Current through Register Vol. 24-06, March 15, 2024
(1)
Introduction. This rule
explains the property tax exemption available under the provisions of
RCW
84.36.030(3) to property
owned by a nonprofit organization or association engaged in character building
of children under eighteen years of age.
(2)
Definitions. For purposes of
this rule, the following definitions apply:
(a)"Character building" refers to activities
for children under eighteen years of age that are for the general public good.
The activities may build, improve, or enhance a child's moral constitution by
developing moral or ethical strength, leadership, integrity, self-discipline,
fortitude self-esteem, and reputation. For example, "character building"
activities may involve organized and supervised recreational activities
including, but not limited to, exploring, hiking, beachcombing, swimming,
fishing, studying, and discussion groups.
(b)"Commercial" refers to an activity or
enterprise that has profit making as its primary purpose.
(c)"Property" means real and personal
property owned and used by a nonprofit organization or association engaged in
character building of children under eighteen years of age and includes all
buildings, structures, and improvements required to maintain and to safeguard
the property.
(3)Exemption. Property owned by
nonprofit organizations or associations engaged in character building of
children under eighteen years of age is exempt from taxation if it is
exclusively used to promote character building.
(a)To be entitled to receive this exemption,
the organization or association must be nonprofit and its purpose must be for
the general public good. All property of a character building organization or
association must be devoted to the general public benefit.
(b)Except as otherwise provided in this rule,
only property that is exclusively used for character building of children under
eighteen years of age, is exempt under this rule. If the property is used for
any other purpose, whether commercial or otherwise, it must be segregated and
taxed.
(c)A nonprofit character
building organization or association may also qualify for this exemption if,
prior to 1971, its articles of incorporation or charter mandated the
organization or association to provide services to children up to the age of
twenty-one years.
(4)
Property with option to repurchase. Property leased, loaned, or
sold with the option to repurchase or made available to organizations described
in RCW
84.36.030 does not qualify for this exemption
unless:
(a) The property is owned by an
organization exempt under
RCW
84.36.020 or
84.36.030 and the organization
loans, leases, or rents the property to another organization for the exempt
purposes described in
RCW
84.36.030; or
(b) The property is owned by an entity formed
exclusively for the purpose of leasing the property to an organization that
will use the property for the exempt purposes described in
RCW
84.36.030 if:
(i) The lessee uses the property for the
exempt purposes provided in
RCW
84.36.030;
(ii) The immediate previous owner of the
property had received an exemption under
RCW
84.36.020 or
84.36.030 for the property;
and
(iii) The benefit of the
exemption inures to the benefit of the lessee organization.
(5)Additional
requirements. Any organization or association that applies for a
property tax exemption under this rule must also comply with the provisions of
WAC 458-16-165. WAC
458-16-165 provides additional
conditions and requirements that must be complied with to obtain a property tax
exemption pursuant to
RCW
84.36.030.
(6)
Related statute. See
RCW
82.04.4271; if a "nonprofit youth
organization" is exempt from property taxation under
RCW
84.36.030, it may deduct membership fees and
certain service fees in calculating the amount of business and occupation tax
due.
Statutory Authority:
RCW
84.08.010,
84.08.070 and
chapter
84.36 RCW. 94-07-008,
§ 458-16-230, filed 3/3/94, effective 4/3/94. Statutory Authority:
RCW
84.36.865. 86-12-034 (Order PT 86-2), §
458-16-230, filed 5/30/86; 85-05-025 (Order PT 85-1), § 458-16-230, filed
2/15/85; Order PT 77-2, § 458-16-230, filed 5/23/77; Order PT 76-2, §
458-16-230, filed 4/7/76. Formerly WAC
458-12-210.