(1) In order to qualify for an exemption under this chapter, the nonprofit organizations, associations, or corporations must satisfy the conditions in this section.

     (2) The property must be used exclusively for the actual operation of the activity for which exemption is granted, unless otherwise provided, and does not exceed an amount reasonably necessary for that purpose, except:

     (a) The loan or rental of the property does not subject the property to tax if:

     (i) The rents and donations received for the use of the portion of the property are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented; and

     (ii) Except for the exemptions under RCW 84.36.030(4),84.36.037 , 84.36.050, and 84.36.060(1) (a) and (b), the property would be exempt from tax if owned by the organization to which it is loaned or rented;

     (b) The use of the property for fund-raising activities does not subject the property to tax if the fund-raising activities are consistent with the purposes for which the exemption is granted.

     (3) The facilities and services must be available to all regardless of race, color, national origin or ancestry.

     (4) The organization, association, or corporation must be duly licensed or certified where such licensing or certification is required by law or regulation.

     (5) Property sold to organizations, associations, or corporations with an option to be repurchased by the seller shall not qualify for exempt status. This subsection does not apply to property sold to a nonprofit entity, as defined in RCW 84.36.560(7), by:

     (a) A nonprofit as defined in RCW 84.36.800 that is exempt from income tax under section 501(c) of the federal internal revenue code;

     (b) A governmental entity established under RCW 35.21.660, 35.21.670, or 35.21.730;

     (c) A housing authority created under RCW 35.82.030;

     (d) A housing authority meeting the definition in RCW 35.82.210(2)(a); or

     (e) A housing authority established under RCW 35.82.300.

     (6) The department shall have access to its books in order to determine whether the nonprofit organization, association, or corporation is exempt from taxes under this chapter.

     (7) This section does not apply to exemptions granted under RCW 84.36.020, 84.36.032, 84.36.250, and 84.36.260.

[2006 c 319 § 1; 2006 c 226 § 3; 2003 c 121 § 2; 2001 1st sp.s. c 7 § 2. Prior: 1999 c 203 § 2; 1999 c 139 § 3; prior: 1998 c 311 § 25; 1998 c 202 § 3; 1998 c 184 § 2; prior: 1997 c 156 § 8; 1997 c 143 § 3; 1995 2nd sp.s. c 9 § 2; 1993 c 79 § 3; prior: 1990 c 283 §§ 3 and 7; 1989 c 379 § 4; 1987 c 468 § 1; 1984 c 220 § 7; 1981 c 141 § 4; 1973 2nd ex.s. c 40 § 7.]

NOTES:

     Reviser's note: This section was amended by 2006 c 226 § 3 and by 2006 c 319 § 1, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).

     Findings -- Intent -- 2006 c 226: See note following RCW 84.36.050.

     Application -- 1999 c 203: See note following RCW 84.36.560.

     Application -- 1998 c 184: See note following RCW 84.36.045.

     Applicability -- 1997 c 143: See note following RCW 84.36.046.

     Applicability -- 1995 2nd sp.s. c 9 §§ 1 and 2: See note following RCW 84.36.035.

     Effective date -- 1995 2nd sp.s. c 9: See note following RCW 84.36.035.

     Applicability -- 1993 c 79: See note following RCW 84.36.550.

     Construction -- 1990 c 283 §§ 6 and 7: See note following RCW 84.36.030.

     Severability -- Effective date -- 1989 c 379: See notes following RCW 84.36.040.

     Applicability -- 1987 c 468: "This act shall be effective for taxes levied for collection in 1988 and thereafter." [1987 c 468 § 3.]

     Applicability, construction -- 1981 c 141: See note following RCW 84.36.060.