Social housing agencies/tax

AN ACT Relating to establishing tax exemptions for property used 1
as affordable housing owned or operated by a social housing agency; 2
amending RCW 82.45.010, 82.45.010, 84.36.805, and 84.36.805; adding a 3
new section to chapter 84.36 RCW; creating a new section; providing 4
effective dates; and providing expiration dates. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 82.45.010 and 2025 c 159 s 1 are each amended to 7
read as follows: 8
(1) As used in this chapter, the term "sale" has its ordinary 9
meaning and includes any conveyance, grant, assignment, quitclaim, or 10
transfer of the ownership of or title to real property, including 11
standing timber, or any estate or interest therein for a valuable 12
consideration, and any contract for such conveyance, grant, 13
assignment, quitclaim, or transfer, and any lease with an option to 14
purchase real property, including standing timber, or any estate or 15
interest therein or other contract under which possession of the 16
property is given to the purchaser, or any other person at the 17
purchaser's direction, and title to the property is retained by the 18
vendor as security for the payment of the purchase price. The term 19
also includes the grant, assignment, quitclaim, sale, or transfer of 20
improvements constructed upon leased land. 21
S-3958.1
SENATE BILL 6201
State of Washington 69th Legislature 2026 Regular Session
By Senators Slatter, Nobles, Saldaña, Valdez, and C. Wilson
Read first time 01/16/26. Referred to Committee on Housing.
p. 1 SB 6201
(2)(a) The term "sale" also includes the transfer or acquisition 1
within any 36 month period of a controlling interest in any entity 2
with an interest in real property located in this state for a 3
valuable consideration. 4
(b) For the sole purpose of determining whether, pursuant to the 5
exercise of an option, a controlling interest was transferred or 6
acquired within a 36 month period, the date that the option agreement 7
was executed is the date on which the transfer or acquisition of the 8
controlling interest is deemed to occur. For all other purposes under 9
this chapter, the date upon which the option is exercised is the date 10
of the transfer or acquisition of the controlling interest.11
(c) For purposes of this subsection, all acquisitions of persons 12
acting in concert must be aggregated for purposes of determining 13
whether a transfer or acquisition of a controlling interest has taken 14
place. The department must adopt standards by rule to determine when 15
persons are acting in concert. In adopting a rule for this purpose, 16
the department must consider the following: 17
(i) Persons must be treated as acting in concert when they have a 18
relationship with each other such that one person influences or 19
controls the actions of another through common ownership; and20
(ii) When persons are not commonly owned or controlled, they must 21
be treated as acting in concert only when the unity with which the 22
purchasers have negotiated and will consummate the transfer of 23
ownership interests supports a finding that they are acting as a 24
single entity. If the acquisitions are completely independent, with 25
each purchaser buying without regard to the identity of the other 26
purchasers, then the acquisitions are considered separate 27
acquisitions. 28
(3) The term "sale" does not include: 29
(a) A transfer by gift, devise, or inheritance.30
(b) A transfer by transfer on death deed, to the extent that it 31
is not in satisfaction of a contractual obligation of the decedent 32
owed to the recipient of the property. 33
(c) A transfer of any leasehold interest other than of the type 34
mentioned above. 35
(d) A cancellation or forfeiture of a vendee's interest in a 36
contract for the sale of real property, whether or not such contract 37
contains a forfeiture clause, or deed in lieu of foreclosure of a 38
mortgage. 39
p. 2 SB 6201
(e) The partition of property by tenants in common by agreement 1
or as the result of a court decree. 2
(f) The assignment of property or interest in property from one 3
spouse or one domestic partner to the other spouse or other domestic 4
partner in accordance with the terms of a decree of dissolution of 5
marriage or state registered domestic partnership or in fulfillment 6
of a property settlement agreement. 7
(g) The assignment or other transfer of a vendor's interest in a 8
contract for the sale of real property, even though accompanied by a 9
conveyance of the vendor's interest in the real property involved.10
(h) Transfers by appropriation or decree in condemnation 11
proceedings brought by the United States, the state or any political 12
subdivision thereof, or a municipal corporation. 13
(i) A mortgage or other transfer of an interest in real property 14
merely to secure a debt, or the assignment thereof.15
(j) Any transfer or conveyance made pursuant to a deed of trust 16
or an order of sale by the court in any mortgage, deed of trust, or 17
lien foreclosure proceeding or upon execution of a judgment, or deed 18
in lieu of foreclosure to satisfy a mortgage or deed of trust.19
(k) A conveyance to the federal housing administration or 20
veterans administration by an authorized mortgagee made pursuant to a 21
contract of insurance or guaranty with the federal housing 22
administration or veterans administration. 23
(l) A transfer in compliance with the terms of any lease or 24
contract upon which the tax as imposed by this chapter has been paid 25
or where the lease or contract was entered into prior to the date 26
this tax was first imposed. 27
(m) The sale of any grave or lot in an established cemetery.28
(n) A sale by the United States, this state or any political 29
subdivision thereof, or a municipal corporation of this state.30
(o) A sale to a regional transit authority or public corporation 31
under RCW 81.112.320 under a sale/leaseback agreement under RCW 32
81.112.300. 33
(p) A transfer of real property, however effected, if it consists 34
of a mere change in identity or form of ownership of an entity where 35
there is no change in the beneficial ownership. These include 36
transfers to a corporation or partnership which is wholly owned by 37
the transferor and/or the transferor's spouse or domestic partner or 38
children of the transferor or the transferor's spouse or domestic 39
partner. However, if thereafter such transferee corporation or 40
p. 3 SB 6201
partnership voluntarily transfers such real property, or such 1
transferor, spouse or domestic partner, or children of the transferor 2
or the transferor's spouse or domestic partner voluntarily transfer 3
stock in the transferee corporation or interest in the transferee 4
partnership capital, as the case may be, to other than (i) the 5
transferor and/or the transferor's spouse or domestic partner or 6
children of the transferor or the transferor's spouse or domestic 7
partner, (ii) a trust having the transferor and/or the transferor's 8
spouse or domestic partner or children of the transferor or the 9
transferor's spouse or domestic partner as the only beneficiaries at 10
the time of the transfer to the trust, or (iii) a corporation or 11
partnership wholly owned by the original transferor and/or the 12
transferor's spouse or domestic partner or children of the transferor 13
or the transferor's spouse or domestic partner, within three years of 14
the original transfer to which this exemption applies, and the tax on 15
