House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

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HB 2598

Bill Analysis

February 3, 1998

Brief Description:  Modifying property tax exemptions for nonprofit organizations.

Bill Sponsors:  Representatives Radcliff, McDonald, Pennington, Dickerson, Mastin, Dunshee, O'Brien, Mulliken, Cole, Conway, Mason, Wood and Ogden.

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.  When a nonprofit organization receives a tax exemption for leased property, the benefit of the property tax reduction, in the form of reduced lease rents, must inure to the nonprofit organization.  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

Real or personal property owned by a nonprofit organization and used for emergency or transitional housing for low-income persons or victims of domestic violence is exempt from property taxes.   This exemption for owned property does not expire.

Real or personal property leased by a nonprofit organization and used for emergency or transitional housing for low-income persons or victims of domestic violence is also exempt from property taxes for a limited period of time.   This exemption for leased property only applies to property taxes levied for collection in 1991 through 1999.

Summary of Bill:   The property tax exemption granted for real or personal property leased by a nonprofit organization and used for emergency or transitional housing for low-income persons or victims of domestic violence is made permanent.

Appropriation:  None.

Fiscal Note:  Available.

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