(1)
Introduction. This rule
explains the real and personal property tax exemption available under
RCW
84.36.040 for property used by nonprofit
child day care centers, free libraries, orphanages, homes for the sick or
infirm, hospitals, and outpatient dialysis facilities. In addition, this rule
explains the real and personal property tax exemption available to property
leased to and used by a hospital for hospital purposes for a hospital that is
established under chapter 36.62 RCW, or is owned and operated by a public
hospital district established under chapter 70.44 RCW.
(2)
Definitions. For purposes of
this rule, the following definitions apply:
(a) "Child day care center" means a nonprofit
organization that regularly provides child day care and early learning services
for a group of children for periods of less than twenty-four consecutive
hours.
(b) "Convalescent" or
"chronic care" means any or all procedures commonly provided in caring for the
sick including, but not limited to, administering medicines, preparing special
diets, providing bedside nursing care, applying dressings and bandages, and
carrying out any treatment prescribed by a duly licensed practitioner of the
healing arts.
(c) "Free library"
means a building or room containing collections of books, periodicals, other
written materials such as magazines and newspapers, and audio or visual
recordings. A free library must be accessible to the public for viewing,
listening to, or borrowing these materials without charge. A nominal fee may be
imposed for any materials that are damaged, lost, or not returned by the
borrower in a timely manner. In the context of this rule, a "free library" does
not include a library owned by an entity listed in
RCW
84.36.010(1).
(d) "Home for the sick or infirm" means any
home, place, or institution that operates or maintains facilities to provide
convalescent or chronic care, or both, for three or more persons not related by
blood or marriage to the operator, who by reason of illness or infirmity, are
unable to properly care for themselves.
(i)
The services must be provided to persons over a continuous period of
twenty-four hours or more.
(ii) A
boarding home, guest home, hotel, or similar institution that is offered to the
public as providing and supplying only room, board, or laundry services to
persons who do not need medical or nursing treatment or supervision is not
considered a "home for the sick or infirm" for purposes of this rule.
(e) "Hospital" means a nonprofit
organization, association, or corporation engaged in providing medical,
surgical, nursing, or related health care services for the prevention,
diagnosis, or treatment of human illness, pain, injury, disability, deformity,
or abnormality, including mental illness, treatment of mentally incompetent
persons, or treatment of chemically dependent persons. The term also includes:
(i) Buildings or portions of buildings that
are currently licensed as part of a hospital pursuant to chapters 70.41 or
71.12 RCW, and are part of an integrated, interrelated, homogeneous unit
exclusively used for hospital purposes. The licensed hospital must be able to
provide health care services to inpatients over a continuous period of
twenty-four hours or more;
(ii)
Administrative and support facilities integral and necessary to the functioning
of the licensed hospital;
(iii)
Buildings used as a residence for persons engaged or employed on a regular
basis in the operation of a licensed hospital. Such buildings include, but are
not limited to, a nurse's home or a residence for hospital employees;
and
(iv) Residential units
administered by a licensed hospital that are exclusively used to temporarily
house families of inpatients in an integrated program of therapy.
"Hospital" does not include:
(A) Hotels or similar places that furnish
only food and lodging or simple domiciliary care;
(B) Clinics or physician's offices, unless
licensed as part of a hospital;
(C)
Nursing homes as defined in chapter 18.51 RCW; and
(D) Maternity homes as defined in chapter
18.46 RCW.
(3)
Exemption for exclusively used
property. A nonprofit organization, association, or corporation
(collectively, "organization") that operates one of the following institutions
is exempt from taxation on all real and personal property exclusively used for
the actual operation of the activity for which the exemption is granted:
(a) Child day care centers;
(b) Free libraries;
(c) Orphanages and orphan shelters;
(d) Homes for the sick or infirm;
(e) Hospitals for the sick; and
(f) Outpatient dialysis facilities.
(4)
Exemption for loaned,
leased, or rented property. Property loaned, leased, or rented to an
institution listed in subsection (3) of this rule is also exempt from taxation
if:
(a) The property is exclusively used by
the nonprofit organization for the actual operation of the activity for which
the exemption is granted;
(b) The
benefit of the exemption is passed on to the nonprofit organization using the
property for exempt purposes; and
(c) The property was specifically identified
as loaned, leased, or rented when the application for exemption was
made.
(5)
Property
leased or rented to and used by publicly owned and operated hospitals.
All real and personal property leased or rented to and used by a hospital for
hospital purposes as defined in subsection (2)(e) of this rule is exempt from
property tax if the hospital is established under chapter 36.62 RCW or is owned
and operated by a public hospital district established under chapter 70.44 RCW.
The benefit of the exemption must be passed on to the nonprofit organization
using the property for exempt purposes.
(6)
Additional requirements. Any
nonprofit organization that applies for a property tax exemption under this
rule must also comply with the provisions of WAC
458-16-165.