SENATE BILL REPORT

                  SHB 2067

              As Reported By Senate Committee On:

                  Ways & Means, April 3, 1995

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:  House Committee on Finance (originally sponsored by Representatives Foreman and Mastin).

Brief History:

Committee Activity:  Ways & Means:  4/3/95 [DPA].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass as amended.

  Signed by Senators Rinehart, Chair; Loveland, Vice Chair; Bauer, Cantu, Drew, Finkbeiner, Fraser, Gaspard, Hargrove, Hochstatter, Johnson, Long, McDonald, Pelz, Quigley, Roach, Snyder, Spanel, Strannigan, West and Winsley.

Staff:  Terry Wilson (786-7715)

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 Amended 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.

Through 1997, a for-profit limited partnership created to provide facilities for the use of nonprofit art, scientific, or historical organizations qualifies for the exemption if the for-profit limited partnership would otherwise qualify for the exemption.

Amended Bill Compared to Substitute Bill:  The substitute bill did not authorize a for-profit entity to provide the facilities.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.