SENATE BILL REPORT

SB 5345

BYSenators McDermott, Rinehart, Bluechel, Moore, Deccio and Kiskaddon

Revising the property tax exemption for associations producing and performing musical, dance, etc. works.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 10, 1987

Majority Report:  That Substitute Senate Bill No. 5345 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bluechel, Fleming, Kreidler, Owen, Rinehart, Saling, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Stephen Rose (786-7443)

                  February 10, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 10, 1987

BACKGROUND:

The Department of Revenue has rules that nonprofit arts organizations that qualify for property tax exemptions if they own property do not qualify for property tax exemptions if they rent with a fixed term lease.

SUMMARY:

The original bill was not considered.

EFFECT OF PROPOSED SUBSTITUTE:

Nonprofit arts organizations qualify for property tax exemptions when they lease if the terms of the rental agreement specifies that the nonprofit organization receives the benefit of the exemption.

The exemption for nonprofit arts organizations only apply to real and personal property primarily used for arts related productions and performances.

The exemption applies to taxes collected in 1988 and thereafter.

Fiscal Note:      requested

Senate Committee - Testified: Timothy Austin; Mr. Frenault