2750-S AMH .... H4394.1

SHB 2750 - H AMD 0161 Adopted February 18, 2002

By Representative

    On page 1, after line 16, insert the following:

    "NEW SECTION. Sec. 2.  (1) The exemption for properties described in RCW 84.36.060(1) that are loaned or rented to any person, for‑profit organization, or business enterprise not eligible for a tax exemption shall be determined by one or more of the methods in this section as appropriate.

    (a) The portion of the property used for the nonexempt purpose may be segregated and taxed at one hundred percent of assessed value.

    (b) If income from loans or rentals to nonexempt users does not exceed ten percent of gross income from all sources in a calendar year the property is exempt on one hundred percent of the assessed value.

    (c) If income from loans or rentals to nonexempt users exceeds ten percent of gross income from all sources in a calendar year, the property is subject to taxation in an amount equal to the assessed value multiplied by the proportion of income from such loans or rentals to the gross income for all sources in any calendar year.

    (2) As used in this section, "gross income from all sources" means all revenue received from any source including entrance or admittance fees, user fees, fund‑raising events, sales or tickets to performing arts events, and rents or donation received as a result of the loan or rental of the property.  Gross income from all sources does not include income from property that has been segregated under subsection (1)(a) of this section."

    Renumber the remaining sections consecutively, correct any internal references accordingly, and correct the title.

SHB 2750 - H AMD

By Representative

    On page 2, line 26, after "provided in" strike "subsection (1)(c) of this section"  and insert "section 2 of this act"

SHB 2750 - H AMD

By Representative

    On page 3, beginning on line 5, after "subsection" strike all material through "value." on line 18 and insert ".))"

SHB 2750 - H AMD

By Representative

    On page 5, line 27, after "under" strike "RCW 84.36.060(1)(c)" and insert "section 2 of this act"

SHB 2750 - H AMD

By Representative

    On page 8, beginning on line 31, strike all of subsection (17) and insert the following:

    "(17) All leasehold interests created in publicly owned real property used by nonprofit artistic, scientific, and historical organizations and nonprofit associations engaged in the production and performance of musical, dance, artistic, dramatic, or literary works that would be exempt from property tax under RCW 84.36.060(1) if they owned the property.  If the publicly owned property is used for any taxable purpose, the leasehold excise taxes set forth in RCW 82.29A.030 and 82.29A.040 shall be imposed and apportioned consistent with the procedures in section 2 of this act."

EFFECT:  Provides three methods of determining the extent of exemption for nonprofit museums and performing arts associations that rent their property to others:  Taxation of only the part that is loaned or rented; complete exemption if less than 10% of gross income is from rentals to nonexempt persons; or an exemption apportioned based on the portion of income from nonexempt activities.

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