HOUSE BILL REPORT

SSB 6600

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed House:

March 8, 2012

Title: An act relating to extending property tax exemptions to property used exclusively by certain nonprofit organizations that is leased from an entity that acquired the property from a previously exempt nonprofit organization.

Brief Description: Extending property tax exemptions to property used exclusively by certain nonprofit organizations that is leased from an entity that acquired the property from a previously exempt nonprofit organization.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senator Eide).

Brief History:

Committee Activity:

Ways & Means: 3/7/12.

Floor Activity:

Passed House: 3/8/12, 91-7.

Brief Summary of Substitute Bill

  • Establishes a property tax exemption for property owned by a church and leased to a youth character building organization.

  • Provides a property tax exemption for an entity leasing property to a youth character building organization if the immediate previous owner had received an exemption and the benefit is passed on to the lessee.

HOUSE COMMITTEE ON WAYS & MEANS

Staff: Jeff Olsen (786-7175).

Background:

Property taxes apply to the assessed value of all taxable property unless specifically exempted. Several property tax exemptions exist for property owned by qualifying non-profit organizations including churches, youth character building organizations, benevolent and charitable organizations, veteran's organizations, and thrift stores that sell only donated merchandise. Property leased to a nonprofit organization engaged in youth character building activities are not exempt from property tax, unless that property is owned by an organization that is otherwise exempt from the property tax for the same purposes.

Summary of Bill:

Property remains eligible for a property tax exemption for youth character building activities if the property is owned by a property tax-exempt church that loans, leases, or rents the property to another organization for exempt purposes.

Property also remains eligible for a property tax exemption if:

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) This bill addresses a complicated issue where zoning impacted the purchase of property from a church to be used by a nonprofit youth organization.

(Opposed) None.

Persons Testifying: Representative Asay.

Persons Signed In To Testify But Not Testifying: None.