S-3425.1  _______________________________________________

                         SENATE BILL 6311

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Senators Snyder, Prince, Rasmussen and Goings

Read first time 01/15/98.  Referred to Committee on Ways & Means.

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

    AN ACT Relating to the property taxation of assembly halls or meeting places; and amending RCW 84.36.037.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 84.36.037 and 1997 c 298 s 1 are each amended to read as follows:

    (1) Real or personal property owned by a nonprofit organization, association, or corporation in connection with the operation of a public assembly hall or meeting place is exempt from taxation.  The area exempt under this section includes the building or buildings, the land under the buildings, and an additional area necessary for parking, not exceeding a total of one acre:  PROVIDED, That for property essentially unimproved except for restroom facilities and structures on such property which has been used primarily for annual community celebration events for at least ten years, such exempt property shall not exceed twenty-nine acres.

    (2) To qualify for this exemption the property must be used exclusively for public gatherings and be available to all organizations or persons desiring to use the property, but the owner may impose conditions and restrictions which are necessary for the safekeeping of the property and promote the purposes of this exemption.  Membership shall not be a prerequisite for the use of the property.

    (3) The use of the property for pecuniary gain or to promote business activities, except as provided in this section, nullifies the exemption otherwise available for the property for the assessment year.  The exemption is not nullified by:

    (a) The collection of rent or donations if the amount is reasonable and does not exceed maintenance and operation expenses created by the user.

    (b) Fund-raising activities conducted by a nonprofit organization.

    (c) The use of the property for pecuniary gain or to promote business activities for periods of not more than seven days in a year.

    (d) In a county with a population of less than ten thousand, the use of the property to promote the following business activities:  Dance lessons, art classes, or music lessons.

(e) An inadvertent use of the property in a manner inconsistent with the purpose for which exemption is granted, if the inadvertent use is not part of a pattern of use.  A pattern of use is presumed when an inadvertent use is repeated in the same assessment year or in two or more successive assessment years.

    (4) The department of revenue shall narrowly construe this exemption.

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