title: RCW 84.36.385

text:
(1) A claim for exemption under RCW 84.36.381 as now or hereafter amended, may be made and filed at any time during the year for exemption from taxes payable the following year and thereafter and solely upon forms as prescribed and furnished by the department of revenue. However, an exemption from tax under RCW 84.36.381 continues for no more than six years unless a renewal application is filed as provided in subsection (3) of this section.
(2) A person granted an exemption under RCW 84.36.381 must inform the county assessor of any change in status affecting the person's entitlement to the exemption on forms prescribed and furnished by the department of revenue.
(3) Each person exempt from taxes under RCW 84.36.381 in 1993 and thereafter must file with the county assessor a renewal application not later than December 31st of the year the assessor notifies such person of the requirement to file the renewal application. Renewal applications must be on forms prescribed and furnished by the department of revenue.
(4) At least once every six years, the county assessor must notify those persons receiving an exemption from taxes under RCW 84.36.381 of the requirement to file a renewal application. The county assessor may also require a renewal application following an amendment of the income requirements set forth in RCW 84.36.381.
(5) If the assessor finds that the applicant does not meet the qualifications as set forth in RCW 84.36.381, as now or hereafter amended, the claim or exemption must be denied but such denial is subject to appeal under the provisions of RCW 84.48.010 and in accordance with the provisions of RCW 84.40.038. If the applicant had received exemption in prior years based on erroneous information, the taxes must be collected subject to penalties as provided in RCW 84.40.130 for a period of not to exceed five years.
(6) The department and each local assessor is hereby directed to publicize the qualifications and manner of making claims under RCW 84.36.381 through 84.36.389, through communications media, including such paid advertisements or notices as it deems appropriate. Notice of the qualifications, method of making applications, the penalties for not reporting a change in status, and availability of further information must be included on or with property tax statements and revaluation notices for all residential property including mobile homes, except rental properties.
(7) The department must authorize an option for electronic filing of applications and renewal applications for the exemption under RCW 84.36.381.
(8) Beginning August 1, 2023, and by March 1st every third year thereafter, the department must publish updated income thresholds. The adjusted thresholds must be rounded up to the nearest one thousand dollars. If the income threshold adjustment is negative, the income threshold for the prior year continues to apply. The department must adjust income thresholds for each county to reflect the most recent year available of estimated county median household incomes, including preliminary estimates or projections, as published by the office of financial management. For the purposes of this subsection, "county median household income" has the same meaning as provided in RCW 84.36.383.
(9) Beginning with the adjustment made by August 1, 2023, as provided in subsection (8) of this section, and every adjustment thereafter, if an income threshold in a county is not adjusted based on percentage of county median income, then the income threshold must be adjusted based on the growth of the seasonally adjusted consumer price index for all urban consumers (CPI-U) for the prior twelve month period as published by the United States bureau of labor statistics. In no case may the adjustment be greater than one percent. The adjusted thresholds must be rounded to the nearest one dollar. If the income threshold adjustment is negative, the income threshold for the prior year continues to apply.
[ 2023 c 147 s 3; 2021 c 145 s 24; 2020 c 209 s 2; 2019 c 453 s 3; 2011 c 174 s 106; 2010 c 106 s 308; 2001 c 185 s 8; 1992 c 206 s 13; 1988 c 222 s 10; 1983 1st ex.s. c 11 s 6; 1983 1st ex.s. c 11 s 3; 1979 ex.s. c 214 s 3; 1977 ex.s. c 268 s 2; 1974 ex.s. c 182 s 3.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—2023 c 147: See note following RCW 84.36.381.
Automatic expiration date and tax preference performance statement exemption—2020 c 209: See note following RCW 84.36.387.
Application—Automatic expiration date and tax preference performance statement exemption—2019 c 453: See notes following RCW 84.36.381.
Effective date—2010 c 106: See note following RCW 35.102.145.
Application—2001 c 185 ss 1-12: See note following RCW 84.14.110.
Effective date—1992 c 206: See note following RCW 82.04.170.
Intent—Applicability—Effective dates—1983 1st ex.s. c 11:See notes following RCW 84.36.381.
Applicability—1979 ex.s. c 214: See note following RCW 84.36.381.

catchline: Residences—Claim for exemption—Forms—Change of status—Publication and notice of qualifications and manner of making claims.


doc_type: statute

jurisdiction: wa

title: RCW 84.36.387

text:
(1) Except as provided in subsection (3) of this section, all claims for exemption shall be made and signed under oath by the person entitled to the exemption, by his or her attorney-in-fact or in the event the residence of such person is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by such holder or by the owner: PROVIDED, That if a claim for exemption is made by a person living in a cooperative housing association, corporation, or partnership, such claim shall be made and signed by the person entitled to the exemption and by the authorized agent of such cooperative.
(2) If the taxpayer is unable to submit his or her own claim, the claim shall be submitted by a duly authorized agent or by a guardian or other person charged with the care of the person or property of such taxpayer.
(3) All claims for exemption and renewal applications shall be accompanied by such documented verification of income as shall be prescribed by rule adopted by the department of revenue.
(4) Any person signing a false claim with the intent to defraud or evade the payment of any tax is guilty of perjury under chapter 9A.72 RCW.
(5) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption to which a claimant residing therein is entitled and such cooperative shall reduce any amount owed by the claimant to the cooperative by such exact amount of tax exemption or, if no amount be owed, the cooperative shall make payment to the claimant of such exact amount of exemption.
(6) A remainderman or other person who would have otherwise paid the tax on real property that is the subject of an exemption granted under RCW 84.36.381 for an estate for life shall reduce the amount which would have been payable by the life tenant to the remainderman or other person to the extent of the exemption. If no amount is owed or separately stated as an obligation between these persons, the remainderman or other person shall make payment to the life tenant in the exact amount of the exemption.
[ 2020 c 209 s 1; 2003 c 53 s 408; 1992 c 206 s 14; 1980 c 185 s 6; 1975 1st ex.s. c 291 s 16; 1974 ex.s. c 182 s 4.]
Notes:
Automatic expiration date and tax preference performance statement exemption—2020 c 209: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2020 c 209 s 4.]
Intent—Effective date—2003 c 53: See notes following RCW 2.48.180.
Effective date—1992 c 206: See note following RCW 82.04.170.
Effective dates—Severability—1975 1st ex.s. c 291: See notes following RCW 82.04.050.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Residences—Claimants—Penalty for falsification—Reduction by remainderman.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 84.36.389

text:
(1) The director of the department of revenue shall adopt such rules and regulations and prescribe such forms as may be necessary and appropriate for implementation and administration of this chapter subject to chapter 34.05 RCW, the administrative procedure act.
(2) The department may conduct such audits of the administration of RCW 84.36.381 through 84.36.389 and the claims for exemption filed thereunder as it considers necessary. The powers of the department under chapter 84.08 RCW apply to these audits.
(3) Any information or facts concerning confidential income data obtained by the assessor or the department, or their agents or employees, under subsection (2) of this section shall be used only to administer RCW 84.36.381 through 84.36.389. Notwithstanding any provision of law to the contrary, absent written consent by the person about whom the information or facts have been obtained, the confidential income data shall not be disclosed by the assessor or the assessor's agents or employees to anyone other than the department or the department's agents or employees nor by the department or the department's agents or employees to anyone other than the assessor or the assessor's agents or employees except in a judicial proceeding pertaining to the taxpayer's entitlement to the tax exemption under RCW 84.36.381 through 84.36.389. Any violation of this subsection is a misdemeanor.
[ 1979 ex.s. c 214 s 4; 1974 ex.s. c 182 s 5.]
Notes:
Applicability—1979 ex.s. c 214: See note following RCW 84.36.381.

catchline: Residences—Rules and regulations—Audits—Confidentiality—Criminal penalty.