the subsequent transfer has not been paid within 60 days of becoming 16
due, excise taxes become due and payable on the original transfer as 17
otherwise provided by law. 18
(q)(i) A transfer that for federal income tax purposes does not 19
involve the recognition of gain or loss for entity formation, 20
liquidation or dissolution, and reorganization, including but not 21
limited to nonrecognition of gain or loss because of application of 22
26 U.S.C. Sec. 332, 337, 351, 368 (a)(1), 721, or 731 of the internal 23
revenue code of 1986, as amended. 24
(ii) However, the transfer described in (q)(i) of this subsection 25
cannot be preceded or followed within a 36 month period by another 26
transfer or series of transfers, that, when combined with the 27
otherwise exempt transfer or transfers described in (q)(i) of this 28
subsection, results in the transfer of a controlling interest in the 29
entity for valuable consideration, and in which one or more persons 30
previously holding a controlling interest in the entity receive cash 31
or property in exchange for any interest the person or persons acting 32
in concert hold in the entity. This subsection (3)(q)(ii) does not 33
apply to that part of the transfer involving property received that 34
is the real property interest that the person or persons originally 35
contributed to the entity or when one or more persons who did not 36
contribute real property or belong to the entity at a time when real 37
property was purchased receive cash or personal property in exchange 38
for that person or persons' interest in the entity. The real estate 39
excise tax under this subsection (3)(q)(ii) is imposed upon the 40
p. 4 SB 6201
person or persons who previously held a controlling interest in the 1
entity. 2
(r) A qualified sale of a manufactured/mobile home community, as 3
defined in RCW 59.20.030. 4
(s)(i) A transfer of a qualified low-income housing development 5
or controlling interest in a qualified low-income housing 6
development, unless, due to noncompliance with federal statutory 7
requirements, the seller is subject to recapture, in whole or in 8
part, of its allocated federal low-income housing tax credits within 9
the four years prior to the date of transfer. 10
(ii) For purposes of this subsection (3)(s), "qualified low-11
income housing development" means real property and improvements in 12
respect to which the seller or, in the case of a transfer of a 13
controlling interest, the owner or beneficial owner, was allocated 14
federal low-income housing tax credits authorized under 26 U.S.C. 15
Sec. 42 or successor statute, by the Washington state housing finance 16
commission or successor state-authorized tax credit allocating 17
agency. 18
(iii) This subsection (3)(s) does not apply to transfers of a 19
qualified low-income housing development or controlling interest in a 20
qualified low-income housing development occurring on or after July 21
1, 2035. 22
(iv) The Washington state housing finance commission, in 23
consultation with the department, must gather data on: (A) The fiscal 24
savings, if any, accruing to transferees as a result of the exemption 25
provided in this subsection (3)(s); (B) the extent to which 26
transferors of qualified low-income housing developments receive 27
consideration, including any assumption of debt, as part of a 28
transfer subject to the exemption provided in this subsection (3)(s); 29
and (C) the continued use of the property for low-income housing. The 30
Washington state housing finance commission must provide this 31
information to the joint legislative audit and review committee. The 32
committee must conduct a review of the tax preference created under 33
this subsection (3)(s) in calendar year 2033, as required under 34
chapter 43.136 RCW. 35
(t)(i) A qualified transfer of residential property by a legal 36
representative of a person with developmental disabilities to a 37
qualified entity subject to the following conditions:38
(A) The adult child with developmental disabilities of the 39
transferor of the residential property must be allowed to reside in 40
p. 5 SB 6201
the residence or successor property so long as the placement is safe 1
and appropriate as determined by the department of social and health 2
services; 3
(B) The title to the residential property is conveyed without the 4
receipt of consideration by the legal representative of a person with 5
developmental disabilities to a qualified entity; 6
(C) The residential property must have no more than four living 7
units located on it; and 8
(D) The residential property transferred must remain in continued 9
use for 50 years by the qualified entity as supported living for 10
persons with developmental disabilities by the qualified entity or 11
successor entity. If the qualified entity sells or otherwise conveys 12
ownership of the residential property the proceeds of the sale or 13
conveyance must be used to acquire similar residential property and 14
such similar residential property must be considered the successor 15
for continued use. The property will not be considered in continued 16
use if the department of social and health services finds that the 17
property has failed, after a reasonable time to remedy, to meet any 18
health and safety statutory or regulatory requirements. If the 19
department of social and health services determines that the property 20
fails to meet the requirements for continued use, the department of 21
social and health services must notify the department and the real 22
estate excise tax based on the value of the property at the time of 23
the transfer into use as residential property for persons with 24
developmental disabilities becomes immediately due and payable by the 25
qualified entity. The tax due is not subject to penalties, fees, or 26
interest under this title. 27
(ii) For the purposes of this subsection (3)(t) the definitions 28
in RCW 71A.10.020 apply. 29
(iii) A "qualified entity" is: 30
(A) A nonprofit organization under Title 26 U.S.C. Sec. 501 (c)(3) 31
of the federal internal revenue code of 1986, as amended, as of June 32
7, 2018, or a subsidiary under the same taxpayer identification 33
number that provides residential supported living for persons with 34
developmental disabilities; or 35
(B) A nonprofit adult family home, as defined in RCW 70.128.010, 36
that exclusively serves persons with developmental disabilities.37
(iv) In order to receive an exemption under this subsection 38
(3)(t) an affidavit must be submitted by the transferor of the 39
p. 6 SB 6201
residential property and must include a copy of the transfer 1
agreement and any other documentation as required by the department.2
(u)(i) The sale by an affordable homeownership facilitator of 3
self-help housing to a low-income household. 4
(ii) The definitions in this subsection (3)(u) apply to this 5
subsection (3)(u) unless the context clearly requires otherwise.6
(A) "Affordable homeownership facilitator" means a nonprofit 7
community or neighborhood-based organization that is exempt from 8
income tax under Title 26 U.S.C. Sec. 501 (c) of the internal revenue 9
code of 1986, as amended, as of October 1, 2019, and that is the 10
developer of self-help housing. 11
(B) "Low-income" means household income as defined by the 12
department, provided that the definition may not exceed 80 percent of 13
median household income, adjusted for household size, for the county 14
