SENATE BILL REPORT

HB 1087

BYRepresentatives Locke, May, Schoon and Niemi

Changing requirements for property tax exemptions for arts organizations.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):April 1, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Bauer, Bluechel, Cantu, Deccio, Fleming, Hayner, Kreidler, Lee, McDonald, Moore, Owen, Rinehart, Saling, Warnke, Williams, Zimmerman.

Senate Staff:Stephen Rose (786-7443)

                  April 2, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 1, 1987

BACKGROUND:

All real and personal property owned or leased which is used exclusively for production and performance by the following is exempt from property taxes:  non-profit associations engaged in musical, dance, artistic, dramatic, or literary works.  In order to qualify for this exemption these non-profit associations must receive a "substantial" part of their resources from governmental funds or from contributions by the general public.

A further qualification requires that the property must be irrevocably dedicated to the purposes for which the exemption was granted.  Rented or leased properties are an exception to this qualification but still must be used exclusively for production and performance of musical, dance, artistic, dramatic, or literary works in order to receive a property tax exemption.

SUMMARY:

The exemption for rented or leased property is altered.  Rented or leased properties do not have to be irrevocably dedicated to qualifying purposes in order to receive the tax exemption.  However, the terms of the lease or rental agreement must indicate the non-profit organization receiving the benefit of the exemption.

Fiscal Note:      available

Senate Committee - Testified: Representative Gary Locke