HOUSE BILL REPORT

                  HB 2920

             As Reported By House Committee On:

                           Finance

Title:  An act relating to property tax exemptions for community radio stations.

Brief Description:  Exempting community radio stations from property taxation.

Sponsors:  Representatives Dunshee, Radcliff, Thomas, Eickmeyer, Skinner and Santos.

Brief History:

  Committee Activity:

Finance:  2/1/00, 2/7/00 [DP].

                 Brief Summary of Bill

$Exempts nonprofit community public radio stations that are not owned by a government or educational institution from property taxation.

HOUSE COMMITTEE ON FINANCE

Majority Report:  Do pass.  Signed by 10 members:  Representatives Dunshee, Democratic Co-Chair; Thomas, Republican Co-Chair; Cairnes, Republican Vice Chair; Reardon, Democratic Vice Chair; Conway; Cox; Dickerson; Pennington; Santos and Veloria.

Minority Report:  Do not pass.  Signed by 1 member:  Representative Carrell.

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 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$  orphanages

$  churches and church camps      $  nursing homes

$  youth character building organizations       $  hospitals

$  war veterans' organizations        $  homes for the aging

$  water distribution property        $  schools and colleges

$  nonprofit nature conservancy organization$  day care centers

$  public assembly halls          $  radio/TV rebroadcast facilities

$  medical research or training facilities      $  performing arts properties

$  art, scientific, or historical collections        $  homeless shelters

$  sheltered workshops            $  outpatient dialysis facilities

$  fair associations              $  blood banks

$  humane societies

Summary of Bill:

All real or personal property owned and used by certain nonprofit community public radio stations is exempt from property tax.  A community public radio station owner must be someone other than a governmental entity or an educational institution in order to qualify for the exemption.  The station must also hold a non-commercial FM broadcast license granted under federal regulations only to nonprofit educational organizations for the advancement of educational programs.  A station holding one of these licenses may transmit programs directed to specific schools or school systems and educational, cultural, and entertainment programs to the public.

In order to qualify for the exemption, the community public radio station must also meet certain other nonprofit standards regarding compensation paid to officers, liquidation of assets, and other matters.

This property tax exemption applies to taxes levied in 2001 or thereafter.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  A similar bill was voted out of committee last year.

Testimony Against:  None.

Testified:  Representative Dunshee, prime sponsor.