title: RCW 84.36.400

text:
(1) Any physical improvement to single-family dwellings upon real property, including constructing an accessory dwelling unit, whether attached to or within the single-family dwelling or as a detached unit on the same real property, shall be exempt from taxation for the three assessment years subsequent to the completion of the improvement to the extent that the improvement represents 30 percent or less of the value of the original structure. A taxpayer desiring to obtain the exemption granted by this section must file notice of his or her intention to construct the improvement prior to the improvement being made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor. The exemption in this subsection cannot be claimed more than once in a five-year period.
The department of revenue shall promulgate such rules and regulations as are necessary and convenient to properly administer the provisions of this subsection (1).
(2)(a) A county legislative authority for a county with a population of 1,500,000 or more or a city or county legislative authority located in a county with a population of at least 900,000 but not more than 1,500,000 may exempt from taxation the value of an accessory dwelling unit if the following conditions are met:
(i) The improvement represents 30 percent or less of the value of the original structure;
(ii) The taxpayer demonstrates that the unit is maintained as a rental property for low-income households by submitting an affidavit stating the tenant's income and a document that demonstrates the tenant's income. For the purposes of this subsection, "low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 60 percent of the median household income adjusted for household size, for the county where the household is located, as reported by the United States department of housing and urban development;
(iii) The taxpayer files notice of the taxpayer's intention to participate in the exemption program on forms prescribed by and furnished to the taxpayer by the county assessor, including verification of the tenant's income through an affidavit as described in (a)(ii) of this subsection (2), and a copy of a lease that is at least 12 months in duration and includes the rent rate;
(iv) Rent charged to a tenant does not exceed more than 30 percent of the tenant's monthly income;
(v) The accessory dwelling unit is not occupied by an immediate family member of the taxpayer. For purposes of this subsection (2)(a), "immediate family" means any person under age sixty that is a state registered domestic partner, spouse, parents, grandparents, children, including foster children, siblings, and in-laws; and
(vi) If located in a county with a population of at least 900,000 but not more than 1,500,000, the city legislative authority or the county legislative authority passes a resolution authorizing the exemption to be offered within the geographic boundaries of the city or county. The resolution must outline the process whereby the enacting legislative authority will provide the county assessor with information to verify that both the low-income household and the taxpayer are in compliance with the requirements of this subsection (2).
(b) An exemption granted under this subsection (2) must be applied for annually but may continue for as long as the exempted accessory dwelling unit is leased to a low-income household.
(c) A county legislative authority with a population greater than 1,500,000 that has opted to exempt accessory dwelling units under this subsection (2) may:
(i) Allow the exemption for dwelling units that are attached to or within a single-family dwelling or are detached units on the same real property, or both;
(ii) Collect a fee from the taxpayer to cover the costs of administering this subsection (2);
(iii) Designate administrative officials or agents that will verify that both the low-income household and the taxpayer are in compliance with the requirements of this subsection (2). The designated official or agent may not be the county assessor but may include housing authorities or other qualified organizations as determined by the county legislative authority; and
(iv) Determine what property tax and penalties will be due, if any, in the case of a finding of noncompliance by a taxpayer.
(d) If located in a county with a population of at least 900,000 but not more than 1,500,000, the following applies:
(i) The exemption must only apply to detached units on the same real property.
(ii) The assessor may collect a fee from the taxpayer in an amount necessary to cover the costs of administering this section.
(iii) The assessor may determine what property tax and penalties will be due, if any, in the case that the enacting legislative authority finds noncompliance by a taxpayer.
(e) A legislative authority that has opted to exempt accessory dwelling units under this subsection (2) shall establish policies to assist and support tenants upon expiration of an exemption granted under this subsection (2), such as providing information on services available at the time of expiration.
[ 2025 c 207 s 1; 2023 c 335 s 1; 2020 c 204 s 1; 2013 c 23 s 350; 1972 ex.s. c 125 s 3.]
Notes:
Tax preference performance statement— 2025 c 207 s 1; 2023 c 335 s 1: "(1) This section is the tax preference performance statement for the tax preferences contained in section 1, chapter 335, Laws of 2023 and section 1, chapter 207, Laws of 2025. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as:
(a) Ones intended to induce certain designated behavior by taxpayers as indicated in RCW 82.32.808(2)(a); and
(b) For a general purpose not identified in RCW 82.32.808(2) (a) through (e) as indicated in RCW 82.32.808(2)(f) and further described in subsection (3) of this section.
(3) It is the legislature's specific public policy objective to encourage homeowners to rent accessory dwelling units to low-income households and increase the overall availability of affordable housing.
(4)(a) The joint legislative audit and review committee must review the tax preferences under section 1, chapter 335, Laws of 2023 and section 1, chapter 207, Laws of 2025 as they apply specifically to the property tax exemption for accessory dwelling units and complete a final report by December 1, 2027. The review must include, at a minimum, the following components:
(i) Costs and benefits associated with exempting from taxation the value of an accessory dwelling unit. This component of the analysis must, at a minimum, assess the costs and benefits of changes in the following metrics since the start of the program:
(A) The number of taxpayers filing notice to participate in the exemption program;
(B) The number of units exempt from property tax under the program, including the extent to which those units are attached or within a single-family dwelling or are detached units; and
(C) A summary of any fees or costs to administer the program;
(ii) An evaluation of the information calculated and provided by the department under RCW 36.70A.070(2)(a);
(iii) A summary of the estimated total statewide costs and benefits attributable to exempting from taxation the value of an accessory dwelling unit, including administrative costs and costs to monitor compliance; and
(iv) An evaluation of the impacts of the program on low-income households.
(b) If the review finds that a county with a population greater than 1,500,000 or a city or county legislative authority located in a county with a population of at least 900,000 but not more than 1,500,000 offers this exemption and the exemption increases the amount of accessory dwelling units rented to low-income households, then the legislature intends to extend the expiration date of these tax preferences.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state." [ 2025 c 207 s 2; 2023 c 335 s 2.]
Expiration date—2025 c 207: "This act expires January 1, 2034." [ 2025 c 207 s 3.]
Application—2025 c 207: "Section 1 of this act applies to taxes levied for collection in 2026 and thereafter." [ 2025 c 207 s 4.]
Expiration date—2023 c 335: "This act expires January 1, 2034." [ 2023 c 335 s 3.]
Application—2023 c 335: "This act applies to taxes levied for collection in 2024 and thereafter." [ 2023 c 335 s 4.]
Application—2020 c 204: "This act applies to taxes levied for collection in 2021 and thereafter." [ 2020 c 204 s 2.]
Automatic expiration date and tax preference performance statement exemption—2020 c 204: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2020 c 204 s 3.]
Report to legislature—2020 c 204: "The department of revenue must work with county assessors to review and evaluate the three year property tax exemption for home improvements to determine its effectiveness in encouraging homeowners to upgrade their residences, while avoiding the sudden and potentially large increases in assessed value and property tax which can otherwise occur. The review shall include an analysis of the types of properties and the value of exempt improvements by geographic area to develop a better demographic and geographic understanding of the home improvement property tax exemption and the locations and types of communities where the homes are located. The department of revenue must report their findings to the appropriate committees of the legislature by November 15, 2020." [ 2020 c 204 s 4.]
Severability—1972 ex.s. c 125: See note following RCW 84.40.045.
PDF
RCW 84.36.400
Improvements to single-family dwellings. (Effective January 1, 2034.)
Any physical improvement to single-family dwellings upon real property, including constructing an accessory dwelling unit, whether attached to or within the single-family dwelling or as a detached unit on the same real property, shall be exempt from taxation for the three assessment years subsequent to the completion of the improvement to the extent that the improvement represents thirty percent or less of the value of the original structure. A taxpayer desiring to obtain the exemption granted by this section must file notice of his or her intention to construct the improvement prior to the improvement being made on forms prescribed by the department of revenue and furnished to the taxpayer by the county assessor: PROVIDED, That this exemption cannot be claimed more than once in a five-year period.
The department of revenue shall promulgate such rules and regulations as are necessary and convenient to properly administer the provisions of this section.
[ 2020 c 204 s 1; 2013 c 23 s 350; 1972 ex.s. c 125 s 3.]
Notes:
Application—2020 c 204: "This act applies to taxes levied for collection in 2021 and thereafter." [ 2020 c 204 s 2.]
Automatic expiration date and tax preference performance statement exemption—2020 c 204: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2020 c 204 s 3.]
Report to legislature—2020 c 204: "The department of revenue must work with county assessors to review and evaluate the three year property tax exemption for home improvements to determine its effectiveness in encouraging homeowners to upgrade their residences, while avoiding the sudden and potentially large increases in assessed value and property tax which can otherwise occur. The review shall include an analysis of the types of properties and the value of exempt improvements by geographic area to develop a better demographic and geographic understanding of the home improvement property tax exemption and the locations and types of communities where the homes are located. The department of revenue must report their findings to the appropriate committees of the legislature by November 15, 2020." [ 2020 c 204 s 4.]
Severability—1972 ex.s. c 125: See note following RCW 84.40.045.

catchline: Improvements to single-family dwellings—Accessory dwelling units rented to low-income households in certain counties. (Effective until January 1, 2034.)


title: RCW 84.36.451

text:
(1) The following property is exempt from taxation: Any and all rights to occupy or use any real or personal property owned in fee or held in trust by:
(a) The United States, the state of Washington, or any political subdivision or municipal corporation of the state of Washington, or a federally recognized Indian tribe for property exempt under RCW 84.36.010; or
(b) A public corporation, commission, or authority created under RCW 35.21.730 or 35.21.660 if the property is listed on or is within a district listed on any federal or state register of historical sites; and
(c) Any leasehold interest arising from the property identified in (a) and (b) of this subsection as defined in RCW 82.29A.020.
(2) The exemption under this section does not apply to:
(a) Any such leasehold interests which are a part of operating properties of public utilities subject to assessment under chapter 84.12 RCW; or
(b) Any such leasehold interest consisting of three thousand or more residential and recreational lots that are or may be subleased for residential and recreational purposes.
(3) The exemption under this section may not be construed to modify the provisions of RCW 84.40.230.
[ 2014 c 207 s 6; 2001 c 26 s 2; 1979 ex.s. c 196 s 10; 1975-'76 2nd ex.s. c 61 s 14.]
Notes:
Application—2014 c 207: See note following RCW 84.36.010.
Application—2001 c 26 ss 2 and 3: See note following RCW 84.40.410.
Effective date—1979 ex.s. c 196: See note following RCW 82.04.240.
Leasehold excise tax: Chapter 82.29A RCW.

catchline: Right to occupy or use certain public property, including leasehold interests.


