BILL REQ. #:  S-3599.2 

Read first time 01/12/10.   Referred to Committee on Ways & Means.

     AN ACT Relating to exempting from property taxation that is leased by certain nonprofit organizations from other nonprofit organizations; adding a new section to chapter 84.36 RCW; and providing an effective date.

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) Real property owned by a nonprofit organization that is leased to another nonprofit organization is exempt from taxation.
     (2) To qualify for the exemption under this section:
     (a) The nonprofit organization that is the tenant must:
     (i) Be exempt from federal income taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code, as amended as of January 1, 2010;
     (ii) Use the property exclusively for a purpose which qualifies the nonprofit organization for exemption from federal income tax under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code, as amended as of January 1, 2010. Use under this subsection must be actual; and
     (iii) Occupy the leased property; and
     (b) The nonprofit organization that is the lessor must be exempt from federal income taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code, as amended as of January 1, 2010.

NEW SECTION.  Sec. 2   This act takes effect July 1, 2010.