The bill amends the Revised Code of Washington (RCW) to enhance property tax exemptions for nonprofit housing providers, allowing them to maintain exempt status even when their properties are temporarily used for community purposes beyond affordable housing. 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 intended 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 criteria for nonprofit entities and cooperative associations to qualify for tax exemptions, including definitions for terms like "nonprofit entity" and "qualified cooperative association." It mandates that at least 60% of residences in a qualified cooperative association must be owned by low-income households, and 80% of the square footage must be exclusively used by these owners. The bill sets a deadline for initial exemption applications by December 31, 2027, and outlines the application and renewal process for organizations seeking exempt status, including a requirement for renewal declarations every third year. It also details the process for organizations acquiring or converting properties to exempt status and includes provisions for tax refunds.

Statutes affected:
Original bill: 84.36.805, 84.36.049, 84.36.815
Bill as passed Legislature: 84.36.805, 84.36.049, 84.36.815
Session law: 84.36.805, 84.36.049, 84.36.815