RCW 84.36.005
Property subject to taxation.
All property now existing, or that is hereafter created or brought into this state, shall be subject to assessment and taxation for state, county, and other taxing district purposes, upon equalized valuations thereof, fixed with reference thereto on the first day of January at twelve o'clock meridian in each year, excepting such as is exempted from taxation by law.
[
1961 c 15 s 84.36.005
. Prior:
1955 c 196 s 2
; prior: 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part. Formerly RCW 84.40.010
.]
RCW 84.36.010
Public, certain public-private and tribal property exempt.
(1) All property belonging exclusively to the United States, the state, or any county or municipal corporation; all property belonging exclusively to any federally recognized Indian tribe, if (a) the tribe is located in the state, and (b) the property is used exclusively for essential government services; all state route number 16 corridor transportation systems and facilities constructed under chapter
47.46
RCW; all property under a financing contract pursuant to chapter
39.94
RCW or recorded agreement granting immediate possession and use to the public bodies listed in this section or under an order of immediate possession and use pursuant to RCW 8.04.090
; and, except as provided in subsection (2)(a)(ii) of this section, for a period of 40 years from acquisition, all property of a community center; is exempt from taxation. All property belonging exclusively to a foreign national government is exempt from taxation if that property is used exclusively as an office or residence for a consul or other official representative of the foreign national government, and if the consul or other official representative is a citizen of that foreign nation.
(2) For the purposes of this section the following definitions apply unless the context clearly requires otherwise.
(a)(i) "Community center" means property, including buildings, determined to be surplus to the needs of a district by a local school board, and purchased or acquired by a nonprofit organization for the purposes of converting the property into community facilities for the delivery of nonresidential coordinated services for community members.
(ii) For taxes levied for collection in 2026 through 2035, "community center" includes property, including buildings, determined to be surplus to the needs of a university exempt from property taxes under RCW 84.36.050
and purchased or acquired by a nonprofit organization for the purposes of converting the property into community facilities for the delivery of nonresidential coordinated services for community members. Property meeting the definition of "community center" in this subsection (2)(a)(ii) is exempt from taxation for tax years 2026 through 2035.
(iii) The community center may make space available to businesses, individuals, or other parties through the loan or rental of space in or on the property.
(b) "Essential government services" means services such as tribal administration, public facilities, fire, police, public health, education, sewer, water, environmental and land use, transportation, utility services, and economic development.
(c) "Economic development" means commercial activities, including those that facilitate the creation or retention of businesses or jobs, or that improve the standard of living or economic health of tribal communities.
[
2025 c 340 s 1
;
2020 c 272 s 1
;
2014 c 207 s 5
;
2010 c 281 s 1
;
2004 c 236 s 1
;
1998 c 179 s 8
;
1990 c 47 s 2
;
1971 ex.s. c 260 s 1
;
1969 c 34 s 1
. Prior:
1967 ex.s. c 149 s 31
;
1967 ex.s. c 145 s 35
;
1961 c 15 s 84.36.010
; prior:
1955 c 196 s 3
; prior: 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part. Formerly RCW 84.40.010
.]
NOTES:
Application
—
2025 c 340:
"This act applies to property taxes levied for collection in 2026 through 2035." [
2025 c 340 s 2
.]
Tax preference performance statement exemption
—
2025 c 340:
"RCW 82.32.808
does not apply to this act." [
2025 c 340 s 3
.]
Automatic expiration date and tax preference performance statement exemption
—
2020 c 272:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2020 c 272 s 6
.]
Tax preference performance statement
—
2014 c 207 s 5:
"This section is the tax preference performance statement for the tax preference contained in section 5 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes this tax preference as one intended to create jobs and improve the economic health of tribal communities as indicated in RCW 82.32.808
(2) (c) and (f).
(2) It is the legislature's specific public policy objective to create jobs and improve the economic health of tribal communities. It is the legislature's intent to exempt property used by federally recognized Indian tribes for economic development purposes, in order to achieve these policy objectives.
(3) The joint legislative audit and review committee must perform an economic impact report to the legislature as required in *section 10 of this act to provide the information necessary to measure the effectiveness of this act." [
2014 c 207 s 1
.]
*Reviser's note:
The reference to section 10 of this act appears to be erroneous. Reference to section 11 of this act (RCW 43.136.090
) was apparently intended.
Application
—
2014 c 207:
"This act applies to taxes levied for collection in 2015 and thereafter." [
2014 c 207 s 13
.]
Application
—
2010 c 281:
"This act applies to taxes levied for collection in 2011 and thereafter." [
2010 c 281 s 4
.]
Application
—
1998 c 179 s 8:
"Section 8 of this act is effective for taxes levied for collection in 1999 and thereafter." [
1998 c 179 s 9
.]
Finding
—
1998 c 179:
See note following RCW 35.21.718
.
RCW 84.36.012
Tribal property exemption
—
Application.
(1) To qualify in any year for exempt status for real or personal property used exclusively for essential government services under RCW 84.36.010, a federally recognized Indian tribe must file an initial application with the department of revenue on or before October 1st of the prior year. All applications must be filed on forms prescribed by the department and signed by an authorized agent of the federally recognized tribe.
(2) If the use for essential government services is based in whole or in part on economic development, the application must also include:
(a) If the economic development activities are those of a lessee, a declaration from both the federally recognized tribe and the lessee confirming a lease agreement exists for the exempt tax year.
(b) If the property is subject to the payment in lieu of leasehold excise tax as described in RCW 82.29A.055, a declaration from both the federally recognized tribe and the county in which the property is located confirming that an agreement exists for the exempt tax year regarding the amount for the payment in lieu of leasehold excise tax.
(3) A federally recognized Indian tribe which files an application under the requirements of subsection (2) of this section , must file an annual renewal application, on forms prescribed by the department of revenue, on or before October 1st of each year. The application must contain a declaration certifying the continuing exempt status of the real or personal property, and that the lease agreement or agreement for payment in lieu of leasehold excise tax continue in good standing, or that a new lease or agreement exists.
[
2014 c 207 s 9
.]
NOTES:
Application
—
2014 c 207:
See note following RCW 84.36.010
.
RCW 84.36.015
Property valued at less than five hundred dollars
—
Exceptions.
(1) Each parcel of real property, and each personal property account, that has an assessed value of less than five hundred dollars is exempt from taxation.
(2) This section does not apply to personal property to which the exemption from taxation under RCW 84.36.110
(2) may be applied or to real property which qualifies for preferential tax treatment under this chapter or chapter
84.14, 84.26, 84.33, or
84.34
RCW.
[
1997 c 244 s 1
.]
NOTES:
Effective date
—
1997 c 244:
"This act takes effect January 1, 1999." [
1997 c 244 s 3
.]
RCW 84.36.020
Cemeteries, churches, parsonages, convents, and grounds.
The following real and personal property shall be exempt from taxation:
(1) All lands, buildings, and personal property required for necessary administration and maintenance, used, or to the extent used, exclusively for public burying grounds or cemeteries without discrimination as to race, color, national origin or ancestry;
(2)(a) All churches, personal property, and the ground, not exceeding five acres in area, upon which a church of any nonprofit recognized religious denomination is or must be built, together with a parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property. The area exempted must in any case include all ground covered by the church, parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property and the structures and ground necessary for street access, parking, light, and ventilation, but the area of unoccupied ground exempted in such cases, in connection with church, parsonage, convent, and buildings and improvements required for the maintenance and safeguarding of such property, shall not exceed the equivalent of one hundred twenty by one hundred twenty feet except where additional unoccupied land may be required to conform with state or local codes, zoning, or licensing requirements. The parsonage and convent need not be on land contiguous to the church property. Except as otherwise provided in this subsection, to be exempt the property must be wholly used for church purposes.
(b) If the rental income or donations, if applicable, are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented, the exemption provided by this subsection (2) is not nullified by:
(i) The loan or rental of property otherwise exempt under this subsection (2) to a nonprofit organization, association, or corporation, or school to conduct an eleemosynary activity;
(ii) The rental or use of the property by any individual, group, or entity, where such rental or use is not otherwise authorized by this subsection (2), for not more than fifty days in each calendar year, and the property is not used for pecuniary gain or to promote business activities for more than fifteen of the fifty days in each calendar year. The fifty and fifteen-day limitations provided in this subsection (2)(b)(ii) do not include days during which setup and takedown activities take place immediately preceding or following a meeting or other event by an individual, group, or entity using the property as provided in this subsection (2)(b)(ii). The 15-day and 50-day limitations provided in this subsection (2)(b)(ii) 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, as defined in RCW 66.24.170, and all income received from 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. The exempt property may be used for up to 53 days for the purposes of a qualifying farmers market; or
(iii) An inadvertent use of the property in a manner inconsistent with the purpose for which exemption is granted, if the inadvertent use is not part of a pattern of use. A pattern of use is presumed when an inadvertent use is repeated in the same assessment year or in two or more successive assessment years.
[
2022 c 84 s 1
;
2014 c 99 s 3
; (2014 c 99 s 2 expired December 31, 2020); (2010 c 186 s 2 expired December 31, 2020);
1994 c 124 s 16
;
1975 1st ex.s. c 291 s 12
;
1973 2nd ex.s. c 40 s 1
;
1971 ex.s. c 64 s 3
;
1961 c 103 s 3
;
1961 c 15 s 84.36.020
. Prior:
1955 c 196 s 4
; prior: 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part. Formerly RCW 84.40.010
.]
NOTES:
Retroactive application
—
2022 c 84:
"This act applies both retroactively and prospectively to taxes levied for collection in 2021 and thereafter." [
2022 c 84 s 3
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2022 c 84:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2022 c 84 s 4
.]
Effective date
—
2014 c 99 ss 3 and 8:
"Sections 3 and 8 of this act take effect December 31, 2020." [
2014 c 99 s 15
.]
Expiration date
—
2014 c 99 ss 2 and 7:
"Sections 2 and 7 of this act expire December 31, 2020." [
2014 c 99 s 16
.]
Findings
—
Intent
—
2014 c 99:
"The legislature finds that tax-exempt property of nonprofit organizations may generally be used for nonexempt purposes on a limited basis. However, the legislature further finds that these allowable nonexempt uses, and the conditions applicable to such uses, vary depending on the specific exemption. The legislature further finds that these inconsistencies create inequities and confusion for nonprofits, leads to piecemeal legislation, and complicates the administration of nonprofit property tax exemptions. Therefore, this act is intended to address these problems by providing greater consistency with respect to how nonprofits may use their tax-exempt property for nonexempt purposes. This act is not intended to place any additional limits or restrictions on any existing statutorily authorized nonexempt uses of exempt property of nonprofit organizations." [
2014 c 99 s 1
.]
Tax preference performance statement
—
Does not apply
—
2014 c 99:
"Sections 1701 and 1702, chapter 13, Laws of 2013 2nd sp. sess. do not apply to this act." [
2014 c 99 s 14
.]
Application
—
Expiration date
—
2010 c 186:
See notes following RCW 84.36.037
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Construction
—
1961 c 103:
See note following RCW 49.60.040
.
Burial lot for particular person: RCW 68.24.220
.
Nonprofit cemetery associations, certain exemptions: RCW 68.20.110, 68.20.120
.
RCW 84.36.030
Property used for character building, benevolent, protective, or rehabilitative social services
—
Camp facilities
—
Veteran or relief organization owned property
—
Property of nonprofit organizations that issue debt for student loans or that are guarantee agencies.
The following real and personal property is exempt from taxation:
(1)(a) Property owned by nonprofit organizations or associations, organized and conducted for nonsectarian purposes, which shall be used for character-building, benevolent, protective[,] or rehabilitative social services directed at persons of all ages.
(b) Property owned by nonprofit organizations exempt under (a) of this subsection or [that] would be exempt if the services were provided by the nonprofit, and is loaned, leased, or rented to and used by the United States, the state, any county or municipal corporation, any federally recognized Indian tribe located in the state, or another nonprofit organization to provide the social services described in (a) of this subsection.
(c) The sale of donated merchandise is considered an exempt use of the property under this section if the proceeds are devoted to the furtherance of the purposes of the selling organization or association as specified in this subsection (1).
(2) Property owned by any nonprofit church, denomination, group of churches, or an organization or association, the membership of which is comprised solely of churches or their qualified representatives, which is utilized as a camp facility if used for organized and supervised recreational activities and church purposes as related to such camp facilities. The exemption provided by this subsection shall apply to a maximum of 200 acres of any such camp as selected by the church, including buildings and other improvements thereon.
(3) Property, including buildings and improvements required for the maintenance and safeguarding of such property, owned by nonprofit organizations or associations engaged in character building of boys and girls under 18 years of age, and used for such purposes and uses, provided such purposes and uses are for the general public good: PROVIDED, That if existing charters provide that organizations or associations, which would otherwise qualify under the provisions of this subsection, serve boys and girls up to the age of 21 years, then such organizations or associations shall be deemed qualified pursuant to this section.
(4) Property owned by all organizations and societies of veterans of any war of the United States, recognized as such by the department of defense, which shall have national charters, and which shall have for their general purposes and objects the preservation of the memories and associations incident to their war service and the consecration of the efforts of their members to mutual helpfulness and to patriotic and community service to state and nation. To be exempt such property must be used in such manner as may be reasonably necessary to carry out the purposes and objects of such societies.
(5) Property owned by all corporations, incorporated under any act of congress, whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same.
(6) Property owned by nonprofit organizations exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1954, as amended, that are guarantee agencies under the federal guaranteed student loan program or that issue debt to provide or acquire student loans.
(7) To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as otherwise provided in this section or RCW 84.36.805
.
(8) For the purposes of this section, "general public good" means members of the community derive a benefit from the rental or use of the property by the nonprofit community group or organization.
[
2025 c 16 s 1
;
2014 c 99 s 4
;
2006 c 305 s 1
;
1993 c 327 s 2
;
1990 c 283 s 6
;
1987 c 433 s 2
;
1984 c 220 s 1
;
1983 1st ex.s. c 25 s 1
;
1973 2nd ex.s. c 40 s 2
. Prior:
1971 ex.s. c 292 s 70
;
1971 ex.s. c 64 s 1
;
1969 c 137 s 1
;
1961 c 15 s 84.36.030
; prior:
1955 c 196 s 5
; prior: (i) 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part. (ii)
1945 c 109 s 1
; Rem. Supp. 1945 s 11111a.]
NOTES:
Application
—
2025 c 16:
"This act applies to taxes levied for collection in 2026 and thereafter." [
2025 c 16 s 2
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2025 c 16:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2025 c 16 s 3
.]
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Construction
—
1990 c 283 ss 6 and 7:
"Sections 6 and 7 of this act shall not be construed as modifying or affecting any other existing or future exemptions." [
1990 c 283 s 8
.]
Applicability
—
1983 1st ex.s. c 25:
"This act is effective for property taxes levied in calendar year 1983 and due and payable in calendar year 1984 and thereafter." [
1983 1st ex.s. c 25 s 2
.]
Severability
—
1971 ex.s. c 292:
See note following RCW 26.28.010
.
RCW 84.36.031
Clarification of exemption in RCW 84.36.030
.
(1) Except as provided otherwise in subsection (2) of this section, property leased, loaned, sold with the option to repurchase, or otherwise made available to organizations described in RCW 84.36.030
is not exempt from taxation.
(2) Property remains eligible for the exemption under RCW 84.36.030, if:
(a) The property is owned by an organization exempt under RCW 84.36.020
or
84.36.030
that loans, leases, or rents the property to another organization for the exempt purposes provided 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 purpose provided 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.
[
2012 c 76 s 1
;
2006 c 305 s 2
;
1969 c 137 s 2
.]
RCW 84.36.032
Administrative offices of nonprofit religious organizations.
The real and personal property of the administrative offices of nonprofit recognized religious organizations shall be exempt to the extent that the property is used for the administration of the religious programs of the organization and such other programs as would be exempt under RCW 84.36.020
and
84.36.030
as now or hereafter amended. The provisions of RCW 84.36.020
(2)(b) apply to this section.
[
2014 c 99 s 5
;
1975 1st ex.s. c 291 s 13
.]
NOTES:
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 84.36.035
Property used by qualifying blood, tissue, or blood and tissue banks.
(1) The following property is exempt from taxation: All property, whether real or personal, belonging to or leased by any nonprofit corporation or association and used exclusively in the business of a qualifying blood bank, a qualifying tissue bank, or a qualifying blood and tissue bank, or in the administration of these businesses. If the real or personal property is leased, the benefit of the exemption shall inure to the nonprofit corporation or association.
(2) The definitions in RCW 82.04.324
apply to this section.
(3) To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as provided in RCW 84.36.805
.
[
2014 c 99 s 6
;
2004 c 82 s 4
;
1995 2nd sp.s. c 9 s 1
;
1971 ex.s. c 206 s 1
.]
NOTES:
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Applicability
—
1995 2nd sp.s. c 9 ss 1 and 2:
"Sections 1 and 2 of this act are effective for taxes levied for collection in 1996 and thereafter." [
1995 2nd sp.s. c 9 s 6
.]
Effective date
—
1995 2nd sp.s. c 9:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 2nd sp.s. c 9 s 7
.]
RCW 84.36.037
Nonprofit organization property connected with operation of public assembly hall or meeting place.
(1) Real or personal property owned by a nonprofit organization, association, or corporation in connection with the operation of a public assembly hall or meeting place is exempt from taxation. The area exempt under this section includes the building or buildings, the land under the buildings, and an additional area necessary for parking, not exceeding a total of one acre. When property for which exemption is sought is essentially unimproved except for restroom facilities and structures and this property has been used primarily for annual community celebration events for at least ten years, the exempt property shall not exceed twenty-nine acres.
(2) To qualify for this exemption the property must be used exclusively for public gatherings and be available to all organizations or persons desiring to use the property, but the owner may impose conditions and restrictions which are necessary for the safekeeping of the property and promote the purposes of this exemption. Membership shall not be a prerequisite for the use of the property.
(3) The use of the property for pecuniary gain or for business activities, except as provided in this section and RCW 84.36.805, nullifies the exemption otherwise available for the property for the assessment year. If all income received from 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, the exemption is not nullified as provided by RCW 84.36.805
or by the use of the property, in a county with a population of less than twenty thousand, to promote the following business activities, if the rental income or donations, if any, are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented: Dance lessons, art classes, or music lessons.
(4) The department of revenue must narrowly construe this exemption.
[
2014 c 99 s 8
; (2014 c 99 s 7 expired December 31, 2020); (2010 c 186 s 1 expired December 31, 2020);
2006 c 305 s 3
. Prior:
1998 c 311 s 19
;
1998 c 189 s 1
;
1997 c 298 s 1
;
1993 c 327 s 1
;
1987 c 505 s 80
;
1981 c 141 s 2
.]