in which the dwelling is located. 15
(C) "Self-help housing" means dwelling residences provided for 16
ownership by low-income individuals and families whose ownership 17
requirement includes labor participation. "Self-help housing" does 18
not include residential rental housing provided on a commercial basis 19
to the general public. 20
(v)(i) A sale or transfer of real property to a qualifying 21
grantee that uses the property for housing for low-income persons and 22
receives or otherwise qualifies the property for an exemption from 23
real and personal property taxes under RCW 84.36.560, 84.36.049, 24
35.82.210, 35.21.755, section 3 of this act, or 84.36.010. ((For 25
purposes of this subsection (3)(v), "qualifying grantee" means a 26
nonprofit entity as defined in RCW 84.36.560, a nonprofit entity or 27
qualified cooperative association as defined in RCW 84.36.049, a 28
housing authority created under RCW 35.82.030 or 35.82.300, a public 29
corporation established under RCW 35.21.660 or 35.21.730, or a county 30
or municipal corporation. )) A qualifying grantee that is a county or 31
municipal corporation must record a covenant at the time of transfer 32
that prohibits using the property for any purpose other than for low-33
income housing for a period of at least 10 years. A qualifying 34
grantee that is a social housing agency must record a covenant at the 35
time of transfer that prohibits using the property for any purpose 36
other than for low-income housing for a period of at least 15 years. 37
At a minimum, the covenant must address price restrictions and 38
household income limits for the low-income housing. A qualifying 39
grantee must comply with the requirements described in (v)(i)(A), 40
p. 7 SB 6201
(B), or (C) of this subsection and must also certify, by affidavit at 1
the time of sale or transfer, that it intends to comply with those 2
requirements. 3
(A) If the qualifying grantee intends to operate existing housing 4
on the property, within one year of the sale or transfer:5
(I) The qualifying grantee must receive or qualify the property 6
for a tax exemption under RCW 84.36.560, 84.36.049, 7
35.82.210, 35.21.755, section 3 of this act, or 84.36.010; and8
(II) The property must be used as housing for low-income persons.9
(B) If the qualifying grantee intends to develop new housing on 10
the site, within five years of the sale or transfer:11
(I) The qualifying grantee must receive or qualify the property 12
for a tax exemption under RCW 84.36.560, 84.36.049, 13
35.82.210, 35.21.755, section 3 of this act, or 84.36.010; and14
(II) The property must be used as housing for low-income persons.15
(C) If the qualifying grantee intends to substantially 16
rehabilitate the premises as defined in RCW 59.18.200, within three 17
years: 18
(I) The qualifying grantee must receive or qualify the property 19
for a tax exemption under RCW 84.36.560, 84.36.049, 20
35.82.210, 35.21.755, section 3 of this act, or 84.36.010; and21
(II) The property must be used as housing for low-income persons.22
(ii) If the qualifying grantee fails to satisfy the requirements 23
described in (v)(i)(A), (B), or (C) of this subsection, within the 24
timelines described in (v)(i)(A), (B), or (C) of this subsection, the 25
qualifying grantee must pay the tax that would have otherwise been 26
due at the time of initial transfer, plus interest calculated from 27
the date of initial transfer pursuant to RCW 82.32.050.28
(iii) If a qualifying grantee transfers the property to a 29
different qualifying grantee within the original timelines described 30
in (v)(i)(A), (B), or (C) of this subsection, neither the original 31
qualifying grantee nor the new qualifying grantee is required to pay 32
the tax, so long as the new qualifying grantee satisfies the 33
requirements as described in (v)(i)(A), (B), or (C) of this 34
subsection within the exemption period of the initial transfer. If 35
the new qualifying grantee fails to satisfy the requirements 36
described in (v)(i)(A), (B), or (C) of this subsection, only the new 37
qualifying grantee is liable for the payment of taxes required by 38
(v)(ii) of this subsection. There is no limit on the number of 39
transfers between qualifying grantees within the original timelines.40
p. 8 SB 6201
(iv) Each affidavit must be filed with the department upon 1
completion of the sale or transfer of property, including transfers 2
from a qualifying grantee to a different qualifying grantee. The 3
qualifying grantee must provide proof to the department as required 4
by the department once the requirements as described in (v)(i)(A), 5
(B), or (C) of this subsection have been satisfied.6
(v) For the purposes of this subsection (3)(v), (("low)) the 7
following definitions apply:8
(A) "Qualifying grantee" means a nonprofit entity as defined in 9
RCW 84.36.560, a nonprofit entity or qualified cooperative 10
association as defined in RCW 84.36.049, a housing authority created 11
under RCW 35.82.030 or 35.82.300, a public corporation established 12
under RCW 35.21.660 or 35.21.730, a county or municipal corporation, 13
or a social housing agency;14
(B) "Low-income" has the same meaning as in (u) of this 15
subsection;16
(C) "Moderate-income household" means a single person, family, or 17
unrelated persons living together whose adjusted income is at or 18
below 120 percent of the median household income adjusted for 19
household size, for the county where the household is located, as 20
reported by the United States department of housing and urban 21
development; and22
(D) "Social housing agency" means a public development authority 23
or other public or quasi-public entity established under state or 24
local law for the purpose of owning, developing, or financing housing 25
affordable to low-income or moderate-income households, including any 26
successor entity performing substantially similar functions. Social 27
housing agency does not include a housing authority created under RCW 28
35.82.030 or 35.82.300, a public corporation established under RCW 29
35.21.660 or 35.21.730, or a county or municipal corporation.30
(w)(i) Beginning January 1, 2026, the sale of qualified space in 31
a development that qualifies for a property tax exemption under RCW 32
84.36.560, 84.36.049, 35.82.210, 35.21.755, or 84.36.010 to a 33
nonprofit organization, a housing authority, or public corporation 34
for use for an exempt community purpose. 35
(ii) For the purposes of this subsection (3)(w), the following 36
definitions apply: 37
(A) "Affordable housing development" means a development with 38
housing provided to households with a household income that does not 39
exceed 80 percent of median household income at initial occupancy, 40
p. 9 SB 6201
adjusted for household size, for the county in which the dwelling is 1
located. 2
(B) "Exempt community purpose" means any use to provide a service 3
that benefits affordable housing development tenants or the public 4
including, but not limited to, health clinics, senior day care, food 5
banks, community centers, and early learning facilities.6
(C) "Nonprofit organization" means an organization exempt from 7
taxation under section 501 (c)(3) of the internal revenue code of 1986 8
(26 U.S.C. Sec. 501(c)(3)), as amended. 9
(D) "Qualified space" means any portion of an affordable housing 10
development that is accessible to tenants or the public that 11
constitutes a separate legal parcel of property under chapter 64.32, 12
