AN
ACT Relating to the property tax exemption for nonprofit organizations
providing medical research or training of medical personnel; amending RCW
84.36.045; reenacting and amending RCW 84.36.805; and creating a new section.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.36.045 and 1984 c 220 s 3 are each amended to read as follows:
All
real and personal property owned ((in fee or by contract purchase))
or used by any nonprofit corporation or association which is available
without charge for research by, or for the training of, doctors, nurses,
laboratory technicians, hospital administrators and staff or other hospital
personnel, and which otherwise is used for medical research, the results of
which will be available without cost to the public, shall be exempt from ad
valorem taxation. If the real or personal property is leased, the benefit
of the exemption shall inure to the nonprofit corporation or association.
To
be exempt under this section, the property must be used exclusively for the
purposes for which exemption is granted, except as provided in RCW 84.36.805.
Sec.
2. RCW
84.36.805 and 1997 c 156 s 8 and 1997 c 143 s 3 are each reenacted and amended
to read as follows:
In
order to be exempt pursuant to RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040,
84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350,
84.36.480, 84.36.550, and 84.36.046, the nonprofit organizations, associations
or corporations shall satisfy the following conditions:
(1)
The property is used exclusively for the actual operation of the activity for
which exemption is granted, unless otherwise provided, and does not exceed an
amount reasonably necessary for that purpose, except:
(a)
The loan or rental of the property does not subject the property to tax if:
(i)
The rents and donations received for the use of the portion of the property are
reasonable and do not exceed the maintenance and operation expenses
attributable to the portion of the property loaned or rented; and
(ii)
Except for the exemptions under RCW 84.36.030(4) and 84.36.037, the property
would be exempt from tax if owned by the organization to which it is loaned or
rented;
(b)
The use of the property for fund-raising activities does not subject the
property to tax if the fund-raising activities are consistent with the purposes
for which the exemption is granted;
(2)
The property is irrevocably dedicated to the purpose for which exemption has
been granted, and on the liquidation, dissolution, or abandonment by said
organization, association, or corporation, said property will not inure
directly or indirectly to the benefit of any shareholder or individual, except
a nonprofit organization, association, or corporation which too would be
entitled to property tax exemption. This property need not be irrevocably
dedicated if it is leased or rented to those qualified for exemption pursuant
to RCW 84.36.035, 84.36.040, 84.36.041, 84.36.043, 84.36.045, or
84.36.046 or those qualified for exemption as an association engaged in the
production or performance of musical, dance, artistic, dramatic, or literary
works pursuant to RCW 84.36.060, but only if under the terms of the lease or
rental agreement the nonprofit organization, association, or corporation
receives the benefit of the exemption;
(3)
The facilities and services are available to all regardless of race, color,
national origin or ancestry;
(4)
The organization, association, or corporation is duly licensed or certified
where such licensing or certification is required by law or regulation;
(5)
Property sold to organizations, associations, or corporations with an option to
be repurchased by the seller shall not qualify for exempt status;
(6)
The director of the department of revenue shall have access to its books in
order to determine whether such organization, association, or corporation is
exempt from taxes within the intent of RCW 84.36.030, 84.36.035, 84.36.037,
84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060,
84.36.350, 84.36.480, and 84.36.046.
NEW
SECTION. Sec. 3. This
act applies to taxes levied for collection in 1999 and thereafter.