NOTES:
Effective date
—
2014 c 99 ss 3 and 8:
See note following RCW 84.36.020
.
Expiration date
—
2014 c 99 ss 2 and 7:
See note following RCW 84.36.020
.
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Application
—
2010 c 186:
"This act applies to taxes levied for collection in 2011 through 2020." [
2010 c 186 s 3
.]
Expiration date
—
2010 c 186:
"This act expires December 31, 2020." [
2010 c 186 s 4
.]
Applicability, construction
—
1981 c 141:
See note following RCW 84.36.060
.
RCW 84.36.040
Nonprofit child day care centers, libraries, orphanages, homes or hospitals for the sick or infirm, outpatient dialysis facilities.
(1) The real and personal property used by, and for the purposes of, the following nonprofit organizations is exempt from property taxation:
(a) Child day care centers as defined in subsection (4) of this section;
(b) Free public libraries;
(c) Orphanages and orphan asylums;
(d) Homes for the sick or infirm;
(e) Hospitals for the sick; and
(f) Outpatient dialysis facilities.
(2) The real and personal property leased to and used by a hospital for hospital purposes is exempt from property taxation if the hospital is established under chapter
36.62
RCW or is owned and operated by a public hospital district established under chapter
70.44
RCW.
(3) To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as provided in RCW 84.36.805, and the benefit of the exemption must inure to the user.
(4) For purposes of subsection (1) of this section, "child day care center" means a nonprofit organization that regularly provides child day care and early learning services for a group of children for periods of less than twenty-four hours.
[
2010 c 106 s 305
;
2001 c 126 s 1
;
1989 c 379 s 1
;
1987 c 31 s 1
;
1984 c 220 s 2
;
1973 2nd ex.s. c 40 s 3
;
1973 1st ex.s. c 154 s 119
;
1969 ex.s. c 245 s 1
;
1961 c 15 s 84.36.040
. Prior:
1955 c 196 s 6
; prior: 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part.]
NOTES:
Retroactive application
—
2010 c 106 s 305:
"Section 305(2) of this act applies both prospectively and retroactively beginning with taxes levied for collection in 2002 and thereafter." [
2010 c 106 s 405
.]
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Application
—
2001 c 126:
"This act applies to taxes levied for collection in 2002 and thereafter." [
2001 c 126 s 5
.]
Severability
—
1989 c 379:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1989 c 379 s 7
.]
Effective date
—
1989 c 379:
"This act shall take effect April 1, 1990, and shall be effective for taxes levied for collection in 1991 and thereafter." [
1989 c 379 s 8
.]
RCW 84.36.041
Nonprofit homes for the aging.
(1) All real and personal property used by a nonprofit home for the aging that is reasonably necessary for the purposes of the home is exempt from taxation if the benefit of the exemption inures to the home and:
(a) At least fifty percent of the occupied dwelling units in the home are occupied by eligible residents; or
(b) The home is subsidized under a federal department of housing and urban development program. The department of revenue must provide by rule a definition of homes eligible for exemption under this subsection (1)(b), consistent with the purposes of this section.
(2) All real and personal property used by a nonprofit home for the aging that is reasonably necessary for the purposes of the home is exempt from taxation if the benefit of the exemption inures to the home and the construction, rehabilitation, acquisition, or refinancing of the home is financed under a program using bonds exempt from federal income tax if at least seventy-five percent of the total amount financed uses the tax exempt bonds and the financing program requires the home to reserve a percentage of all dwelling units so financed for low-income residents. The initial term of the exemption under this subsection must equal the term of the tax exempt bond used in connection with the financing program, or the term of the requirement to reserve dwelling units for low-income residents, whichever is shorter. If the financing program involves less than the entire home, only those dwelling units included in the financing program are eligible for total exemption. The department of revenue must provide by rule the requirements for monitoring compliance with the provisions of this subsection and the requirements for exemption including:
(a) The number or percentage of dwelling units required to be occupied by low-income residents, and a definition of low income;
(b) The type and character of the dwelling units, whether independent units or otherwise; and
(c) Any particular requirements for continuing care retirement communities.
(3) A home for the aging is eligible for a partial exemption on the real property and a total exemption for the home's personal property if the home does not meet the requirements of subsection (1) of this section because fewer than fifty percent of the occupied dwelling units are occupied by eligible residents, as follows:
(a) A partial exemption must be allowed for each dwelling unit in a home occupied by a resident requiring assistance with activities of daily living.
(b) A partial exemption must be allowed for each dwelling unit in a home occupied by an eligible resident.
(c) A partial exemption must be allowed for an area jointly used by a home for the aging and by a nonprofit organization, association, or corporation currently exempt from property taxation under one of the other provisions of this chapter. The shared area must be reasonably necessary for the purposes of the nonprofit organization, association, or corporation exempt from property taxation under one of the other provisions of this chapter, such as kitchen, dining, and laundry areas.
(d) The amount of exemption must be calculated by multiplying the assessed value of the property reasonably necessary for the purposes of the home, less the assessed value of any area exempt under (c) of this subsection, by a fraction. The numerator of the fraction is the number of dwelling units occupied by eligible residents and by residents requiring assistance with activities of daily living. The denominator of the fraction is the total number of occupied dwelling units as of December 31st of the first assessment year the home becomes operational for which exemption is claimed and January 1st of each subsequent assessment year for which exemption is claimed.
(4) To be exempt under this section, the property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW 84.36.805
.
(5) A home for the aging is exempt from taxation only if the organization operating the home is exempt from income tax under section 501(c) of the federal internal revenue code as existing on January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purposes of this section.
(6) In order for the home to be eligible for exemption under subsections (1)(a) and (3)(b) of this section, each eligible resident of a home for the aging must submit an income verification form to the county assessor by July 1st of the assessment year for which exemption is claimed. However, during the first year a home becomes operational, the county assessor must accept income verification forms from eligible residents up to December 31st of the assessment year. The income verification form must be prescribed and furnished by the department of revenue. An eligible resident who has filed a form for a previous year need not file a new form until there is a change in status affecting the person's eligibility.
(7) In determining the true and fair value of a home for the aging for purposes of the partial exemption provided by subsection (3) of this section, the assessor must apply the computation method provided by RCW 84.34.060
and may consider only the use to which such property is applied during the years for which such partial exemptions are available and may not consider potential uses of such property.
(8) As used in this section:
(a) "Eligible resident" means a person who:
(i) Occupied the dwelling unit as a principal place of residence as of December 31st of the first assessment year the home becomes operational. In each subsequent year, the eligible resident must occupy the dwelling unit as a principal place of residence as of January 1st of the assessment year for which the exemption is claimed. Confinement of the person to a hospital or nursing home does not disqualify the claim of exemption if the dwelling unit is temporarily unoccupied or if the dwelling unit is occupied by a spouse or a domestic partner, a person financially dependent on the claimant for support, or both; and
(ii) Is sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or is, at the time of filing, retired from regular gainful employment by reason of disability as defined in RCW 84.36.383
. Any surviving spouse or surviving domestic partner of a person who was receiving an exemption at the time of the person's death qualifies if the surviving spouse or surviving domestic partner is fifty-seven years of age or older and otherwise meets the requirements of this subsection; and
(iii) Has a combined disposable income of no more than the greater of twenty-two thousand dollars or eighty percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the person resides. For the purposes of determining eligibility under this section, a "cotenant" means a person who resides with an eligible resident and who shares personal financial resources with the eligible resident.
(b) "Combined disposable income" means the disposable income of the person submitting the income verification form, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the dwelling unit for the preceding calendar year, less amounts paid by the person submitting the income verification form or his or her spouse or domestic partner or cotenant during the previous year for the treatment or care of either person received in the dwelling unit or in a nursing home. If the person submitting the income verification form was retired for two months or more of the preceding year, the combined disposable income of such person must be calculated by multiplying the average monthly combined disposable income of such person during the months such person was retired by twelve. If the income of the person submitting the income verification form is reduced for two or more months of the preceding year by reason of the death of the person's spouse or domestic partner, the combined disposable income of such person must be calculated by multiplying the average monthly combined disposable income of such person after the death of the spouse or domestic partner by twelve.
(c) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:
(i) Capital gains, other than gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;
(ii) Amounts deducted for loss;
(iii) Amounts deducted for depreciation;
(iv) Pension and annuity receipts;
(v) Military pay and benefits other than attendant-care and medical-aid payments;
(vi) Veterans benefits other than attendant-care and medical-aid payments;
(vii) Federal social security act and railroad retirement benefits;
(viii) Dividend receipts; and
(ix) Interest received on state and municipal bonds.
(d) "Resident requiring assistance with activities of daily living" means a person who requires significant assistance with the activities of daily living and who would be at risk of nursing home placement without this assistance.
(e) "Home for the aging" means a residential housing facility that (i) provides a housing arrangement chosen voluntarily by the resident, the resident's guardian or conservator, or another responsible person; (ii) has only residents who are at least sixty-one years of age or who have needs for care generally compatible with persons who are at least sixty-one years of age; and (iii) provides varying levels of care and supervision, as agreed to at the time of admission or as determined necessary at subsequent times of reappraisal.
(9) A for-profit home for the aging that converts to nonprofit status after June 11, 1992, and would otherwise be eligible for tax exemption under this section may not receive the tax exemption until five years have elapsed since the conversion. The exemption must then be ratably granted over the next five years.
[
2015 c 86 s 312
;
2008 c 6 s 707
;
2001 c 187 s 14
. Prior:
1999 c 358 s 16
;
1999 c 356 s 1
;
1998 c 311 s 20
;
1997 c 3 s 124
(Referendum Bill No. 47, approved November 4, 1997);
1993 c 151 s 1
;
1992 c 213 s 1
;
1991 sp.s. c 24 s 1
;
1991 c 203 s 2
;
1989 c 379 s 2
.]
NOTES:
Part headings not law
—
Severability
—
2008 c 6:
See RCW 26.60.900
and
26.60.901
.
Application
—
2001 c 187:
See note following RCW 84.40.020
.
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
Effective date
—
1999 c 356:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [May 17, 1999]." [
1999 c 356 s 2
.]
Application
—
Severability
—
Part headings not law
—
Referral to electorate
—
1997 c 3:
See notes following RCW 84.40.030
.
Applicability
—
1993 c 151:
"This act shall be effective for taxes levied in 1994 for collection in 1995 and for taxes levied thereafter." [
1993 c 151 s 2
.]
Applicability
—
1992 c 213:
"The combined disposable income threshold of twenty-two thousand dollars or less contained in section 1 of this act shall be effective for taxes levied for collection in 1993 and thereafter." [
1992 c 213 s 3
.]
Severability
—
Effective date
—
1989 c 379:
See notes following RCW 84.36.040
.
RCW 84.36.042
Nonprofit organization, corporation, or association property used to provide housing for persons with developmental disabilities.
(1) All real and personal property owned or leased by a nonprofit organization, corporation, or association to provide housing for eligible persons with developmental disabilities is exempt from property taxation, whether such housing is provided directly by the nonprofit organization, corporation, or association, or indirectly as allowed under (c) of this subsection.
(a) To qualify for this exemption, the nonprofit organization, corporation, or association must be qualified for exemption under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)). It must also have been organized for charitable purposes to create and preserve long-term affordable housing for low-income persons with developmental disabilities.
(b) The housing must be occupied by eligible persons who have a low income.
(c) Property that is owned or leased by a nonprofit organization, corporation, or association may be leased, sublet, or subject to a service agreement with a provider operating an adult family home under chapter
70.128
RCW that specifically provides services for persons with developmental disabilities, without regard to the nonprofit status of the operator of the adult family home.
(2) As used in this section:
(a) "Developmental disability" means the same as defined in RCW 71A.10.020
;
(b) "Eligible person" means the same as defined in RCW 71A.10.020
; and
(c) "Low income" means the adjusted gross income of the resident is at eighty percent or less of the median income adjusted for family size, as most recently determined by the federal department of housing and urban development for the county in which the housing is located and in effect as of January 1st of the assessment year for which the exemption is sought. "Adjusted gross income" is as defined in the federal internal revenue code of 1986, as it exists on June 11, 1998, or such subsequent date as the director may provide by rule consistent with the purpose of this section.
(3) To be exempt under this section, the property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW 84.36.805
.
(4) If the real or personal property for which exemption is sought is leased, the benefit of the exemption must inure to the nonprofit organization, corporation, or association leasing the property to provide the housing for persons with developmental disabilities.
[
2023 c 69 s 1
;
1998 c 202 s 1
.]
NOTES:
Application
—
2023 c 69:
"This act applies to taxes levied for collection beginning January 1, 2024." [
2023 c 69 s 4
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 69:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2023 c 69 s 5
.]
RCW 84.36.043
Nonprofit organization property used in providing emergency or transitional housing to low-income homeless persons or victims of domestic violence
—
Recovery residences.
(1) The real and personal property used by a nonprofit organization in providing emergency or transitional housing for low-income homeless persons as defined in RCW 35.21.685
or
36.32.415
or victims of domestic violence who are homeless for personal safety reasons is exempt from taxation if:
(a) The charge, if any, for the housing does not exceed the actual cost of operating and maintaining the housing; and
(b)(i) The property is owned by the nonprofit organization; or
(ii) The property is rented or leased by the nonprofit organization and the benefit of the exemption inures to the nonprofit organization.
(2) The real and personal property used by a nonprofit organization in maintaining an approved recovery residence registered under RCW 41.05.760
is exempt from taxation if:
(a) The charge for the housing does not exceed the actual cost of operating and maintaining the housing; and
(b)(i) The property is owned by the nonprofit organization; or
(ii) The property is rented or leased by the nonprofit organization and the benefit of the exemption inures to the nonprofit organization.
(3) As used in this section:
(a) "Homeless" means persons, including families, who, on one particular day or night, do not have decent and safe shelter nor sufficient funds to purchase or rent a place to stay.
(b) "Emergency housing" means a project that provides housing and supportive services to homeless persons or families for up to sixty days.
(c) "Transitional housing" means a project that provides housing and supportive services to homeless persons or families for up to two years and that has as its purpose facilitating the movement of homeless persons and families into independent living.
(d) "Recovery residence" has the same meaning as under RCW 41.05.760
.
(4) The exemption in subsection (2) of this section applies to taxes levied for collection in calendar years 2024 through 2033.
(5) This exemption is subject to the administrative provisions contained in RCW 84.36.800
through
84.36.865
.
[
2023 sp.s. c 1 s 18
;
1998 c 174 s 1
;
1991 c 198 s 1
;
1990 c 283 s 2
;
1983 1st ex.s. c 55 s 12
.]
NOTES:
Tax preference performance statement
—
2023 sp.s. c 1 s 18:
"(1) This section is the tax preference performance statement for the tax preference contained in section 18, chapter 1, Laws of 2023 [sp. sess.]. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(3) By exempting property used by nonprofit organizations maintaining approved recovery residences, it is the legislature's specific public policy objective to maximize funding for recovery residences to the extent possible, thereby increasing availability of such residences.
(4) To measure the effectiveness of the tax exemption provided in section 18 of this act in achieving the specific public policy objectives described in subsection (3) of this section, the joint legislative audit and review committee must evaluate:
(a) Annual changes in the total number of parcels qualifying for the exemption under section 18 of this act;
(b) The amount of annual property tax relief resulting from the tax exemption under section 18 of this act;
(c) The average annual number of people housed at recovery residences located on property qualifying for the exemption under section 18 of this act;
(d) The annualized amount charged for housing at recovery residences located on property qualifying for the exemption under section 18 of this act and the annualized estimated increase in the charge for housing if the properties had not been eligible for the exemption; and
(e) The annual amount of expenditures by nonprofits to maintain recovery residences located on property qualifying for the exemption under section 18 of this act.
(5) The legislature intends to extend the expiration date of the property tax exemption under section 18 of this act if the review by the joint legislative audit and review committee finds that:
(a) The number of properties qualifying for the exemption under section 18 of this act has increased;
(b) The number of individuals using recovery housing located on property qualifying for the exemption under section 18 of this act has increased; and
(c) The amount charged for recovery housing is reasonably consistent with the actual cost of operating and maintaining the housing.
(6) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to:
(a) Initial applications for the tax exemption under section 18 of this act as approved by the department of revenue under RCW 84.36.815
;
(b) Annual financial statements prepared by nonprofit entities claiming the tax exemption under section 18 of this act;
(c) Filings with the federal government to maintain federal tax exempt status by nonprofit organizations claiming the tax exemption under section 18 of this act; and
(d) Any other data necessary for the evaluation under subsection (4) of this section." [
2023 sp.s. c 1 s 19
.]
Effective dates
—
1983 1st ex.s. c 55:
See note following RCW 82.08.010
.
RCW 84.36.045
Nonprofit organization property available without charge for medical research or training of medical personnel.
All real and personal property owned or used by any nonprofit corporation or association which is available without charge for research by, or for the training of, doctors, nurses, laboratory technicians, hospital administrators and staff or other hospital personnel, and which otherwise is used for medical research, the results of which will be available without cost to the public, shall be exempt from ad valorem taxation. If the real or personal property is leased, the benefit of the exemption shall inure to the nonprofit corporation or association.
To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as provided in RCW 84.36.805
.
[
1998 c 184 s 1
;
1984 c 220 s 3
;
1975 1st ex.s. c 291 s 23
.]
NOTES:
Application
—
1998 c 184:
"This act applies to taxes levied for collection in 1999 and thereafter." [
1998 c 184 s 3
.]
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 84.36.046
Nonprofit cancer clinic or center.
(1) All real or personal property owned or used by a nonprofit organization, corporation, or association in connection with a nonprofit cancer clinic or center shall be exempt from taxation if all of the following conditions are met:
(a) The nonprofit cancer clinic or center must be comprised of or have been formed by an organization, corporation, or association qualified for exemption under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)), by a municipal hospital corporation, or by both;
(b) The nonprofit organization, corporation, or association operating the nonprofit clinic or center and applying for the exemption must be qualified for exemption under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)); and
(c) The property must be used primarily in connection with the prevention, detection, and treatment of cancer, except as provided in RCW 84.36.805
.
(2)(a) As used in this section, "nonprofit cancer clinic or center" means a medical facility operated:
(i) By a nonprofit organization, corporation, or association associated with a nonprofit hospital or group of nonprofit hospitals, by a municipal hospital corporation, or by both; and
(ii) For the primary purpose of preventing and detecting cancer and treating cancer patients.
