1345-S AMS BENT GORR 008

"NEW SECTION. Sec. 1. A new section is added to chapter 84.36 RCW to read as follows: (1) The real and personal property owned or used in providing rental housing for very low-income households is exempt from taxation if:

(a) At least seventy-five percent of the occupied dwelling units in the rental housing are occupied by very low-income households; and

(b) The rental housing was insured, financed, or assisted in whole or in part through:

(i) A federal or state housing program administered by the department of community, trade, and economic development; or

(ii) An affordable housing levy authorized under RCW 84.52.105.

(2) If less than seventy-five percent of the dwelling units are occupied by very low-income households, the rental housing used to provide housing for very low-income households is eligible for a partial exemption on the real property and a total exemption of the housing's personal property as follows:

(a) The partial exemption shall be allowed for each dwelling unit in the rental housing occupied by very low-income households.

(b) The amount of exemption shall be calculated by multiplying the assessed value of the property reasonably necessary to provide the rental housing by a fraction. The numerator of the fraction is the number of dwelling units occupied by very low-income households as of January 1st of the year for which the exemption is claimed. The denominator of the fraction is the total number of occupied dwelling units as of January 1st of the year for which exemption is claimed.

(3) To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as provided in RCW 84.36.805.

(4) The entity qualifying for the exemption under this section by providing rental housing for very low-income households may agree to make payments to the city, county, or other political subdivision for improvements, services, and facilities furnished by the city, county, or political subdivision for the benefit of the rental housing. However, these payments shall not exceed the amount last levied as the annual tax of the city, county, or political subdivision upon the property prior to exemption.

(5) As used in this section:

(a) "Occupied dwelling unit" means a living unit that is occupied on January 1st of the year in which the claim for exemption is submitted;

(b) "Rental housing" means residential housing that is occupied but not owned by very low-income households;

(c) "Very low-income households" means a single person, family, or unrelated persons living together whose income is at or below fifty percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the rental housing is located and in effect as of January 1st of the year the application for exemption is submitted; and

Sec. 2. RCW 84.36.810 and 1998 c 311 s 26 and 1998 c 202 s 4 are each amended to read as follows:

(1) Upon cessation of a use under which an exemption has been granted pursuant to RCW 84.36.030, 84.36.037, 84.36.040, 84.36.041, 84.36.043, 84.36.046, 84.36.050, 84.36.060, 84.36.550, ((~~and~~)) 84.36.042, and section 1 of this act, the county treasurer shall collect all taxes which would have been paid had the property not been exempt during the three years preceding, or the life of such exemption, if such be less, together with the interest at the same rate and computed in the same way as that upon delinquent property taxes. Where the property has been granted an exemption for more than ten years, taxes and interest shall not be assessed under this section.

(2) Subsection (1) of this section applies only when ownership of the property is transferred or when fifty-one percent or more of the area of the property has lost its exempt status. The additional tax under subsection (1) of this section shall not be imposed if the cessation of use resulted solely from:

(a) Transfer to a nonprofit organization, association, or corporation or other entity for a use which also qualifies and is granted exemption under the provisions of chapter 84.36 RCW;

(b) A taking through the exercise of the power of eminent domain, or sale or transfer to an entity having the power of eminent domain in anticipation of the exercise of such power;

(c) Official action by an agency of the state of Washington or by the county or city within which the property is located which disallows the present use of such property;

(d) A natural disaster such as a flood, windstorm, earthquake, or other such calamity rather than by virtue of the act of the organization, association, or corporation changing the use of such property;

(e) Relocation of the activity and use of another location or site except for undeveloped properties of camp facilities exempted under RCW 84.36.030;

(f) Cancellation of a lease on property that had been exempt under RCW 84.36.040, 84.36.041, 84.36.043, 84.36.046, 84.36.060, or 84.36.042, or section 1 of this act;

(g) A change in the exempt portion of a home for the aging under RCW 84.36.041(3), as long as some portion of the home remains exempt((;

~~(h) The conversion of a full exemption of a home for the aging to a partial exemption or taxable status or the conversion of a partial exemption to taxable status under RCW 84.36.041(8)~~)).

NEW SECTION. Sec. 3. This act applies to taxes levied in 1999 for collection in 2000 and thereafter."

Renumber the sections consecutively and correct any internal references accordingly.

SHB 1345 - S AMD - 351

By Senator Benton

NOT ADOPTED 4/16/99

On page 1, on line 2 of the title, after "amending RCW" strike "84.36.805 and"