/6/95 [DPS].

HOUSE COMMITTEE ON FINANCE

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 12 members:  Representatives B. Thomas, Chairman; Boldt, Vice Chairman; Carrell, Vice Chairman; Morris, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Hymes; Mason; Mulliken; Pennington; Schoesler; Sheldon and Van Luven.

Staff:  Rick Peterson (786-7150).

Background:  Property owned or leased by a nonprofit artistic, scientific, historical, literary, musical, dance, dramatic or educational organization used exclusively for safekeeping, maintaining, and exhibiting collections or for the production and performance of musical, dance, artistic, dramatic, or literary works is exempt from property tax.  The property is exempt only if used for the exempt purpose.

Summary of Substitute Bill:  Property being constructed or remodeled for use by a nonprofit artistic, scientific, historical, literary, musical, dance, dramatic or educational organization is exempt from property tax.  To be eligible for the exemption the nonprofit organization must show a reasonably specific and active program to enable the property to be used for an exempt purpose within a reasonable period of time.  The property is not eligible for property tax exemption if used by a for-profit organization during construction or remodeling.

Substitute Bill Compared to Original Bill:  The substitute makes the bill effective immediately, for taxes due in 1995 and thereafter.

Appropriation:  None.

Fiscal Note:  Requested on March 7, 1995.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately. 

Testimony For:  The bill allows the property tax exemption as long as reasonable progress is made in readying the property for the tax exempt use.  Once the  remodeling is complete and the property is used by the organization, it would be exempt under current statutes.  The Wenatchee Music Theater acquired a warehouse and plans to remodel it into a theater.  This bill would solve their tax problem as well as other nonprofit organizations that have similar projects.

Testimony Against:  None.

Testified:  Representative Dale Foreman, prime sponsor.