title: RCW 84.36.470

text:
The following property shall be exempt from taxation: Any agricultural product as defined in RCW 82.04.213 and grown or produced for sale by any person upon the person's own lands or upon lands in which the person has a present right of possession. Taxpayers shall not be required to report, or assessors to list, the inventories covered by this exemption.
[ 1997 c 156 s 6; 1989 c 378 s 12; 1975 1st ex.s. c 291 s 17; 1974 ex.s. c 169 s 8.]
Notes:
Effective dates—Severability—1975 1st ex.s. c 291: See notes following RCW 82.04.050.
Legislative intent—Review—Reports—1974 ex.s. c 169: "This 1974 act is intended to stimulate the economy of the state, and thereby to increase the revenues of the state and its local taxing districts. The department of revenue shall review the impact of this 1974 act upon the economy and revenues of the state and its local taxing districts, and shall report thereon biennially to the legislature. Recommendations for additional legislation shall be included in such reports if such legislation is needed to assure that the economic stimulus provided by this 1974 act is balanced by increased revenues." [ 1974 ex.s. c 169 s 1.]
Severability—1974 ex.s. c 169: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [ 1974 ex.s. c 169 s 10.]
Effective date—1974 ex.s. c 169: "This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect on May 10, 1974." [ 1974 ex.s. c 169 s 11.]
Powers of department of revenue to promulgate rules and prescribe procedures to carry out this section: RCW 84.40.405.

catchline: Agricultural products—Exemption.


title: RCW 84.36.477

text:
(1) Business inventories are exempt from property taxation.
(2) As used in this section:
(a)(i) "Business inventories" means all livestock, inventories of finished goods and work in process, and personal property not under lease or rental, acquired, or produced solely for the purpose of sale or lease or for the purpose of consuming the property in producing for sale or lease a new article of tangible personal property of which the property becomes an ingredient or component.
(ii) "Business inventories" also includes:
(A) All grains and flour, fruit and fruit products, unprocessed timber, vegetables and vegetable products, and fish and fish products, while being transported to or held in storage in a public or private warehouse or storage area if actually shipped to points outside the state on or before April 30th of the first year for which they would otherwise be taxable;
(B) All finished plywood, hardboard, and particleboard panels shipped from outside this state to any processing plant within this state, if the panels are moving under a through freight rate to final destination outside this state and the carrier grants the shipper the privilege of stopping the shipment in transit for the purpose of storing, milling, manufacturing, or other processing, while the panels are in the process of being treated or shaped into flat component parts to be incorporated into finished products outside this state and for thirty days after completion of the processing or treatment;
(C) All ore or metal shipped from outside this state to any smelter or refining works within this state, while in process of reduction or refinement and for thirty days after completion of the reduction or refinement; and
(D) All metals refined by electrolytic process into cathode or bar form while in this form and held under negotiable warehouse receipt in a public or private warehouse recognized by an established incorporated commodity exchange and for sale through the exchange.
(iii) "Business inventories" does not include personal property acquired or produced for the purpose of lease or rental if the property was leased or rented at any time during the calendar year immediately preceding the year of assessment and was not thereafter remanufactured, nor does it include property held within the normal course of business for lease or rental for periods of less than thirty days.
(iv) "Business inventories" does not include agricultural or horticultural property fully or partially exempt under RCW 84.36.470.
(v) "Business inventories" does not include timber that is standing on public land and that is sold under a contract entered into after August 1, 1982;
(b) "Fish and fish products" means all fish and fish products suitable and designed for human consumption, excluding all others;
(c) "Fruit and fruit products" means all raw edible fruits, berries, and hops and all processed products of fruits, berries, or hops, suitable and designed for human consumption, while in the hands of the first processor;
(d) "Processed" means canning, barreling, bottling, preserving, refining, freezing, packing, milling, or any other method employed to keep any grain, fruit, vegetable, or fish in an edible condition or to put it into more suitable or convenient form for consuming, storing, shipping, or marketing;
(e) "Remanufactured" means the restoration of property to essentially its original condition, but does not mean normal maintenance or repairs; and
(f) "Vegetables and vegetable products" means all raw edible vegetables such as peas, beans, beets, sugar beets, and other vegetables, and all processed products of vegetables, suitable and designed for human consumption, while in the hands of the first processor.
[ 2001 c 187 s 15; 1983 1st ex.s. c 62 s 6.]
Notes:
Short title—Intent—1983 1st ex.s. c 62: "(1) This act shall be known as the homeowner's property tax relief act of 1983.
(2) The intent of the inventory tax phaseout was to stimulate the economy of the state and to increase the revenues of the state and local taxing districts by attracting new business, encouraging the expansion of existing businesses thereby increasing economic activity and tax revenue on noninventory property. The inventory tax phaseout will cause certain unforeseen and heretofore unprepared for tax shifts among property owners.
(3) This act is intended to lessen the impact of the property tax shift. Relief is provided by the following means:
(a) The state will provide fourteen million dollars over a four-year period to lessen the impact on the most severely affected districts.
(b) Persons purchasing timber on public lands after August 1, 1982, are required to continue to pay property tax on those timber inventories. They will receive a credit against the timber excise tax for these property tax payments.
(c) Local governments are granted the ability to lessen their short-term reliance on the property tax without reducing their future ability to levy property taxes." [ 1983 1st ex.s. c 62 s 1.]
Effective dates—Applicability—1983 1st ex.s. c 62: "This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately [June 13, 1983], except sections 6 through 8 and 14 of this act which shall take effect January 1, 1984, and shall be effective for taxes first due in 1984 and thereafter." [ 1983 1st ex.s. c 62 s 15.]
Application—2001 c 187: See note following RCW 84.40.020.
Rules and regulations, procedures: RCW 84.40.405.

catchline: Business inventories.


title: RCW 84.36.480

text:
(1) Except as provided otherwise in subsections (2) and (3) of this section, the real and personal property of a nonprofit fair association that sponsors or conducts a fair or fairs that is eligible to receive support from the fair fund, as created in RCW 15.76.115 and allocated by the director of the department of agriculture, is exempt from taxation. To be exempt under this subsection (1), the property must be used exclusively for fair purposes, except as provided in RCW 84.36.805. However, the loan or rental of property otherwise exempt under this section to a private concessionaire or to any person for use as a concession in conjunction with activities permitted under this section do not nullify the exemption if the concession charges are subject to agreement and the rental income, if any, is reasonable and is devoted solely to the operation and maintenance of the property.
(2)(a) Except as provided otherwise in this subsection and subsection (3) of this section, the real and personal property owned by a nonprofit fair association organized under chapter 24.06 RCW and used for fair purposes is exempt from taxation if the majority of such property, as determined by assessed value, was purchased or acquired by the same nonprofit fair association from a county or a city between 1995 and 1998.
(b) The use of exempt property for rental purposes does not negate the exemption under this subsection. However, any rental exceeding fifty consecutive days during any calendar year is subject to leasehold excise tax under chapter 82.29A RCW. For purposes of this subsection, "rental" means a lease, permit, license, or any other agreement granting possession and use, to a degree less than fee simple ownership, between the nonprofit fair association and a person who would not be exempt from property taxes if that person owned the property in fee.
(3) A nonprofit fair association with real and personal property having an assessed value of more than fifteen million dollars is not eligible for the exemptions under this section.
[ 2015 3rd sp.s. c 6 s 2002; 2013 c 212 s 2; 1984 c 220 s 6; 1975 1st ex.s. c 291 s 22.]
Notes:
Tax preference performance statement—2015 3rd sp.s. c 6 s 2002: "(1) This section is the tax preference performance statement for the tax preference contained in section 2002 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as intended to accomplish a general purpose not identified in RCW 82.32.808(2) (a) through (e).
(3) It is the legislature's specific public policy objective to support nonprofit fairs that obtained a majority of their property from a city or county between 1995 and 1998. The legislature intends to make their property tax exemption permanent, while requiring the collection of leasehold excise tax on any rentals of their exempt property that exceed fifty consecutive days. Because the legislature intends for the changes in this Part XX to be permanent, they are exempt from the ten-year expiration provision in RCW 82.32.805(1)(a)." [ 2015 3rd sp.s. c 6 s 2001.]
Application—2015 3rd sp.s. c 6 s 2002: "Section 2002 of this act applies to taxes levied for collection in 2019 and thereafter." [ 2015 3rd sp.s. c 6 s 2008.]
Effective dates—2015 3rd sp.s. c 6: See note following RCW 82.04.4266.
Findings—Intent—2013 c 212: "(1) The legislature finds that nonprofit fairs provide educational opportunities for youth and promote agriculture and the welfare of rural Washington. The legislature further finds that publicly owned fairgrounds can be rented or loaned out on a temporary basis without jeopardizing the property's exempt status for property tax purposes. The legislature further finds that many cities and counties have transferred ownership in fairground properties to nonprofit fair associations to achieve operational efficiencies. The legislature further finds that properties previously owned by cities or counties, and now owned and operated by nonprofit fair associations, may be subject to property tax even though the use of the property has not changed.
(2) It is the intent of the legislature to mitigate an unintended consequence of the property tax code that would otherwise interfere with a city's or county's ability to achieve operational efficiencies and follows best practices by transferring fairgrounds to nonprofit fair associations for an identical use of the property. It is the further intent of the legislature to expire the property tax exemption in five years to evaluate if the exemption has created any unintended consequences, including any unfair competitive advantage that may be conferred by the property tax exemption over private businesses, and identify other similar tax situations where ownership of property may be transferred from a public entity to a nonprofit association." [ 2013 c 212 s 1.]
Effective dates—Severability—1975 1st ex.s. c 291: See notes following RCW 82.04.050.

catchline: Nonprofit fair associations.