(b) For the purposes of this subsection, "primary purpose" means that at least fifty-one percent of the patients who receive treatment at the clinic or center do so because they have been diagnosed as having cancer. In carrying out its primary purpose, the nonprofit cancer clinic or center provides any combination of radiation therapy, chemotherapy, and ancillary services, directly related to the prevention, detection, and treatment of cancer. These ancillary services include, but are not limited to, patient screening, case management, counseling, and access to a tumor registry.
(3) The exemption also applies to administrative offices located within the nonprofit cancer clinic or center that are used exclusively in conjunction with the cancer treatment services provided by the nonprofit cancer clinic or center.
(4) If the real or personal property for which exemption is sought is leased, the benefit of the exemption must inure to the nonprofit cancer clinic or center.
[
1997 c 143 s 1
.]
NOTES:
Applicability
—
1997 c 143:
"This act is effective for taxes levied for collection in 1998 and thereafter." [
1997 c 143 s 5
.]
RCW 84.36.047
Nonprofit organization property used for transmission or reception of radio or television signals originally broadcast by governmental agencies.
The following property shall be exempt from taxation:
Real and personal property owned by or leased to any nonprofit corporation or association and, except as provided in RCW 84.36.805, used exclusively to rebroadcast, amplify, or otherwise facilitate the transmission and/or reception of radio and/or television signals originally broadcast by foreign or domestic governmental agencies for reception by the general public: PROVIDED, That in the event such property is leased, the benefit of the exemption shall inure to the user.
[
1984 c 220 s 4
;
1977 ex.s. c 348 s 1
.]
NOTES:
Effective date
—
Construction
—
1977 ex.s. c 348:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, shall take effect immediately and shall be effective for assessment in 1977 for taxes due and payable in 1978." [
1977 ex.s. c 348 s 3
.]
RCW 84.36.049
Nonprofit homeownership development.
(Expires January 1, 2038.)
(1) All real property is exempt from state and local property taxes if owned by:
(a) A nonprofit entity, or a qualified cooperative association, for the purpose of developing or redeveloping on the real property one or more residences to be sold to low-income households including land to be leased as provided in subsection (9)(f)(ii) of this section; or
(b) A nonprofit entity for the purpose of selling the real property to a low-income household who enters into an agreement with the nonprofit to build, or have built, through a qualified mutual self-help housing program a residence on the real property.
(2) The exemption provided in this section expires on or at the earlier of:
(a)(i) For purposes of the exemption provided in subsection (1)(a) of this section, the date on which the nonprofit entity transfers title to the single-family dwelling unit or the date on which the qualified cooperative association first conveys, directly or indirectly through the transfer of an ownership interest in the association, any single-family dwelling unit on the property or any part of the property; or
(ii) For purposes of the exemption provided in subsection (1)(b) of this section, the date on which the nonprofit entity transfers title to the real property to the low-income household;
(b) The date on which the nonprofit entity or qualified cooperative association executes a lease of land described in subsection (9)(f)(ii) of this section;
(c) The end of the seventh consecutive property tax year for which the property is granted an exemption under this section or, if the nonprofit entity or qualified cooperative association has claimed an extension under subsection (4) of this section, the end of the tenth consecutive property tax year for which the property is granted an exemption under this section; or
(d) The property is no longer held for the purpose for which the exemption was granted.
(3) The exemption under this section does not expire as a consequence of the real property being transferred by one nonprofit entity to another nonprofit entity or to a qualified cooperative association so long as the transferee timely applies to the department and is approved for a continuation of the exemption.
(4) If the nonprofit entity believes that title to the single-family dwelling unit, or title of the real property exempt under subsection (1)(b) of this section, will not be transferred by the end of the sixth consecutive property tax year or if a qualified cooperative association believes that neither a single-family dwelling unit nor any other part of the property will be transferred by the end of the sixth consecutive property tax year, the nonprofit entity or qualified cooperative association may claim a three-year extension of the exemption period by:
(a) Filing a notice of extension with the department on or before March 31st of the sixth consecutive property tax year; and
(b) Providing a filing fee equal to the greater of $200 or 0.1 percent of the real market value of the property as of the most recent assessment date with the notice of extension. The filing fee must be deposited into the state general fund.
(5)(a) If the nonprofit entity has not transferred title to the single-family dwelling unit to a low-income household or title to the real property exempt under subsection (1)(b) of this section to a low-income household, or if a qualified cooperative association has not transferred either a single-family dwelling unit or any other property, within the applicable period described in subsection (2)(c) of this section, or if the nonprofit entity or qualified cooperative association has converted the property to a purpose other than the purpose for which the exemption was granted, the property is disqualified from the exemption.
(b) Upon disqualification, the county treasurer must collect an additional tax equal to all taxes that would have been paid on the property but for the existence of the exemption, plus interest at the same rate and computed in the same way as that upon delinquent property taxes.
(c) The additional tax must be distributed by the county treasurer in the same manner in which current property taxes applicable to the subject property are distributed. The additional taxes and interest are due in full 30 days following the date on which the treasurer's statement of additional tax due is issued.
(d) The additional tax and interest is a lien on the property. The lien for additional tax and interest has priority to and must be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the property may become charged or liable. If a nonprofit entity or qualified cooperative association sells or transfers real property subject to a lien for additional taxes under this subsection, such unpaid additional taxes must be paid by the nonprofit entity or qualified cooperative association at the time of sale or transfer. The county auditor may not accept an instrument of conveyance unless the additional tax has been paid. The nonprofit entity, qualified cooperative association, or the new owner may appeal the assessed values upon which the additional tax is based to the county board of equalization in accordance with the provisions of RCW 84.40.038
.
(6)(a) Nonprofit entities receiving an exemption under subsection (1)(a) of this section must immediately notify the department when the exempt real property becomes occupied. The notice of occupancy made to the department must include a certification by the nonprofit entity that the occupants are a low-income household and a date when the title to the single-family dwelling unit was or is anticipated to be transferred.
(b) Qualified cooperative associations receiving an exemption under this section must immediately notify the department when any portion of the exempt real property becomes occupied as well as when all of the exempt real property becomes occupied. The notice provided when all the exempt real property becomes occupied must be filed within one year of all exempt real property becoming occupied and demonstrate that the qualified cooperative association does, in fact, meet the requirements for being a qualified cooperative association.
(c) Nonprofit entities receiving an exemption under subsection (1)(b) of this section must immediately notify the department when the exempt real property is sold to the low-income household. The notice must include a date when the title to the real property was or is anticipated to be transferred and a certification by the nonprofit entity that the purchaser is a low-income household.
(d) The department of revenue must make the notices of occupancy and real property transfers under (c) of this subsection available to the joint legislative audit and review committee, upon request by the committee, in order for the committee to complete its review of the tax preference in this section.
(7) Upon cessation of the exemption, the value of new construction and improvements to the property, not previously considered as new construction, must be considered as new construction for purposes of calculating levies under chapter
84.55
RCW. The assessed value of the property as it was valued prior to the beginning of the exemption may not be considered as new construction upon cessation of the exemption.
(8) Nonprofit entities and qualified cooperative associations receiving an exemption under this section must provide annual financial statements to the joint legislative audit and review committee, upon request by the committee, for the years that the exemption has been claimed. The nonprofit entity or qualified cooperative associations must identify the line or lines on the financial statements that comprise the percentage of revenues dedicated to the development of affordable housing.
(9) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Financial statements" means an audited annual financial statement and a completed United States treasury internal revenue service return form 990 for organizations exempt from income tax.
(b) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is less than 80 percent of the median family income, adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the property is located.
(c) "Nonprofit entity" means a nonprofit as defined in RCW 84.36.800
that is exempt from federal income taxation under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986, as amended.
(d) "Qualified cooperative association" means a cooperative association formed under chapter
23.86
or
24.06
RCW that owns the real property for which an exemption is sought under this section and following the completion of the development or redevelopment of such real property:
(i) 60 percent or more of the residences are owned by low-income households; and
(ii) 80 percent or more of the square footage of any improvements to the real property are exclusively used or available for use by the owners of the residences.
(e) "Qualified mutual self-help housing program" is a program dedicated to supporting the building of residences for low-income households in Washington through a mutual self-help construction method by which multiple low-income households use their own labor to reduce total construction costs of their residences. The program must also be:
(i) Operated by a nonprofit entity; and
(ii) Receiving financial support from the United States department of agriculture's mutual self-help housing technical assistance grant program or its successor program.
(f) "Residence" means:
(i) A single-family dwelling unit whether such unit be separate or part of a multiunit dwelling; and
(ii) The land on which a dwelling unit described in (f)(i) of this subsection (9) stands, whether to be sold, or to be leased for life or 99 years, to the low-income household owning such dwelling unit.
(10) The department may not accept applications for the initial exemption in this section after December 31, 2027. The exemption in this section may not be approved for and does not apply to taxes due in 2038 and thereafter.
(11) This section expires January 1, 2038.
[
2024 c 273 s 1
;
2019 c 361 s 1
;
2018 c 103 s 2
;
2016 c 217 s 2
.]
NOTES:
Application
—
2024 c 273:
"This act applies to taxes levied for collection in 2025 and thereafter." [
2024 c 273 s 3
.]
Application
—
2019 c 361:
"This act applies to taxes levied for collection in 2020 and thereafter." [
2019 c 361 s 3
.]
Application
—
2018 c 103:
"This act applies to taxes levied for collection in 2019 and thereafter." [
2018 c 103 s 3
.]
Tax preference performance statement
—
2024 c 273; 2019 c 361; 2018 c 103; 2016 c 217:
"(1) This section is the tax preference performance statement for the tax preference contained in chapter 273, Laws of 2024, chapter 361, Laws of 2019, chapter 103, Laws of 2018, and chapter 217, Laws of 2016. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(3) It is the legislature's specific public policy objective to encourage and expand the ability of nonprofit low-income housing developers to provide homeownership opportunities for low-income households. It is the legislature's intent to exempt from taxation real property owned by a nonprofit entity for the purpose of building residences to be sold, or, in the case of land, to be leased for life or 99 years or to be sold for use in mutual self-help housing development, to low-income households in order to enhance the ability of nonprofit low-income housing developers to purchase and hold land for future affordable housing development.
(4)(a) To measure the effectiveness of the tax preferences provided in RCW 84.36.049
in achieving the specific public policy objectives described in subsection (3) of this section, the joint legislative audit and review committee must evaluate, two years prior to the expiration of the tax preference: (i) The annual growth in the percentage of revenues dedicated to the development of affordable housing, for each nonprofit and qualified cooperative association claiming the preference, for the period that the preference has been claimed; and (ii) the annual changes in both the total number of parcels qualifying for the exemption and the total number of parcels for which owner occupancy notifications have been submitted to the department of revenue, from June 9, 2016, through the most recent year of available data prior to the committee's review.
(b) If the review by the joint legislative audit and review committee finds that for most of the nonprofits and qualified cooperative associations claiming the exemption, program spending, program expenses, or another ratio representing the percentage of the nonprofit entity's and qualified cooperative association's revenues dedicated to the development of affordable housing has increased for the period during which the exemption was claimed, then the legislature intends to extend the expiration date of the tax preference.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to:
(a) Initial applications for the preference as approved by the department of revenue under RCW 84.36.815
;
(b) Owner occupancy notices and notices of property transfers reported to the department of revenue under RCW 84.36.049
;
(c) Annual financial statements for a nonprofit entity or qualified cooperative association claiming this tax preference, as defined in RCW 84.36.049, and provided by nonprofit entities or qualified cooperative associations claiming this preference; and
(d) Any other data necessary for the evaluation under subsection (4) of this section." [
2024 c 273 s 2
;
2019 c 361 s 2
;
2018 c 103 s 1
;
2016 c 217 s 1
.]
Application
—
2016 c 217:
"This act applies to taxes levied in 2016 for collection in 2017 and thereafter." [
2016 c 217 s 9
.]
RCW 84.36.050
Schools and colleges.
The following property is exempt from taxation:
(1) Property owned or used by or for any nonprofit school or college in this state for educational purposes or cultural or art educational programs as defined in RCW 82.04.4328
. Real property so exempt may not exceed four hundred acres including, but not limited to, buildings and grounds designed for the educational, athletic, or social programs of the institution, the housing of students, religious faculty, and the chief administrator, athletic buildings, and all other school or college facilities, the need for which would be nonexistent but for the presence of the school or college. The property must be principally designed to further the educational, athletic, or social functions of the college or school. If the property is leased, the benefit of the exemption must inure to such school or college.
(2) Real or personal property owned by a not-for-profit foundation that is established for the exclusive support of an institution of higher education, as defined in RCW 28B.10.016
. If the property is leased to and used by the institution for college or campus purposes, it must be principally designed to further the educational, athletic, or social functions of the institution. The exemption is only available for property actively utilized by currently enrolled students. The benefit of the exemption must inure to the college.
(3) Subject to RCW 84.36.805
(2)(a)(i), if the property exempt under subsection (1) or (2) of this section is used by an individual or organization not entitled to a property tax exemption, except as provided in this subsection, the exemption is nullified for the assessment year in which such use occurs. The exemption is not nullified as a result of any of the uses listed in (a) or (b) of this subsection or RCW 84.36.805
(8):
(a) The property is used by students, alumni, faculty, staff, or other persons or entities in a manner consistent with the educational, social, or athletic programs, including property used for related administrative and support functions, of the school or college and not for pecuniary gain or to promote business activities. Notwithstanding the foregoing, the school or college may contract with and permit the use of school or college property by persons or entities to provide school or college-related programs or services including, but not limited to, the provision of food services to students, faculty, and staff, the operation of a bookstore on campus, and the provision to the school or college of maintenance, operational, or administrative services without nullifying the exemption; or
(b) The property is used for pecuniary gain or to promote business activities as authorized by RCW 84.36.805, such uses to be measured separately with respect to each specific portion of such property. If exempt property is used as a sports or educational camp or program taught, operated, or conducted by a faculty member who is required or permitted to do so as part of his or her compensation package, the days when the property is so used will not be considered to be days when the property is used for nonexempt purposes.
[
2014 c 99 s 9
;
2006 c 226 s 2
;
2001 c 126 s 2
;
1984 c 220 s 5
;
1973 2nd ex.s. c 40 s 4
;
1971 ex.s. c 206 s 2
;
1970 ex.s. c 55 s 1
;
1961 c 15 s 84.36.050
. Prior:
1955 c 196 s 7
; prior: 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part. Formerly RCW 84.40.010
.]
NOTES:
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Findings
—
Intent
—
2006 c 226:
"The legislature finds that independent nonprofit schools, colleges, and universities are vital educational resources to the state of Washington. For the state to be competitive in a global economy, all educational resources must be competitive and provide high quality programs and services for students.
The legislature recognizes that independent nonprofit schools, colleges, and universities are important economic drivers in their communities, and encourages institutions to support local communities, to provide public benefit, and to respond to community expectations that they share facilities, offer programs, and attract students on par with Washington's publicly owned institutions and out-of-state schools and colleges. Further, the legislature encourages innovative programs and educational opportunities, sustainable practices, and increased use of facilities so that operations of institutions can be more cost-effective.
The legislature wishes to remove barriers that discourage institutions from being more collaborative, that make it more difficult to provide high quality services and necessities to their students, and that discourage appropriate and beneficial use of institutional facilities by the broader community. To this end, the legislature seeks to provide consistent, predictable, and easily administrable rules for reference by the state department of revenue and schools and colleges." [
2006 c 226 s 1
.]
Application
—
2001 c 126:
See note following RCW 84.36.040
.
Effective date
—
1970 ex.s. c 55:
"The effective date of this 1970 amendatory act is July 1, 1970." [
1970 ex.s. c 55 s 14
.]
RCW 84.36.060
Art, scientific and historical collections and property used to maintain, etc., such collections
—
Property of associations engaged in production and performance of musical, dance, artistic, etc., works
—
Fire engines, implements, and buildings of cities, towns, or fire companies
—
Humane societies.
(1) The following property is exempt from taxation:
(a) All art, scientific, or historical collections of associations maintaining and exhibiting such collections for the benefit of the general public and not for profit, together with all real and personal property of such associations used exclusively for the safekeeping, maintaining and exhibiting of such collections;
(b) All the real and personal property owned by or leased to associations engaged in the production and performance of musical, dance, artistic, dramatic, or literary works for the benefit of the general public and not for profit, which real and personal property is used exclusively for this production or performance;
(c) All fire engines and other implements used for the extinguishment of fire, and the buildings used exclusively for their safekeeping, and for meetings of fire companies, as long as the property belongs to any city or town or to a fire company; and
(d) All property owned by humane societies in this state in actual use by the societies.
(2) To receive an exemption under subsection (1)(a) or (b) of this section:
(a) An organization must be organized and operated exclusively for artistic, scientific, historical, literary, musical, dance, dramatic, or educational purposes and receive a substantial part of its support (exclusive of income received in the exercise or performance by such organization of its purpose or function) from the United States or any state or any political subdivision thereof or from direct or indirect contributions from the general public.
(b) If the property is not currently being used for an exempt purpose but will be used for an exempt purpose within a reasonable period of time, the nonprofit organization, association, or corporation claiming the exemption must submit proof that a reasonably specific and active program is being carried out to construct, remodel, or otherwise enable the property to be used for an exempt purpose. The property does not qualify for an exemption during this interim period if the property is used by, loaned to, or rented to a for-profit organization or business enterprise. Proof of a specific and active program to build or remodel the property so it may be used for an exempt purpose may include, but is not limited to:
(i) Affirmative action by the board of directors, trustees, or governing body of the nonprofit organization, association, or corporation toward an active program of construction or remodeling;
(ii) Itemized reasons for the proposed construction or remodeling;
(iii) Clearly established plans for financing the construction or remodeling; or
(iv) Building permits.
(3) The use of property exempt under subsection (1)(a) or (b) of this section by entities not eligible for a property tax exemption under this chapter, except as provided in RCW 84.36.805, nullifies the exemption otherwise available for the property for the assessment year.
[
2014 c 99 s 10
;
2009 c 58 s 1
;
2003 c 121 s 1
;
1995 c 306 s 1
;
1981 c 141 s 1
;
1973 2nd ex.s. c 40 s 5
;
1961 c 15 s 84.36.060
. Prior:
1955 c 196 s 8
; prior: 1939 c 206 s 8, part; 1933 ex.s. c 19 s 1, part; 1933 c 115 s 1, part; 1929 c 126 s 1, part; 1925 ex.s. c 130 s 7, part; 1915 c 131 s 1, part; 1903 c 178 s 1, part; 1901 c 176 s 1, part; 1899 c 141 s 2, part; 1897 c 71 ss 1, 5, part; 1895 c 176 s 2, part; 1893 c 124 ss 1, 5, part; 1891 c 140 ss 1, 5, part; 1890 p 532 ss 1, 5, part; 1886 p 47 s 1, part; Code 1881 s 2829, part; 1871 p 37 s 4, part; 1869 p 176 s 4, part; 1867 p 61 s 2, part; 1854 p 331 s 2, part; RRS s 11111, part. Formerly RCW 84.40.010
.]
