House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

1

HB 2545

Bill Analysis

January 28, 1998

Brief Description:  Exempting community radio stations from property taxation.

Bill Sponsors:  Representatives Radcliff, Dunshee, Scott, Thompson and D. Schmidt.

Staff:  Linda Brooks, 786-7153.

Background:  All property in this state is subject to the property tax each year based on the property=s value unless a specific exemption is provided by law.

Several property tax exemptions exist for nonprofit organizations.   Some exemptions apply only to property owned by a nonprofit organization, and other exemptions apply to property either owned or leased by a nonprofit.  Examples of some nonprofit property tax exemptions are:

PROPERTY TAX EXEMPTIONS FOR NONPROFIT ORGANIZATIONS

Exempt on Owned Property Only     Exempt on Owned or Leased Property

$  Character Building, Benevolent, Protective$  Free Public Libraries

or Rehabilitative Social Service Organizations

$  Churches and Church Camps      $  Orphanages

$  Youth Character Building Organizations       $  Nursing Homes

$  War Veterans= Organizations    $  Hospitals

$  Water Distribution Property    $  Homes for the Aging

$  Nonprofit Nature Conservancy Organization$  Schools and Colleges

$  Public Assembly Halls          $  Day Care Centers

$  Medical Research or Training facilities      $  Radio/TV Rebroadcast Facilities

$  Art, Scientific, or Historical Collections        $ Performing Arts Properties

$  Sheltered Workshops            $  Homeless Shelters

$  Fair Associations              $  Outpatient Dialysis Facilities

$  Humane Societies$  Blood Banks

Summary of Bill: All real or personal property owned by certain nonprofit community public radio stations is exempt from property tax.   A community public radio station owner must be someone other than a governmental entity or an educational institution in order to qualify for the exemption.   The station must also hold a noncommercial FM broadcast license granted under federal regulations only to nonprofit educational organizations for the advancement of educational programs.   A station holding one of these licenses may transmit programs directed to specific schools or school systems and educational, cultural, and entertainment programs to the public.

In order to qualify for the exemption, the community public radio station must also meet certain other nonprofit standards regarding compensation paid to officers, liquidation of assets, and other matters.

This property tax exemption applies to taxes levied in 1999 or thereafter.

Appropriation:  None.

Fiscal Note:  Available.

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