WashingtonHB 26102025-2026 Regular SessionHouseWALLET

Ensuring nonprofit housing providers qualify for a property tax exemption when the property is temporarily used for certain community purposes other than affordable housing.

Sponsored By: Chipalo Street (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Nonprofit transfers preserve property tax breaks

Beginning June 11, 2026, transferring exempt real property to another nonprofit organization, association, or corporation does not end its exemption. The new holder's use must qualify for and receive an exemption under Washington's property tax exemption law. A qualifying transfer also avoids disqualification or additional tax recapture under RCW 84.36.049. This transfer protection expires January 1, 2038.

Nonprofits face property tax renewal deadlines

For taxes collected in 2027 and later, nonprofits with the RCW 84.36.049 property tax exemption must renew annually by March 31. Nonprofits with the RCW 84.36.560 exemption renew every third year after first qualifying. Those with the RCW 84.36.675 exemption renew every third year until January 1, 2033, then annually.

Nonprofits keep tax breaks during limited events

Beginning June 11, 2026, nonprofit housing property exempt under RCW 84.36.049 can keep its exemption during temporary nonqualifying uses. These uses are limited to 50 days per calendar year, including no more than 15 days for financial gain or business promotion. Setup and takedown days immediately before or after an event do not count toward either limit. Exceeding either limit removes the exemption for the affected property portion for that assessment year. A parallel change to the future version of the exemption rules takes effect January 1, 2033.

Sponsors & Cosponsors

Sponsor

Chipalo Street
Democratic • House

Cosponsors

Edwin Obras
Democratic • House
Julia Reed
Democratic • House
Julio Cortes
Democratic • House
Natasha Hill
Democratic • House
Sharlett Mena
Democratic • House
Shaun Scott
Democratic • House
Timm Ormsby
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 132 • No: 13

Senate vote • 3/6/2026

3rd Reading & Final Passage

Yes: 44 • No: 4 • Other: 1

House vote • 2/17/2026