FINAL BILL REPORT

                   SB 6311

                          C 189 L 98

                      Synopsis as Enacted

 

Brief Description:  Exempting assembly halls or meeting places used for the promotion of specific educational purposes from property taxation.

 

Sponsors:  Senators Snyder, Prince, Rasmussen and Goings.

 

Senate Committee on Ways & Means

House Committee on Finance

 

Background:  Nonprofit public assembly halls or meeting places are exempt from property taxes.

 

The assembly hall or meeting place exemption is restricted to the buildings, the land under the buildings, and up to one acre of parking area.  For essentially unimproved property, the exemption is limited to 29 acres.  To qualify for exemption, the property must be used for public gatherings and be available to all organizations or persons desiring to use the property.

 

The property cannot be used for pecuniary gain or to promote business activities except:

 

1.For fund-raising activities of a nonprofit organization.

 

2.The use for pecuniary gain for periods of not more than seven days in a year.

 

3.An inadvertent use of the property which is inconsistent with the purpose of the exemption if the use is not part of a pattern of use.  An inadvertent use that is repeated in the same assessment year or in successive assessment years is presumed to be part of a pattern of use.

 

Summary:  Nonprofit public assembly halls and meeting places may be used for dance lessons, art classes, or music lessons in a county with a population of less than 10,000 without losing the property tax exemption.

 

Votes on Final Passage:

 

Senate 47 0

House     98 0

 

Effective:  June 11, 1998