AN
ACT Relating to the property taxation of residential housing occupied by
low-income developmentally disabled persons; reenacting and amending RCW
84.36.800, 84.36.805, and 84.36.810; and adding a new section to chapter 84.36
RCW.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 84.36 RCW to read as follows:
(1)
All real and personal property owned or leased by a nonprofit organization,
corporation, or association to provide housing for eligible persons with
developmental disabilities is exempt from property taxation.
(a)
To qualify for this exemption, the nonprofit organization, corporation, or
association must be qualified for exemption under section 501(c)(3) of the
internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)). It must also have
been organized for charitable purposes to create and preserve long-term
affordable housing for low-income developmentally disabled persons.
(b)
The housing must be occupied by eligible persons who have a low income.
(2)
As used in this section:
(a)
"Developmental disability" means the same as defined in RCW
71A.10.020;
(b)
"Eligible person" means the same as defined in RCW 71A.10.020; and
(c)
"Low income" means the adjusted gross income of the resident is at
eighty percent or less of the median income adjusted for family size, as most
recently determined by the federal department of housing and urban development
for the county in which the housing is located and in effect as of January 1st
of the assessment year for which the exemption is sought. "Adjusted gross
income" is as defined in the federal internal revenue code of 1986, as it
exists on the effective date of this act or such subsequent date as the
director may provide by rule consistent with the purpose of this section.
(3)
To be exempt under this section, the property must be used exclusively for the
purposes for which the exemption is granted, except as provided in RCW
84.36.805.
(4)
If the real or personal property for which exemption is sought is leased, the
benefit of the exemption must inure to the nonprofit organization, corporation,
or association leasing the property to provide the housing for developmentally
disabled persons.
Sec.
2. RCW
84.36.800 and 1997 c 156 s 7 and 1997 c 143 s 2 are each reenacted and amended
to read as follows:
As
used in ((RCW 84.36.020, 84.36.030, 84.36.037, 84.36.040, 84.36.041,
84.36.050, 84.36.060, 84.36.550, 84.36.046, and 84.36.800 through 84.36.865))
this chapter:
(1)
"Church purposes" means the use of real and personal property owned
by a nonprofit religious organization for religious worship or related
administrative, educational, eleemosynary, and social activities. This
definition is to be broadly construed;
(2)
"Convent" means a house or set of buildings occupied by a community
of clergy or nuns devoted to religious life under a superior;
(3)
"Hospital" means any portion of a hospital building, or other buildings
in connection therewith, used as a residence for persons engaged or employed in
the operation of a hospital, or operated as a portion of the hospital unit;
(4)
"Nonprofit" means an organization, association or corporation no part
of the income of which is paid directly or indirectly to its members,
stockholders, officers, directors or trustees except in the form of services
rendered by the organization, association, or corporation in accordance with
its purposes and bylaws and the salary or compensation paid to officers of such
organization, association or corporation is for actual services rendered and
compares to the salary or compensation of like positions within the public
services of the state;
(5)
"Parsonage" means a residence occupied by a member of the clergy who
has been designated for a particular congregation and who holds regular
services therefor.
Sec.
3. 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, 84.36.046, 84.36.047, 84.36.050,
84.36.060, 84.36.350, 84.36.480, 84.36.550, and ((84.36.046)) section
1 of this act, 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, ((or)) 84.36.046,
or section 1 of this act 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, 84.36.046, 84.36.047,
84.36.050, 84.36.060, 84.36.350, 84.36.480, and ((84.36.046)) section
1 of this act.
Sec.
4. RCW
84.36.810 and 1997 c 156 s 9 and 1997 c 143 s 4 are each reenacted and amended
to read as follows:
(1)
Upon cessation of a use under which an exemption has been granted pursuant to
RCW 84.36.030, 84.36.037, 84.36.040, 84.36.041, 84.36.043, 84.36.046,
84.36.050, 84.36.060, 84.36.550, and ((84.36.046)) and section 1 of
this act, the county treasurer shall collect all taxes which would have
been paid had the property not been exempt during the three years preceding, or
the life of such exemption, if such be less, together with the interest at the
same rate and computed in the same way as that upon delinquent property taxes.
Where the property has been granted an exemption for more than ten years, taxes
and interest shall not be assessed under this section.
(2)
Subsection (1) of this section applies only when ownership of the property is
transferred or when fifty-one percent or more of the area of the property has
lost its exempt status. The additional tax under subsection (1) of this
section shall not be imposed if the cessation of use resulted solely from:
(a)
Transfer to a nonprofit organization, association, or corporation for a use
which also qualifies and is granted exemption under the provisions of chapter
84.36 RCW;
(b)
A taking through the exercise of the power of eminent domain, or sale or
transfer to an entity having the power of eminent domain in anticipation of the
exercise of such power;
(c)
Official action by an agency of the state of Washington or by the county or
city within which the property is located which disallows the present use of
such property;
(d)
A natural disaster such as a flood, windstorm, earthquake, or other such
calamity rather than by virtue of the act of the organization, association, or
corporation changing the use of such property;
(e)
Relocation of the activity and use of another location or site except for
undeveloped properties of camp facilities exempted under RCW 84.36.030;
(f)
Cancellation of a lease on property that had been exempt under RCW 84.36.040,
84.36.041, 84.36.043, 84.36.046, 84.36.060, or ((84.36.046)) section
1 of this act;
(g)
A change in the exempt portion of a home for the aging under RCW 84.36.041(3),
as long as some portion of the home remains exempt;
(h) The conversion of a full exemption of a home for the aging to a
partial exemption or taxable status or the conversion of a partial exemption to
taxable status under RCW 84.36.041(8).
