BILL REQ. #:  Z-0061.1 

Read first time 01/27/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to providing a property tax exemption for real and personal property leased to public hospitals established under chapter 36.62 RCW; amending RCW 84.36.040; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 84.36.040 and 2001 c 126 s 1 are each amended to read as follows:
     (1) The real and personal property used by ((nonprofit)), and for the purposes of, the following nonprofit organizations is exempt from property taxation:
     (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((,)) for hospital purposes is exempt from property taxation if the hospital is established under chapter 36.62 RCW or is 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, and the benefit of the exemption must inure to the user.

NEW SECTION.  Sec. 2   Nothing in RCW 84.36.040 may be construed to provide a property tax exemption for the residence of a person who provides day care for children in the person's home.

NEW SECTION.  Sec. 3   Section 1 of this act applies both prospectively and retroactively beginning with taxes levied for collection in 2002 and thereafter.