64.34, or 64.90 RCW. 13
Sec. 2. RCW 82.45.010 and 2025 c 159 s 2 are each amended to 14
read as follows: 15
(1) As used in this chapter, the term "sale" has its ordinary 16
meaning and includes any conveyance, grant, assignment, quitclaim, or 17
transfer of the ownership of or title to real property, including 18
standing timber, or any estate or interest therein for a valuable 19
consideration, and any contract for such conveyance, grant, 20
assignment, quitclaim, or transfer, and any lease with an option to 21
purchase real property, including standing timber, or any estate or 22
interest therein or other contract under which possession of the 23
property is given to the purchaser, or any other person at the 24
purchaser's direction, and title to the property is retained by the 25
vendor as security for the payment of the purchase price. The term 26
also includes the grant, assignment, quitclaim, sale, or transfer of 27
improvements constructed upon leased land. 28
(2)(a) The term "sale" also includes the transfer or acquisition 29
within any 36 month period of a controlling interest in any entity 30
with an interest in real property located in this state for a 31
valuable consideration. 32
(b) For the sole purpose of determining whether, pursuant to the 33
exercise of an option, a controlling interest was transferred or 34
acquired within a 36 month period, the date that the option agreement 35
was executed is the date on which the transfer or acquisition of the 36
controlling interest is deemed to occur. For all other purposes under 37
this chapter, the date upon which the option is exercised is the date 38
of the transfer or acquisition of the controlling interest.39
p. 10 SB 6201
(c) For purposes of this subsection, all acquisitions of persons 1
acting in concert must be aggregated for purposes of determining 2
whether a transfer or acquisition of a controlling interest has taken 3
place. The department must adopt standards by rule to determine when 4
persons are acting in concert. In adopting a rule for this purpose, 5
the department must consider the following: 6
(i) Persons must be treated as acting in concert when they have a 7
relationship with each other such that one person influences or 8
controls the actions of another through common ownership; and9
(ii) When persons are not commonly owned or controlled, they must 10
be treated as acting in concert only when the unity with which the 11
purchasers have negotiated and will consummate the transfer of 12
ownership interests supports a finding that they are acting as a 13
single entity. If the acquisitions are completely independent, with 14
each purchaser buying without regard to the identity of the other 15
purchasers, then the acquisitions are considered separate 16
acquisitions. 17
(3) The term "sale" does not include: 18
(a) A transfer by gift, devise, or inheritance.19
(b) A transfer by transfer on death deed, to the extent that it 20
is not in satisfaction of a contractual obligation of the decedent 21
owed to the recipient of the property. 22
(c) A transfer of any leasehold interest other than of the type 23
mentioned above. 24
(d) A cancellation or forfeiture of a vendee's interest in a 25
contract for the sale of real property, whether or not such contract 26
contains a forfeiture clause, or deed in lieu of foreclosure of a 27
mortgage. 28
(e) The partition of property by tenants in common by agreement 29
or as the result of a court decree. 30
(f) The assignment of property or interest in property from one 31
spouse or one domestic partner to the other spouse or other domestic 32
partner in accordance with the terms of a decree of dissolution of 33
marriage or state registered domestic partnership or in fulfillment 34
of a property settlement agreement. 35
(g) The assignment or other transfer of a vendor's interest in a 36
contract for the sale of real property, even though accompanied by a 37
conveyance of the vendor's interest in the real property involved.38
p. 11 SB 6201
(h) Transfers by appropriation or decree in condemnation 1
proceedings brought by the United States, the state or any political 2
subdivision thereof, or a municipal corporation. 3
(i) A mortgage or other transfer of an interest in real property 4
merely to secure a debt, or the assignment thereof.5
(j) Any transfer or conveyance made pursuant to a deed of trust 6
or an order of sale by the court in any mortgage, deed of trust, or 7
lien foreclosure proceeding or upon execution of a judgment, or deed 8
in lieu of foreclosure to satisfy a mortgage or deed of trust.9
(k) A conveyance to the federal housing administration or 10
veterans administration by an authorized mortgagee made pursuant to a 11
contract of insurance or guaranty with the federal housing 12
administration or veterans administration. 13
(l) A transfer in compliance with the terms of any lease or 14
contract upon which the tax as imposed by this chapter has been paid 15
or where the lease or contract was entered into prior to the date 16
this tax was first imposed. 17
(m) The sale of any grave or lot in an established cemetery.18
(n) A sale by the United States, this state or any political 19
subdivision thereof, or a municipal corporation of this state.20
(o) A sale to a regional transit authority or public corporation 21
under RCW 81.112.320 under a sale/leaseback agreement under RCW 22
81.112.300. 23
(p) A transfer of real property, however effected, if it consists 24
of a mere change in identity or form of ownership of an entity where 25
there is no change in the beneficial ownership. These include 26
transfers to a corporation or partnership which is wholly owned by 27
the transferor and/or the transferor's spouse or domestic partner or 28
children of the transferor or the transferor's spouse or domestic 29
partner. However, if thereafter such transferee corporation or 30
partnership voluntarily transfers such real property, or such 31
transferor, spouse or domestic partner, or children of the transferor 32
or the transferor's spouse or domestic partner voluntarily transfer 33
stock in the transferee corporation or interest in the transferee 34
partnership capital, as the case may be, to other than (i) the 35
transferor and/or the transferor's spouse or domestic partner or 36
children of the transferor or the transferor's spouse or domestic 37
partner, (ii) a trust having the transferor and/or the transferor's 38
spouse or domestic partner or children of the transferor or the 39
transferor's spouse or domestic partner as the only beneficiaries at 40
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the time of the transfer to the trust, or (iii) a corporation or 1
partnership wholly owned by the original transferor and/or the 2
transferor's spouse or domestic partner or children of the transferor 3
or the transferor's spouse or domestic partner, within three years of 4
the original transfer to which this exemption applies, and the tax on 5
the subsequent transfer has not been paid within sixty days of 6
becoming due, excise taxes become due and payable on the original 7
transfer as otherwise provided by law. 8
(q)(i) A transfer that for federal income tax purposes does not 9
involve the recognition of gain or loss for entity formation, 10
liquidation or dissolution, and reorganization, including but not 11
limited to nonrecognition of gain or loss because of application of 12
