The bill amends the Revised Code of Washington (RCW) to enhance property tax exemptions for nonprofit housing providers, allowing them to qualify even when their properties are temporarily used for non-affordable housing community purposes. Key provisions clarify that the loan or rental of property will not incur tax if the associated rents and donations are reasonable and do not exceed maintenance costs. Additionally, the bill permits fundraising events on exempt properties without tax implications, provided these events align with the exemption's purposes. It also introduces a provision stating that inadvertent uses inconsistent with the exemption will not incur tax, as long as they are not habitual.

Furthermore, the bill establishes definitions for "nonprofit entity," "qualified cooperative association," and "qualified mutual self-help housing program," with specific requirements for tax exemption eligibility, including that at least 60% of residences must be owned by low-income households. It sets a deadline for initial exemption applications by December 31, 2027, and clarifies that the exemption will not apply to taxes due in 2038 and beyond. The bill also outlines the application and renewal process for property tax exemptions, requiring organizations to file initial applications within 60 days of acquiring or converting property to exempt status, and includes provisions for the act's applicability to taxes levied for collection in 2027 and thereafter, ensuring that certain sections are time-bound and subject to review.

Statutes affected:
Original bill: 84.36.805, 84.36.049, 84.36.815