title: RCW 84.36.487

text:
(1) Air pollution control equipment constructed or installed after May 15, 1997, by businesses engaged in the generation of electric energy at thermal electric generation facilities first placed in operation after December 31, 1969, and before July 1, 1975, shall be exempt from property taxation. The owners shall maintain the records in such a manner that the annual beginning and ending asset balance of the pollution control facilities and depreciation method can be identified.
(2) For the purposes of this section, "air pollution control equipment" means any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation.
(3) *RCW 82.32.393 applies to this section.
[ 1997 c 368 s 11.]
Notes:
*Reviser's note: RCW 82.32.393 expired December 31, 2015.
Findings—Intent—Rules adoption—Severability—Effective date—1997 c 368: See notes following RCW 82.08.810.

catchline: Air pollution control equipment in thermal electric generation facilities—Records—Payments on cessation of operation.


title: RCW 84.36.500

text:
All conservation futures on agricultural lands acquired pursuant to RCW 64.04.130 or 84.34.200 through 84.34.240, that are held by any nonprofit corporation or association, the primary purpose of which is conserving agricultural lands and preventing the conversion of such lands to nonagricultural uses, shall be exempt from ad valorem taxation if:
(1) The conservation futures are of an unlimited duration;
(2) The conservation futures are effectively restricted to preclude nonagricultural uses on such agricultural land; and
(3) The lands are classified as farm and agricultural lands under chapter 84.34 RCW: PROVIDED, That at such time as these property interests are not used for the purposes enumerated in RCW 84.34.210 and 64.04.130 the additional tax specified in *RCW 84.34.108(3) shall be imposed.
[ 1984 c 131 s 11.]
Notes:
*Reviser's note: RCW 84.34.108 was amended by 1999 sp.s. c 4 s 706, changing subsection (3) to subsection (4).

catchline: Conservation futures on agricultural land.


title: RCW 84.36.510

text:
Any mobile home which is a part of a dealer's inventory and held solely for sale in the ordinary course of the dealer's business and is not used for any other purpose shall be exempt from property taxation: PROVIDED, That this exemption shall not apply to property taxes already levied or delinquent on such mobile home at the time it becomes part of a dealer's inventory.
[ 1985 c 395 s 7.]

catchline: Mobile homes in dealer's inventory.


title: RCW 84.36.550

text:
The real and personal property owned by nonprofit organizations and used for solicitation or collection of gifts, donations, or grants is exempt from taxation if the organization meets all of the following conditions:
(1) The organization is organized and conducted for nonsectarian purposes.
(2) The organization is affiliated with a state or national organization that authorizes, approves, or sanctions volunteer charitable fund-raising organizations.
(3) The organization is qualified for exemption under section 501(c)(3) of the federal internal revenue code.
(4) The organization is governed by a volunteer board of directors.
(5) The gifts, donations, and grants are used by the organization for character-building, benevolent, protective, or rehabilitative social services directed at persons of all ages, or for distribution under subsection (6) of this section.
(6) The organization distributes gifts, donations, or grants to at least five other nonprofit organizations or associations that are organized and conducted for nonsectarian purposes and provide character-building, benevolent, protective, or rehabilitative social services directed at persons of all ages.
[ 1993 c 79 s 1.]
Notes:
Applicability—1993 c 79: "This act shall be effective for taxes levied for collection in 1994 and thereafter." [ 1993 c 79 s 5.]

catchline: Nonprofit organizations—Property used for solicitation or collection of gifts, donations, or grants.


title: RCW 84.36.560

text:
(1) The real and personal property owned or used by a nonprofit entity in providing rental housing for qualifying households or used to provide space for the placement of a mobile home for a qualifying household within a mobile home park is exempt from taxation if:
(a) The benefit of the exemption inures to the nonprofit entity;
(b) At least 75 percent of the occupied dwelling units in the rental housing or lots in a mobile home park are occupied by a qualifying household; and
(c) The rental housing or lots in a mobile home park were insured, financed, or assisted in whole or in part through one or more of the following sources:
(i) A federal or state housing program administered by the department of commerce;
(ii) A federal housing program administered by a city or county government;
(iii) An affordable housing levy authorized under RCW 84.52.105 or 84.55.050;
(iv) The surcharges authorized by RCW 36.22.250 and any of the surcharges authorized in chapter 43.185C RCW;
(v) The Washington state housing finance commission, provided that the financing is for a mobile home park cooperative or a manufactured housing cooperative, as defined in RCW 59.20.030, or a nonprofit entity; or
(vi) City or county funds designated for affordable housing.
(2) If less than 75 percent of the occupied dwelling units within the rental housing or lots in the mobile home park are occupied by qualifying households, the rental housing or mobile home park is eligible for a partial exemption on the real property and a total exemption of the housing's or park's personal property as follows:
(a) A partial exemption is allowed for each dwelling unit in the rental housing or for each lot in a mobile home park occupied by a qualifying household.
(b) The amount of exemption must be calculated by multiplying the assessed value of the property reasonably necessary to provide the rental housing or to operate the mobile home park by a fraction. The numerator of the fraction is the number of dwelling units or lots occupied by qualifying households as of December 31st of the first assessment year in which the rental housing or mobile home park becomes operational or on January 1st of each subsequent assessment year for which the exemption is claimed. The denominator of the fraction is the total number of dwelling units or lots occupied as of December 31st of the first assessment year the rental housing or mobile home park becomes operational and January 1st of each subsequent assessment year for which exemption is claimed.
(3) If a currently exempt rental housing unit or mobile home lot in a mobile home park was occupied by a qualifying household at the time the exemption was granted and the income of the household subsequently rises above the threshold set in subsection (7)(e) of this section but remains at or below 80 percent of the median income, the exemption will continue as long as the housing continues to meet the certification requirements listed in subsection (1) of this section. For purposes of this section, median income, as most recently determined by the federal department of housing and urban development for the county in which the rental housing or mobile home park is located, shall be adjusted for family size. However, if a dwelling unit or a lot becomes vacant and is subsequently rerented, the income of the new household must be at or below the threshold set in subsection (7)(e) of this section to remain exempt from property tax.
(4) If at the time of initial application the property is unoccupied, or subsequent to the initial application the property is unoccupied because of renovations, and the property is not currently being used for the exempt purpose authorized by this section but will be used for the exempt purpose within two assessment years, the property shall be eligible for a property tax exemption for the assessment year in which the claim for exemption is submitted under the following conditions:
(a) A commitment for financing to acquire, construct, renovate, or otherwise convert the property to provide housing for qualifying households has been obtained, in whole or in part, by the nonprofit entity claiming the exemption from one or more of the sources listed in subsection (1)(c) of this section;
(b) The nonprofit entity has manifested its intent in writing to construct, remodel, or otherwise convert the property to housing for qualifying households; and
(c) Only the portion of property that will be used to provide housing or lots for qualifying households shall be exempt under this section.
(5) To be exempt under this section, the property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW 84.36.805.
(6) The nonprofit entity qualifying for a property tax exemption under this section may agree to make payments to the city, county, or other political subdivision for improvements, services, and facilities furnished by the city, county, or political subdivision for the benefit of the rental housing. However, these payments shall not exceed the amount last levied as the annual tax of the city, county, or political subdivision upon the property prior to exemption.
(7) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Group home" means a single-family dwelling financed, in whole or in part, by one or more of the sources listed in subsection (1)(c) of this section. The residents of a group home shall not be considered to jointly constitute a household, but each resident shall be considered to be a separate household occupying a separate dwelling unit. The individual incomes of the residents shall not be aggregated for purposes of this exemption;
(b) "Mobile home lot" or "mobile home park" means the same as these terms are defined in RCW 59.20.030;
(c) "Occupied dwelling unit" means a living unit that is occupied by an individual or household as of December 31st of the first assessment year the rental housing becomes operational or is occupied by an individual or household on January 1st of each subsequent assessment year in which the claim for exemption is submitted. If the housing facility is comprised of three or fewer dwelling units and there are any unoccupied units on January 1st, the department shall base the amount of the exemption upon the number of occupied dwelling units as of December 31st of the first assessment year the rental housing becomes operational and on May 1st of each subsequent assessment year in which the claim for exemption is submitted;
(d) "Rental housing" means a residential housing facility or group home that is occupied but not owned by qualifying households;
(e)(i) "Qualifying household" means a single person, family, or unrelated persons living together whose income is at or below 50 percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the rental housing or mobile home park is located and in effect as of January 1st of the year the application for exemption is submitted;
(ii) Beginning July 1, 2021, "qualifying household" means a single person, family, or unrelated persons living together whose income is at or below 60 percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the rental housing or mobile home park is located and in effect as of January 1st of the year the application for exemption is submitted; and
(f) "Nonprofit entity" means a:
(i) Nonprofit as defined in RCW 84.36.800 that is exempt from income tax under section 501(c) of the federal internal revenue code;
(ii) Limited partnership where 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, a public corporation established under RCW 35.21.660, 35.21.670, or 35.21.730, a housing authority created under RCW 35.82.030 or 35.82.300, or a housing authority meeting the definition in RCW 35.82.210(2)(a) is a general partner;
(iii) Limited liability company where 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, a public corporation established under RCW 35.21.660, 35.21.670, or 35.21.730, a housing authority established under RCW 35.82.030 or 35.82.300, or a housing authority meeting the definition in RCW 35.82.210(2)(a) is a managing member; or
(iv) Mobile home park cooperative or a manufactured housing cooperative, as defined in RCW 59.20.030.
[ 2024 c 113 s 1; 2023 c 277 s 11; 2020 c 273 s 1; 2019 c 390 s 11; 2007 c 301 s 1; 2001 1st sp.s. c 7 s 1; 1999 c 203 s 1.]
Notes:
Automatic expiration date and tax preference performance statement exemption—2024 c 113: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2024 c 113 s 2.]
Application—2024 c 113: "This act applies to taxes levied for collection in 2025 and thereafter." [ 2024 c 113 s 3.]
Automatic expiration date and tax preference performance statement exemption—2020 c 273: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2020 c 273 s 3.]
Tax preference performance statement and expiration—2019 c 390: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to section 11 of this act." [ 2019 c 390 s 12.]
Finding—Intent—2019 c 390: See note following RCW 59.21.005.
Application—1999 c 203: "This act applies to taxes levied in 1999 for collection in 2000 and thereafter." [ 1999 c 203 s 4.]