26 U.S.C. Sec. 332, 337, 351, 368 (a)(1), 721, or 731 of the internal 13
revenue code of 1986, as amended. 14
(ii) However, the transfer described in (q)(i) of this subsection 15
cannot be preceded or followed within a 36 month period by another 16
transfer or series of transfers, that, when combined with the 17
otherwise exempt transfer or transfers described in (q)(i) of this 18
subsection, results in the transfer of a controlling interest in the 19
entity for valuable consideration, and in which one or more persons 20
previously holding a controlling interest in the entity receive cash 21
or property in exchange for any interest the person or persons acting 22
in concert hold in the entity. This subsection (3)(q)(ii) does not 23
apply to that part of the transfer involving property received that 24
is the real property interest that the person or persons originally 25
contributed to the entity or when one or more persons who did not 26
contribute real property or belong to the entity at a time when real 27
property was purchased receive cash or personal property in exchange 28
for that person or persons' interest in the entity. The real estate 29
excise tax under this subsection (3)(q)(ii) is imposed upon the 30
person or persons who previously held a controlling interest in the 31
entity. 32
(r) A qualified sale of a manufactured/mobile home community, as 33
defined in RCW 59.20.030, that takes place on or after June 12, 2008, 34
but before December 31, 2018. 35
(s)(i) A transfer of a qualified low-income housing development 36
or controlling interest in a qualified low-income housing 37
development, unless, due to noncompliance with federal statutory 38
requirements, the seller is subject to recapture, in whole or in 39
p. 13 SB 6201
part, of its allocated federal low-income housing tax credits within 1
the four years prior to the date of transfer. 2
(ii) For purposes of this subsection (3)(s), "qualified low-3
income housing development" means real property and improvements in 4
respect to which the seller or, in the case of a transfer of a 5
controlling interest, the owner or beneficial owner, was allocated 6
federal low-income housing tax credits authorized under 26 U.S.C. 7
Sec. 42 or successor statute, by the Washington state housing finance 8
commission or successor state-authorized tax credit allocating 9
agency. 10
(iii) This subsection (3)(s) does not apply to transfers of a 11
qualified low-income housing development or controlling interest in a 12
qualified low-income housing development occurring on or after July 13
1, 2035. 14
(iv) The Washington state housing finance commission, in 15
consultation with the department, must gather data on: (A) The fiscal 16
savings, if any, accruing to transferees as a result of the exemption 17
provided in this subsection (3)(s); (B) the extent to which 18
transferors of qualified low-income housing developments receive 19
consideration, including any assumption of debt, as part of a 20
transfer subject to the exemption provided in this subsection (3)(s); 21
and (C) the continued use of the property for low-income housing. The 22
Washington state housing finance commission must provide this 23
information to the joint legislative audit and review committee. The 24
committee must conduct a review of the tax preference created under 25
this subsection (3)(s) in calendar year 2033, as required under 26
chapter 43.136 RCW. 27
(t)(i) A qualified transfer of residential property by a legal 28
representative of a person with developmental disabilities to a 29
qualified entity subject to the following conditions:30
(A) The adult child with developmental disabilities of the 31
transferor of the residential property must be allowed to reside in 32
the residence or successor property so long as the placement is safe 33
and appropriate as determined by the department of social and health 34
services; 35
(B) The title to the residential property is conveyed without the 36
receipt of consideration by the legal representative of a person with 37
developmental disabilities to a qualified entity; 38
(C) The residential property must have no more than four living 39
units located on it; and 40
p. 14 SB 6201
(D) The residential property transferred must remain in continued 1
use for 50 years by the qualified entity as supported living for 2
persons with developmental disabilities by the qualified entity or 3
successor entity. If the qualified entity sells or otherwise conveys 4
ownership of the residential property the proceeds of the sale or 5
conveyance must be used to acquire similar residential property and 6
such similar residential property must be considered the successor 7
for continued use. The property will not be considered in continued 8
use if the department of social and health services finds that the 9
property has failed, after a reasonable time to remedy, to meet any 10
health and safety statutory or regulatory requirements. If the 11
department of social and health services determines that the property 12
fails to meet the requirements for continued use, the department of 13
social and health services must notify the department and the real 14
estate excise tax based on the value of the property at the time of 15
the transfer into use as residential property for persons with 16
developmental disabilities becomes immediately due and payable by the 17
qualified entity. The tax due is not subject to penalties, fees, or 18
interest under this title. 19
(ii) For the purposes of this subsection (3)(t) the definitions 20
in RCW 71A.10.020 apply. 21
(iii) A "qualified entity" is: 22
(A) A nonprofit organization under Title 26 U.S.C. Sec. 501 (c)(3) 23
of the federal internal revenue code of 1986, as amended, as of June 24
7, 2018, or a subsidiary under the same taxpayer identification 25
number that provides residential supported living for persons with 26
developmental disabilities; or 27
(B) A nonprofit adult family home, as defined in RCW 70.128.010, 28
that exclusively serves persons with developmental disabilities.29
(iv) In order to receive an exemption under this subsection 30
(3)(t) an affidavit must be submitted by the transferor of the 31
residential property and must include a copy of the transfer 32
agreement and any other documentation as required by the department.33
(u)(i) A sale or transfer of real property to a qualifying 34
grantee that uses the property for housing for low-income persons and 35
receives or otherwise qualifies the property for an exemption from 36
real and personal property taxes under RCW 84.36.560, 84.36.049, 37
35.82.210, 35.21.755, section 3 of this act, or 84.36.010. ((For 38
purposes of this subsection (3)(u), "qualifying grantee" means a 39
nonprofit entity as defined in RCW 84.36.560, a nonprofit entity or 40
p. 15 SB 6201
qualified cooperative association as defined in RCW 84.36.049, a 1
housing authority created under RCW 35.82.030 or 35.82.300, a public 2
corporation established under RCW 35.21.660 or 35.21.730, or a county 3
or municipal corporation. )) A qualifying grantee that is a county or 4
municipal corporation must record a covenant at the time of transfer 5
that prohibits using the property for any purpose other than for low-6
income housing for a period of at least 10 years. A qualifying 7
grantee that is a social housing agency must record a covenant at the 8
time of transfer that prohibits using the property for any purpose 9
