Providing a property tax exemption for property owned by a qualifying nonprofit organization and loaned, leased, or rented to and used by any government entity to provide character-building, benevolent, protective, or rehabilitative social services.

Senate Bill 5697 expands an existing property tax exemption for qualifying nonprofit organizations in Washington state. It allows these nonprofits to maintain their tax-exempt status even when their property is loaned, leased, or rented to government entities or other nonprofit organizations. This applies specifically when the property is used to provide character-building, benevolent, protective, or rehabilitative social services. The bill also clarifies that selling donated merchandise on such property is considered an exempt use if the proceeds further the organization's purposes, with these changes taking effect for taxes collected in 2026 and later.