Current through Register Vol. 23-24, December 15, 2023
(1)
Introduction. This rule explains the property tax exemption
available under the provisions of
RCW
84.36.260 to a nonprofit corporation or
association, of which the primary purpose is to conduct or facilitate
scientific research or to conserve natural resources or open space for the
general public.
(2)
Definitions. For purposes of this rule, the following definitions
apply:
(a)"Cessation of use" means a
nonprofit association or corporation that has an interest in, or a nonprofit
association or corporation that exclusively used exempt real property, has
ceased to physically use the property for a use exempt under the provisions of
subsection (3) of this rule. The term also refers to property no longer being
used for an exempt use even if the owner intends to find or is pursuing an
alternative exempt use for the property. "Cessation of use" also refers to
property that has lost its exempt status because it was sold, transferred,
loaned, or rented to an owner or user that is not qualified to be exempt from
property taxes.
(b)"Conservation
futures" means rights in perpetuity to the future development of any open space
land, farm and agricultural land, and timber land, classified under the
provisions of
chapter
84.34 RCW and taxed at the
current use assessment rate as provided by that chapter and are purchased or
acquired (except by eminent domain) by a county, city, town, municipal
corporation, nonprofit historic preservation corporation, or nonprofit
conservancy corporation or association.
(c) "Governmental entity" means any political
unit or division of the federal, state, county, city, or municipal
government.
(d) "Nonprofit
conservancy corporation or association" means an organization that qualifies as
being tax exempt under 26 U.S.C. Sec. 501 (c)(3) of the United States Internal
Revenue Code as it existed on June 25, 1976, and that has as one of its
principal purposes: The conducting or facilitating of scientific research; the
conserving of natural resources, including but not limited to biological
resources, for the general public; or the conserving of open spaces, including
but not limited to wildlife or plant habitat to be utilized as public access
areas, for the use and enjoyment of the general public.
(e) "Nonprofit historical preservation
corporation" means an organization that qualifies as being tax exempt under 26
U.S.C. Sec. 501 (c)(3) of the United States Internal Revenue Code of 1954, as
amended, and has as one of its principal purposes the conducting or
facilitating of historic preservation activities within a state including, but
not limited to, the conservation or preservation of historic sites, districts,
buildings, and artifacts.
(f)"Person or company" means any individual,
receiver, administrator, executor, assignee, trustee in bankruptcy, trust,
estate, firm, co-partnership, joint venture, club, company, joint stock
company, business trust, municipal corporation, political unit or division of
the state of Washington, corporation, association, society, or any group of
individuals acting as a unit, whether mutual, cooperative, fraternal,
nonprofit, or otherwise, and the United States and any instrumentality
thereof.
(g) "Real property
interests" means any interest in real property including, but not limited to,
fee simple or a lesser ownership interest, developmental rights, easements,
covenants, and conservation futures.
(h) "Rollback" refers to the provisions of
RCW 84.36.-262 that make previously exempt property subject to back taxes and
interest because of the cessation of an exempt use or a change in
ownership.
(3)
Exemption. All real property interests exclusively used to
conserve ecological systems, natural resources, or open space, including park
lands, by a nonprofit association or corporation whose primary purpose is to
conduct or facilitate scientific research or to conserve natural resources or
open space for the general public will be exempt from property tax if either of
the following conditions is met:
(a)The
property, to the extent feasible considering the nature of the interest
involved, is:
(i) Used and effectively
dedicated primarily to providing scientific research or educational
opportunities to the general public or to preserving native plants, animals,
biotic communities, works of ancient man, or geological or geographical
formations of distinct scientific and educational interests;
(ii) Open to the general public for
educational and scientific research purposes subject to reasonable restrictions
designed to protect the property; and
(iii) Not for the pecuniary benefit of any
person or company; or
(b)The property is subject to an option,
which has been accepted in writing by any political unit or department of the
federal, state, county, or city government, for purchase by the United States,
a state, a county, or a city at a price not exceeding the lesser of the
following amounts:
(i) The sum of the original
purchase price paid by the nonprofit association or corporation plus interest
from the date of acquisition at the rate of six percent per annum compounded
annually to the date the option is exercised; or
(ii) The appraised value of the property
interest, as determined by the department of revenue, at the time the option is
accepted in writing.
(4)Property used for recreational
activities. Property used merely for recreational activities does not
qualify for an exemption under this rule.
(5)
Application for exemption under
this rule. A nonprofit association or corporation that wants to obtain
the property tax exemption under this rule, must submit an application for
exemption.
(a) Real property is not exempt
from taxation unless an application has been filed and the exemption approved
by the department of revenue.
(b)
In addition to the application, if the property is subject to an option for
purchase, a copy of the option agreement and the written acceptance must be
submitted to the department of revenue. The option must either state the
purchase price pursuant to the option or the appraisal value as determined by
the department of revenue.
(6)
Cessation of exempt use.
When land is no longer being used for an exempt purpose described in this rule,
the county treasurer will collect all taxes that would have been paid if the
property had not been exempt during the preceding ten years, or for the life of
the exemption, whichever is less, plus interest computed at the same rate and
in the same manner as that upon delinquent property taxes.
(7)
Change in use. An owner of
exempt property who knows of or who has information regarding a change in the
use of exempt property must notify the department of revenue of this change. An
owner of exempt property must also report the loan or rental of all or a
portion of the exempt property since loaning or renting this property may
change the taxable status of exempt property.
Any other person who knows or has information regarding a
change in use of exempt property must notify the county assessor of any such
change. The assessor, in turn, will report this information to the department
of revenue.
(a) After being notified
about a change in use of exempt property, the department may physically inspect
the property to determine if the reported change has taken place.
(b) After a change in use, the final
determination of the taxable status of the subject property will be made by the
department of revenue.
(c) When the
department determines that a change in use has occurred, it will notify the
current owner of the exempt property and, in the case of a transfer, the
previous legal owner of exempt property that the change in use may change the
taxable status of the property and that the property may be subject to the
rollback provisions in subsection (6) of this rule. The owner(s) of this
property will have thirty days from the date of the notice to submit any
comments or information relevant to this change in use to the department. The
department will then issue a final determination about the taxable status of
this property.
(d) Upon
notification from the department of revenue that the exempt use of the property
has ceased, the county treasurer will compute the taxes payable, including
interest computed at the same rate and in the same manner as that upon
delinquent property taxes. The interest collected will be placed in the county
current expense fund.
(8)
Additional requirements. Any
organization, association, or corporation that applies for a property tax
exemption under this rule must also comply with the provisions of WAC
458-16-165 that explains the
additional conditions and requirements necessary to obtain a property tax
exemption pursuant to
RCW
84.36.260.
Amended by
WSR
15-07-021, Filed 3/10/2015, effective
4/10/2015
Statutory Authority:
RCW
84.08.010,
84.08.070 and
chapter
84.36 RCW. 94-07-008,
§ 458-16-290, filed 3/3/94, effective 4/3/94; Order PT 77-2, §
458-16-290, filed 5/23/77; Order PT 76-2, § 458-16-290, filed 4/7/76.
Formerly WAC 458-12-236.