ENGROSSED SUBSTITUTE HOUSE BILL 2191
State of Washington 57th Legislature 2001 Regular Session
By House Committee on Finance (originally sponsored by Representatives Morris, Sehlin, Lisk and Fromhold)
Read first time 03/08/2001. Referred to Committee on .
AN ACT Relating to property tax exemptions for property leased by public entities; amending RCW 84.36.040, 84.36.050, and 84.36.815; reenacting and amending RCW 84.36.810; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 84.36.040 and 1989 c 379 s 1 are each amended to read as follows:
(1) The real and personal property used by nonprofit (a) day care centers as defined pursuant to RCW 74.15.020; (b) free public libraries; (c) orphanages and orphan asylums; (d) homes for the sick or infirm; (e) hospitals for the sick; and (f) outpatient dialysis facilities, which are used for the purposes of such organizations shall be exempt from taxation: PROVIDED, That the benefit of the exemption inures to the user.
(2) The real and personal property leased to and used by a hospital, owned and operated by a public hospital district established under chapter 70.44 RCW, for hospital purposes is exempt from taxation. The benefit of the exemption must inure to the user.
(3) 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 84.36.050 and 1984 c 220 s 5 are each amended to read as follows:
The following property
shall be)) is exempt from taxation:
owned or used for any nonprofit school or college in this state for educational
purposes or cultural or art educational programs as defined in RCW 82.04.4328.
Real property so exempt shall not exceed four hundred acres in extent and,
except as provided in RCW 84.36.805, shall be used exclusively for college or
campus purposes including but not limited to, buildings and grounds designed
for the educational, athletic, or social programs of ((
institution, the housing of students, the housing of religious faculty, the
housing of the chief administrator, athletic buildings and all other school or
college facilities, the need for which would be nonexistent but for the
presence of (( such)) the school or college and which are
principally designed to further the educational functions of (( such)) the
college or schools. If the property is leased, the benefit of the exemption (( shall))
must inure to the user;
(2) Real or personal property owned by a not-for-profit foundation that is established for the exclusive support of an institution of higher education, as defined in RCW 28B.10.016. The property is exempt if it is leased to and used by the institution exclusively for college or campus purposes and is principally designed to further the educational functions of the institution. The exemption is only available for property actively utilized by currently enrolled students. The benefit of the exemption must inure to the user.
Sec. 3. RCW 84.36.810 and 1999 c 203 s 3 and 1999 c 139 s 4 are each reenacted and amended to read as follows:
(1)(a) 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, 84.36.042, 84.36.043, 84.36.046, 84.36.050, 84.36.060, 84.36.550, 84.36.560, and 84.36.570, except as provided in (b) of this subsection, 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. If the property has been granted an exemption for more than ten consecutive years, taxes and interest shall not be assessed under this section.
(b) Upon cessation of use by an institution of higher education of property exempt under RCW 84.36.050(2) the county treasurer shall collect all taxes which would have been paid had the property not been exempt during the seven years preceding, or the life of the exemption, whichever is less.
(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 loses 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 this chapter;
(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 leased property that had been exempt under this chapter or RCW 84.36.560; or
(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.
(3) Subsections (2)(e) and (f) of this section do not apply to property leased to a state institution of higher education and exempt under RCW 84.36.050(2).
Sec. 4. RCW 84.36.815 and 1998 c 311 s 27 are each amended to read as follows:
In order to qualify for
exempt status for any real or personal property under this chapter except
personal property under RCW 84.36.600, all foreign national governments((
cemeteries(( ,)); nongovernmental nonprofit corporations,
organizations, and associations(( ,)); hospitals owned and operated by
a public hospital district for purposes of exemption under RCW 84.36.040(2);
and soil and water conservation districts shall file an initial application on
or before March 31 with the state department of revenue. All applications
shall be filed on forms prescribed by the department and shall be signed by an
authorized agent of the applicant.
In order to requalify for exempt status, all applicants except nonprofit cemeteries shall file an annual renewal declaration on or before March 31 each year. The renewal declaration shall be on forms prescribed by the department of revenue and shall contain an affidavit certifying the exempt status of the real or personal property owned by the exempt organization. When an organization acquires real property qualified for exemption or converts real property to exempt status, such organization shall file an initial application for the property within sixty days following the acquisition or conversion. If the application is filed after the expiration of the sixty-day period a late filing penalty shall be imposed pursuant to RCW 84.36.825, as now or hereafter amended.
When organizations acquire real property qualified for exemption or convert real property to an exempt use, the property, upon approval of the application for exemption, is entitled to a property tax exemption for property taxes due and payable the following year. If the owner has paid taxes for the year following the year the property qualified for exemption, the owner is entitled to a refund of the amount paid on the property so acquired or converted.
NEW SECTION. Sec. 5. This act applies to taxes levied for collection in 2002 and thereafter.
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