Nonprofit halls/fundraising

AN ACT Relating to increasing the maximum annual limit for 1
regularly scheduled fundraising activities for the nonprofit public 2
assembly halls and meeting places property tax exemption; amending 3
RCW 84.36.805 and 84.36.805; creating new sections; providing an 4
effective date; and providing an expiration date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 84.36.805 and 2023 c 69 s 2 are each amended to read 7
as follows: 8
(1) In order to qualify for an exemption under this chapter, the 9
nonprofit organizations, associations, or corporations must satisfy 10
the conditions in this section. 11
(2) The property must be used exclusively for the actual 12
operation of the activity for which exemption is granted, unless 13
otherwise provided, and does not exceed an amount reasonably 14
necessary for that purpose. Notwithstanding anything to the contrary 15
in this section: 16
(a) The loan or rental of the property does not subject the 17
property to tax if: 18
(i) The rents and donations received for the use of the portion 19
of the property are reasonable and do not exceed the maintenance and 20
H-2749.1
HOUSE BILL 2431
State of Washington 69th Legislature 2026 Regular Session
By Representative Shavers
Read first time 01/13/26. Referred to Committee on Finance.
p. 1 HB 2431
operation expenses attributable to the portion of the property loaned 1
or rented; 2
(ii) Except for the exemptions under RCW 84.36.030(4), 84.36.037, 3
84.36.050, and 84.36.060(1) (a) and (b), the property would be exempt 4
from tax if owned by the organization to which it is loaned or 5
rented; and 6
(iii) This subsection (2)(a) does not apply to exemptions granted 7
under RCW 84.36.042; 8
(b) The use of the property for fund-raising events does not 9
subject the property to tax if the fund-raising events are consistent 10
with the purposes for which the exemption is granted or are conducted 11
by a nonprofit organization. If the property is loaned or rented to 12
conduct a fund-raising event, the requirements of (a) of this 13
subsection (2) apply; 14
(c) An inadvertent use of the property in a manner inconsistent 15
with the purpose for which exemption is granted does not subject the 16
property to tax, if the inadvertent use is not part of a pattern of 17
use. A pattern of use is presumed when an inadvertent use is repeated 18
in the same assessment year or in two or more successive assessment 19
years. 20
(3) The facilities and services must be available to all 21
regardless of race, color, national origin or ancestry.22
(4) The organization, association, or corporation must be duly 23
licensed or certified where such licensing or certification is 24
required by law or regulation. 25
(5) Property sold to organizations, associations, or corporations 26
with an option to be repurchased by the seller does not qualify for 27
exempt status. This subsection does not apply to: 28
(a) Limited equity cooperatives as defined in RCW 84.36.675; or29
(b) Property sold to a nonprofit entity, as defined in RCW 30
84.36.560, by: 31
(i) A nonprofit as defined in RCW 84.36.800 that is exempt from 32
income tax under 26 U.S.C. Sec. 501 (c) of the federal internal 33
revenue code; 34
(ii) A governmental entity established under RCW 35.21.660, 35
35.21.670, or 35.21.730; 36
(iii) A housing authority created under RCW 35.82.030;37
(iv) A housing authority meeting the definition in RCW 38
35.82.210(2)(a); or 39
(v) A housing authority established under RCW 35.82.300.40
p. 2 HB 2431
(6) The department must have access to its books in order to 1
determine whether the nonprofit organization, association, or 2
corporation is exempt from taxes under this chapter.3
(7) This section does not apply to exemptions granted under RCW 4
84.36.020, 84.36.032, 84.36.250, 84.36.049, and 84.36.480(2).5
(8)(a) The use of property exempt under this chapter, other than 6
as specifically authorized by this chapter, nullifies the exemption 7
otherwise available for the property for the assessment year. 8
However, the exemption is not nullified by the use of the property by 9
any individual, group, or entity, where such use is not otherwise 10
authorized by this chapter, for not more than 50 days in each 11
calendar year, and the property is not used for pecuniary gain or to 12
promote business activities for more than 15 of the 50 days in each 13
calendar year. The 50 and 15-day limitations provided in this 14
subsection (8)(a) do not include days during which setup and takedown 15
activities take place immediately preceding or following a meeting or 16
other event by an individual, group, or entity using the property as 17
provided in this subsection (8)(a). 18
(b) If uses of the exempt property exceed the 50 and 15-day 19
limitations provided in (a) of this subsection (8) during an 20
assessment year, the exemption is removed for the affected portion of 21
the property for that assessment year. 22
(c) The 15-day and 50-day limitations provided in (a) of this 23
subsection (8) do not apply to property exempt under RCW 84.36.037 if 24
the property is used for activities related to a qualifying farmers 25
market, as defined in RCW 66.24.170, and all income received from 26
rental or use of the exempt property is used for capital improvements 27
to the exempt property, maintenance and operation of the exempt 28
property, or exempt purposes. Exempt property under RCW 84.36.037 may 29
be used for up to 53 days for the purposes of a qualifying farmers 30
market. 31
(d) The 15-day limitation provided in (a) of this subsection (8) 32