catchline: Nonprofit organizations that provide rental housing or used space to qualifying households.


title: RCW 84.36.570

text:
(1) All real and personal property owned by a nonprofit organization, corporation, or association to provide a demonstration farm with research and extension facilities, a public agricultural museum, and an educational tour site, which is used by a state university for agricultural research and education programs, is exempt from property taxation. This exemption includes all real and personal property that may be used in the production and sale of agricultural products, not to exceed fifty acres, if the income is used to further the purposes of the organization, corporation, or association.
(2) To qualify for this exemption:
(a) The nonprofit organization, corporation, or association must be qualified for exemption under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)); and
(b) The property must be used exclusively for the purposes for which the exemption is granted, except as provided in RCW 84.36.805.
[ 1999 c 139 s 1.]

catchline: Nonprofit organizations—Property used for agricultural research and education programs.


title: RCW 84.36.590

text:
(1)(a) Beginning with taxes levied for collection in calendar year 2006, all personal property located on land owned by the United States, or an instrumentality of the United States, at the Hanford reservation that is used exclusively in the performance of a privatization contract to pretreat, treat, vitrify, and immobilize tank waste under subsection (2) of this section is exempt from taxation.
(b) Beginning with taxes levied for collection in calendar year 2002, and until the application of (a) of this subsection, all personal property located on land owned by the United States, or an instrumentality of the United States, at the Hanford reservation that is used exclusively in the performance of a privatization contract to pretreat, treat, vitrify, and immobilize tank waste under subsection (3) of this section is exempt from taxes levied by the state.
(2) To qualify for the exemption provided in subsection (1)(a) of this section, the personal property must be owned by a person that has a privatization contract to pretreat, treat, vitrify, and immobilize tank waste located at the Hanford reservation. For the purposes of this section, a privatization contract means a contract in which the United States, or an instrumentality of the United States, has designated the other contracting party as a party responsible for carrying out tank waste clean-up operations at the Hanford reservation.
(3) To qualify for the exemption provided in subsection (1)(b) of this section, the personal property must be owned by a person that has, and complies with, a privatization contract to pretreat, treat, vitrify, and immobilize tank waste located at the Hanford reservation. The personal property must be acquired or constructed, and operated, in compliance with the tank waste treatment complex requirements of the Hanford federal facility agreement and consent order, including schedules for tank waste treatment complex start of construction, initiation of hot commissioning, and schedules for tank waste pretreatment processing and vitrification. The privatization contractor shall submit annually, on or before August 1st, a progress report to the Washington state department of ecology documenting compliance with the requirements of the agreement and consent order and the terms of the privatization contract. The department of ecology shall annually issue, on or before October 1st, a determination to the department of revenue indicating whether the privatization contractor is in compliance with the requirements of the agreement and consent order.
(4) An inadvertent use of property, which otherwise qualifies for an exemption under this section, in a manner inconsistent with the purpose for which the exemption is granted, does not nullify the exemption if the inadvertent use is not part of a pattern of use. A pattern of use is presumed when an inadvertent use is repeated in the same assessment year or in two or more successive assessment years.
[ 2000 c 246 s 1.]
Notes:
Effective date—2000 c 246: "This act takes effect January 1, 2001." [ 2000 c 246 s 2.]

catchline: Property used in connection with privatization contract at Hanford reservation.


title: RCW 84.36.595

text:
(1) For the purposes of this section, the following definitions apply:
(a) "Motor vehicle" means all motor vehicles, trailers, and semitrailers used, or of the type designed primarily to be used, upon the public streets and highways, for the convenience or pleasure of the owner, or for the conveyance, for hire or otherwise, of persons or property, including fixed loads and facilities for human habitation; but shall not include (i) vehicles carrying exempt licenses; (ii) dock and warehouse tractors and their cars or trailers, lumber carriers of the type known as spiders, and all other automotive equipment not designed primarily for use upon public streets or highways; (iii) motor vehicles or their trailers used entirely upon private property; (iv) mobile homes as defined in RCW 46.04.302; or (v) motor vehicles owned by nonresident military personnel of the armed forces of the United States stationed in the state of Washington, provided personnel were also nonresident at the time of their entry into military service.
(b) "Travel trailer" has the meaning given in RCW 46.04.623. However, if a park trailer, as defined in RCW 46.04.622, has substantially lost its identity as a mobile unit by virtue of its being permanently sited in location and placed on a foundation of either posts or blocks with connections with sewer, water, or other utilities for the operation of installed fixtures and appliances, it will be considered real property and will be subject to ad valorem property taxation imposed in accordance with this title, including the provisions with respect to omitted property, except that a park trailer located on land not owned by the owner of the park trailer will be subject to the personal property provisions of chapter 84.56 RCW and RCW 84.60.040.
(c) "Camper" has the meaning given in RCW 46.04.085.
(2) Motor vehicles, vehicles carrying exempt licenses, travel trailers, and campers are exempt from property taxation.
[ 2004 c 156 s 1; 2000 c 136 s 1.]
Notes:
Effective date—2000 c 136: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 27, 2000]." [ 2000 c 136 s 2.]
Retroactive application—2000 c 136: "This act applies retroactively to January 1, 2000." [ 2000 c 136 s 3.]

catchline: Motor vehicles, travel trailers, campers, and vehicles carrying exempt licenses.


title: RCW 84.36.597

text:
(1) All heavy equipment rental property owned by a heavy equipment rental property dealer is exempt from taxation.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Heavy equipment rental property" means any equipment that is rented by a heavy equipment rental property dealer that:
(A) Is mobile. For purposes of this subsection, "mobile" means that the heavy equipment property is not permanently affixed to real property and may be moved among worksites as needed;
(B) Is customarily used for construction, earthmoving, or industrial applications. For the purposes of this subsection, "construction, earthmoving, or industrial applications" means the constructing of new buildings or other structures, or the repairing, remodeling, or expansion of existing buildings or other structures, under, upon, or above real property; the repositioning of terrain using vehicles or self-propelled equipment; and manufacturing or processing raw materials or other ingredients or components into new articles of tangible personal property for sale; and
(C) Is rented without an operator.
(ii) Subject to the provisions of (a)(i) of this subsection, "heavy equipment rental property" includes, but is not limited to the following:
(A) Earthmoving equipment, including but not limited to backhoes, loaders, rollers, excavators, bulldozers, and dump trucks;
(B) Self-propelled vehicles that are not designed to be driven on the highway;
(C) Industrial electrical generation equipment;
(D) Industrial lift equipment;
(E) Industrial material handling equipment;
(F) Equipment used in shoring, shielding, and ground trenching;
(G) Portable power and HVAC generation equipment;
(H) Attachments to heavy equipment rental property, including but not limited to buckets, augers, hammers for backhoes, hoses, fittings, piping, chains, tools (such as jackhammers and cement chippers), and portable power connections;
(I) Ancillary equipment, including but not limited to generators, ground thawing equipment, fluid transfer equipment, pumping equipment, portable storage, portable fuel and water tanks, and light towers; and
(J) Equipment or vehicles not subject to vehicle license fees and not required to be registered with the department of licensing.
(iii) "Heavy equipment rental property" does not include small hand tools, chainsaws, or lawnmowers.
(b) "Heavy equipment rental property dealer" means a person principally engaged in the business of renting heavy equipment rental property. For purposes of this subsection, "principally" means that the heavy equipment rental property dealer receives more than fifty percent of the dealer's annual total revenue from the rental of heavy equipment rental property.
(3)(a) The exemption in subsection (1) of this section does not apply in any tax year to heavy equipment rental property that the heavy equipment rental property dealer rented or leased at any time during the immediately preceding tax year to a person with whom the heavy equipment rental property dealer is affiliated.
(b) For purposes of this subsection, "affiliated" means:
(i) One person has an ownership interest of more than five percent, whether direct or indirect, in the other person; or
(ii) Persons who are related to each other because a third person, or group of third persons who are affiliated with respect to each other, holds an ownership interest of more than five percent, whether direct or indirect, in the related persons.
(4)(a) A claim for exemption under this section must be filed with the county assessor together with the statement required under RCW 84.40.190, for exemption from taxes payable the following year.
(b) The claim must be made solely upon forms as prescribed and approved by the department.
(c) If the assessor finds that the applicant does not meet the requirements for exemption under this section, the exemption must be denied but such denial is subject to appeal under the provisions of RCW 84.48.010 and 84.40.038.
(5) If a heavy equipment rental property dealer received an exemption under this section based on erroneous information provided by the heavy equipment rental property dealer to the county assessor, the taxes must be collected for a period not to exceed five years, subject to penalties as follows:
(a) Twenty-five percent of the total tax due;
(b) Fifty percent of the total tax due if the heavy equipment rental property dealer was previously assessed a penalty under this subsection, unless the penalty was overturned by a court or administrative tribunal in a final decision that is no longer subject to appeal; or
(c) A penalty as provided in RCW 84.40.130(2), if the heavy equipment rental property dealer, with intent to defraud, submitted a false or materially misleading claim for exemption.
(6) The department may adopt rules as it deems necessary to administer this section.
[ 2020 c 301 s 1.]
Notes:
Application—2020 c 301 s 1: "Section 1 of this act applies to taxes levied for collection in 2022 and thereafter." [ 2020 c 301 s 8.]
Automatic expiration date and tax preference performance statement exemption—2020 c 301: See RCW 82.51.900.

