AN
ACT Relating to property tax exemptions for property leased by public entities;
amending RCW 84.36.040, 84.36.050, and 84.36.815; reenacting and amending RCW
84.36.810; and creating a new section.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.36.040 and 1989 c 379 s 1 are each amended to read as follows:
(1)
The real and personal property used by nonprofit (a) day care centers as
defined pursuant to RCW 74.15.020; (b) free public libraries; (c) orphanages
and orphan asylums; (d) homes for the sick or infirm; (e) hospitals for the
sick; and (f) outpatient dialysis facilities, which are used for the purposes
of such organizations shall be exempt from taxation: PROVIDED, That the
benefit of the exemption inures to the user.
(2)
The real and personal property leased to and used by a hospital, owned and
operated by a public hospital district established under chapter 70.44 RCW, for
hospital purposes is exempt from taxation. The benefit of the exemption must
inure to the user.
(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.
Sec.
2. RCW
84.36.050 and 1984 c 220 s 5 are each amended to read as follows:
The
following property ((shall be)) is exempt from taxation:
(1)
Property owned or used for any nonprofit school or college in this state for
educational purposes or cultural or art educational programs as defined in RCW
82.04.4328. Real property so exempt shall not exceed four hundred acres in
extent and, except as provided in RCW 84.36.805, shall be used exclusively for
college or campus purposes including but not limited to, buildings and grounds
designed for the educational, athletic, or social programs of ((said)) the
institution, the housing of students, the housing of religious faculty, the
housing of the chief administrator, athletic buildings and all other school or
college facilities, the need for which would be nonexistent but for the
presence of ((such)) the school or college and which are
principally designed to further the educational functions of ((such)) the
college or schools. If the property is leased, the benefit of the exemption ((shall))
must inure to the user;
(2)
Real or personal property owned by a not-for-profit foundation that is
established for the exclusive support of an institution of higher education, as
defined in RCW 28B.10.016. The property is exempt if it is leased to and used
by the institution exclusively for college or campus purposes and is
principally designed to further the educational functions of the institution.
The exemption is only available for property actively utilized by currently
enrolled students. The benefit of the exemption must inure to the user.
Sec.
3. RCW
84.36.810 and 1999 c 203 s 3 and 1999 c 139 s 4 are each reenacted and amended
to read as follows:
(1)(a)
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, 84.36.042, 84.36.043,
84.36.046, 84.36.050, 84.36.060, 84.36.550, 84.36.560, and 84.36.570, except
as provided in (b) of this subsection, 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. If the property has been granted an exemption for
more than ten consecutive years, taxes and interest shall not be assessed under
this section.
(b)
Upon cessation of use by an institution of higher education of property exempt
under RCW 84.36.050(2) the county treasurer shall collect all taxes which would
have been paid had the property not been exempt during the seven years
preceding, or the life of the exemption, whichever is less.
(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 loses
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 for a use
which also qualifies and is granted exemption under this chapter;
(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 leased property that had been exempt under this
chapter or RCW 84.36.560; or
(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.
(3)
Subsections (2)(e) and (f) of this section do not apply to property leased to a
state institution of higher education and exempt under RCW 84.36.050(2).
Sec.
4. RCW
84.36.815 and 1998 c 311 s 27 are each amended to read as follows:
In
order to qualify for exempt status for any real or personal property under this
chapter except personal property under RCW 84.36.600, all foreign national
governments((,)); cemeteries((,)); nongovernmental
nonprofit corporations, organizations, and associations((,));
hospitals owned and operated by a public hospital district for purposes of
exemption under RCW 84.36.040(2); and soil and water conservation districts
shall file an initial application on or before March 31 with the state
department of revenue. All applications shall be filed on forms prescribed by
the department and shall be signed by an authorized agent of the applicant.
In
order to requalify for exempt status, all applicants except nonprofit
cemeteries shall file an annual renewal declaration on or before March 31 each
year. The renewal declaration shall be on forms prescribed by the department
of revenue and shall contain an affidavit certifying the exempt status of the real
or personal property owned by the exempt organization. When an organization
acquires real property qualified for exemption or converts real property to
exempt status, such organization shall file an initial application for the
property within sixty days following the acquisition or conversion. If the
application is filed after the expiration of the sixty-day period a late filing
penalty shall be imposed pursuant to RCW 84.36.825, as now or hereafter
amended.
When
organizations acquire real property qualified for exemption or convert real
property to an exempt use, the property, upon approval of the application for
exemption, is entitled to a property tax exemption for property taxes due and
payable the following year. If the owner has paid taxes for the year following
the year the property qualified for exemption, the owner is entitled to a
refund of the amount paid on the property so acquired or converted.
NEW
SECTION. Sec. 5. This
act applies to taxes levied for collection in 2002 and thereafter.
