Current through Register Vol. 24-06, March 15, 2024
(1)
Introduction. This rule explains the property tax exemption
available under the provisions of
RCW
84.36.037 for real and personal property
owned by a nonprofit organization, association, or corporation and used
primarily for annual community celebration events.
(2)
Definitions. For purposes of
this rule, the following definitions apply:
(a) "Public gathering" has the same meaning
as provided in WAC
458-16-300.
(b) "Property" has the same meaning as
provided in WAC
458-16-300.
(3)
Exemption. Real and personal
property owned by a nonprofit organization, association, or corporation and
used primarily for annual community celebration events may be exempt from
taxation under the following conditions:
(a)
Exemption for real property - Area. The area of real property to be exempt may
not exceed 29 acres.
(b) Primary
use. The property has been primarily used for annual community celebration
events for at least 10 years.
(c)
Essentially unimproved property. The property is essentially unimproved except
for restroom facilities and covered shelters. A "covered shelter," for example,
may consist of a covered area that is not enclosed but allows some protection
from the elements or it may provide a sheltered eating area with or without a
picnic table or outside grill, or both.
(d) Purpose. The purpose of the property is
to provide a facility for an annual community celebration.
(e) Statement of availability and fees
required. The owner of the property must prepare and make available upon
request a schedule of fees, a policy on the availability of the facility, and
any restrictions on the use of the facility. The owner may impose conditions
and restrictions that are reasonably necessary to safeguard the property and to
promote the purposes of this exemption.
(f) Annual summary required. The owner must
annually provide the department of revenue with a detailed summary containing
the following information regarding the manner in which the exempt property was
used during the preceding year:
(i) The name
of any person, organization, association, or corporation that used the
property;
(ii) The date(s) on which
the property was used;
(iii) The
purpose for which the property was used;
(iv) The income derived from the rental of
the property; and
(v) The expenses
incurred relating to the use of the property.
(4)
Use of property for pecuniary gain
or to promote business activities. If a community celebration facility
exempt under subsection (3) of this rule is used for pecuniary gain or to
promote business activities, the property tax exemption will be lost. However,
the exemption will not be lost if:
(a) The
rental or use of the property by any individual, group, or entity, where such
rental or use is not otherwise authorized by this rule, for not more than 50
days in each calendar year, and the property is not used for pecuniary gain or
to promote business activities for more than 15 of the 50 days in each calendar
year. The 50 and 15-day limitations do not include days for setup and takedown
activities preceding or following a meeting or event;
(b) The rental or use of the property by any
individual, group, or entity, to conduct activities related to a qualifying
farmers market for up to 53 days each calendar year. The 15-day and 50-day
limitations provided in (a) of this subsection do not apply to the use of the
property for pecuniary gain or for business activities if the property is used
for activities related to a qualifying farmers market, and all income received
from the rental or use of the exempt property is used for capital improvements
to the exempt property, maintenance and operation of the exempt property, or
exempt purposes. For purposes of this rule, "qualifying farmers market" has the
same meaning as "qualifying farmers market" as defined in
RCW
66.24.170;
(c) In a county with a population of less
than 20,000 people, the exempt property is used to promote the following
business activities: Dance lessons; art classes; or music lessons. The rental
income or donations, if any, must be reasonable and not exceed the maintenance
and operation expenses attributable to the portion of the property loaned or
rented; or
(d) All income received
from the rental or use of the exempt property is used for capital improvements
to the exempt property, maintenance and operation expenses of the exempt
property, or for exempt purposes.
(5)
Additional requirements. Any
nonprofit 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. WAC
458-16-165 provides additional
conditions and requirements that must be satisfied to obtain a property tax
exemption pursuant to
RCW
84.36.037.
Statutory Authority:
RCW
84.36.865,
84.36.037,
84.36.805,
84.36.815,
84.36.825 and
84.36.840. 98-18-006, §
458-16-310, filed 8/20/98, effective 9/20/98. Statutory Authority:
RCW
84.08.010,
84.08.070 and
chapter
84.36 RCW. 94-07-008,
§ 458-16-310, filed 3/3/94, effective 4/3/94. Statutory Authority:
RCW
84.36.865. 81-21-010 (Order PT 81-14), §
458-16-310, filed 10/8/81.