other than for low-income housing for a period of at least 15 years. 10
At a minimum, the covenant must address price restrictions and 11
household income limits for the low-income housing. A qualifying 12
grantee must comply with the requirements described in (u)(i)(A), 13
(B), or (C) of this subsection and must also certify, by affidavit at 14
the time of sale or transfer, that it intends to comply with those 15
requirements. 16
(A) If the qualifying grantee intends to operate existing housing 17
on the property, within one year of the sale or transfer:18
(I) The qualifying grantee must receive or qualify the property 19
for a tax exemption under RCW 84.36.560, 84.36.049, 20
35.82.210, 35.21.755, section 3 of this act, or 84.36.010; and21
(II) The property must be used as housing for low-income persons.22
(B) If the qualifying grantee intends to develop new housing on 23
the site, within five years of the sale or transfer:24
(I) The qualifying grantee must receive or qualify the property 25
for a tax exemption under RCW 84.36.560, 84.36.049, 26
35.82.210, 35.21.755, section 3 of this act, or 84.36.010; and27
(II) The property must be used as housing for low-income persons.28
(C) If the qualifying grantee intends to substantially 29
rehabilitate the premises as defined in RCW 59.18.200, within three 30
years: 31
(I) The qualifying grantee must receive or qualify the property 32
for a tax exemption under RCW 84.36.560, 84.36.049, 33
35.82.210, 35.21.755, section 3 of this act, or 84.36.010; and34
(II) The property must be used as housing for low-income persons.35
(ii) If the qualifying grantee fails to satisfy the requirements 36
described in (u)(i)(A), (B), or (C) of this subsection, within the 37
timelines described in (u)(i)(A), (B), or (C) of this subsection, the 38
qualifying grantee must pay the tax that would have otherwise been 39
p. 16 SB 6201
due at the time of initial transfer, plus interest calculated from 1
the date of initial transfer pursuant to RCW 82.32.050.2
(iii) If a qualifying grantee transfers the property to a 3
different qualifying grantee within the original timelines described 4
in (u)(i)(A), (B), or (C) of this subsection, neither the original 5
qualifying grantee nor the new qualifying grantee is required to pay 6
the tax, so long as the new qualifying grantee satisfies the 7
requirements as described in (u)(i)(A), (B), or (C) of this 8
subsection within the exemption period of the initial transfer. If 9
the new qualifying grantee fails to satisfy the requirements 10
described in (u)(i)(A), (B), or (C) of this subsection, only the new 11
qualifying grantee is liable for the payment of taxes required by 12
(u)(ii) of this subsection. There is no limit on the number of 13
transfers between qualifying grantees within the original timelines.14
(iv) Each affidavit must be filed with the department upon 15
completion of the sale or transfer of property, including transfers 16
from a qualifying grantee to a different qualifying grantee. The 17
qualifying grantee must provide proof to the department as required 18
by the department once the requirements as described in (u)(i)(A), 19
(B), or (C) of this subsection have been satisfied.20
(v) For the purposes of this subsection (3)(u), " ((low)) the 21
following definitions apply:22
(A) "Qualifying grantee" means a nonprofit entity as defined in 23
RCW 84.36.560, a nonprofit entity or qualified cooperative 24
association as defined in RCW 84.36.049, a housing authority created 25
under RCW 35.82.030 or 35.82.300, a public corporation established 26
under RCW 35.21.660 or 35.21.730, a county or municipal corporation, 27
or a social housing agency;28
(B) "Low-income" means household income as defined by the 29
department, provided that the definition may not exceed 80 percent of 30
median household income, adjusted for household size, for the county 31
in which the dwelling is located;32
(C) "Moderate-income household" means a single person, family, or 33
unrelated persons living together whose adjusted income is at or 34
below 120 percent of the median household income adjusted for 35
household size, for the county where the household is located, as 36
reported by the United States department of housing and urban 37
development; and38
(D) "Social housing agency" means a public development authority 39
or other public or quasi-public entity established under state or 40
p. 17 SB 6201
local law for the purpose of owning, developing, or financing housing 1
affordable to low-income or moderate-income households, including any 2
successor entity performing substantially similar functions. Social 3
housing agency does not include a housing authority created under RCW 4
35.82.030 or 35.82.300, a public corporation established under RCW 5
35.21.660 or 35.21.730, or a county or municipal corporation.6
(v)(i) The sale of qualified space in a development that 7
qualifies for a property tax exemption under RCW 84.36.560, 8
84.36.049, 35.82.210, 35.21.755, or 84.36.010 to a nonprofit 9
organization, a housing authority, or public corporation for use for 10
an exempt community purpose. 11
(ii) For the purposes of this subsection (3)(v), the following 12
definitions apply: 13
(A) "Affordable housing development" means a development with 14
housing provided to households with a household income that does not 15
exceed 80 percent of median household income at initial occupancy, 16
adjusted for household size, for the county in which the dwelling is 17
located. 18
(B) "Exempt community purpose" means any use to provide a service 19
that benefits affordable housing development tenants or the public 20
including, but not limited to, health clinics, senior day care, food 21
banks, community centers, and early learning facilities.22
(C) "Nonprofit organization" means an organization exempt from 23
taxation under section 501 (c)(3) of the internal revenue code of 1986 24
(26 U.S.C. Sec. 501(c)(3)), as amended. 25
(D) "Qualified space" means any portion of an affordable housing 26
development that is accessible to tenants or the public that 27
constitutes a separate legal parcel of property under chapter 64.32, 28
64.34, or 64.90 RCW. 29
NEW SECTION. Sec. 3. A new section is added to chapter 84.36 30
RCW to read as follows: 31
(1) The real and personal property owned or used by a social 32
housing agency in providing rental housing for qualifying households 33
is exempt from taxation if: 34
(a) At least 50 percent of the occupied dwelling units in the 35
rental housing are occupied by a qualifying household; and36
(b) The rental housing was insured, financed, or assisted in 37
whole or in part through one or more of the following sources:38
p. 18 SB 6201
(i) A federal or state housing program administered by the 1
department of commerce; 2
(ii) A federal housing program administered by a city or county 3
government; 4
(iii) An affordable housing levy authorized under RCW 84.52.105 5
or 84.55.050; 6
(iv) The surcharges authorized by RCW 36.22.250 and any of the 7
surcharges authorized in chapter 43.185C RCW; or 8
(v) City or county funds designated for affordable housing.9
(2) If less than 50 percent of the occupied dwelling units within 10
the rental housing are occupied by qualifying households, the rental 11
housing is eligible for a partial exemption on the real property and 12
a total exemption of the housing's personal property as follows:13
(a) A partial exemption is allowed for each dwelling unit in the 14
