Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-16 - Property tax Exemptions › Section 458-16-270 - Schools and colleges

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains the two property tax exemptions
			 available under the provisions of
			 RCW
			 84.36.050. The first exemption applies to
			 property owned or used by or for a nonprofit school or college. The second
			 exemption is for property owned by a not-for-profit foundation established for
			 the exclusive support of an institution of higher education, as defined in
			 RCW 28B.10.016, that
			 is leased to and used by the institution. Nonprofit schools, colleges, and
			 not-for-profit foundations seeking a property tax exemption under
			 RCW
			 84.36.050 must also comply with the relevant
			 requirements of
			 RCW
			 84.36.805,
			 84.36.840,
			 and WAC
			 458-16-165.
			 (See subsection (8) of this rule.)
(2)
Definitions.
For purposes of
			 this rule, the following definitions apply:
(a) "College or campus purposes" means
			 principally designed to further the educational, athletic, or social functions
			 of an institution of higher education, as defined in
			 RCW 28B.10.016, and
			 only applies to property that is owned by a not-for-profit foundation and
			 leased to and used by such an institution.
(b) "Cultural or art educational program"
			 means:
(i) An exhibition or presentation of
			 works of art or objects of cultural or historical significance, such as those
			 commonly displayed in art or history museums;
(ii) A musical or dramatic performance or
			 series of performances; or
(iii) An
			 educational seminar or program, or series of such programs, offered by a
			 nonprofit school or college to the general public on an artistic, cultural, or
			 historical subject. (See
			 RCW
			 82.04.4328(2).)
(c) "Educational, social and
			 athletic programs" or "educational, social and athletic functions" individually
			 or collectively mean those programs offered or functions performed by or for
			 the school or college in each such general area, including, but not limited to,
			 those illustrated by the examples set forth in this definition, and including
			 educational, social, and athletic programs and functions sponsored or
			 cosponsored by the school or college, offered by others on school or
			 college-owned property in a manner consistent with the school or college's
			 programs, and such programs and functions on school or college property that
			 may involve alumni and community members.
(i)
			 Examples of educational programs and functions include, in addition to those
			 described in the definition of "educational purposes" in (d) of this
			 subsection: Classes, seminars, conferences, providing instructional support to
			 students and other participants in such programs and functions, and programs
			 and functions that utilize and apply the academic and instructional resources
			 and facilities of the school or college, including related administrative and
			 support activities for these programs and functions.
(ii) Examples of athletic programs and
			 functions include: Physical training, sport events and practices, athletic
			 camps, and use of school or college recreational and fitness resources and
			 facilities by students, alumni, faculty, staff, or third parties, including
			 related administrative and support activities, which use the property in a
			 manner consistent with the school or college's programs.
(iii) Examples of social programs or
			 functions include activities engaged in by or for the school or college that
			 further the health, safety, well-being, emotional growth, welfare,
			 psychological development, socialization, preparation and training for
			 participation in society, development of adaptive skills and cultural awareness
			 and related activities for students including, but not limited to, theatrical
			 or musical performances, artistic, cultural, or technology exhibits or fairs,
			 events, presentations and programs providing students with information about
			 and access to goods and services they need while a student at the school or
			 college.
(d)
			 "Educational purposes" means, in addition to the educational programs and
			 functions described in (c) of this subsection, systematic instruction, either
			 formal or informal, in any and all branches of learning directed to an
			 indefinite class of persons and from which a substantial public benefit is
			 derived. The term includes all purposes that seek to promote or advance
			 education.
(e) "Schools and
			 colleges" means:
(i) Nonprofit educational
			 institutions that are approved by the superintendent of public instruction or
			 whose students and credentials are accepted without examination by schools and
			 colleges established under either Title 28A or 28B RCW and offer students an
			 educational program of a general academic nature; or
(ii) Nonprofit institutions that meet the
			 following criteria:
(A) They have a definable
			 curriculum and measurable outcomes for a specific group of students;
(B) They have a qualified or certified
			 faculty;
(C) They have facilities
			 and equipment that are designed for the primary purpose of the educational
			 program;
(D) They have an
			 attendance policy and requirement;
(E) They have a schedule or course of study
			 that supports the instructional curriculum; and
(F) They are accredited, recognized, or
			 approved by an external agency that certifies educational institutions and the
			 transferability of courses.
(f) "Net income" means the amount received
			 from the loan or rental of exempt property that exceeds the amount of the
			 maintenance and operation expenses, as defined in WAC
			 458-16-165,
			 attributable to the portion of the property loaned or rented.
(g) "Pecuniary gain" means the generation of
			 monetary receipts from commercial operations or other sales activities, when
			 those receipts exceed expenses of operations or are intended to exceed expenses
			 of operations.
(h) "Religious
			 faculty" means a person who:
(i) Teaches at a
			 school or college; and
(ii) Is a
			 member of the clergy or a religious order or officially invested with
			 ministerial or priestly authority, as distinguished from laity.
(i) "Third parties" means
			 individuals, groups, organizations, associations, corporations, and entities
			 other than the school or college to which an exemption is granted under this
			 rule.