Lawmakers hear bill to extend nonprofit property tax exemption to property leased for social services

House Finance heard testimony Jan. 23 on House Bill 1094, a bill that would expand an existing property tax exemption for nonprofit organizations so that property owned by a nonprofit and leased to a government entity, a federally recognized Indian tribe located in Washington, or another nonprofit providing qualifying social services could qualify for the exemption.

Committee staff Rochelle Harris summarized current law: property is generally taxed on its highest and best use unless a statutory exemption applies; nonprofits that own property used for character-building, benevolent, protective or rehabilitative social services may be exempt. HB 1094 would allow a nonprofit owner that leases property to eligible government or nonprofit providers to…