rental housing occupied by a qualifying household.15
(b) The amount of exemption must be calculated by multiplying the 16
assessed value of the property reasonably necessary to provide the 17
rental housing by a fraction. The numerator of the fraction is the 18
number of dwelling units occupied by qualifying households as of 19
December 31st of the first assessment year in which the rental 20
housing becomes operational or on January 1st of each subsequent 21
assessment year for which the exemption is claimed. The denominator 22
of the fraction is the total number of dwelling units occupied as of 23
December 31st of the first assessment year the rental housing becomes 24
operational and January 1st of each subsequent assessment year for 25
which the exemption is claimed. 26
(3) If a currently exempt rental housing unit was occupied by a 27
qualifying household at the time the exemption was granted and the 28
income of the household subsequently rises above the threshold set in 29
subsection (7)(e) of this section but remains at or below 80 percent 30
of the median income, the exemption will continue as long as the 31
housing continues to meet the certification requirements listed in 32
subsection (1) of this section. For purposes of this section, median 33
income, as most recently determined by the federal department of 34
housing and urban development for the county in which the rental 35
housing or mobile home park is located, must be adjusted for family 36
size. However, if a dwelling unit or a lot becomes vacant and is 37
subsequently rerented, the income of the new household must be at or 38
below the threshold set in subsection (7)(e) of this section to 39
remain exempt from property tax. 40
p. 19 SB 6201
(4) If at the time of initial application the property is 1
unoccupied, or subsequent to the initial application the property is 2
unoccupied because of renovations, and the property is not currently 3
being used for the exempt purpose authorized by this section but will 4
be used for the exempt purpose within three assessment years, the 5
property is eligible for a property tax exemption for the assessment 6
year in which the claim for exemption is submitted under the 7
following conditions: 8
(a) A commitment for financing to acquire, construct, renovate, 9
or otherwise convert the property to provide housing for qualifying 10
households has been obtained, in whole or in part, by the nonprofit 11
entity claiming the exemption from one or more of the sources listed 12
in subsection (1)(b) of this section; 13
(b) The social housing agency has manifested its intent in 14
writing to construct, remodel, or otherwise convert the property to 15
housing for qualifying households; and 16
(c) Only the portion of property that will be used to provide 17
housing or lots for qualifying households is exempt under this 18
section. 19
(5) To be exempt under this section, the property must be used 20
exclusively for the purposes for which the exemption is granted, 21
except as provided in RCW 84.36.805. 22
(6) The social housing agency qualifying for a property tax 23
exemption under this section may agree to make payments to the city, 24
county, or other political subdivision for improvements, services, 25
and facilities furnished by the city, county, or political 26
subdivision for the benefit of the rental housing. However, these 27
payments may not exceed the amount last levied as the annual tax of 28
the city, county, or political subdivision upon the property prior to 29
exemption. 30
(7) The definitions in this subsection apply throughout this 31
section unless the context clearly requires otherwise:32
(a) "Group home" means a single-family dwelling financed, in 33
whole or in part, by one or more of the sources listed in subsection 34
(1)(b) of this section. The residents of a group home do not jointly 35
constitute a household, but each resident must be considered to be a 36
separate household occupying a separate dwelling unit. The individual 37
incomes of the residents may not be aggregated for purposes of the 38
exemption in this section; 39
p. 20 SB 6201
(b) "Moderate-income household" means a single person, family, or 1
unrelated persons living together whose adjusted income is at or 2
below 120 percent of the median household income adjusted for 3
household size, for the county where the household is located, as 4
reported by the United States department of housing and urban 5
development; 6
(c) "Occupied dwelling unit" means a living unit that is occupied 7
by an individual or household as of December 31st of the first 8
assessment year the rental housing becomes operational or is occupied 9
by an individual or household on January 1st of each subsequent 10
assessment year in which the claim for exemption is submitted. If the 11
housing facility is comprised of three or fewer dwelling units and 12
there are any unoccupied units on January 1st, the department shall 13
base the amount of the exemption upon the number of occupied dwelling 14
units as of December 31st of the first assessment year the rental 15
housing becomes operational and on May 1st of each subsequent 16
assessment year in which the claim for exemption is submitted;17
(d) "Rental housing" means a residential housing facility or 18
group home that is occupied but not owned by qualifying households;19
(e) "Qualifying household" means a single person, family, or 20
unrelated persons living together whose income is at or below 80 21
percent of the median income adjusted for family size as most 22
recently determined by the federal department of housing and urban 23
development for the county in which the rental housing or mobile home 24
park is located and in effect as of January 1st of the year the 25
application for exemption is submitted; and 26
(f) "Social housing agency" means a public development authority 27
or other public or quasi-public entity established under state or 28
local law for the purpose of owning, developing, or financing housing 29
affordable to low-income or moderate-income households, including any 30
successor entity performing substantially similar functions. Social 31
housing agency does not include a housing authority created under RCW 32
35.82.030 or 35.82.300, a public corporation established under 33
RCW 35.21.660 or 35.21.730, or a county or municipal corporation.34
Sec. 4. RCW 84.36.805 and 2023 c 69 s 2 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, social housing agencies, or 38
corporations must satisfy the conditions in this section.39
p. 21 SB 6201
(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, social housing 35
agencies, or corporations with an option to be repurchased by the 36
seller does not qualify for exempt status. This subsection does not 37
apply to: 38
(a) Limited equity cooperatives as defined in RCW 84.36.675; or39
p. 22 SB 6201
(b) Property sold to a nonprofit entity, as defined in RCW 1
84.36.560, or a social housing agency as defined in section 3 of this 2
act, by: 3
(i) A nonprofit as defined in RCW 84.36.800 that is exempt from 4
income tax under 26 U.S.C. Sec. 501 (c) of the federal internal 5
revenue code; 6
(ii) A governmental entity established under RCW 35.21.660, 7
35.21.670, or 35.21.730; 8
(iii) A housing authority created under RCW 35.82.030;9
(iv) A housing authority meeting the definition in RCW 10
35.82.210(2)(a); or 11
(v) A housing authority established under RCW 35.82.300.12