NOTES:
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Applicability
—
1995 c 306:
"The [This] act is effective for taxes levied for collection in 1995 and thereafter." [
1995 c 306 s 2
.]
Effective date
—
1995 c 306:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [May 9, 1995]." [
1995 c 306 s 3
.]
Applicability, construction
—
1981 c 141:
"This act shall apply to taxes payable in 1982 and in subsequent years and shall be strictly construed." [
1981 c 141 s 6
.]
RCW 84.36.070
Intangible personal property
—
Appraisal.
(1) Intangible personal property is exempt from ad valorem taxation.
(2) "Intangible personal property" means:
(a) All moneys and credits including mortgages, notes, accounts, certificates of deposit, tax certificates, judgments, state, county and municipal bonds and warrants and bonds and warrants of other taxing districts, bonds of the United States and of foreign countries or political subdivisions thereof and the bonds, stocks, or shares of private corporations;
(b) Private nongovernmental personal service contracts, private nongovernmental athletic or sports franchises, or private nongovernmental athletic or sports agreements provided that the contracts, franchises, or agreements do not pertain to the use or possession of tangible personal or real property or to any interest in tangible personal or real property; and
(c) Other intangible personal property such as trademarks, trade names, brand names, patents, copyrights, trade secrets, franchise agreements, licenses, permits, core deposits of financial institutions, noncompete agreements, customer lists, patient lists, favorable contracts, favorable financing agreements, reputation, exceptional management, prestige, good name, or integrity of a business.
(3) "Intangible personal property" does not include zoning, location, view, geographic features, easements, covenants, proximity to raw materials, condition of surrounding property, proximity to markets, the availability of a skilled workforce, and other characteristics or attributes of property.
(4) This section does not preclude the use of, or permit a departure from, generally accepted appraisal practices and the appropriate application thereof in the valuation of real and tangible personal property, including the appropriate consideration of licenses, permits, and franchises granted by a government agency that affect the use of the property.
[
1997 c 181 s 1
;
1974 ex.s. c 118 s 1
;
1961 c 15 s 84.36.070
. Prior:
1931 c 96 s 1
; RRS s 11111-1. FORMER PART OF SECTION: 1925 ex.s. c 130 s 5, part, now codified in RCW 84.04.080
.]
NOTES:
Construction
—
1997 c 181:
"This act shall not be construed to amend or modify any existing statute or rule relating to the treatment of computer software, retained rights in computer software, and golden and master copies of computer software for property tax purposes." [
1997 c 181 s 3
.]
Intent
—
No relation to other state's law
—
1997 c 181:
"Nothing in this act is intended to incorporate and nothing in this act is based on any other state's statutory or case law." [
1997 c 181 s 4
.]
Severability
—
1997 c 181:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1997 c 181 s 5
.]
Applicability
—
1997 c 181:
"This act is effective for taxes levied for collection in 1999 and thereafter." [
1997 c 181 s 6
.]
Report to legislature
—
1997 c 181:
"By December 1, 2000, the department of revenue shall submit a report to the house finance committee, the senate ways and means committee, and the office of the governor on tax shifts, tax losses, and any litigation resulting from this act." [
1997 c 181 s 7
.]
RCW 84.36.079
Rights, title, interest, and materials of certain vessels under construction.
All rights, title or interest in or to any vessel of more than one thousand ton burden, and the materials and parts held by the builder of the vessel at the site of construction for the specific purpose of incorporation therein, shall be exempt from taxation while the vessel is under construction within this state.
[
1961 c 15 s 84.36.079
. Prior:
1959 c 295 s 1
.]
RCW 84.36.080
Certain ships and vessels.
(1) All ships and vessels which are exempt from excise tax under RCW 82.49.020
(2) and excepted from the registration requirements of RCW 88.02.570
(10) shall be and are hereby made exempt from all ad valorem taxes, except taxes levied for any state purpose.
(2) All ships and vessels listed in the state or federal register of historical places are exempt from all ad valorem taxes.
[
2011 c 171 s 126
;
2000 c 103 s 24
;
1998 c 335 s 5
;
1986 c 229 s 1
;
1983 2nd ex.s. c 3 s 51
;
1983 c 7 s 23
;
1961 c 15 s 84.36.080
. Prior:
1945 c 82 s 1
;
1931 c 81 s 1
; Rem. Supp. 1945 s 11111-2.]
NOTES:
Intent
—
Effective date
—
2011 c 171:
See notes following RCW 4.24.210
.
Effective date
—
1998 c 335:
See note following RCW 84.12.200
.
Application
—
1986 c 229:
"This act shall be effective for taxes levied for collection in 1987, and thereafter." [
1986 c 229 s 4
.]
Construction
—
Severability
—
Effective dates
—
1983 2nd ex.s. c 3:
See notes following RCW 82.04.255
.
Construction
—
Severability
—
Effective dates
—
1983 c 7:
See notes following RCW 82.08.020
.
Listing of taxable ships and vessels with department of revenue: RCW 84.40.065
.
Valuation of vessels
—
Apportionment: RCW 84.40.036
.
RCW 84.36.090
Exemption for other ships and vessels.
All ships and vessels, other than those partially exempt under RCW 84.36.080
and those described in RCW 84.36.079, are exempt from all ad valorem taxes.
[
1983 c 7 s 24
;
1961 c 15 s 84.36.090
. Prior:
1959 c 295 s 2
;
1945 c 82 s 2
;
1931 c 81 s 2
; Rem. Supp. 1945 s 11111-3.]
NOTES:
Construction
—
Severability
—
Effective dates
—
1983 c 7:
See notes following RCW 82.08.020
.
RCW 84.36.100
Size of vessel immaterial.
RCW 84.36.080
and
84.36.090
shall apply to all ships, vessels and boats, irrespective of size, and to the taxes thereon becoming due and payable.
[
1961 c 15 s 84.36.100
. Prior:
1945 c 82 s 3
;
1931 c 81 s 3
; Rem. Supp. 1945 s 11111-4.]
RCW 84.36.105
Cargo containers used in ocean commerce.
All cargo containers principally used for the transportation of cargo by vessels in ocean commerce shall be exempt from taxation. The term "cargo container" means a receptacle:
(1) Of a permanent character and accordingly strong enough to be suitable for repeated use;
(2) Specially designed to facilitate the carriage of goods, by one or more modes of transport, one of which shall be by vessels, without intermediate reloading;
(3) Fitted with devices permitting its ready handling, particularly its transfer from one mode of transport to another; and
(4) Designed to be easy to fill and empty.
[
1975 1st ex.s. c 20 s 1
.]
RCW 84.36.110
Household goods and personal effects
—
Fifteen thousand dollars actual value to head of family.
The following property shall be exempt from taxation:
(1) All household goods and furnishings in actual use by the owner thereof in equipping and outfitting his or her residence or place of abode and not for sale or commercial use, and all personal effects held by any person for his or her exclusive use and benefit and not for sale or commercial use.
(2) The personal property, other than specified in subsection (1) of this section, of each head of a family liable to assessment and taxation of which the individual is the actual and bona fide owner to an amount of fifteen thousand dollars of true and fair value. This exemption shall not apply to any private motor vehicle or mobile home. If the county assessor is satisfied that all of the personal property of any person is exempt from taxation under the provisions of this statute or any other statute providing exemptions for personal property, no listing of such property shall be required. However, if the personal property described in this subsection exceeds in value the amount allowed as exempt, then a complete list of said personal property shall be made as provided by law, and the county assessor shall deduct the amount of the exemption authorized by this subsection from the total amount of the assessment and impose taxes on the remainder.
[
2006 c 281 s 2
;
1988 c 10 s 1
;
1971 ex.s. c 299 s 71
;
1961 c 15 s 84.36.110
. Prior:
1935 c 27 s 1
; RRS s 11111-7.]
NOTES:
Contingent effective date
—
2006 c 281:
"This act takes effect January 1, 2007, if the proposed amendment to Article VII, section 1 of the state Constitution authorizing an increased personal exemption for the head of a family is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not approved and ratified, this act is void in its entirety." [
2006 c 281 s 3
.]
Finding
—
Intent
—
2006 c 281:
"The legislature finds that it is in the public interest of the people of the state of Washington to ease the burden of property taxes paid by the head of a family. To achieve this purpose, this act increases the amount of personal property exemption for the head of a family from three thousand dollars to fifteen thousand dollars. The last time this exemption was increased was 1988. It is the clear and unambiguous intent of the legislature that the property described within this measure shall be exempt for [from] taxation, as authorized by Article VII, section 1 of the state Constitution." [
2006 c 281 s 1
.]
Contingent effective date
—
1988 c 10:
"This act shall take effect January 1, 1989, for taxes levied for collection in 1990 and thereafter, if the proposed amendment to Article VII, section 1 of the state Constitution authorizing an increased personal exemption for the head of a family (HJR 4222) is validly submitted to and is approved and ratified by the voters at a general election held in November 1988. If the proposed amendment is not so approved and ratified, this act shall be null and void in its entirety." [
1988 c 10 s 2
.]  The proposed constitutional amendment was approved by the voters on November 8, 1988.
Effective date
—
1971 ex.s. c 299:
See RCW 82.50.901
(3).
Severability
—
1971 ex.s. c 299:
See note following RCW 82.04.050
.
RCW 84.36.130
Airport property in this state for smaller airports belonging to municipalities of adjoining states.
All property, whether real or personal, belonging exclusively to any municipal corporation in an adjoining state legally empowered by the laws of such adjoining state to acquire and hold property within this state, and which property is used primarily for airport purposes and other facilities for landing, terminals, housing, repair and care of dirigibles, airplanes and seaplanes for the aerial transportation of persons, property or mail, or in the armed forces of the United States, and upon which property there is expended funds by the federal, county or state agencies, or upon which funds are allocated by the federal government agencies on national defense projects, is hereby exempted from ad valorem taxation. The exemption in this section applies only to airports five hundred acres or less in size.
[
1998 c 201 s 1
;
1961 c 15 s 84.36.130
. Prior:
1941 c 13 s 1
; Rem. Supp. 1941 s 11111-10.]
RCW 84.36.133
Aircraft owned and operated by a commuter air carrier.
(1) An aircraft owned and operated by a commuter air carrier in respect to which the tax imposed under RCW 82.48.030
has been paid for a calendar year is exempt from property taxation for that calendar year.
(2) For the purposes of this section, "aircraft" and "commuter air carrier" have the same meanings as provided in RCW 82.48.010
.
[
2013 c 56 s 4
.]
NOTES:
Effective date
—
2013 c 56:
"This act takes effect January 1, 2014." [
2013 c 56 s 5
.]
RCW 84.36.135
Real and personal property of housing finance commission.
The real and personal property of the state housing finance commission established by chapter
43.180
RCW are exempt from taxation.
[
1983 c 161 s 26
.]
NOTES:
Effective dates
—
1983 c 161:
See RCW 43.180.904
.
RCW 84.36.210
Public right-of-way easements.
Whenever the state, or any city, town, county or other municipal corporation has obtained a written easement for a right-of-way over and across any private property and the written instrument has been placed of record in the county auditor's office of the county in which the property is located, the easement rights shall be exempt from taxation and exempt from general tax foreclosure and sale for delinquent property taxes of the property over and across which the easement exists; and all property tax records of the county and tax statements relating to the servient property shall show the existence of such easement and that it is exempt from the tax; and any notice of sale and tax deed relating to the servient property shall show that such easement exists and is excepted from the sale of the servient property.
[
1961 c 15 s 84.36.210
. Prior:
1947 c 150 s 1
; Rem. Supp. 1947 s 11188-1.]
RCW 84.36.230
Interstate bridges
—
Reciprocity.
Any bridge, including its approaches, over rivers or bodies of water forming interstate boundaries, which bridge has been constructed or acquired and is being operated by any foreign state bordering upon such common interstate boundary, or which has been constructed or acquired and is being operated by any county, city or other municipality of such foreign state, shall be exempt from all property and other taxes in the state of Washington, if the foreign state exempts from all taxation any bridge or bridges constructed or acquired and being operated by the state of Washington or any county, city or other municipality thereof.
[
1961 c 15 s 84.36.230
. Prior:
1949 c 224 s 1
; Rem. Supp. 1949 s 11111-12.]
RCW 84.36.240
Soil and water conservation districts, personal property.
All personal property belonging solely to soil and water conservation districts shall be exempt from taxation: PROVIDED, That the exemption contained herein shall not apply to property of any such district which engages in contract work for persons or firms not landowners or cooperators of a district.
[
1963 c 179 s 1
.]
RCW 84.36.250
Water distribution property owned by nonprofit corporation or cooperative association.
The following property shall be exempt from taxation:
All property, whether real or personal belonging to any nonprofit corporation or cooperative association and used exclusively for the distribution of water to its shareholders or members.
[
1965 ex.s. c 173 s 31
.]
NOTES:
Effective date
—
1965 ex.s. c 173:
See note following RCW 82.04.050
.
Severability
—
1965 ex.s. c 173:
See note following RCW 82.98.030
.
RCW 84.36.255
Improvements to benefit fish and wildlife habitat, water quality, and water quantity
—
Cooperative assistance to landowners
—
Certification of best management practice
—
Limitation
—
Landowner claim and certification.
(1) All improvements to real and personal property that benefit fish and wildlife habitat, water quality, or water quantity are exempt from taxation if the improvements are included under a written conservation plan approved by a conservation district. The conservation districts must cooperate with the federal natural resource conservation service, other conservation districts, the department of ecology, the department of fish and wildlife, and nonprofit organizations to assist landowners by working with them to obtain approved conservation plans so as to qualify for the exemption provided for in this section. As provided in subsection (3) of this section and RCW 89.08.440
(2), a conservation district must initially certify that the best management practice benefits fish and wildlife habitat, water quality, or water quantity. A habitat conservation plan under the terms of the federal endangered species act is not considered a conservation plan for purposes of this exemption.
(2) The exemption remains in effect only if improvements identified in the written best management practices agreement are maintained as originally approved or amended. Improvements made as a requirement to mitigate for impacts to fish and wildlife habitat, water quality, or water quantity are not eligible for exemption under this section.
(3) A claim for exemption under this section must be filed annually with the county assessor on or before October 31st during the year for exemption from taxes levied for collection in the following year when submitted on forms prescribed by the department of revenue developed in consultation with the conservation district. The landowner must certify each subsequent year that the improvements for which exemption is sought are maintained as originally approved or amended in the written conservation plan. In the first filing year, the claim must contain the initial certification by the conservation district that the improvements for which exemption is sought were included under a written conservation plan approved by the conservation district including best management practices that benefit fish and wildlife habitat, water quality, or water quantity. Each subsequent filing year, the claim must contain a copy of the conservation district's initial certification made in the first filing year, along with the landowner's own certification for the current filing year.
[
2013 c 236 s 1
;
1997 c 295 s 2
.]
NOTES:
Application
—
1997 c 295 s 2:
"Section 2 of this act applies to taxes levied for collection in 1998 and thereafter." [
1997 c 295 s 4
.]
Purpose
—
1997 c 295:
"The purpose of this act is to improve fish and wildlife habitat, water quality, and water quantity for the benefit of the public at large. Private property owners should be encouraged to make voluntary improvements to their property as recommended by governmental agencies without the penalty of paying higher property taxes as a result of those improvements." [
1997 c 295 s 1
.]
RCW 84.36.260
Property, interests, etc., used for conservation of ecological systems, natural resources, or open space
—
Conservation or scientific research organizations.
(1) All real property interests, including fee simple or any lesser interest, development rights, easements, covenants and conservation futures, as that latter term is defined in RCW 84.34.220
as now or hereafter amended, used exclusively for the conservation of ecological systems, natural resources, or open space, including parklands, held by any nonprofit corporation or association the primary purpose of which is the conducting or facilitating of scientific research or the conserving of natural resources or open space for the general public, shall be exempt from ad valorem taxation if either of the following conditions are met:
(a) To the extent feasible considering the nature of the property interest involved, such property interests shall be used and effectively dedicated primarily for the purpose of providing scientific research or educational opportunities for the general public or the preservation of native plants or animals, or biotic communities, or works of ancient human beings or geological or geographical formations, of distinct scientific and educational interest, and not for the pecuniary benefit of any person or company, as defined in RCW 82.04.030, and shall be open to the general public for educational and scientific research purposes subject to reasonable restrictions designed for its protection; or
(b) Such property interests are subject to an option, accepted in writing by the state, a city or a county, or department of the United States government, for the purchase thereof by the state, a city or a county, or the United States, at a price not exceeding the lesser of the following amounts: (i) The sum of the original purchase cost to such nonprofit corporation or association plus interest from the date of acquisition by such corporation or association at the rate of six percent per annum compounded annually to the date of the exercise of the option; or (ii) the appraised value of the property at the time of the granting of the option, as determined by the department of revenue or when the option is held by the United States, or by an appropriate agency thereof.
(2) To be exempt under this section, the property must be used exclusively for the purposes for which exemption is granted, except as provided by RCW 84.36.805
.
[
2014 c 99 s 11
;
2009 c 549 s 1034
;
1979 ex.s. c 193 s 1
; 1975-'76 2nd ex.s. c 22 s 3;
1973 c 112 s 1
;
1967 ex.s. c 149 s 43
.]
NOTES:
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
Savings
—
1967 ex.s. c 149:
See RCW 82.98.035
.
Severability
—
1967 ex.s. c 149:
See note following RCW 82.98.030
.
RCW 84.36.262
Cessation of use giving rise to exemption.
Upon cessation of the use which has given rise to an exemption hereunder, the county treasurer shall collect all taxes which would have been paid had the property not been exempt during the ten years preceding, or the life of such exemption if such be less, together with interest at the same rate and computed in the same way as that upon delinquent property taxes.
[
1973 c 112 s 2
.]
NOTES:
Additional tax payable at time of sale
—
Appeal of assessed values: RCW 84.36.812
.
RCW 84.36.264
Application for exemption under RCW 84.36.260, conservation of ecological systems.
Owners of property desiring tax exempt status pursuant to the provisions of RCW 84.36.260
must make an application for the exemption with the department. If such property qualifies pursuant to RCW 84.36.260
(1)(b), a copy of the option must also be submitted to the department. Such option must clearly state the purchase price pursuant to the option or the appraisal value as determined by the department of revenue.
[
2014 c 99 s 12
;
1994 c 124 s 17
;
1973 c 112 s 3
.]
NOTES:
Findings
—
Intent
—
Tax preference performance statement
—
Does not apply
—
2014 c 99:
See notes following RCW 84.36.020
.
