Page 202 - Washington Nonprofit Handbook 2018 Edition

• Gifts of real property;

• Transfers of real property that consist of a mere change in the identity
or form of ownership; and

• Transfers of real property that for federal income tax purposes do not
involve the recognition of gain or loss for the purposes of entity
formation, dissolution or reorganization.

CHAPTER 56. Property Tax Issues

Washington exempts qualifying nonprofit organizations from the payment of
(see RCW 84.36):

• Real property taxes;

• Personal property taxes; and

• Leasehold excise taxes. The leasehold excise tax is a 12.84% tax on
leasehold interests in publicly owned real or personal property. The
tax base is measured by the amount paid for the use of the property.
If a nonprofit organization receives the use of donated property, the
tax base is the fair market value of the rents on similar property.

a. Exemptions Limited to Certain Nonprofit Activities

Not all nonprofit organizations qualify for exemption from payment of
property taxes. See RCW 84.36. Exemptions are only allowed for specific types of
activities. Qualifying activities include:

• Public property;

• Cemeteries, churches, parsonages, convents, and grounds;

• Property used for character building, benevolent, protective or
rehabilitative social services, camp facilities, veteran or relief
organization-owned property, and property of nonprofit organizations
that issue debt for student loans or that are guarantee agencies;

• Administrative offices of nonprofit religious organizations;

• Nonprofit organizations engaged in procuring, processing, etc., blood,
plasma or blood products;

WASHINGTON NONPROFIT HANDBOOK -191- 2018