(6) The department must have access to its books in order to 13
determine whether the nonprofit organization, association, or 14
corporation is exempt from taxes under this chapter.15
(7) This section does not apply to exemptions granted under RCW 16
84.36.020, 84.36.032, 84.36.250, 84.36.049, and 84.36.480(2).17
(8)(a) The use of property exempt under this chapter, other than 18
as specifically authorized by this chapter, nullifies the exemption 19
otherwise available for the property for the assessment year. 20
However, the exemption is not nullified by the use of the property by 21
any individual, group, or entity, where such use is not otherwise 22
authorized by this chapter, for not more than 50 days in each 23
calendar year, and the property is not used for pecuniary gain or to 24
promote business activities for more than 15 of the 50 days in each 25
calendar year. The 50 and 15-day limitations provided in this 26
subsection (8)(a) do not include days during which setup and takedown 27
activities take place immediately preceding or following a meeting or 28
other event by an individual, group, or entity using the property as 29
provided in this subsection (8)(a). 30
(b) If uses of the exempt property exceed the 50 and 15-day 31
limitations provided in (a) of this subsection (8) during an 32
assessment year, the exemption is removed for the affected portion of 33
the property for that assessment year. 34
(c) The 15-day and 50-day limitations provided in (a) of this 35
subsection (8) do not apply to property exempt under RCW 84.36.037 if 36
the property is used for activities related to a qualifying farmers 37
market, as defined in RCW 66.24.170, and all income received from 38
rental or use of the exempt property is used for capital improvements 39
to the exempt property, maintenance and operation of the exempt 40
p. 23 SB 6201
property, or exempt purposes. Exempt property under RCW 84.36.037 may 1
be used for up to 53 days for the purposes of a qualifying farmers 2
market. 3
Sec. 5. RCW 84.36.805 and 2023 c 69 s 3 are each amended to read 4
as follows: 5
(1) In order to qualify for an exemption under this chapter, the 6
nonprofit organizations, associations, social housing agencies, or 7
corporations must satisfy the conditions in this section.8
(2) The property must be used exclusively for the actual 9
operation of the activity for which exemption is granted, unless 10
otherwise provided, and does not exceed an amount reasonably 11
necessary for that purpose. Notwithstanding anything to the contrary 12
in this section: 13
(a) The loan or rental of the property does not subject the 14
property to tax if: 15
(i) The rents and donations received for the use of the portion 16
of the property are reasonable and do not exceed the maintenance and 17
operation expenses attributable to the portion of the property loaned 18
or rented; 19
(ii) Except for the exemptions under RCW 84.36.030(4), 84.36.037, 20
84.36.050, and 84.36.060(1) (a) and (b), the property would be exempt 21
from tax if owned by the organization to which it is loaned or 22
rented; and 23
(iii) This subsection (2)(a) does not apply to exemptions granted 24
under RCW 84.36.042; 25
(b) The use of the property for fund-raising events does not 26
subject the property to tax if the fund-raising events are consistent 27
with the purposes for which the exemption is granted or are conducted 28
by a nonprofit organization. If the property is loaned or rented to 29
conduct a fund-raising event, the requirements of (a) of this 30
subsection (2) apply; 31
(c) An inadvertent use of the property in a manner inconsistent 32
with the purpose for which exemption is granted does not subject the 33
property to tax, if the inadvertent use is not part of a pattern of 34
use. A pattern of use is presumed when an inadvertent use is repeated 35
in the same assessment year or in two or more successive assessment 36
years. 37
(3) The facilities and services must be available to all 38
regardless of race, color, national origin or ancestry.39
p. 24 SB 6201
(4) The organization, association, or corporation must be duly 1
licensed or certified where such licensing or certification is 2
required by law or regulation. 3
(5) Property sold to organizations, associations, social housing 4
agencies, or corporations with an option to be repurchased by the 5
seller does not qualify for exempt status. This subsection does not 6
apply to property sold to a nonprofit entity, as defined in RCW 7
84.36.560(7), or a social housing agency as defined in section 3 of 8
this act, by: 9
(a) A nonprofit as defined in RCW 84.36.800 that is exempt from 10
income tax under 26 U.S.C. Sec. 501 (c) of the federal internal 11
revenue code; 12
(b) A governmental entity established under RCW 35.21.660, 13
35.21.670, or 35.21.730; 14
(c) A housing authority created under RCW 35.82.030;15
(d) A housing authority meeting the definition in RCW 16
35.82.210(2)(a); or 17
(e) A housing authority established under RCW 35.82.300.18
(6) The department must have access to its books in order to 19
determine whether the nonprofit organization, association, or 20
corporation is exempt from taxes under this chapter.21
(7) This section does not apply to exemptions granted under RCW 22
84.36.020, 84.36.032, 84.36.250, 84.36.049, and 84.36.480(2).23
(8)(a) The use of property exempt under this chapter, other than 24
as specifically authorized by this chapter, nullifies the exemption 25
otherwise available for the property for the assessment year. 26
However, the exemption is not nullified by the use of the property by 27
any individual, group, or entity, where such use is not otherwise 28
authorized by this chapter, for not more than fifty days in each 29
calendar year, and the property is not used for pecuniary gain or to 30
promote business activities for more than fifteen of the fifty days 31
in each calendar year. The fifty and fifteen-day limitations provided 32
in this subsection (8)(a) do not include days during which setup and 33
takedown activities take place immediately preceding or following a 34
meeting or other event by an individual, group, or entity using the 35
property as provided in this subsection (8)(a). 36
(b) If uses of the exempt property exceed the fifty and fifteen-37
day limitations provided in (a) of this subsection (8) during an 38
assessment year, the exemption is removed for the affected portion of 39
the property for that assessment year. 40
p. 25 SB 6201
(c) The 15-day and 50-day limitations provided in (a) of this 1
subsection (8) do not apply to property exempt under RCW 84.36.037 if 2
the property is used for activities related to a qualifying farmers 3
market, as defined in RCW 66.24.170, and all income received from 4
rental or use of the exempt property is used for capital improvements 5
to the exempt property, maintenance and operation of the exempt 6
property, or exempt purposes. Exempt property under RCW 84.36.037 may 7
be used for up to 53 days for the purposes of a qualifying farmers 8
market. 9
NEW SECTION. Sec. 6. RCW 82.32.805 and 82.32.808 do not apply 10
to this act.11
NEW SECTION. Sec. 7. Section 1 of this act expires January 1, 12
2030.13
NEW SECTION. Sec. 8. Section 2 of this act takes effect January 14
1, 2030.15
NEW SECTION. Sec. 9. Section 4 of this act expires January 1, 16
2033.17
NEW SECTION. Sec. 10. Section 5 of this act takes effect 18
January 1, 2033.19
--- END ---
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