catchline: Heavy equipment rental property.


title: RCW 84.36.600

text:
(1) All custom computer software, except embedded software, is exempt from property taxation.
(2) Retained rights in computer software are exempt from property taxation.
(3) Modifications to canned software are exempt from property taxation, but the underlying canned software remains subject to taxation as provided in RCW 84.40.037.
(4) Master or golden copies of computer software are exempt from property taxation.
[ 1991 sp.s. c 29 s 3.]
Notes:
Findings, intent—Severability—Application—1991 sp.s. c 29: See notes following RCW 84.04.150.

catchline: Computer software.


title: RCW 84.36.605

text:
All real and personal property subject to a sale/leaseback agreement under RCW 81.112.300 is exempt from taxation.
[ 2000 2nd sp.s. c 4 s 27.]
Notes:
Findings—Construction—2000 2nd sp.s. c 4 ss 18-30: See notes following RCW 81.112.300.

catchline: Sales/leasebacks by regional transit authorities.


title: RCW 84.36.630

text:
(1) All machinery and equipment owned by a farmer that is personal property is exempt from property taxes levied for any state purpose if it is used exclusively in growing and producing agricultural products during the calendar year for which the claim for exemption is made.
(2) For purposes of this section, "farmer" and "agricultural product" have the same meaning as defined in RCW 82.04.213.
(3) A claim for exemption under this section must be filed with the county assessor together with the statement required under RCW 84.40.190, for exemption from taxes payable the following year. The claim must be made solely upon forms as prescribed and furnished by the department.
[ 2026 c 163 s 302; 2017 3rd sp.s. c 13 s 312; 2014 c 140 s 28; 2003 c 302 s 7; 2001 2nd sp.s. c 24 s 1.]
Notes:
Application—Automatic expiration date and tax preference performance statement exemption—2026 c 163: See notes following RCW 84.36.381.
Application—Tax preference performance statement and expiration—2017 3rd sp.s. c 13 ss 301-314: See notes following RCW 84.52.065.
Intent—2017 3rd sp.s. c 13: See note following RCW 28A.150.410.
Collective bargaining agreements not impaired—2017 3rd sp.s. c 13: See note following RCW 41.56.139.
Application—2001 2nd sp.s. c 24: "This act applies to taxes levied for collection in 2003 and every year thereafter." [ 2001 2nd sp.s. c 24 s 3.]

catchline: Farming machinery and equipment.


title: RCW 84.36.635

text:
(1) For the purposes of this section, "anaerobic digester" has the same meaning as provided in RCW 82.08.900.
(2) All buildings, machinery, equipment, and other personal property which are used primarily for the operation of an anaerobic digester, the land upon which this property is located, and land that is reasonably necessary in the operation of an anaerobic digester , are exempt from property taxation for the six assessment years following the date on which the facility or the addition to the existing facility becomes operational.
(3) Claims for exemptions authorized by this section must be filed with the county assessor on forms prescribed by the department of revenue and furnished by the assessor. Once filed, the exemption is valid for six assessment years following the date on which the facility or the addition to the existing facility becomes operational and may not be renewed. The assessor must verify and approve claims as the assessor determines to be justified and in accordance with this section. No claims may be filed after December 31, 2024.
(4) The department of revenue may promulgate such rules, pursuant to chapter 34.05 RCW, as necessary to properly administer this section.
[ 2018 c 164 s 8; 2010 1st sp.s. c 11 s 4; 2008 c 268 s 1; 2003 c 261 s 9.]
Notes:
Tax preference performance statement—Effective date—2018 c 164: See notes following RCW 82.08.900.
Effective date—2008 c 268: "This act takes effect July 1, 2008." [ 2008 c 268 s 3.]
Application—2003 c 261 s 9: "Section 9 of this act applies to taxes levied for collection in 2004 and thereafter." [ 2003 c 261 s 12.]
Effective dates—2003 c 261: "(1) Sections 9 through 15 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of state government and its existing public institutions, and take effect July 1, 2003.
(2) Sections 1 through 8 of this act take effect July 1, 2004." [ 2003 c 261 s 13.]

catchline: Property used for the operation of an anaerobic digester.


title: RCW 84.36.640

text:
(1) For the purposes of this section, "wood biomass fuel" means a pyrolytic liquid fuel or synthesis gas-derived liquid fuel, used in internal combustion engines, and produced from wood, forest, or field residue, or dedicated energy crops that do not include wood pieces that have been treated with chemical preservatives such as creosote, pentachlorophenol, or copper-chrome-arsenic.
(2)(a) All buildings, machinery, equipment, and other personal property which is used primarily for the manufacturing of wood biomass fuel, the land upon which this property is located, and land that is reasonably necessary in the manufacturing of wood biomass fuel, but not land necessary for growing of crops, which together comprise a new manufacturing facility or an addition to an existing manufacturing facility, are exempt from property taxation for the six assessment years following the date on which the facility or the addition to the existing facility becomes operational.
(b) For manufacturing facilities which produce products in addition to wood biomass fuel, the amount of the property tax exemption is based upon the annual percentage of the total value of all products manufactured that is the value of the wood biomass fuel manufactured.
(3) Claims for exemptions authorized by this section must be filed with the county assessor on forms prescribed by the department of revenue and furnished by the assessor. Once filed, the exemption is valid for six years and may not be renewed. The assessor must verify and approve claims as the assessor determines to be justified and in accordance with this section. No claims may be filed after December 31, 2015.
The department of revenue may promulgate such rules, pursuant to chapter 34.05 RCW, as necessary to properly administer this section.
[ 2010 1st sp.s. c 11 s 5; 2003 c 339 s 9.]
Notes:
Application—2003 c 339 s 9: "Section 9 of this act applies to taxes levied for collection in 2004 and thereafter." [ 2003 c 339 s 15.]
Effective dates—2003 c 339: "(1) Sections 9 through 15 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2003.
(2) Sections 1 through 8 of this act take effect July 1, 2004." [ 2003 c 339 s 16.]

catchline: Property used for the manufacture of wood biomass fuel.


title: RCW 84.36.645

text:
(1) Machinery and equipment exempt under RCW 82.08.02565 or 82.12.02565 used in manufacturing semiconductor materials at a building exempt from sales and use tax and in compliance with the employment requirement under RCW 82.08.965 and 82.12.965 are exempt from property taxation. "Semiconductor materials" has the same meaning as provided in RCW 82.04.241.
(2) A person seeking this exemption must make application to the county assessor, on forms prescribed by the department.
(3) A person claiming an exemption under this section must file a complete annual tax performance report with the department under RCW 82.32.534.
(4) This section applies to taxes levied for collection in the calendar year subsequent to the effective date of this section and thereafter.
(5) Pursuant to RCW 82.32.790, this section is contingent on the siting and commercial operation of a significant semiconductor microchip fabrication facility in the state of Washington.
(6) This section expires January 1, 2034, unless the contingency in RCW 82.32.790(2) occurs.
[ 2024 c 261 s 9. Prior: 2017 3rd sp.s. c 37 s 514; (2017 3rd sp.s. c 37 s 513 expired January 1, 2018); 2017 c 135 s 45; 2010 c 114 s 150; 2003 c 149 s 10.]
Notes:
Tax preference performance statement exemption—Effective date—2024 c 261 ss 2-9: See notes following RCW 82.04.241.
Effective date—2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803: See note following RCW 82.04.2404.
Expiration date—2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525: See note following RCW 82.04.2404.
*Contingent effective date—2017 c 135; 2010 c 114: See RCW 82.32.790.
Effective date—2017 c 135: See note following RCW 82.32.534.
Finding—Intent—2010 c 114: See note following RCW 82.32.534.
Findings—Intent—2003 c 149: See note following RCW 82.04.426.

catchline: Semiconductor materials. (Contingent effective date; contingent expiration date.)


title: RCW 84.36.650

text:
The real and personal property owned or used by a nonprofit organization is exempt from taxation if the property is used for solicitation or collection of gifts, donations, or grants for the support of individual artists and the organization meets all of the following conditions:
(1) The organization is organized and conducted for nonsectarian purposes.
(2) The organization is qualified for exemption under section 501(c)(3) of the federal internal revenue code.
(3) The organization is governed by a volunteer board of directors of at least eight members.
(4) If the property is leased, the benefit of the exemption inures to the user.
(5) The gifts, donations, and grants are used by the organization for grants, fellowships, information services, and educational resources in support of individual artists engaged in the production or performance of musical, dance, artistic, dramatic, or literary works.
[ 2003 c 344 s 1.]
Notes:
Application—2003 c 344: "This act applies to taxes levied for collection in 2004 and thereafter." [ 2003 c 344 s 3.]