RCW 84.36.300
Stocks of merchandise, goods, wares, or material
—
Aircraft parts, etc.
—
When eligible for exemption.
There shall be exempt from taxation a portion of each separately assessed stock of merchandise, as that word is defined in this section, owned or held by any taxpayer on the first day of January of any year computed by first multiplying the total amount of that stock of such merchandise, as determined in accordance with RCW 84.40.020, by a percentage determined by dividing the amount of such merchandise brought into this state by the taxpayer during the preceding year for that stock by the total additions to that stock by the taxpayer during that year, and then multiplying the result of the latter computation by a percentage determined by dividing the total out-of-state shipments of such merchandise by the taxpayer during the preceding year from that stock (and regardless of whether or not any such shipments involved a sale of, or a transfer of title to, the merchandise within this state) by the total shipments of such merchandise by the taxpayer during the preceding year from that stock. As used in this section, the word "merchandise" means goods, wares, merchandise, or material which were not manufactured in this state by the taxpayer and which were acquired by him or her (in any other manner whatsoever, including manufacture by him or her outside of this state) for the purpose of sale or shipment in substantially the same form in which they were acquired by him or her within this state or were brought into this state by him or her. Breaking of packages or of bulk shipments, packaging, repackaging, labeling, or relabeling shall not be considered as a change in form within the meaning of this section. A taxpayer who has made no shipments of merchandise, either out-of-state or in-state, during the preceding year, may compute the percentage to be applied to the stock of merchandise on the basis of his or her experience from March 1st of the preceding year to the last day of February of the current year, in lieu of computing the percentage on the basis of his or her experience during the preceding year. The rule of strict construction shall not apply to this section.
All rights, title, or interest in or to any aircraft parts, equipment, furnishings, or accessories (but not engines or major structural components) which are manufactured outside of the state of Washington and are owned by purchasers of the aircraft constructed, under construction or to be constructed in the state of Washington, and are shipped into the state of Washington for installation in or use in connection with the operation of such aircraft shall be exempt from taxation prior to and during construction of such aircraft and while held in this state for periods preliminary to and during the transportation of such aircraft from the state of Washington.
[
2013 c 23 s 348
;
1973 c 149 s 2
;
1969 ex.s. c 124 s 1
.]
NOTES:
Effective date
—
Savings
—
1969 ex.s. c 124:
"This 1969 act shall be effective as of January 1, 1969: PROVIDED, HOWEVER, That the repeals contained in this act shall not be construed as affecting any existing right acquired or any liability or obligation incurred under the provision of the statutes repealed." [
1969 ex.s. c 124 s 7
.]
RCW 84.36.301
Legislative finding and declaration for RCW 84.36.300
.
The legislature hereby finds and declares that to promote the policy of a free and uninhibited flow of commerce as established by federal constitutional and legislative dictate, it is desirable to exempt from property taxation, according to the provisions of RCW 84.36.300, certain parts and equipment coming into the state of Washington to be placed in vehicles which are then transferred to the possession of out-of-state owners. The legislature further recognizes that the temporary existence of these parts and equipment within the state justifies a tax exempt status which serves to encourage the manufacture and assemblage of vehicles within the state thereby promoting increased economic activity and jobs for our residents.
[
1973 c 149 s 1
.]
RCW 84.36.310
Requirements for exemption under RCW 84.36.300
.
Any person claiming the exemption provided for in RCW 84.36.300
shall file such claim with his or her listing of personal property as provided by RCW 84.40.040
. The claim shall be in the form prescribed by the department of revenue, and shall require such information as the department deems necessary to substantiate the claim.
[
2003 c 302 s 6
;
1969 ex.s. c 124 s 2
.]
NOTES:
Effective date
—
Savings
—
1969 ex.s. c 124:
See note following RCW 84.36.300
.
RCW 84.36.320
Inspection of books and records for exemption under RCW 84.36.300
.
An owner or agent filing a claim under RCW 84.36.310
shall consent to the inspection of the books and records upon which the claim has been based, such inspection to be similar in manner to that provided by RCW 84.40.340, or if the owner or agent does not maintain records within this state, the consent shall apply to the records of a warehouse, person, or agent having custody of the inventory to which the claim applies. Consent to the inspection of the records shall be executed as a part of the claim. The owner, his or her agent, or other person having custody of the inventory referred to herein shall retain within this state, for a period of at least two years from the date of the claim, the records referred to above. If adequate records are not made available to the assessor within the county where the claim is made, then the exemption shall be denied.
[
2013 c 23 s 349
;
1969 ex.s. c 124 s 3
.]
NOTES:
Effective date
—
Savings
—
1969 ex.s. c 124:
See note following RCW 84.36.300
.
RCW 84.36.350
Property owned and used for sheltered workshops for persons with disabilities.
(1) The following property shall be exempt from taxation:
(a) Real or personal property owned and used by a nonprofit corporation in connection with the operation of a sheltered workshop for persons with disabilities, and used primarily in connection with the manufacturing and the handling, sale or distribution of goods constructed, processed, or repaired in such workshops or centers; and
(b) Inventory owned by a sheltered workshop for sale or lease by the sheltered workshop or to be furnished under a contract of service, including raw materials, work in process, and finished products.
(2) Unless a different meaning is plainly required by the context, "sheltered workshop" means a rehabilitation facility, or that part of a rehabilitation facility operated by a nonprofit corporation, where any manufacture or handiwork is carried on and operated for the primary purpose of: (a) Providing gainful employment or rehabilitation services to persons with disabilities as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market or during such time as employment opportunities for them in the competitive labor market do not exist; or (b) providing evaluation and work adjustment services for persons with disabilities.
[
2020 c 274 s 70
;
1999 c 358 s 17
;
1975 1st ex.s. c 3 s 1
;
1970 ex.s. c 81 s 1
.]
NOTES:
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
RCW 84.36.379
Residences
—
Property tax exemption
—
Findings.
The legislature finds that the property tax exemption authorized by Article VII, section 10 of the state Constitution should be made available on the basis of a retired person's ability to pay property taxes and that the best measure of a retired person's ability to pay taxes is that person's disposable income as defined in RCW 84.36.383
. The legislature further finds that veterans with one hundred percent service-connected disabilities have given so much to our country that they deserve property tax relief.
[
2005 c 248 s 1
;
2000 c 103 s 25
;
1980 c 185 s 3
.]
NOTES:
Application
—
2005 c 248:
See note following RCW 84.36.381
.
Applicability
—
1980 c 185:
"Except for the amendment to RCW 84.36.381
(2) by this 1980 act, sections 3 through 5 of this 1980 act are effective for property taxes due in 1982 and thereafter." [
1980 c 185 s 7
.]
RCW 84.36.381
Residences
—
Property tax exemptions
—
Qualifications.
A person is exempt from any legal obligation to pay all or a portion of the amount of excess and regular real property taxes due and payable in the year following the year in which a claim is filed, and thereafter, in accordance with the following:
(1)(a) The property taxes must have been imposed upon a residence which was occupied by the person claiming the exemption as a principal place of residence as of the time of filing. However, any person who sells, transfers, or is displaced from his or her residence may transfer his or her exemption status to a replacement residence, but no claimant may receive an exemption on more than one residence in any year. Moreover, confinement of the person to a hospital, nursing home, assisted living facility, adult family home, or home of a relative for the purpose of long-term care does not disqualify the claim of exemption if:
(i) The residence is temporarily unoccupied;
(ii) The residence is occupied by a spouse or a domestic partner and/or a person financially dependent on the claimant for support; or
(iii) The residence is rented for the purpose of paying nursing home, hospital, assisted living facility, or adult family home costs.
(b) For the purpose of this subsection (1), "relative" means any individual related to the claimant by blood, marriage, or adoption;
(2) The person claiming the exemption must have owned, at the time of filing, in fee, as a life estate, or by contract purchase, the residence on which the property taxes have been imposed or if the person claiming the exemption lives in a cooperative housing association, corporation, or partnership, such person must own a share therein representing the unit or portion of the structure in which he or she resides. For purposes of this subsection, a residence owned by a marital community or state registered domestic partnership or owned by cotenants is deemed to be owned by each spouse or each domestic partner or each cotenant, and any lease for life is deemed a life estate;
(3)(a) The person claiming the exemption must be:
(i) Sixty-one years of age or older on December 31st of the year in which the exemption claim is filed, or must have been, at the time of filing, retired from regular gainful employment by reason of disability; or
(ii) A veteran of the armed forces of the United States entitled to and receiving compensation from the United States department of veterans affairs at:
(A) A combined service-connected evaluation rating of 40 percent or higher; or
(B) A total disability rating for a service-connected disability without regard to evaluation percent.
(b) However, any surviving spouse or surviving domestic partner of a person who was receiving an exemption at the time of the person's death will qualify if the surviving spouse or surviving domestic partner is 57 years of age or older and otherwise meets the requirements of this section;
(4)(a) The amount that the person is exempt from an obligation to pay is calculated on the basis of combined disposable income, as defined in RCW 84.36.383
.
(b) If the person claiming the exemption was retired for two months or more of the assessment year, the combined disposable income of such person must be calculated by multiplying the average monthly combined disposable income of such person during the months such person was retired by 12.
(c) If the income of the person claiming exemption is reduced for two or more months of the assessment year by reason of the death of the person's spouse or the person's domestic partner, or when other substantial changes occur in disposable income that are likely to continue for an indefinite period of time, the combined disposable income of such person must be calculated by multiplying the average monthly combined disposable income of such person after such occurrences by 12.
(d)(i) If the income of the person claiming the exemption increases as a result of a cost-of-living adjustment to social security benefits or supplemental security income in an amount that would disqualify the applicant from eligibility, the applicant is not disqualified but instead maintains eligibility.
(ii) The continued eligibility under this subsection applies to applications for property taxes levied for collection in calendar year 2024.
(e) If it is necessary to estimate income to comply with this subsection (4), the assessor may require confirming documentation of such income prior to May 31st of the year following application;
(5)(a) A person who otherwise qualifies under this section and has a combined disposable income equal to or less than income threshold 3 is exempt from all excess property taxes, the additional state property tax imposed under RCW 84.52.065
(2), and the portion of the regular property taxes authorized pursuant to RCW 84.55.050
and approved by the voters, if the legislative authority of the county or city imposing the additional regular property taxes identified this exemption in the ordinance placing the RCW 84.55.050
measure on the ballot; and
(b)(i) A person who otherwise qualifies under this section and has a combined disposable income equal to or less than income threshold 2 but greater than income threshold 1 is exempt from all regular property taxes on the greater of $50,000 or 35 percent of the valuation of his or her residence, but not to exceed $70,000 of the valuation of his or her residence; or
(ii) A person who otherwise qualifies under this section and has a combined disposable income equal to or less than income threshold 1 is exempt from all regular property taxes on the greater of $60,000 or 60 percent of the valuation of his or her residence;
(6)(a) For a person who otherwise qualifies under this section and has a combined disposable income equal to or less than income threshold 3, the valuation of the residence is the assessed value of the residence on the later of January 1, 1995, or January 1st of the assessment year the person first qualifies under this section. If the person subsequently fails to qualify under this section only for one year because of high income, this same valuation must be used upon requalification. If the person fails to qualify for more than one year in succession because of high income or fails to qualify for any other reason, the valuation upon requalification is the assessed value on January 1st of the assessment year in which the person requalifies. If the person transfers the exemption under this section to a different residence, the valuation of the different residence is the assessed value of the different residence on January 1st of the assessment year in which the person transfers the exemption.
(b) In no event may the valuation under this subsection be greater than the true and fair value of the residence on January 1st of the assessment year.
(c) This subsection does not apply to subsequent improvements to the property in the year in which the improvements are made. Subsequent improvements to the property must be added to the value otherwise determined under this subsection at their true and fair value in the year in which they are made.
[
2025 c 200 s 1
;
2023 c 147 s 1
;
2019 c 453 s 1
;
2018 c 46 s 2
;
2017 3rd sp.s. c 13 s 311
;
2015 3rd sp.s. c 30 s 2
;
2012 c 10 s 73
;
2011 c 174 s 105
;
2010 c 106 s 306
;
2008 c 6 s 706
;
2005 c 248 s 2
;
2004 c 270 s 1
;
1998 c 333 s 1
;
1996 c 146 s 1
;
1995 1st sp.s. c 8 s 1
;
1994 sp.s. c 8 s 1
;
1993 c 178 s 1
;
1992 c 187 s 1
. Prior:
1991 c 213 s 3
;
1991 c 203 s 1
;
1987 c 301 s 1
;
1983 1st ex.s. c 11 s 5
;
1983 1st ex.s. c 11 s 2
;
1980 c 185 s 4
;
1979 ex.s. c 214 s 1
;
1977 ex.s. c 268 s 1
;
1975 1st ex.s. c 291 s 14
;
1974 ex.s. c 182 s 1
.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2025 c 200:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2025 c 200 s 2
.]
Application
—
2025 c 200:
"This act applies to taxes levied for collection in 2027 and thereafter." [
2025 c 200 s 3
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 147:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2023 c 147 s 6
.]
Application
—
2019 c 453:
"This act applies for taxes levied for collection in 2020 and thereafter." [
2019 c 453 s 9
.]
Automatic expiration date and tax preference performance statement exemption
—
2019 c 453:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2019 c 453 s 10
.]
Intent
—
2018 c 46:
"It is the intent of the legislature that the property tax exemption for the owner-occupied residences of low-income seniors, disabled veterans, and other people who are disabled applies to any additional local regular property taxes imposed by a city or county that has also approved such an action by identifying the tax exemption in the ballot measure placed before the voters." [
2018 c 46 s 1
.]
Application
—
Tax preference performance statement and expiration
—
2017 3rd sp.s. c 13 ss 301-314:
See notes following RCW 84.52.065
.
Intent
—
2017 3rd sp.s. c 13:
See note following RCW 28A.150.410
.
Collective bargaining agreements not impaired
—
2017 3rd sp.s. c 13:
See note following RCW 41.56.139
.
Tax preference performance statement
—
2017 c 323; 2015 3rd sp.s. c 30:
"This section is the tax preference performance statement for the tax preference contained in section 2, chapter 30, Laws of 2015 3rd sp. sess. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(2) It is the legislature's specific public policy objective to provide tax relief to senior citizens, disabled persons, and veterans. The legislature recognizes that property taxes impose a substantial financial burden on those with fixed incomes and that property tax relief programs have considerable value in addressing this burden. It is the legislature's intent to increase the current statutory static income thresholds which were last modified in 2004.
(3) This tax preference is meant to be permanent and, therefore, not subject to the ten-year expiration provision in RCW 82.32.805
(1)(a)." [
2017 c 323 s 304
;
2015 3rd sp.s. c 30 s 1
.]
Application
—
2015 3rd sp.s. c 30:
"This act applies to taxes levied for collection in 2016 and thereafter." [
2015 3rd sp.s. c 30 s 4
.]
Application
—
2012 c 10:
See note following RCW 18.20.010
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Part headings not law
—
Severability
—
2008 c 6:
See RCW 26.60.900
and
26.60.901
.
Application
—
2005 c 248:
"This act applies to taxes levied for collection in 2006 and thereafter." [
2005 c 248 s 3
.]
Application
—
1998 c 333:
"This act applies to taxes levied for collection in 1999 and thereafter." [
1998 c 333 s 4
.]
Effective date
—
1996 c 146:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [March 25, 1996]." [
1996 c 146 s 2
.]
Effective date of 1994 sp.s. c 8
—
Applicability
—
1995 1st sp.s. c 8:
"Chapter 8, Laws of 1994 sp. sess. shall take effect July 1, 1995, and shall be effective for taxes levied in 1995 for collection in 1996 and thereafter." [
1995 1st sp.s. c 8 s 6
.]
Application
—
1995 1st sp.s. c 8:
"This act shall apply to taxes levied in 1995 for collection in 1996 and thereafter." [
1995 1st sp.s. c 8 s 7
.]
Severability
—
1995 1st sp.s. c 8:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1995 1st sp.s. c 8 s 8
.]
Effective date
—
1995 1st sp.s. c 8:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995." [
1995 1st sp.s. c 8 s 9
.]
Applicability
—
1993 c 178:
"This act shall be effective for taxes levied for collection in 1993 and thereafter." [
1993 c 178 s 2
.]
Effective date
—
1993 c 178:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately [April 30, 1993]." [
1993 c 178 s 3
.]
Applicability
—
1992 c 187:
"Section 1 of this act shall be effective for taxes levied for collection in 1992 and thereafter." [
1992 c 187 s 2
.]
Applicability
—
1991 c 213:
See note following RCW 84.38.020
.
Applicability
—
1991 c 203:
"Section 1 of this act shall be effective for taxes levied for collection in 1992 and thereafter." [
1991 c 203 s 5
.]
Applicability
—
1987 c 301:
"This act shall be effective for taxes levied for collection in 1989 and thereafter." [
1987 c 301 s 2
.]
Intent
—
1983 1st ex.s. c 11:
"The legislature finds that inflation has significant detrimental effects on the senior citizen property tax relief program. Inflation increases incomes without increasing real buying power. Inflation also raises the values of homes, and thus the taxes on those homes. This act addresses the problem of inflation in two ways. First, the assessed value exemption is tied to home value so it will increase as values rise. Secondly, though the income of most senior citizens does not keep pace with inflation, it is the legislature's intent that inflationary increases in incomes will not result in program disqualification. Therefore, the income levels are adjusted to reflect the forecasted increase in inflation. The legislature also recommends that similar adjustments be examined by future legislatures." [
1983 1st ex.s. c 11 s 1
.]
Applicability
—
1983 1st ex.s. c 11:
"This act applies to taxes first due in 1984 and thereafter." [
1983 1st ex.s. c 11 s 7
.]
Effective dates
—
1983 1st ex.s. c 11:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately [May 11, 1983], except sections 5 and 6 of this act shall take effect January 1, 1984." [
1983 1st ex.s. c 11 s 8
.]
Applicability
—
1980 c 185:
See note following RCW 84.36.379
.
Applicability
—
1979 ex.s. c 214:
"The exemption created by sections 1 through 4 of this act shall be effective starting with property taxes levied in calendar year 1979 for collection in calendar year 1980. The former exemption created by the law amended shall continue to be effective with respect to property taxes levied in calendar year 1978 for collection in calendar year 1979." [
1979 ex.s. c 214 s 10
.]
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Severability
—
1974 ex.s. c 182:
"If any provision of this 1974 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [
1974 ex.s. c 182 s 8
.]
RCW 84.36.383
Residences
—
Definitions.
