SENATE BILL REPORT

SB 5387

BYSenators Conner, Craswell, Johnson, McDonald, Garrett, Stratton, Anderson, Rasmussen and Hayner

Expanding the church-related property tax exemption to leased property.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 6, 1987; March 9, 1987

Majority Report:  That Substitute Senate Bill No. 5387 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Bauer, Bluechel, Cantu, Craswell, Deccio, Fleming, Hayner, Kreidler, Lee, McDonald, Owen, Rasmussen, Vognild, Warnke, Wojahn.

Senate Staff:William Bafus (786-7437)

                  March 10, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 9, 1987

BACKGROUND:

At the present time, property owned by nonprofit church, denomination, group of churches or organization or association of churches, and which is used as a camp facility, is exempt from property tax.

SUMMARY:

Exemption from property taxes is extended to include property used by a church or group of churches as a camp facility.  The definition of "church use" in RCW 84.36.800 is applied to all real and personal property used by a nonprofit religious organization for qualifying purposes, as compared with property owned and used for such purposes.

EFFECT OF PROPOSED SUBSTITUTE:

The property tax exemption for property leased, rented or otherwise used without ownership for church camps is removed.  An exemption is provided for equipment used in the operation or maintenance of a church, convent or parsonage.  Examples of such equipment include office equipment, buildings and grounds maintenance equipment. etc.  If such an exemption is granted for leased or rented personal property, the benefit of the exemption must inure to the church or other qualifying nonprofit organization.

Revenue:    yes

Fiscal Note:      requested

Senate Committee - Testified: No one