catchline: Property used by certain nonprofits to solicit or collect money for artists.


title: RCW 84.36.655

text:
(1) Effective January 1, 2005, all buildings, machinery, equipment, and other personal property of a lessee of a port district eligible under RCW 82.08.980 and 82.12.980, used exclusively in manufacturing superefficient airplanes, are exempt from property taxation. A person taking the credit under RCW 82.04.4463 is not eligible for the exemption under this section. For the purposes of this section, "superefficient airplane" and "component" have the meanings given in RCW 82.32.550.
(2) In addition to all other requirements under this title, a person claiming the exemption under this section must file a complete annual tax performance report with the department under RCW 82.32.534.
(3) Claims for exemption authorized by this section must be filed with the county assessor on forms prescribed by the department and furnished by the assessor. The assessor must verify and approve claims as the assessor determines to be justified and in accordance with this section. No claims may be filed after December 31, 2039. The department may adopt rules, under the provisions of chapter 34.05 RCW, as necessary to properly administer this section.
(4) This section applies to taxes levied for collection in 2006 and thereafter.
(5) This section expires July 1, 2040.
[ 2017 c 135 s 46; 2013 3rd sp.s. c 2 s 14; 2010 c 114 s 151; 2003 2nd sp.s. c 1 s 14.]
Notes:
Effective date—2017 c 135: See note following RCW 82.32.534.
Contingent effective date—2013 3rd sp.s. c 2: See RCW 82.32.850.
Findings—Intent—2013 3rd sp.s. c 2: See note following RCW 82.32.850.
Application—Finding—Intent—2010 c 114: See notes following RCW 82.32.534.
Finding—2003 2nd sp.s. c 1: See note following RCW 82.04.4461.

catchline: Property related to the manufacture of superefficient airplanes. (Expires July 1, 2040.)


title: RCW 84.36.660

text:
(1) Prior to installation of an automatic sprinkler system under RCW 19.27.500 through 19.27.520, an owner or lessee of property who meets the requirements of this section may apply to the assessor of the county in which the property is located for a special property tax exemption. This application shall be made upon forms prescribed by the department of revenue and supplied by the county assessor.
(a)(i) If a lessee of the property has paid for all expenses associated with the installation and purchase of the automatic sprinkler system, then the benefit of the exemption must inure to the lessee.
(ii) A lessee, otherwise eligible to receive the benefit of the exemption under this section, is entitled to receive such benefit only to the extent that the lessee maintains a valid lease agreement with the property owner for the property in which the automatic sprinkler system was installed pursuant to RCW 19.27.500.
(b) An exemption may be granted under this section only to the property owner or lessee that pays for all expenses associated with the installation and purchase of the automatic sprinkler system. In no event may both the property owner and the lessee receive an exemption under this section in the same calendar year for the installation and purchase of the same automatic sprinkler system.
(c) After December 31, 2009, no new application for a special tax exemption under this section may be: Made by a property owner or lessee; or accepted by the county assessor.
(2) As used in this chapter, "special property tax exemption" means the determination of the assessed value of the property subtracting, for ten years, the increase in value attributable to the installation of an automatic sprinkler system under RCW 19.27.500 through 19.27.520.
(3) The county assessor shall, for ten consecutive assessment years following the calendar year in which application is made, place a special property tax exemption on property classified as eligible.
[ 2007 c 434 s 3; 2005 c 148 s 4.]

catchline: Installation of automatic sprinkler system under RCW 19.27.500 through 19.27.520.


title: RCW 84.36.665

text:
(1) Military housing is exempt from taxation if the housing meets the following requirements:
(a) The military housing must be situated on land owned in fee by the United States;
(b) The military housing must be used for the housing of military personnel and their families; and
(c) The military housing must be a development project awarded under the military housing privatization initiative.
(2) To qualify property for the exemption under this section, the project owner must submit an application to the department in a form and manner prescribed by the department. Any change in the use of the property that affects the qualification of the property must be reported to the department.
(3) The definitions in this subsection apply to this section.
(a) "Ancillary supporting facilities" means facilities related to military housing units, including facilities to provide or support elementary or secondary education, child care centers, day care centers, child development centers, tot lots, community centers, housing offices, dining facilities, unit offices, and other similar facilities for the support of military housing.
(b) "Military housing" means military housing units and ancillary supporting facilities.
(c) "Military housing privatization initiative" means the military housing privatization initiative of 1996, 10 U.S.C. Secs. 2871 through 2885, as existing on June 12, 2008, or some later date as the department may provide.
[ 2008 c 84 s 1.]

catchline: Military housing.


title: RCW 84.36.670

text:
(1) One or more contiguous real property parcels and personal property owned by a senior citizen organization are exempt from taxation, if the property is used for the actual operation of a multipurpose senior citizen center.
(2) The exemption in this section is not nullified by the use of the exempt property as provided in this subsection.
(a) The exempt property may be loaned or rented, if the rent and donations received for the use of the multipurpose senior citizen center are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented.
(b) The exempt property may be used for fund-raising events and activities, including the operation of a farmers market or a thrift store, with the purpose of providing financial support for the multipurpose senior citizen center or providing services and activities for senior citizens. If the exempt property is loaned or rented to conduct a fund-raising event for other purposes:
(i) Such event or activities must be conducted by a nonprofit organization eligible for exemption under this chapter; and
(ii) The requirements of (a) of this subsection (2) apply.
(c) An inadvertent use of the exempt property in a manner inconsistent with the purposes of the exemption granted under this section does not nullify the exemption, if the inadvertent use is not part of a pattern of use. A pattern of use is presumed when an inadvertent use is repeated in the same assessment year or in two or more successive years.
(3) Multipurpose senior citizen centers must be available to all regardless of race, color, religion, creed, gender, gender expression, national origin, ancestry, the presence of any sensory, mental, or physical disability, marital status, sexual orientation, or honorably discharged veteran or military status.
(4) The use of the exempt property, other than as specifically authorized by this section, nullifies the exemption from taxation otherwise available for the property for the assessment year.
(5) This section is not subject to the provisions of RCW 84.36.805.
(6) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Farmers market" means a regular assembly of vendors at a location for the main purpose of promoting the sale of agricultural products grown, raised, or produced in this state directly to the consumer.
(b) "Multipurpose senior citizen center" means a community facility that provides for a broad spectrum of services to senior citizens, whether provided directly by the nonprofit senior citizen organization that owns the facility or by another person. Such services may include the provision of health, social, nutritional, educational services and the provision of facilities for recreational activities for senior citizens.
(c) "Senior citizen" means a person age sixty or older.
(d) "Senior citizen organization" means a private organization that:
(i) Has a mission, in whole or in part, to support senior citizens;
(ii) Is exempt from federal income tax under section 501(c)(3) of the internal revenue code; and
(iii) Operates a multipurpose senior citizen center.
(e) "Thrift store" means a retail establishment that:
(i) Is operated by a senior citizen organization;
(ii) Is located on the same parcel of real property as the senior citizen organization's multipurpose senior citizen center, or on a contiguous parcel of real property;
(iii) Sells goods, including but not limited to donated goods, as part of the senior citizen organization's fund-raising efforts for the operation of its multipurpose senior citizen center and the provision of services and activities for senior citizens; and
(iv) If the establishment sells nondonated goods, its gross annual sales of nondonated goods does not exceed ten percent of its total combined gross annual sales of all goods.
[ 2017 c 301 s 2.]
Notes:
Reviser's note: The tax preference enacted in section 2, chapter 301, Laws of 2017 expires January 1, 2028, pursuant to the automatic expiration date in RCW 82.32.805(1)(a).
Tax preference performance statement—2017 c 301 s 1: "(1) This section is the tax preference performance statement for the tax preference contained in chapter 301, Laws of 2017. This preference statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief as indicated in RCW 82.32.808(2)(e), to provide tax relief to senior citizen centers that do not qualify for a property tax exemption under current law.
(3) The joint legislative audit and review committee will review the number of senior citizen centers that received the tax preference provided in this act that would not have qualified for a property tax exemption prior to the enactment of this preference. In order to obtain the data necessary to perform the review, the joint legislative audit and review committee may refer to data sources including county assessor property records and property tax information from the department of revenue." [ 2017 c 301 s 1.]

catchline: Senior citizen organizations—Property used for operation of a multipurpose senior citizen center.


