Committee hears bill to remove 1-acre cap on nonprofit assembly property-tax exemption

House Finance on Thursday heard testimony on Senate Bill 5252, a proposal to remove a 1-acre cap on property-tax exemptions for nonprofit buildings used as public assembly halls.

Christina King, staff to the committee, told lawmakers that, “Beginning with property taxes due for calendar year 2027, the 1 acre limitation for the exemption is removed.” King’s briefing said the change would affect only buildings owned and operated by nonprofits and used for public gatherings at least 51% of the time and available to all people regardless of membership, race, color, national origin or ancestry. The exemption would continue to cover the building and the land under it plus additional area necessary for parking.

King said fiscal analysts expect the state property tax levy to remain below the $3.60 limit throughout the 2027–2029 biennium and characterized the expanded exemption as producing a minimal shift in local property taxes. King also noted that DUR “anticipates a one-time expenditure of $53,000 in fiscal year 27 for processing public assembly hall applications and amending one administrative rule.”

Senator Shoemake, the bill’s prime sponsor, framed the measure as a small tax shift intended to help local granges and other “third spaces” in rural districts. Shoemake said granges host community activities ranging from square dances and farmer’s markets to church services and support groups and that some have deferred maintenance and increased tax burdens because their parcels exceed the current acreage limit.

Russ Weston, a long-time member of the Rome Grange in Bellingham, testified in support and described his hall’s circumstances: “The Rome Grange was chartered in 1908, and the land it currently sits on is 1.83 acres,” he said, explaining the historical need for larger parcels for parking and septic systems and the modern increase in community events.

The committee closed the public hearing without taking a vote. No formal motion or amendment was recorded during the session; next steps were not announced on the record.