Washington Administrative Code
Title 458 - Revenue, Department of
Chapter 458-16 - Property tax Exemptions
Section 458-16-150 - Cessation of use-Taxes collectible for prior years
Current through Register Vol. 24-06, March 15, 2024
(1) Introduction. This rule explains what occurs when property loses its tax exempt status and is placed back on the tax rolls. It also describes the back taxes and interest that are collected when an exempt use ceases, unless the property has been exempt for more than 10 consecutive years or is otherwise exempt from the provisions of RCW 84.36.810. This rule does not apply to property that received an exemption as a nature conservancy under RCW 84.36.260. RCW 84.36.262 and WAC 458-16-290 Nature conservancy lands, provide additional information about the collection of back taxes for nature conservancies.
(2) Definitions. For purposes of this rule, the following definitions apply:
(3) Applicability of this rule. Upon cessation of a use for which an exemption was granted under one of the statutes listed below, and if directed to do so by the department, the county treasurer must collect all taxes which would have been paid if not for the existence of the property tax exemption. If the property was exempt for more than 10 consecutive years, no back taxes or interest are due. Back taxes and interest will be collected only when ownership of property is transferred or when 51 percent or more of the total exempt property loses its exempt status.
TYPE OF EXEMPT ORGANIZATION |
AUTHORIZING STATUTE |
A nonprofit character building, benevolent, protective, or rehabilitative social service organization, association or corporation |
RCW 84.36.030 |
A church camp owned by a nonprofit church, denomination, group of churches, or an organization or association, the membership of which is comprised solely of churches and/or their qualified representatives |
RCW 84.36.030 |
A nonprofit organization or association engaged in character building of boys and girls under 18 years of age or to serve boysnd girls up to 21 years if the charter of the nprofit organization or association requires it |
RCW 84.36.030 |
An organization or society of veterans of any war of the United States |
RCW 84.36.030 |
Corporations formed under an act of Congress to furnish volunteer aid to members of the armed forces of the United States |
RCW 84.36.030 |
Corporations formed under an act of Congress to carry on a system of national and international relief to mitigate and to prevent suffering caused by pestilence, famine, fire, floods, and other national calamities |
RCW 84.36.030 |
Nonprofit organizations exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code that are guarantee agencies under the federal guaranteed student loan program or guarantee agencies that issue debt to provide or acquire student loans |
RCW 84.36.030 |
Nonprofit organizations, associations or corporations in connection with the operation of a public assembly hall, public meeting place, community meeting hall, or community celebration facility |
RCW 84.36.037 |
Nonprofit day care centers |
RCW 84.36.040 |
Free public libraries |
RCW 84.36.040 |
Nonprofit orphanages |
RCW 84.36.040 |
Nonprofit homes for the sick or infirm or nonprofit hospitals for the sick |
RCW 84.36.040 |
Nonprofit outpatient dialysis facilities |
RCW 84.36.040 |
Public hospital district established under chapter 36.62 or 70.44 RCW for hospital purposes |
RCW 84.36.040 |
Nonprofit homes for the aging |
RCW 84.36.041 |
A nonprofit organization, corporation, or association providing housing for low income eligible persons with developmental disabilities |
RCW 84.36.042 |
Nonprofit organizations providing emergency or transitional housing to low-income homeless persons or victims of domestic violence |
RCW 84.36.043 |
A nonprofit organization, corporation, or association in connection with a nonprofit cancer clinic or center |
RCW 84.36.046 |
Nonprofit schools or colleges |
RCW 84.36.050 |
Associations maintaining and exhibiting art, scientific or historical collections for the benefit of the general public and not for profit |
RCW 84.36.060 |
Associations engaged in the production and performance of musical, dance, artistic, dramatic, or literary works for the benefit of the general public and not for profit |
RCW 84.36.060 |
Fire companies for preventing and fighting fires |
RCW 84.36.060 |
Humane societies |
RCW 84.36.060 |
Nonprofit organizations created for the solicitation or collection of gifts, donations, or grants for character building, benevolent, protective, or rehabilitative social services or for the distribution of funds to at least five other nonprofit organizations or associations that provide such social services |
RCW 84.36.550 |
A nonprofit organization, corporation, or association providing rental housing for qualifying households |
RCW 84.36.560 |
A nonprofit organization, corporation, or association providing a demonstration farm with research and extension facilities, a public agricultural museum, and an educational tour site, which is used by a state university for agricultural research and education programs |
RCW 84.36.570 |
Nonprofit organizations soliciting or collecting donations, gifts, or grants for artists |
RCW 84.36.650 |
Limited equity cooperatives |
RCW 84.36.675 |
(4) Duty to notify.
(5) Notice to owner. The department must notify the current owner and, in the case of a transfer, the previous legal owner of the exempt property that the cessation of use of the property for an exempt purpose has changed the property's taxable status. The notice must address the applicability of the rollback provisions in subsection (3) of this rule. Within 30 days of receiving this notice, the owner(s) may submit comments or information to the department as to why the exemption should not be removed or rollback provisions should not be applied. The department will then issue a final determination.
(6) County treasurer. The treasurer will calculate and collect the back taxes and interest due when the department notifies the treasurer that the property tax exemption is to be canceled or removed. The interest will be computed at the same rate and in the same manner as that on delinquent property taxes. The back taxes collected are disbursed to the taxing districts impacted by the previous property tax exemption. The interest collected is placed in the county current expense fund.
Statutory Authority: RCW 84.36.865, 84.36.040, 84.36.042, 84.36.045, 84.36.046, 84.36.050, 84.36.385, 84.36.560, 84.36.570, 84.36.800, 84.36.805, 84.36.810, 84.36.815, 84.36.820, 84.36.825, 84.36.830, 84.36.833, 84.36.840, 84.36.850, and 84.40.350 through 84.40.390. 02-02-009, § 458-16-150, filed 12/20/01, effective 1/20/02. Statutory Authority: RCW 84.08.010, 84.08.070 and chapter 84.36 RCW. 94-07-008, § 458-16-150, filed 3/3/94, effective 4/3/94. Statutory Authority: RCW 84.36.865. 86-12-034 (Order PT 86-2), § 458-16-150, filed 5/30/86; 85-05-025 (Order PT 85-1), § 458-16-150, filed 2/15/85. Statutory Authority: RCW 84.36.389 and 84.36.865. 83-19-029 (Order PT 83-5), § 458-16-150, filed 9/14/83. Statutory Authority: RCW 84.36.865. 82-22-060 (Order PT 82-8), § 458-16-150, filed 11/2/82; 81-05-017 (Order PT 81-7), § 458-16-150, filed 2/11/81; Order PT 77-2, § 458-16-150, filed 5/23/77; Order PT 76-2, § 458-16-150, filed 4/7/76. Formerly WAC 458-12-151.