title: RCW 84.36.675

text:
(1) The real property owned by a limited equity cooperative that provides owned housing for low-income households is exempt from property taxation if:
(a) The benefit of the exemption inures to the limited equity cooperative and its members;
(b) At least 85 percent of the occupied dwelling units in the limited equity cooperative is occupied by members of the limited equity cooperative determined as of January 1st of each assessment year for which the exemption is claimed;
(c) At least 95 percent of the property for which the exemption is sought is used for dwelling units or other noncommercial uses available for use by the members of the limited equity cooperative; and
(d) The housing was insured, financed, or assisted, in whole or in part, through one or more of the following sources:
(i) A federal or state housing program administered by the department of commerce;
(ii) A federal or state housing program administered by the federal department of housing and urban development;
(iii) A federal housing program administered by a city or county government;
(iv) An affordable housing levy authorized under RCW 84.52.105;
(v) The surcharges authorized by RCW 36.22.250 and any of the surcharges authorized in chapter 43.185C RCW; or
(vi) The Washington state housing finance commission.
(2) If less than 100 percent of the dwelling units within the limited equity cooperative is occupied by low-income households, the limited equity cooperative is eligible for a partial exemption on the real property. The amount of exemption must be calculated by multiplying the assessed value of the property owned by the limited equity cooperative by a fraction. The numerator of the fraction is the number of dwelling units occupied by low-income households as of January 1st of each assessment year for which the exemption is claimed, and the denominator of the fraction is the total number of dwelling units as of such date.
(3) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Cooperative" has the meaning provided in RCW 64.90.010.
(b)(i) "Limited equity cooperative" means a cooperative subject to the Washington uniform common interest ownership act under chapter 64.90 RCW that owns the real property for which an exemption is sought under this section and for which, following the completion of the development or redevelopment of such real property:
(A) Members are prevented from selling their ownership interests other than to a median-income household; and
(B) Members are prevented from selling their ownership interests for a sales price that exceeds the sum of:
(I) The sales price they paid for their ownership interest;
(II) The cost of permanent improvements they made to the dwelling unit during their ownership;
(III) Any special assessments they paid to the limited equity cooperative during their ownership to the extent utilized to make permanent improvements to the building or buildings in which the dwelling units are located; and
(IV) A three percent annual noncompounded return on the above amounts.
(ii) For the purposes of this subsection (3)(b), "sales price" is the total consideration paid or contracted to be paid to the seller or to another for the seller's benefit.
(c) "Low-income household" means a single person, family, or unrelated persons living together whose income is at or below 80 percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the housing is located and in effect as of January 1st of the year in which the determination is to be made as to whether the single person, family, or unrelated persons living together qualify as a low-income household.
(d) "Median-income household" means a single person, family, or unrelated persons living together whose income is at or below 100 percent of the median income adjusted for family size as most recently determined by the federal department of housing and urban development for the county in which the housing is located and in effect as of January 1st of the year in which the determination is to be made as to whether the single person, family, or unrelated persons living together qualify as a median-income household.
(e) "Members" of a limited equity cooperative means individuals or entities that have an ownership interest in the limited equity cooperative that entitles them to occupy and sell a dwelling unit in the limited equity cooperative.
[ 2023 c 277 s 12; 2022 c 93 s 2.]
Notes:
Expiration date—2023 c 277 s 12: "Section 12 of this act expires January 1, 2033." [ 2023 c 277 s 14.]
Tax preference performance statement—2022 c 93 s 2: "(1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter 93, Laws of 2022. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).
(3) It is the legislature's specific public policy objective to financially incentivize the formation and utilization of limited equity cooperatives, and to increase the availability of housing available to low-income households. It is the legislature's intent to exempt from taxation any real property owned by a limited equity cooperative when a majority of the property is used and occupied by low-income households.
(4)(a) To measure the effectiveness of the tax preference provided in section 2 of this act in achieving the specific public policy objectives described in subsection (3) of this section, the joint legislative audit and review committee must evaluate, two years prior to the expiration of the tax preference: (i) Growth in the formation and utilization of limited equity cooperatives; (ii) growth in available units of affordable housing within limited equity cooperatives; and (iii) any other metric the joint legislative audit and review committee determines is relevant to measuring success of this exemption.
(b) If the review by the joint legislative audit and review committee finds that growth in the formation and utilization of limited equity cooperatives or growth in available units of affordable housing within limited equity cooperatives has occurred, then the legislature intends to extend the expiration date of the tax preference.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to:
(a) Initial applications for the preference as approved by the department of revenue under RCW 84.36.815;
(b) Annual financial statements for a limited equity cooperative claiming this tax preference; and
(c) Any other data necessary for the evaluation under subsection (4) of this section." [ 2022 c 93 s 1.]
Expiration date—2022 c 93 ss 2-6: "Sections 2 through 6 of this act expire January 1, 2033." [ 2022 c 93 s 8.]
Application—2022 c 93: "This act applies to taxes levied for collection in 2023 through 2032." [ 2022 c 93 s 7.]

catchline: Housing for low-income households provided by limited equity cooperatives. (Expires January 1, 2033.)


title: RCW 84.36.680

text:
(1) Provided the taxpayer fulfills the requirements of this section, all qualified personal property owned by a taxpayer is exempt from property taxes levied for any state purpose.
(2)(a) Unless a taxpayer is assessed under chapter 84.12 RCW, a claim for an exemption under this section from taxes payable the following year must be filed by March 31st with the county assessor together with the statement required under RCW 84.40.190 and a statement attesting that the taxpayer meets the requirements of subsection (3) of this section. The claim must be made upon forms as prescribed and furnished by the department. The application must indicate if the taxpayer is applying for a 10 or 15-year exemption.
(b) If a taxpayer is assessed under chapter 84.12 RCW, a claim for an exemption under this section from taxes payable the following year must be filed by March 31st with the department together with the annual report required under RCW 84.12.230 and a statement attesting that the taxpayer meets the requirements of subsection (3) of this section. The claim must be made upon forms as prescribed and furnished by the department. The application must indicate if the taxpayer is applying for a 10 or 15-year exemption.
(c) The taxpayer claiming an exemption under this subsection (2) and paying the production excise tax under RCW 82.96.010 must file an annual attestation in the manner and form prescribed by the department.
(3) The taxpayer must register with the department to pay the production excise tax authorized in RCW 82.96.010.
(4) An exemption granted pursuant to this section to a taxpayer compliant with requirements of this section is granted for 10 or 15 years following the date on which the facility where the qualified personal property is located first becomes operational.
(5) The department must apportion personal property assessed under chapter 84.12 RCW that is granted an exemption under this section pursuant to RCW 84.12.360.
(6)(a) If a taxpayer fails to meet the annual attestation requirement in subsection (2)(c) of this section or fails to pay the production excise tax required in RCW 82.96.010, the department shall send a notice to the taxpayer to comply or forfeit the exemption. The taxpayer must come into compliance within 60 days from the date of the notice.
(b) Failure to comply with the requirements of this section results in the personal property taxes previously exempted becoming immediately due and payable with interest. The rate of interest must be the same as provided for delinquent taxes in RCW 84.56.020(5). No additional penalties may be assessed; however, credit for production excise taxes paid pursuant to RCW 82.96.010 may not be given in calculating the total amount due under this subsection (6). In addition, the qualified personal property no longer qualifies for a personal property tax exemption under this section.
(7) The definitions in this subsection apply throughout this section unless the context clearly indicates otherwise.
(a) "Personal property" has the same meaning as in RCW 84.04.080.
(b) "Qualified personal property" means personal property that is used exclusively for the generation or storage of renewable energy in a facility, the construction of which began on or after July 1, 2023.
(c) "Renewable energy" means energy produced by a solar or wind facility with nameplate capacity sufficient to generate at least 10 megawatts of nameplate capacity of alternating current power.
[ 2023 c 427 s 1.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—2023 c 427: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2023 c 427 s 5.]
Application—2023 c 427: "This act applies to taxes levied for collection in 2025 and thereafter." [ 2023 c 427 s 7.]

catchline: Generation or storage of renewable energy. (Effective until January 1, 2028.)


title: RCW 84.36.690

text:
(1)(a) All personal property used primarily for the generation of renewable energy in a qualified renewable energy facility that becomes operational on or after January 1, 2028, or a qualified renewable energy facility that is repowered on or after January 1, 2028, is exempt from property taxation.
(b) All personal property used primarily for the generation of renewable energy in a qualified renewable energy facility that became operational before January 1, 2028, meets the conditions in RCW 82.96.060, and opts into the tax imposed under RCW 82.96.040 is exempt from property taxation.
(2)(a) All personal property used primarily for a battery electric storage system that becomes operational on or after January 1, 2028, or that is repowered on or after January 1, 2028, is exempt from property taxation.
(b) All personal property used primarily for the energy storage in a qualified renewable energy facility that became operational before January 1, 2028, meets the conditions of RCW 82.96.060, and opts into the tax imposed under RCW 82.96.040 is exempt from property taxation.
(3)(a) Each qualified renewable energy facility and battery electric storage system in this state must annually, on or before the 15th day of March, make and file with the department an annual report as to the location by tax code area and nameplate capacity, energy storage capacity, and repowering of the personal property exempt under this section, as well as any other information required by the department.
(b) In addition to the reporting requirements in (a) of this subsection, repowering, rebuilds, or refurbishments of personal property exempt under this section must be reported to the county assessor as they occur or, if a facility has previously undertaken repowering, rebuilds, or refurbishments before January 1, 2028, within 30 days of January 1, 2028. The county assessor must determine if the repowering, rebuilds, or refurbishments meet the definition of repowered in RCW 82.96.005.
(c) The department must provide each respective county treasurer and county assessor a copy of the report filed under (a) of this subsection.
(4) The department may adopt such rules in accordance with chapter 34.05 RCW and prescribe such forms as it deems necessary and appropriate to implement and administer this section.
(5) Any delinquent taxes under this section are subject to the penalties and interest for personal property in RCW 84.56.020.
(6) The definitions in RCW 82.96.005 apply throughout this section.
[ 2026 c 260 s 102.]
Notes:
Application—2026 c 260 s 102: "Section 102 of this act applies to property taxes levied for collection in 2029 and thereafter." [ 2026 c 260 s 305.]
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: Generation of renewable energy in a qualified renewable energy facility—Battery electric storage system—Rules. (Effective January 1, 2028.)