This bill amends Washington property tax exemption laws (including changes to RCW 84.36.805, RCW 84.36.049, and RCW 84.36.815) to clarify and tighten eligibility, use, and application rules for nonprofit property tax exemptions. It specifies that exempt property must be used exclusively for the exempt activity and not exceed what is reasonably necessary, creates rules allowing loans or rentals of exempt property when rent or donations are reasonable and limited to maintenance/operation costs, and allows fundraising uses consistent with the exemption. The bill adds a limited safe harbor for inadvertent inconsistent uses (up to 50 days per year, with no more than 15 days for pecuniary gain) and an exception allowing up to 53 days for qualifying farmers markets when income is used for capital, maintenance, or exempt purposes. It also requires nondiscrimination and licensing where required, gives the department access to books to determine eligibility, and disqualifies sales with an option to repurchase (with specified exceptions). The bill creates and defines a time-limited property tax exemption for nonprofit entities and qualified cooperative associations that develop or sell residences to low-income households (including some leased land), and it sets specific expiration events and procedures: the exemption ends on events such as transfer of title to low-income purchasers, execution of certain leases, the end of the seventh consecutive property tax year (or the tenth if a three-year extension is claimed), or when the property is no longer held for the exempt purpose. It allows transfers between qualifying nonprofits or to qualified cooperative associations to continue the exemption if the transferee timely applies and is approved, permits a three-year extension if a notice and filing fee (greater of $200 or 0.1% of market value) are filed by a deadline, and makes conversion or failure to complete required transfers cause disqualification. Disqualification triggers an additional tax equal to the taxes that would have been paid without the exemption plus delinquent interest, creates a lien with priority, sets payment and appeal procedures, and requires specified notifications to the Department of Revenue and reporting to the Joint Legislative Audit and Review Committee. The bill also changes application and renewal procedures: initial exemption applications generally must be filed with the Department of Revenue by March 31 (with earlier special dates for RCW 84.36.049), annual renewal declarations are due March 31 (with triennial renewal for certain nonprofit categories and exceptions for nonprofit cemeteries), organizations acquiring or converting property must file within 60 days or face penalties, and approved exemptions apply to taxes due the following year with refund rights if taxes were already paid. The act applies to taxes levied for collection in 2027 and thereafter, contains multiple sunset and effective dates (some sections expire January 1, 2033 or January 1, 2038; the exemption provisions include an expiration of the exemption after 2037 for taxes and limit initial applications after December 31, 2027), and requires the Department to share approved initial applications for RCW 84.36.049 with JLARC on request. Important context is missing from the extracted text: several cross-referenced definitions and precise subsection language are not included, the extract ends mid-sentence in places, the identity of “the department” is not specified in the provided facts, and the relationship between multiple amendments to the same RCW citation is not explained. Those gaps make some timing, definition, and procedural details uncertain from the available material.

If enacted, the bill expands and clarifies property tax exemptions for nonprofits and for nonprofit or cooperative developers of low-income housing, but makes those exemptions time-limited and conditional. Eligible nonprofit owners or qualified cooperative associations can get full property tax exemption while holding and selling or leasing homes to low-income buyers, and an exemption can continue when property is transferred between qualifying nonprofits if the transferee promptly applies. Organizations must meet licensing and nondiscrimination rules, allow department access to financial books, file occupancy and transfer notices, provide financial statements on request, and generally reapply or renew with the Department of Revenue by March 31 deadlines. Use rules for exempt property are tightened: up to 50 days of unauthorized use per year (no more than 15 for pecuniary gain) are allowed with special 53-day treatment for qualifying farmers markets, and property sold with a repurchase option generally loses exemption. Failure to complete required transfers or to remain in qualifying use triggers recapture: counties must collect back taxes plus delinquent interest as a lien, due within 30 days, and county auditors cannot record transfers until paid. Those most affected are nonprofit housing developers and qualified cooperative associations, county treasurers/auditors, and the Department of Revenue and JLARC. Nonprofit developers can likely reduce near-term property tax costs for up to seven years (ten if a three-year extension is timely requested), but they face new administrative burdens, immediate notification and reporting duties, a fee to extend exemptions (the greater of $200 or 0.1% of the property’s assessed market value), and the risk of substantial tax recapture and liens if transfers or uses are not completed as required. Counties take on collection and enforcement duties, and the Department of Revenue gains additional review and disclosure responsibilities. Some implementation details and exact timing are unclear in the provided text—several definitions and which specific sections expire or take effect when are not fully shown—so practical timing and certain eligibility limits may change when the complete bill text is reviewed.