As used in RCW 84.36.381
through
84.36.389, unless the context clearly requires otherwise:
(1) "Accessory dwelling unit" means a separate, autonomous residential dwelling unit that provides complete independent living facilities for one or more persons and includes permanent provisions for living, sleeping, eating, cooking, and sanitation.
(2) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse or domestic partner, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse or domestic partner during the assessment year for:
(a) Drugs supplied by prescription of a medical practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions;
(b) The treatment or care of either person received in the home or in a nursing home, assisted living facility, or adult family home;
(c) Health care insurance premiums for medicare under Title XVIII of the social security act;
(d) Costs related to medicare supplemental policies as defined in Title 42 U.S.C. Sec. 1395ss;
(e) Durable medical equipment, mobility enhancing equipment, medically prescribed oxygen, and prosthetic devices as defined in RCW 82.08.0283
;
(f) Long-term care insurance as defined in RCW 48.84.020
;
(g) Cost-sharing amounts as defined in RCW 48.43.005
;
(h) Nebulizers as defined in RCW 82.08.803
;
(i) Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter
18.36A
RCW;
(j) Ostomic items as defined in RCW 82.08.804
;
(k) Insulin for human use;
(l) Kidney dialysis devices; and
(m) Disposable devices used to deliver drugs for human use as defined in RCW 82.08.935
.
(3) "Cotenant" means a person who resides with the person claiming the exemption and who has an ownership interest in the residence.
(4) "County median household income" means the median household income estimates for the state of Washington by county of the legal address of the principal place of residence, as published by the office of financial management.
(5) "Department" means the state department of revenue.
(6) "Disability" has the same meaning as provided in 42 U.S.C. Sec. 423(d)(1)(A) as amended prior to January 1, 2005, or such subsequent date as the department may provide by rule consistent with the purpose of this section.
(7) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:
(a) Capital gains, other than gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;
(b) Amounts deducted for loss;
(c) Amounts deducted for depreciation;
(d) Pension and annuity receipts;
(e) Military pay and benefits other than attendant-care and medical-aid payments;
(f) Veterans benefits, other than:
(i) Attendant-care payments;
(ii) Medical-aid payments;
(iii) Disability compensation, as defined in Title 38, part 3, section 3.4 of the Code of Federal Regulations, as of January 1, 2008; and
(iv) Dependency and indemnity compensation, as defined in Title 38, part 3, section 3.5 of the Code of Federal Regulations, as of January 1, 2008;
(g) Federal social security act and railroad retirement benefits;
(h) Dividend receipts; and
(i) Interest received on state and municipal bonds.
(8) "Income threshold 1" means:
(a) For taxes levied for collection in calendar years prior to 2020, a combined disposable income equal to $30,000;
(b) For taxes levied for collection in calendar years 2020 through 2023, a combined disposable income equal to the greater of "income threshold 1" for the previous year or 45 percent of the county median household income; and
(c) For taxes levied for collection in calendar year 2024 and thereafter, a combined disposable income equal to the greater of "income threshold 1" for the previous year or 50 percent of the county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385
(8).
(9) "Income threshold 2" means:
(a) For taxes levied for collection in calendar years prior to 2020, a combined disposable income equal to $35,000;
(b) For taxes levied for collection in calendar years 2020 through 2023, a combined disposable income equal to the greater of "income threshold 2" for the previous year or 55 percent of the county median household income; and
(c) For taxes levied for collection in calendar year 2024 and thereafter, a combined disposable income equal to the greater of "income threshold 2" for the previous year or 60 percent of the county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385
(8).
(10) "Income threshold 3" means:
(a) For taxes levied for collection in calendar years prior to 2020, a combined disposable income equal to $40,000;
(b) For taxes levied for collection in calendar years 2020 through 2023, a combined disposable income equal to the greater of "income threshold 3" for the previous year or 65 percent of the county median household income; and
(c) For taxes levied for collection in calendar year 2024 and thereafter, a combined disposable income equal to the greater of "income threshold 3" for the previous year or 70 percent of the county median household income, adjusted every three years beginning August 1, 2023, as provided in RCW 84.36.385
(8).
(11) "Principal place of residence" means a residence occupied for more than six months each calendar year by a person claiming an exemption under RCW 84.36.381
.
(12) The term "real property" also includes a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe, connections with sewer, water, or other utilities. A mobile home located on land leased by the owner of the mobile home is subject, for tax billing, payment, and collection purposes, only to the personal property provisions of chapter
84.56
RCW and RCW 84.60.040
.
(13) The term "residence" means a single-family dwelling unit whether such unit be separate or part of a multiunit dwelling, may include one accessory dwelling unit and includes the land on which such dwellings stand not to exceed one acre, except that a residence includes any additional property up to a total of five acres that comprises the residential parcel if this larger parcel size is required under land use regulations. The term also includes a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides. The term also includes a single-family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080
and
84.04.090, such a residence is deemed real property.
[
2024 c 119 s 1
;
2023 c 147 s 2
;
2021 c 220 s 1
. Prior:
2020 c 209 s 3
;
2019 c 453 s 2
;
2012 c 10 s 74
;
2010 c 106 s 307
; prior:
2008 c 182 s 1
;
2008 c 6 s 709
;
2006 c 62 s 1
;
2004 c 270 s 2
;
1999 c 358 s 18
;
1995 1st sp.s. c 8 s 2
;
1994 sp.s. c 8 s 2
;
1991 c 213 s 4
;
1991 c 219 s 1
;
1989 c 379 s 6
;
1987 c 155 s 2
;
1985 c 395 s 3
;
1983 1st ex.s. c 11 s 4
;
1980 c 185 s 5
;
1979 ex.s. c 214 s 2
;
1975 1st ex.s. c 291 s 15
;
1974 ex.s. c 182 s 2
.]
NOTES:
Application
—
2024 c 119:
"This act applies to taxes levied for collection in 2025 and thereafter." [
2024 c 119 s 2
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2024 c 119:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2024 c 119 s 3
.]
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 147:
See note following RCW 84.36.381
.
Automatic expiration date and tax preference performance statement exemption
—
2021 c 220:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act. The legislature intends for this tax preference and its expansion to be permanent." [
2021 c 220 s 2
.]
Automatic expiration date and tax preference performance statement exemption
—
2020 c 209:
See note following RCW 84.36.387
.
Application
—
Automatic expiration date and tax preference performance statement exemption
—
2019 c 453:
See notes following RCW 84.36.381
.
Application
—
2012 c 10:
See note following RCW 18.20.010
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Application
—
2008 c 182:
"This act applies to taxes levied for collection in 2009 and thereafter." [
2008 c 182 s 2
.]
Part headings not law
—
Severability
—
2008 c 6:
See RCW 26.60.900
and
26.60.901
.
Application
—
2006 c 62:
"This act applies to taxes levied for collection in 2007 and thereafter." [
2006 c 62 s 4
.]
Effective date
—
1999 c 358 ss 1 and 3-21:
See note following RCW 82.04.3651
.
Effective date of 1994 sp.s. c 8
—
Applicability
—
1995 1st sp.s. c 8:
See note following RCW 84.36.381
.
Application
—
Severability
—
Effective date
—
1995 1st sp.s. c 8:
See notes following RCW 84.36.381
.
Applicability
—
1991 c 219:
"This act is effective for taxes levied for collection in 1992 and thereafter." [
1991 c 219 s 2
.]
Applicability
—
1991 c 213:
See note following RCW 84.38.020
.
Severability
—
Effective date
—
1989 c 379:
See notes following RCW 84.36.040
.
Intent
—
Applicability
—
Effective dates
—
1983 1st ex.s. c 11:
See notes following RCW 84.36.381
.
Applicability
—
1980 c 185:
See note following RCW 84.36.379
.
Applicability
—
1979 ex.s. c 214:
See note following RCW 84.36.381
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 84.36.385
Residences
—
Claim for exemption
—
Forms
—
Change of status
—
Publication and notice of qualifications and manner of making claims.
(1) A claim for exemption under RCW 84.36.381
as now or hereafter amended, may be made and filed at any time during the year for exemption from taxes payable the following year and thereafter and solely upon forms as prescribed and furnished by the department of revenue. However, an exemption from tax under RCW 84.36.381
continues for no more than six years unless a renewal application is filed as provided in subsection (3) of this section.
(2) A person granted an exemption under RCW 84.36.381
must inform the county assessor of any change in status affecting the person's entitlement to the exemption on forms prescribed and furnished by the department of revenue.
(3) Each person exempt from taxes under RCW 84.36.381
in 1993 and thereafter must file with the county assessor a renewal application not later than December 31st of the year the assessor notifies such person of the requirement to file the renewal application. Renewal applications must be on forms prescribed and furnished by the department of revenue.
(4) At least once every six years, the county assessor must notify those persons receiving an exemption from taxes under RCW 84.36.381
of the requirement to file a renewal application. The county assessor may also require a renewal application following an amendment of the income requirements set forth in RCW 84.36.381
.
(5) If the assessor finds that the applicant does not meet the qualifications as set forth in RCW 84.36.381, as now or hereafter amended, the claim or exemption must be denied but such denial is subject to appeal under the provisions of RCW 84.48.010
and in accordance with the provisions of RCW 84.40.038
. If the applicant had received exemption in prior years based on erroneous information, the taxes must be collected subject to penalties as provided in RCW 84.40.130
for a period of not to exceed five years.
(6) The department and each local assessor is hereby directed to publicize the qualifications and manner of making claims under RCW 84.36.381
through
84.36.389, through communications media, including such paid advertisements or notices as it deems appropriate. Notice of the qualifications, method of making applications, the penalties for not reporting a change in status, and availability of further information must be included on or with property tax statements and revaluation notices for all residential property including mobile homes, except rental properties.
(7) The department must authorize an option for electronic filing of applications and renewal applications for the exemption under RCW 84.36.381
.
(8) Beginning August 1, 2023, and by March 1st every third year thereafter, the department must publish updated income thresholds. The adjusted thresholds must be rounded up to the nearest one thousand dollars. If the income threshold adjustment is negative, the income threshold for the prior year continues to apply. The department must adjust income thresholds for each county to reflect the most recent year available of estimated county median household incomes, including preliminary estimates or projections, as published by the office of financial management. For the purposes of this subsection, "county median household income" has the same meaning as provided in RCW 84.36.383
.
(9) Beginning with the adjustment made by August 1, 2023, as provided in subsection (8) of this section, and every adjustment thereafter, if an income threshold in a county is not adjusted based on percentage of county median income, then the income threshold must be adjusted based on the growth of the seasonally adjusted consumer price index for all urban consumers (CPI-U) for the prior twelve month period as published by the United States bureau of labor statistics. In no case may the adjustment be greater than one percent. The adjusted thresholds must be rounded to the nearest one dollar. If the income threshold adjustment is negative, the income threshold for the prior year continues to apply.
[
2023 c 147 s 3
;
2021 c 145 s 24
;
2020 c 209 s 2
;
2019 c 453 s 3
;
2011 c 174 s 106
;
2010 c 106 s 308
;
2001 c 185 s 8
;
1992 c 206 s 13
;
1988 c 222 s 10
;
1983 1st ex.s. c 11 s 6
;
1983 1st ex.s. c 11 s 3
;
1979 ex.s. c 214 s 3
;
1977 ex.s. c 268 s 2
;
1974 ex.s. c 182 s 3
.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 147:
See note following RCW 84.36.381
.
Automatic expiration date and tax preference performance statement exemption
—
2020 c 209:
See note following RCW 84.36.387
.
Application
—
Automatic expiration date and tax preference performance statement exemption
—
2019 c 453:
See notes following RCW 84.36.381
.
Effective date
—
2010 c 106:
See note following RCW 35.102.145
.
Application
—
2001 c 185 ss 1-12:
See note following RCW 84.14.110
.
Effective date
—
1992 c 206:
See note following RCW 82.04.170
.
Intent
—
Applicability
—
Effective dates
—
1983 1st ex.s. c 11:
See notes following RCW 84.36.381
.
Applicability
—
1979 ex.s. c 214:
See note following RCW 84.36.381
.
RCW 84.36.387
Residences
—
Claimants
—
Penalty for falsification
—
Reduction by remainderman.
(1) Except as provided in subsection (3) of this section, all claims for exemption shall be made and signed under oath by the person entitled to the exemption, by his or her attorney-in-fact or in the event the residence of such person is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by such holder or by the owner: PROVIDED, That if a claim for exemption is made by a person living in a cooperative housing association, corporation, or partnership, such claim shall be made and signed by the person entitled to the exemption and by the authorized agent of such cooperative.
(2) If the taxpayer is unable to submit his or her own claim, the claim shall be submitted by a duly authorized agent or by a guardian or other person charged with the care of the person or property of such taxpayer.
(3) All claims for exemption and renewal applications shall be accompanied by such documented verification of income as shall be prescribed by rule adopted by the department of revenue.
(4) Any person signing a false claim with the intent to defraud or evade the payment of any tax is guilty of perjury under chapter
9A.72
RCW.
(5) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption to which a claimant residing therein is entitled and such cooperative shall reduce any amount owed by the claimant to the cooperative by such exact amount of tax exemption or, if no amount be owed, the cooperative shall make payment to the claimant of such exact amount of exemption.
(6) A remainderman or other person who would have otherwise paid the tax on real property that is the subject of an exemption granted under RCW 84.36.381
for an estate for life shall reduce the amount which would have been payable by the life tenant to the remainderman or other person to the extent of the exemption. If no amount is owed or separately stated as an obligation between these persons, the remainderman or other person shall make payment to the life tenant in the exact amount of the exemption.
[
2020 c 209 s 1
;
2003 c 53 s 408
;
1992 c 206 s 14
;
1980 c 185 s 6
;
1975 1st ex.s. c 291 s 16
;
1974 ex.s. c 182 s 4
.]
NOTES:
Automatic expiration date and tax preference performance statement exemption
—
2020 c 209:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2020 c 209 s 4
.]
Intent
—
Effective date
—
2003 c 53:
See notes following RCW 2.48.180
.
Effective date
—
1992 c 206:
See note following RCW 82.04.170
.
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 84.36.389
Residences
—
Rules and regulations
—
Audits
—
Confidentiality
—
Criminal penalty.
(1) The director of the department of revenue shall adopt such rules and regulations and prescribe such forms as may be necessary and appropriate for implementation and administration of this chapter subject to chapter
34.05
RCW, the administrative procedure act.
(2) The department may conduct such audits of the administration of RCW 84.36.381
through
84.36.389
and the claims for exemption filed thereunder as it considers necessary. The powers of the department under chapter
84.08
RCW apply to these audits.
(3) Any information or facts concerning confidential income data obtained by the assessor or the department, or their agents or employees, under subsection (2) of this section shall be used only to administer RCW 84.36.381
through
84.36.389
. Notwithstanding any provision of law to the contrary, absent written consent by the person about whom the information or facts have been obtained, the confidential income data shall not be disclosed by the assessor or the assessor's agents or employees to anyone other than the department or the department's agents or employees nor by the department or the department's agents or employees to anyone other than the assessor or the assessor's agents or employees except in a judicial proceeding pertaining to the taxpayer's entitlement to the tax exemption under RCW 84.36.381
through
84.36.389
. Any violation of this subsection is a misdemeanor.
[
1979 ex.s. c 214 s 4
;
1974 ex.s. c 182 s 5
.]
NOTES:
Applicability
—
1979 ex.s. c 214:
See note following RCW 84.36.381
.
RCW 84.36.400
Improvements to single-family dwellings
—
Accessory dwelling units rented to low-income households in certain counties.
(Effective until January 1, 2034.)
(1) Any physical improvement to single-family dwellings upon real property, including constructing an accessory dwelling unit, whether attached to or within the single-family dwelling or as a detached unit on the same real property, shall be exempt from taxation for the three assessment years subsequent to the completion of the improvement to the extent that the improvement represents 30 percent or less of the value of the original structure. A taxpayer desiring to obtain the exemption granted by this section must file notice of his or her intention to construct the improvement prior to the improvement being made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor. The exemption in this subsection cannot be claimed more than once in a five-year period.
The department of revenue shall promulgate such rules and regulations as are necessary and convenient to properly administer the provisions of this subsection (1).
(2)(a) A county legislative authority for a county with a population of 1,500,000 or more or a city or county legislative authority located in a county with a population of at least 900,000 but not more than 1,500,000 may exempt from taxation the value of an accessory dwelling unit if the following conditions are met:
(i) The improvement represents 30 percent or less of the value of the original structure;
(ii) The taxpayer demonstrates that the unit is maintained as a rental property for low-income households by submitting an affidavit stating the tenant's income and a document that demonstrates the tenant's income. For the purposes of this subsection, "low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 60 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development;
(iii) The taxpayer files notice of the taxpayer's intention to participate in the exemption program on forms prescribed by and furnished to the taxpayer by the county assessor, including verification of the tenant's income through an affidavit as described in (a)(ii) of this subsection (2), and a copy of a lease that is at least 12 months in duration and includes the rent rate;
(iv) Rent charged to a tenant does not exceed more than 30 percent of the tenant's monthly income;
(v) The accessory dwelling unit is not occupied by an immediate family member of the taxpayer. For purposes of this subsection (2)(a), "immediate family" means any person under age sixty that is a state registered domestic partner, spouse, parents, grandparents, children, including foster children, siblings, and in-laws; and
(vi) If located in a county with a population of at least 900,000 but not more than 1,500,000, the city legislative authority or the county legislative authority passes a resolution authorizing the exemption to be offered within the geographic boundaries of the city or county. The resolution must outline the process whereby the enacting legislative authority will provide the county assessor with information to verify that both the low-income household and the taxpayer are in compliance with the requirements of this subsection (2).
(b) An exemption granted under this subsection (2) must be applied for annually but may continue for as long as the exempted accessory dwelling unit is leased to a low-income household.
(c) A county legislative authority with a population greater than 1,500,000 that has opted to exempt accessory dwelling units under this subsection (2) may:
(i) Allow the exemption for dwelling units that are attached to or within a single-family dwelling or are detached units on the same real property, or both;
(ii) Collect a fee from the taxpayer to cover the costs of administering this subsection (2);
(iii) Designate administrative officials or agents that will verify that both the low-income household and the taxpayer are in compliance with the requirements of this subsection (2). The designated official or agent may not be the county assessor but may include housing authorities or other qualified organizations as determined by the county legislative authority; and
(iv) Determine what property tax and penalties will be due, if any, in the case of a finding of noncompliance by a taxpayer.
(d) If located in a county with a population of at least 900,000 but not more than 1,500,000, the following applies:
(i) The exemption must only apply to detached units on the same real property.
(ii) The assessor may collect a fee from the taxpayer in an amount necessary to cover the costs of administering this section.
