BILL REQ. #: S-4820.1
State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 02/16/12. Referred to Committee on Ways & Means.
AN ACT Relating to property tax exemptions for nonprofit fair associations in rural counties; amending RCW 84.36.480; reenacting and amending RCW 84.36.805; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 84.36.480 and 1984 c 220 s 6 are each amended to read
as follows:
(1) The following property shall be exempt from taxation: The real
and personal property of a nonprofit fair association that sponsors or
conducts a fair or fairs which receive support from revenues collected
pursuant to RCW 67.16.100 and allocated by the director of the
department of agriculture. To be exempt under this section, the
property must be used exclusively for fair purposes, except as provided
in subsection (2) of this section and in RCW 84.36.805. However, the
loan or rental of property otherwise exempt under this section to a
private concessionaire or to any person for use as a concession in
conjunction with activities permitted under this section shall not
nullify the exemption if the concession charges are subject to
agreement and the rental income, if any, is reasonable and is devoted
solely to the operation and maintenance of the property.
(2) The exemption in subsection (1) of this section is not
nullified if property of a nonprofit fair association located in a
rural county as defined in RCW 82.14.370 is used by entities not
eligible for a property tax exemption under this chapter for periods of
not more than fifty days in the calendar year. This subsection expires
July 1, 2014.
Sec. 2 RCW 84.36.805 and 2006 c 319 s 1 and 2006 c 226 s 3 are
each reenacted and amended to read as follows:
(1) In order to qualify for an exemption under this chapter, the
nonprofit organizations, associations, or corporations must satisfy the
conditions in this section.
(2) The property must be used exclusively for the actual operation
of the activity for which exemption is granted, unless otherwise
provided, and does not exceed an amount reasonably necessary for that
purpose, except:
(a) The loan or rental of the property does not subject the
property to tax if:
(i) The rents and donations received for the use of the portion of
the property are reasonable and do not exceed the maintenance and
operation expenses attributable to the portion of the property loaned
or rented; and
(ii) Except for the exemptions under RCW 84.36.030(4), 84.36.037,
84.36.050, and 84.36.060(1) (a) and (b), and except as otherwise
provided in RCW 84.36.480(2), the property would be exempt from tax if
owned by the organization to which it is loaned or rented;
(b) The use of the property for fund-raising activities does not
subject the property to tax if the fund-raising activities are
consistent with the purposes for which the exemption is granted.
(3) The facilities and services must be available to all regardless
of race, color, national origin or ancestry.
(4) The organization, association, or corporation must be duly
licensed or certified where such licensing or certification is required
by law or regulation.
(5) Property sold to organizations, associations, or corporations
with an option to be repurchased by the seller shall not qualify for
exempt status. This subsection does not apply to property sold to a
nonprofit entity, as defined in RCW 84.36.560(7), by:
(a) A nonprofit as defined in RCW 84.36.800 that is exempt from
income tax under section 501(c) of the federal internal revenue code;
(b) A governmental entity established under RCW 35.21.660,
35.21.670, or 35.21.730;
(c) A housing authority created under RCW 35.82.030;
(d) A housing authority meeting the definition in RCW
35.82.210(2)(a); or
(e) A housing authority established under RCW 35.82.300.
(6) The department shall have access to its books in order to
determine whether the nonprofit organization, association, or
corporation is exempt from taxes under this chapter.
(7) This section does not apply to exemptions granted under RCW
84.36.020, 84.36.032, 84.36.250, and 84.36.260.