is increased to 50 days for regularly scheduled fundraising 33
activities taking place on property exempt under RCW 84.36.037.34
Sec. 2. RCW 84.36.805 and 2023 c 69 s 3 are each amended to read 35
as follows: 36
(1) In order to qualify for an exemption under this chapter, the 37
nonprofit organizations, associations, or corporations must satisfy 38
the conditions in this section. 39
p. 3 HB 2431
(2) The property must be used exclusively for the actual 1
operation of the activity for which exemption is granted, unless 2
otherwise provided, and does not exceed an amount reasonably 3
necessary for that purpose. Notwithstanding anything to the contrary 4
in this section: 5
(a) The loan or rental of the property does not subject the 6
property to tax if: 7
(i) The rents and donations received for the use of the portion 8
of the property are reasonable and do not exceed the maintenance and 9
operation expenses attributable to the portion of the property loaned 10
or rented; 11
(ii) Except for the exemptions under RCW 84.36.030(4), 84.36.037, 12
84.36.050, and 84.36.060(1) (a) and (b), the property would be exempt 13
from tax if owned by the organization to which it is loaned or 14
rented; and 15
(iii) This subsection (2)(a) does not apply to exemptions granted 16
under RCW 84.36.042; 17
(b) The use of the property for fund-raising events does not 18
subject the property to tax if the fund-raising events are consistent 19
with the purposes for which the exemption is granted or are conducted 20
by a nonprofit organization. If the property is loaned or rented to 21
conduct a fund-raising event, the requirements of (a) of this 22
subsection (2) apply; 23
(c) An inadvertent use of the property in a manner inconsistent 24
with the purpose for which exemption is granted does not subject the 25
property to tax, if the inadvertent use is not part of a pattern of 26
use. A pattern of use is presumed when an inadvertent use is repeated 27
in the same assessment year or in two or more successive assessment 28
years. 29
(3) The facilities and services must be available to all 30
regardless of race, color, national origin or ancestry.31
(4) The organization, association, or corporation must be duly 32
licensed or certified where such licensing or certification is 33
required by law or regulation. 34
(5) Property sold to organizations, associations, or corporations 35
with an option to be repurchased by the seller does not qualify for 36
exempt status. This subsection does not apply to property sold to a 37
nonprofit entity, as defined in RCW 84.36.560(7), by:38
p. 4 HB 2431
(a) A nonprofit as defined in RCW 84.36.800 that is exempt from 1
income tax under 26 U.S.C. Sec. 501 (c) of the federal internal 2
revenue code; 3
(b) A governmental entity established under RCW 35.21.660, 4
35.21.670, or 35.21.730; 5
(c) A housing authority created under RCW 35.82.030;6
(d) A housing authority meeting the definition in RCW 7
35.82.210(2)(a); or 8
(e) A housing authority established under RCW 35.82.300.9
(6) The department must have access to its books in order to 10
determine whether the nonprofit organization, association, or 11
corporation is exempt from taxes under this chapter.12
(7) This section does not apply to exemptions granted under RCW 13
84.36.020, 84.36.032, 84.36.250, 84.36.049, and 84.36.480(2).14
(8)(a) The use of property exempt under this chapter, other than 15
as specifically authorized by this chapter, nullifies the exemption 16
otherwise available for the property for the assessment year. 17
However, the exemption is not nullified by the use of the property by 18
any individual, group, or entity, where such use is not otherwise 19
authorized by this chapter, for not more than fifty days in each 20
calendar year, and the property is not used for pecuniary gain or to 21
promote business activities for more than fifteen of the fifty days 22
in each calendar year. The fifty and fifteen-day limitations provided 23
in this subsection (8)(a) do not include days during which setup and 24
takedown activities take place immediately preceding or following a 25
meeting or other event by an individual, group, or entity using the 26
property as provided in this subsection (8)(a). 27
(b) If uses of the exempt property exceed the fifty and fifteen-28
day limitations provided in (a) of this subsection (8) during an 29
assessment year, the exemption is removed for the affected portion of 30
the property for that assessment year. 31
(c) The 15-day and 50-day limitations provided in (a) of this 32
subsection (8) do not apply to property exempt under RCW 84.36.037 if 33
the property is used for activities related to a qualifying farmers 34
market, as defined in RCW 66.24.170, and all income received from 35
rental or use of the exempt property is used for capital improvements 36
to the exempt property, maintenance and operation of the exempt 37
property, or exempt purposes. Exempt property under RCW 84.36.037 may 38
be used for up to 53 days for the purposes of a qualifying farmers 39
market. 40
p. 5 HB 2431
(d) The 15-day limitation provided in (a) of this subsection (8) 1
is increased to 50 days for regularly scheduled fundraising 2
activities taking place on property exempt under RCW 84.36.037.3
NEW SECTION. Sec. 3. RCW 82.32.805 and 82.32.808 do not apply 4
to this act.5
NEW SECTION. Sec. 4. This act applies to taxes levied for 6
collection in 2027 and thereafter.7
NEW SECTION. Sec. 5. Section 1 of this act expires January 1, 8
2033.9
NEW SECTION. Sec. 6. Section 2 of this act takes effect January 10
1, 2033.11
--- END ---
p. 6 HB 2431