(iii) The assessor may determine what property tax and penalties will be due, if any, in the case that the enacting legislative authority finds noncompliance by a taxpayer.
(e) A legislative authority that has opted to exempt accessory dwelling units under this subsection (2) shall establish policies to assist and support tenants upon expiration of an exemption granted under this subsection (2), such as providing information on services available at the time of expiration.
[
2025 c 207 s 1
;
2023 c 335 s 1
;
2020 c 204 s 1
;
2013 c 23 s 350
;
1972 ex.s. c 125 s 3
.]
NOTES:
Tax preference performance statement
—
2025 c 207 s 1
; 2023 c 335 s 1:
"(1) This section is the tax preference performance statement for the tax preferences contained in section 1, chapter 335, Laws of 2023 and section 1, chapter 207, Laws of 2025. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as:
(a) Ones intended to induce certain designated behavior by taxpayers as indicated in RCW 82.32.808
(2)(a); and
(b) For a general purpose not identified in RCW 82.32.808
(2) (a) through (e) as indicated in RCW 82.32.808
(2)(f) and further described in subsection (3) of this section.
(3) It is the legislature's specific public policy objective to encourage homeowners to rent accessory dwelling units to low-income households and increase the overall availability of affordable housing.
(4)(a) The joint legislative audit and review committee must review the tax preferences under section 1, chapter 335, Laws of 2023 and section 1, chapter 207, Laws of 2025 as they apply specifically to the property tax exemption for accessory dwelling units and complete a final report by December 1, 2027. The review must include, at a minimum, the following components:
(i) Costs and benefits associated with exempting from taxation the value of an accessory dwelling unit. This component of the analysis must, at a minimum, assess the costs and benefits of changes in the following metrics since the start of the program:
(A) The number of taxpayers filing notice to participate in the exemption program;
(B) The number of units exempt from property tax under the program, including the extent to which those units are attached or within a single-family dwelling or are detached units; and
(C) A summary of any fees or costs to administer the program;
(ii) An evaluation of the information calculated and provided by the department under RCW 36.70A.070
(2)(a);
(iii) A summary of the estimated total statewide costs and benefits attributable to exempting from taxation the value of an accessory dwelling unit, including administrative costs and costs to monitor compliance; and
(iv) An evaluation of the impacts of the program on low-income households.
(b) If the review finds that a county with a population greater than 1,500,000 or a city or county legislative authority located in a county with a population of at least 900,000 but not more than 1,500,000 offers this exemption and the exemption increases the amount of accessory dwelling units rented to low-income households, then the legislature intends to extend the expiration date of these tax preferences.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state." [
2025 c 207 s 2
;
2023 c 335 s 2
.]
Expiration date
—
2025 c 207:
"This act expires January 1, 2034." [
2025 c 207 s 3
.]
Application
—
2025 c 207:
"Section 1 of this act applies to taxes levied for collection in 2026 and thereafter." [
2025 c 207 s 4
.]
Expiration date
—
2023 c 335:
"This act expires January 1, 2034." [
2023 c 335 s 3
.]
Application
—
2023 c 335:
"This act applies to taxes levied for collection in 2024 and thereafter." [
2023 c 335 s 4
.]
Application
—
2020 c 204:
"This act applies to taxes levied for collection in 2021 and thereafter." [
2020 c 204 s 2
.]
Automatic expiration date and tax preference performance statement exemption
—
2020 c 204:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2020 c 204 s 3
.]
Report to legislature
—
2020 c 204:
"The department of revenue must work with county assessors to review and evaluate the three year property tax exemption for home improvements to determine its effectiveness in encouraging homeowners to upgrade their residences, while avoiding the sudden and potentially large increases in assessed value and property tax which can otherwise occur. The review shall include an analysis of the types of properties and the value of exempt improvements by geographic area to develop a better demographic and geographic understanding of the home improvement property tax exemption and the locations and types of communities where the homes are located. The department of revenue must report their findings to the appropriate committees of the legislature by November 15, 2020." [
2020 c 204 s 4
.]
Severability
—
1972 ex.s. c 125:
See note following RCW 84.40.045
.
PDF
RCW 84.36.400
Improvements to single-family dwellings.
(Effective January 1, 2034.)
Any physical improvement to single-family dwellings upon real property, including constructing an accessory dwelling unit, whether attached to or within the single-family dwelling or as a detached unit on the same real property, shall be exempt from taxation for the three assessment years subsequent to the completion of the improvement to the extent that the improvement represents thirty percent or less of the value of the original structure. A taxpayer desiring to obtain the exemption granted by this section must file notice of his or her intention to construct the improvement prior to the improvement being made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor: PROVIDED, That this exemption cannot be claimed more than once in a five-year period.
The department of revenue shall promulgate such rules and regulations as are necessary and convenient to properly administer the provisions of this section.
[
2020 c 204 s 1
;
2013 c 23 s 350
;
1972 ex.s. c 125 s 3
.]
NOTES:
Application
—
2020 c 204:
"This act applies to taxes levied for collection in 2021 and thereafter." [
2020 c 204 s 2
.]
Automatic expiration date and tax preference performance statement exemption
—
2020 c 204:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2020 c 204 s 3
.]
Report to legislature
—
2020 c 204:
"The department of revenue must work with county assessors to review and evaluate the three year property tax exemption for home improvements to determine its effectiveness in encouraging homeowners to upgrade their residences, while avoiding the sudden and potentially large increases in assessed value and property tax which can otherwise occur. The review shall include an analysis of the types of properties and the value of exempt improvements by geographic area to develop a better demographic and geographic understanding of the home improvement property tax exemption and the locations and types of communities where the homes are located. The department of revenue must report their findings to the appropriate committees of the legislature by November 15, 2020." [
2020 c 204 s 4
.]
Severability
—
1972 ex.s. c 125:
See note following RCW 84.40.045
.
RCW 84.36.451
Right to occupy or use certain public property, including leasehold interests.
(1) The following property is exempt from taxation: Any and all rights to occupy or use any real or personal property owned in fee or held in trust by:
(a) The United States, the state of Washington, or any political subdivision or municipal corporation of the state of Washington, or a federally recognized Indian tribe for property exempt under RCW 84.36.010
; or
(b) A public corporation, commission, or authority created under RCW 35.21.730
or
35.21.660
if the property is listed on or is within a district listed on any federal or state register of historical sites; and
(c) Any leasehold interest arising from the property identified in (a) and (b) of this subsection as defined in RCW 82.29A.020
.
(2) The exemption under this section does not apply to:
(a) Any such leasehold interests which are a part of operating properties of public utilities subject to assessment under chapter
84.12
RCW; or
(b) Any such leasehold interest consisting of three thousand or more residential and recreational lots that are or may be subleased for residential and recreational purposes.
(3) The exemption under this section may not be construed to modify the provisions of RCW 84.40.230
.
[
2014 c 207 s 6
;
2001 c 26 s 2
;
1979 ex.s. c 196 s 10
; 1975-'76 2nd ex.s. c 61 s 14.]
NOTES:
Application
—
2014 c 207:
See note following RCW 84.36.010
.
Application
—
2001 c 26 ss 2 and 3:
See note following RCW 84.40.410
.
Effective date
—
1979 ex.s. c 196:
See note following RCW 82.04.240
.
Leasehold excise tax: Chapter
82.29A
RCW.
RCW 84.36.470
Agricultural products
—
Exemption.
The following property shall be exempt from taxation: Any agricultural product as defined in RCW 82.04.213
and grown or produced for sale by any person upon the person's own lands or upon lands in which the person has a present right of possession. Taxpayers shall not be required to report, or assessors to list, the inventories covered by this exemption.
[
1997 c 156 s 6
;
1989 c 378 s 12
;
1975 1st ex.s. c 291 s 17
;
1974 ex.s. c 169 s 8
.]
NOTES:
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
Legislative intent
—
Review
—
Reports
—
1974 ex.s. c 169:
"This 1974 act is intended to stimulate the economy of the state, and thereby to increase the revenues of the state and its local taxing districts. The department of revenue shall review the impact of this 1974 act upon the economy and revenues of the state and its local taxing districts, and shall report thereon biennially to the legislature. Recommendations for additional legislation shall be included in such reports if such legislation is needed to assure that the economic stimulus provided by this 1974 act is balanced by increased revenues." [
1974 ex.s. c 169 s 1
.]
Severability
—
1974 ex.s. c 169:
"If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [
1974 ex.s. c 169 s 10
.]
Effective date
—
1974 ex.s. c 169:
"This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect on May 10, 1974." [
1974 ex.s. c 169 s 11
.]
Powers of department of revenue to promulgate rules and prescribe procedures to carry out this section: RCW 84.40.405
.
RCW 84.36.477
Business inventories.
(1) Business inventories are exempt from property taxation.
(2) As used in this section:
(a)(i) "Business inventories" means all livestock, inventories of finished goods and work in process, and personal property not under lease or rental, acquired, or produced solely for the purpose of sale or lease or for the purpose of consuming the property in producing for sale or lease a new article of tangible personal property of which the property becomes an ingredient or component.
(ii) "Business inventories" also includes:
(A) All grains and flour, fruit and fruit products, unprocessed timber, vegetables and vegetable products, and fish and fish products, while being transported to or held in storage in a public or private warehouse or storage area if actually shipped to points outside the state on or before April 30th of the first year for which they would otherwise be taxable;
(B) All finished plywood, hardboard, and particleboard panels shipped from outside this state to any processing plant within this state, if the panels are moving under a through freight rate to final destination outside this state and the carrier grants the shipper the privilege of stopping the shipment in transit for the purpose of storing, milling, manufacturing, or other processing, while the panels are in the process of being treated or shaped into flat component parts to be incorporated into finished products outside this state and for thirty days after completion of the processing or treatment;
(C) All ore or metal shipped from outside this state to any smelter or refining works within this state, while in process of reduction or refinement and for thirty days after completion of the reduction or refinement; and
(D) All metals refined by electrolytic process into cathode or bar form while in this form and held under negotiable warehouse receipt in a public or private warehouse recognized by an established incorporated commodity exchange and for sale through the exchange.
(iii) "Business inventories" does not include personal property acquired or produced for the purpose of lease or rental if the property was leased or rented at any time during the calendar year immediately preceding the year of assessment and was not thereafter remanufactured, nor does it include property held within the normal course of business for lease or rental for periods of less than thirty days.
(iv) "Business inventories" does not include agricultural or horticultural property fully or partially exempt under RCW 84.36.470
.
(v) "Business inventories" does not include timber that is standing on public land and that is sold under a contract entered into after August 1, 1982;
(b) "Fish and fish products" means all fish and fish products suitable and designed for human consumption, excluding all others;
(c) "Fruit and fruit products" means all raw edible fruits, berries, and hops and all processed products of fruits, berries, or hops, suitable and designed for human consumption, while in the hands of the first processor;
(d) "Processed" means canning, barreling, bottling, preserving, refining, freezing, packing, milling, or any other method employed to keep any grain, fruit, vegetable, or fish in an edible condition or to put it into more suitable or convenient form for consuming, storing, shipping, or marketing;
(e) "Remanufactured" means the restoration of property to essentially its original condition, but does not mean normal maintenance or repairs; and
(f) "Vegetables and vegetable products" means all raw edible vegetables such as peas, beans, beets, sugar beets, and other vegetables, and all processed products of vegetables, suitable and designed for human consumption, while in the hands of the first processor.
[
2001 c 187 s 15
;
1983 1st ex.s. c 62 s 6
.]
NOTES:
Short title
—
Intent
—
1983 1st ex.s. c 62:
"(1) This act shall be known as the homeowner's property tax relief act of 1983.
(2) The intent of the inventory tax phaseout was to stimulate the economy of the state and to increase the revenues of the state and local taxing districts by attracting new business, encouraging the expansion of existing businesses thereby increasing economic activity and tax revenue on noninventory property. The inventory tax phaseout will cause certain unforeseen and heretofore unprepared for tax shifts among property owners.
(3) This act is intended to lessen the impact of the property tax shift. Relief is provided by the following means:
(a) The state will provide fourteen million dollars over a four-year period to lessen the impact on the most severely affected districts.
(b) Persons purchasing timber on public lands after August 1, 1982, are required to continue to pay property tax on those timber inventories. They will receive a credit against the timber excise tax for these property tax payments.
(c) Local governments are granted the ability to lessen their short-term reliance on the property tax without reducing their future ability to levy property taxes." [
1983 1st ex.s. c 62 s 1
.]
Effective dates
—
Applicability
—
1983 1st ex.s. c 62:
"This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately [June 13, 1983], except sections 6 through 8 and 14 of this act which shall take effect January 1, 1984, and shall be effective for taxes first due in 1984 and thereafter." [
1983 1st ex.s. c 62 s 15
.]
Application
—
2001 c 187:
See note following RCW 84.40.020
.
Rules and regulations, procedures: RCW 84.40.405
.
RCW 84.36.480
Nonprofit fair associations.
(1) Except as provided otherwise in subsections (2) and (3) of this section, the real and personal property of a nonprofit fair association that sponsors or conducts a fair or fairs that is eligible to receive support from the fair fund, as created in RCW 15.76.115
and allocated by the director of the department of agriculture, is exempt from taxation. To be exempt under this subsection (1), the property must be used exclusively for fair purposes, except as provided in RCW 84.36.805
. However, the loan or rental of property otherwise exempt under this section to a private concessionaire or to any person for use as a concession in conjunction with activities permitted under this section do not nullify the exemption if the concession charges are subject to agreement and the rental income, if any, is reasonable and is devoted solely to the operation and maintenance of the property.
(2)(a) Except as provided otherwise in this subsection and subsection (3) of this section, the real and personal property owned by a nonprofit fair association organized under chapter
24.06
RCW and used for fair purposes is exempt from taxation if the majority of such property, as determined by assessed value, was purchased or acquired by the same nonprofit fair association from a county or a city between 1995 and 1998.
(b) The use of exempt property for rental purposes does not negate the exemption under this subsection. However, any rental exceeding fifty consecutive days during any calendar year is subject to leasehold excise tax under chapter
82.29A
RCW. For purposes of this subsection, "rental" means a lease, permit, license, or any other agreement granting possession and use, to a degree less than fee simple ownership, between the nonprofit fair association and a person who would not be exempt from property taxes if that person owned the property in fee.
(3) A nonprofit fair association with real and personal property having an assessed value of more than fifteen million dollars is not eligible for the exemptions under this section.
[
2015 3rd sp.s. c 6 s 2002
;
2013 c 212 s 2
;
1984 c 220 s 6
;
1975 1st ex.s. c 291 s 22
.]
NOTES:
Tax preference performance statement
—
2015 3rd sp.s. c 6 s 2002:
"(1) This section is the tax preference performance statement for the tax preference contained in section 2002 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as intended to accomplish a general purpose not identified in RCW 82.32.808
(2) (a) through (e).
(3) It is the legislature's specific public policy objective to support nonprofit fairs that obtained a majority of their property from a city or county between 1995 and 1998. The legislature intends to make their property tax exemption permanent, while requiring the collection of leasehold excise tax on any rentals of their exempt property that exceed fifty consecutive days. Because the legislature intends for the changes in this Part XX to be permanent, they are exempt from the ten-year expiration provision in RCW 82.32.805
(1)(a)." [
2015 3rd sp.s. c 6 s 2001
.]
Application
—
2015 3rd sp.s. c 6 s 2002:
"Section 2002 of this act applies to taxes levied for collection in 2019 and thereafter." [
2015 3rd sp.s. c 6 s 2008
.]
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Findings
—
Intent
—
2013 c 212:
"(1) The legislature finds that nonprofit fairs provide educational opportunities for youth and promote agriculture and the welfare of rural Washington. The legislature further finds that publicly owned fairgrounds can be rented or loaned out on a temporary basis without jeopardizing the property's exempt status for property tax purposes. The legislature further finds that many cities and counties have transferred ownership in fairground properties to nonprofit fair associations to achieve operational efficiencies. The legislature further finds that properties previously owned by cities or counties, and now owned and operated by nonprofit fair associations, may be subject to property tax even though the use of the property has not changed.
(2) It is the intent of the legislature to mitigate an unintended consequence of the property tax code that would otherwise interfere with a city's or county's ability to achieve operational efficiencies and follows best practices by transferring fairgrounds to nonprofit fair associations for an identical use of the property. It is the further intent of the legislature to expire the property tax exemption in five years to evaluate if the exemption has created any unintended consequences, including any unfair competitive advantage that may be conferred by the property tax exemption over private businesses, and identify other similar tax situations where ownership of property may be transferred from a public entity to a nonprofit association." [
2013 c 212 s 1
.]
Effective dates
—
Severability
—
1975 1st ex.s. c 291:
See notes following RCW 82.04.050
.
RCW 84.36.487
Air pollution control equipment in thermal electric generation facilities
—
Records
—
Payments on cessation of operation.
(1) Air pollution control equipment constructed or installed after May 15, 1997, by businesses engaged in the generation of electric energy at thermal electric generation facilities first placed in operation after December 31, 1969, and before July 1, 1975, shall be exempt from property taxation. The owners shall maintain the records in such a manner that the annual beginning and ending asset balance of the pollution control facilities and depreciation method can be identified.
(2) For the purposes of this section, "air pollution control equipment" means any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation.
(3) *RCW 82.32.393
applies to this section.
[
1997 c 368 s 11
.]
NOTES:
*Reviser's note:
RCW 82.32.393
expired December 31, 2015.
Findings
—
Intent
—
Rules adoption
—
Severability
—
Effective date
—
1997 c 368:
See notes following RCW 82.08.810
.
RCW 84.36.500
Conservation futures on agricultural land.
All conservation futures on agricultural lands acquired pursuant to RCW 64.04.130
or
84.34.200
through
84.34.240, that are held by any nonprofit corporation or association, the primary purpose of which is conserving agricultural lands and preventing the conversion of such lands to nonagricultural uses, shall be exempt from ad valorem taxation if:
(1) The conservation futures are of an unlimited duration;
(2) The conservation futures are effectively restricted to preclude nonagricultural uses on such agricultural land; and
(3) The lands are classified as farm and agricultural lands under chapter
84.34
RCW: PROVIDED, That at such time as these property interests are not used for the purposes enumerated in RCW 84.34.210
and
64.04.130
the additional tax specified in *RCW 84.34.108
(3) shall be imposed.
[
1984 c 131 s 11
.]
NOTES:
*Reviser's note:
RCW 84.34.108
was amended by 1999 sp.s. c 4 s 706, changing subsection (3) to subsection (4).
RCW 84.36.510
Mobile homes in dealer's inventory.
Any mobile home which is a part of a dealer's inventory and held solely for sale in the ordinary course of the dealer's business and is not used for any other purpose shall be exempt from property taxation: PROVIDED, That this exemption shall not apply to property taxes already levied or delinquent on such mobile home at the time it becomes part of a dealer's inventory.
[
1985 c 395 s 7
.]
RCW 84.36.550
Nonprofit organizations
—
Property used for solicitation or collection of gifts, donations, or grants.
The real and personal property owned by nonprofit organizations and used for solicitation or collection of gifts, donations, or grants is exempt from taxation if the organization meets all of the following conditions:
(1) The organization is organized and conducted for nonsectarian purposes.
(2) The organization is affiliated with a state or national organization that authorizes, approves, or sanctions volunteer charitable fund-raising organizations.
(3) The organization is qualified for exemption under section 501(c)(3) of the federal internal revenue code.
(4) The organization is governed by a volunteer board of directors.
(5) The gifts, donations, and grants are used by the organization for character-building, benevolent, protective, or rehabilitative social services directed at persons of all ages, or for distribution under subsection (6) of this section.
(6) The organization distributes gifts, donations, or grants to at least five other nonprofit organizations or associations that are organized and conducted for nonsectarian purposes and provide character-building, benevolent, protective, or rehabilitative social services directed at persons of all ages.
[
1993 c 79 s 1
.]
NOTES:
Applicability
—
1993 c 79:
"This act shall be effective for taxes levied for collection in 1994 and thereafter." [
1993 c 79 s 5
.]
RCW 84.36.560
Nonprofit organizations that provide rental housing or used space to qualifying households.
(1) The real and personal property owned or used by a nonprofit entity in providing rental housing for qualifying households or used to provide space for the placement of a mobile home for a qualifying household within a mobile home park is exempt from taxation if:
(a) The benefit of the exemption inures to the nonprofit entity;
(b) At least 75 percent of the occupied dwelling units in the rental housing or lots in a mobile home park are occupied by a qualifying household; and
(c) The rental housing or lots in a mobile home park were insured, financed, or assisted in whole or in part through one or more of the following sources:
(i) A federal or state housing program administered by the department of commerce;
(ii) A federal housing program administered by a city or county government;
(iii) An affordable housing levy authorized under RCW 84.52.105
or
84.55.050
;
(iv) The surcharges authorized by RCW 36.22.250
and any of the surcharges authorized in chapter
43.185C
RCW;
(v) The Washington state housing finance commission, provided that the financing is for a mobile home park cooperative or a manufactured housing cooperative, as defined in RCW 59.20.030, or a nonprofit entity; or
(vi) City or county funds designated for affordable housing.
(2) If less than 75 percent of the occupied dwelling units within the rental housing or lots in the mobile home park are occupied by qualifying households, the rental housing or mobile home park is eligible for a partial exemption on the real property and a total exemption of the housing's or park's personal property as follows:
(a) A partial exemption is allowed for each dwelling unit in the rental housing or for each lot in a mobile home park occupied by a qualifying household.
(b) The amount of exemption must be calculated by multiplying the assessed value of the property reasonably necessary to provide the rental housing or to operate the mobile home park by a fraction. The numerator of the fraction is the number of dwelling units or lots occupied by qualifying households as of December 31st of the first assessment year in which the rental housing or mobile home park becomes operational or on January 1st of each subsequent assessment year for which the exemption is claimed. The denominator of the fraction is the total number of dwelling units or lots occupied as of December 31st of the first assessment year the rental housing or mobile home park becomes operational and January 1st of each subsequent assessment year for which exemption is claimed.
(3) If a currently exempt rental housing unit or mobile home lot in a mobile home park was occupied by a qualifying household at the time the exemption was granted and the income of the household subsequently rises above the threshold set in subsection (7)(e) of this section but remains at or below 80 percent of the median income, the exemption will continue as long as the housing continues to meet the certification requirements listed in subsection (1) of this section. For purposes of this section, median income, as most recently determined by the federal department of housing and urban development for the county in which the rental housing or mobile home park is located, shall be adjusted for family size. However, if a dwelling unit or a lot becomes vacant and is subsequently rerented, the income of the new household must be at or below the threshold set in subsection (7)(e) of this section to remain exempt from property tax.
(4) If at the time of initial application the property is unoccupied, or subsequent to the initial application the property is unoccupied because of renovations, and the property is not currently being used for the exempt purpose authorized by this section but will be used for the exempt purpose within two assessment years, the property shall be eligible for a property tax exemption for the assessment year in which the claim for exemption is submitted under the following conditions:
(a) A commitment for financing to acquire, construct, renovate, or otherwise convert the property to provide housing for qualifying households has been obtained, in whole or in part, by the nonprofit entity claiming the exemption from one or more of the sources listed in subsection (1)(c) of this section;
(b) The nonprofit entity has manifested its intent in writing to construct, remodel, or otherwise convert the property to housing for qualifying households; and
(c) Only the portion of property that will be used to provide housing or lots for qualifying households shall be exempt under this section.
(5) To be exempt under this section, the property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW 84.36.805
.
(6) The nonprofit entity qualifying for a property tax exemption under this section may agree to make payments to the city, county, or other political subdivision for improvements, services, and facilities furnished by the city, county, or political subdivision for the benefit of the rental housing. However, these payments shall not exceed the amount last levied as the annual tax of the city, county, or political subdivision upon the property prior to exemption.
(7) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Group home" means a single-family dwelling financed, in whole or in part, by one or more of the sources listed in subsection (1)(c) of this section. The residents of a group home shall not be considered to jointly constitute a household, but each resident shall be considered to be a separate household occupying a separate dwelling unit. The individual incomes of the residents shall not be aggregated for purposes of this exemption;
(b) "Mobile home lot" or "mobile home park" means the same as these terms are defined in RCW 59.20.030
;
(c) "Occupied dwelling unit" means a living unit that is occupied by an individual or household as of December 31st of the first assessment year the rental housing becomes operational or is occupied by an individual or household on January 1st of each subsequent assessment year in which the claim for exemption is submitted. If the housing facility is comprised of three or fewer dwelling units and there are any unoccupied units on January 1st, the department shall base the amount of the exemption upon the number of occupied dwelling units as of December 31st of the first assessment year the rental housing becomes operational and on May 1st of each subsequent assessment year in which the claim for exemption is submitted;
(d) "Rental housing" means a residential housing facility or group home that is occupied but not owned by qualifying households;
(e)(i) "Qualifying household" means a single person, family, or unrelated persons living together whose income is at or below 50 percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the rental housing or mobile home park is located and in effect as of January 1st of the year the application for exemption is submitted;
(ii) Beginning July 1, 2021, "qualifying household" means a single person, family, or unrelated persons living together whose income is at or below 60 percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the rental housing or mobile home park is located and in effect as of January 1st of the year the application for exemption is submitted; and
(f) "Nonprofit entity" means a:
(i) Nonprofit as defined in RCW 84.36.800
that is exempt from income tax under section 501(c) of the federal internal revenue code;
(ii) Limited partnership where a nonprofit as defined in RCW 84.36.800
that is exempt from income tax under section 501(c) of the federal internal revenue code, a public corporation established under RCW 35.21.660, 35.21.670, or
35.21.730, a housing authority created under RCW 35.82.030
or
35.82.300, or a housing authority meeting the definition in RCW 35.82.210
(2)(a) is a general partner;
(iii) Limited liability company where a nonprofit as defined in RCW 84.36.800
that is exempt from income tax under section 501(c) of the federal internal revenue code, a public corporation established under RCW 35.21.660, 35.21.670, or
35.21.730, a housing authority established under RCW 35.82.030
or
35.82.300, or a housing authority meeting the definition in RCW 35.82.210
(2)(a) is a managing member; or
(iv) Mobile home park cooperative or a manufactured housing cooperative, as defined in RCW 59.20.030
.
[
2024 c 113 s 1
;
2023 c 277 s 11
;
2020 c 273 s 1
;
2019 c 390 s 11
;
2007 c 301 s 1
;
2001 1st sp.s. c 7 s 1
;
1999 c 203 s 1
.]
NOTES:
Automatic expiration date and tax preference performance statement exemption
—
2024 c 113:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2024 c 113 s 2
.]
Application
—
2024 c 113:
"This act applies to taxes levied for collection in 2025 and thereafter." [
2024 c 113 s 3
.]
Automatic expiration date and tax preference performance statement exemption
—
2020 c 273:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to this act." [
2020 c 273 s 3
.]
Tax preference performance statement and expiration
—
2019 c 390:
"The provisions of RCW 82.32.805
and
82.32.808
do not apply to section 11 of this act." [
2019 c 390 s 12
.]
Finding
—
Intent
—
2019 c 390:
See note following RCW 59.21.005
.
Application
—
1999 c 203:
"This act applies to taxes levied in 1999 for collection in 2000 and thereafter." [
1999 c 203 s 4
.]
RCW 84.36.570
Nonprofit organizations
—
Property used for agricultural research and education programs.
(1) All real and personal property owned by a nonprofit organization, corporation, or association to provide a demonstration farm with research and extension facilities, a public agricultural museum, and an educational tour site, which is used by a state university for agricultural research and education programs, is exempt from property taxation. This exemption includes all real and personal property that may be used in the production and sale of agricultural products, not to exceed fifty acres, if the income is used to further the purposes of the organization, corporation, or association.
(2) To qualify for this exemption:
(a) The nonprofit organization, corporation, or association must be qualified for exemption under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)); and
(b) The property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW 84.36.805
.
[
1999 c 139 s 1
.]
RCW 84.36.590
Property used in connection with privatization contract at Hanford reservation.
(1)(a) Beginning with taxes levied for collection in calendar year 2006, all personal property located on land owned by the United States, or an instrumentality of the United States, at the Hanford reservation that is used exclusively in the performance of a privatization contract to pretreat, treat, vitrify, and immobilize tank waste under subsection (2) of this section is exempt from taxation.
(b) Beginning with taxes levied for collection in calendar year 2002, and until the application of (a) of this subsection, all personal property located on land owned by the United States, or an instrumentality of the United States, at the Hanford reservation that is used exclusively in the performance of a privatization contract to pretreat, treat, vitrify, and immobilize tank waste under subsection (3) of this section is exempt from taxes levied by the state.
(2) To qualify for the exemption provided in subsection (1)(a) of this section, the personal property must be owned by a person that has a privatization contract to pretreat, treat, vitrify, and immobilize tank waste located at the Hanford reservation. For the purposes of this section, a privatization contract means a contract in which the United States, or an instrumentality of the United States, has designated the other contracting party as a party responsible for carrying out tank waste clean-up operations at the Hanford reservation.
(3) To qualify for the exemption provided in subsection (1)(b) of this section, the personal property must be owned by a person that has, and complies with, a privatization contract to pretreat, treat, vitrify, and immobilize tank waste located at the Hanford reservation. The personal property must be acquired or constructed, and operated, in compliance with the tank waste treatment complex requirements of the Hanford federal facility agreement and consent order, including schedules for tank waste treatment complex start of construction, initiation of hot commissioning, and schedules for tank waste pretreatment processing and vitrification. The privatization contractor shall submit annually, on or before August 1st, a progress report to the Washington state department of ecology documenting compliance with the requirements of the agreement and consent order and the terms of the privatization contract. The department of ecology shall annually issue, on or before October 1st, a determination to the department of revenue indicating whether the privatization contractor is in compliance with the requirements of the agreement and consent order.
(4) An inadvertent use of property, which otherwise qualifies for an exemption under this section, in a manner inconsistent with the purpose for which the exemption is granted, does not nullify the exemption if the inadvertent use is not part of a pattern of use. A pattern of use is presumed when an inadvertent use is repeated in the same assessment year or in two or more successive assessment years.
[
2000 c 246 s 1
.]
NOTES:
Effective date
—
2000 c 246:
"This act takes effect January 1, 2001." [
2000 c 246 s 2
.]
RCW 84.36.595
Motor vehicles, travel trailers, campers, and vehicles carrying exempt licenses.
(1) For the purposes of this section, the following definitions apply:
(a) "Motor vehicle" means all motor vehicles, trailers, and semitrailers used, or of the type designed primarily to be used, upon the public streets and highways, for the convenience or pleasure of the owner, or for the conveyance, for hire or otherwise, of persons or property, including fixed loads and facilities for human habitation; but shall not include (i) vehicles carrying exempt licenses; (ii) dock and warehouse tractors and their cars or trailers, lumber carriers of the type known as spiders, and all other automotive equipment not designed primarily for use upon public streets or highways; (iii) motor vehicles or their trailers used entirely upon private property; (iv) mobile homes as defined in RCW 46.04.302
; or (v) motor vehicles owned by nonresident military personnel of the armed forces of the United States stationed in the state of Washington, provided personnel were also nonresident at the time of their entry into military service.
(b) "Travel trailer" has the meaning given in RCW 46.04.623
. However, if a park trailer, as defined in RCW 46.04.622, has substantially lost its identity as a mobile unit by virtue of its being permanently sited in location and placed on a foundation of either posts or blocks with connections with sewer, water, or other utilities for the operation of installed fixtures and appliances, it will be considered real property and will be subject to ad valorem property taxation imposed in accordance with this title, including the provisions with respect to omitted property, except that a park trailer located on land not owned by the owner of the park trailer will be subject to the personal property provisions of chapter
84.56
RCW and RCW 84.60.040
.
(c) "Camper" has the meaning given in RCW 46.04.085
.
(2) Motor vehicles, vehicles carrying exempt licenses, travel trailers, and campers are exempt from property taxation.
[
2004 c 156 s 1
;
2000 c 136 s 1
.]
NOTES:
Effective date
—
2000 c 136:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 27, 2000]." [
2000 c 136 s 2
.]
Retroactive application
—
2000 c 136:
"This act applies retroactively to January 1, 2000." [
2000 c 136 s 3
.]
RCW 84.36.597
Heavy equipment rental property.
(1) All heavy equipment rental property owned by a heavy equipment rental property dealer is exempt from taxation.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Heavy equipment rental property" means any equipment that is rented by a heavy equipment rental property dealer that:
(A) Is mobile. For purposes of this subsection, "mobile" means that the heavy equipment property is not permanently affixed to real property and may be moved among worksites as needed;
(B) Is customarily used for construction, earthmoving, or industrial applications. For the purposes of this subsection, "construction, earthmoving, or industrial applications" means the constructing of new buildings or other structures, or the repairing, remodeling, or expansion of existing buildings or other structures, under, upon, or above real property; the repositioning of terrain using vehicles or self-propelled equipment; and manufacturing or processing raw materials or other ingredients or components into new articles of tangible personal property for sale; and
(C) Is rented without an operator.
(ii) Subject to the provisions of (a)(i) of this subsection, "heavy equipment rental property" includes, but is not limited to the following:
(A) Earthmoving equipment, including but not limited to backhoes, loaders, rollers, excavators, bulldozers, and dump trucks;
(B) Self-propelled vehicles that are not designed to be driven on the highway;
(C) Industrial electrical generation equipment;
(D) Industrial lift equipment;
(E) Industrial material handling equipment;
(F) Equipment used in shoring, shielding, and ground trenching;
(G) Portable power and HVAC generation equipment;
(H) Attachments to heavy equipment rental property, including but not limited to buckets, augers, hammers for backhoes, hoses, fittings, piping, chains, tools (such as jackhammers and cement chippers), and portable power connections;
(I) Ancillary equipment, including but not limited to generators, ground thawing equipment, fluid transfer equipment, pumping equipment, portable storage, portable fuel and water tanks, and light towers; and
(J) Equipment or vehicles not subject to vehicle license fees and not required to be registered with the department of licensing.
(iii) "Heavy equipment rental property" does not include small hand tools, chainsaws, or lawnmowers.
(b) "Heavy equipment rental property dealer" means a person principally engaged in the business of renting heavy equipment rental property. For purposes of this subsection, "principally" means that the heavy equipment rental property dealer receives more than fifty percent of the dealer's annual total revenue from the rental of heavy equipment rental property.
(3)(a) The exemption in subsection (1) of this section does not apply in any tax year to heavy equipment rental property that the heavy equipment rental property dealer rented or leased at any time during the immediately preceding tax year to a person with whom the heavy equipment rental property dealer is affiliated.
(b) For purposes of this subsection, "affiliated" means:
(i) One person has an ownership interest of more than five percent, whether direct or indirect, in the other person; or
(ii) Persons who are related to each other because a third person, or group of third persons who are affiliated with respect to each other, holds an ownership interest of more than five percent, whether direct or indirect, in the related persons.
(4)(a) A claim for exemption under this section must be filed with the county assessor together with the statement required under RCW 84.40.190, for exemption from taxes payable the following year.
(b) The claim must be made solely upon forms as prescribed and approved by the department.
(c) If the assessor finds that the applicant does not meet the requirements for exemption under this section, the exemption must be denied but such denial is subject to appeal under the provisions of RCW 84.48.010
and
84.40.038
.
(5) If a heavy equipment rental property dealer received an exemption under this section based on erroneous information provided by the heavy equipment rental property dealer to the county assessor, the taxes must be collected for a period not to exceed five years, subject to penalties as follows:
(a) Twenty-five percent of the total tax due;
(b) Fifty percent of the total tax due if the heavy equipment rental property dealer was previously assessed a penalty under this subsection, unless the penalty was overturned by a court or administrative tribunal in a final decision that is no longer subject to appeal; or
(c) A penalty as provided in RCW 84.40.130
(2), if the heavy equipment rental property dealer, with intent to defraud, submitted a false or materially misleading claim for exemption.
(6) The department may adopt rules as it deems necessary to administer this section.
[
2020 c 301 s 1
.]
NOTES:
Application
—
2020 c 301 s 1:
"Section 1 of this act applies to taxes levied for collection in 2022 and thereafter." [
2020 c 301 s 8
.]
Automatic expiration date and tax preference performance statement exemption
—
2020 c 301:
See RCW 82.51.900
.
RCW 84.36.600
Computer software.
(1) All custom computer software, except embedded software, is exempt from property taxation.
(2) Retained rights in computer software are exempt from property taxation.
(3) Modifications to canned software are exempt from property taxation, but the underlying canned software remains subject to taxation as provided in RCW 84.40.037
.
(4) Master or golden copies of computer software are exempt from property taxation.
[
1991 sp.s. c 29 s 3
.]
NOTES:
Findings, intent
—
Severability
—
Application
—
1991 sp.s. c 29:
See notes following RCW 84.04.150
.
RCW 84.36.605
Sales/leasebacks by regional transit authorities.
All real and personal property subject to a sale/leaseback agreement under RCW 81.112.300
is exempt from taxation.
[
2000 2nd sp.s. c 4 s 27
.]
NOTES:
Findings
—
Construction
—
2000 2nd sp.s. c 4 ss 18-30:
See notes following RCW 81.112.300
.