HOUSE BILL REPORT

SSB 5964

BYSenate Committee on Ways & Means (originally sponsored by Senators Hayner, Newhouse, Rasmussen, Nelson, Rinehart, Matson, McDonald, Bluechel, Talmadge, Cantu, Stratton, Sellar, Johnson, Bauer and Saling)

Providing a use tax exemption for personal property donated to colleges and universities.

House Committe on Higher Education

Majority Report:  Do pass.  (13)

      Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Van Luven, Ranking Republican Member; Doty, Fraser, Heavey, Inslee, Jesernig, Miller, H. Myers, Prince, Rector and Wood.

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION MARCH 27, 1989

BACKGROUND:

With certain exceptions, institutions of higher education are subject to the use tax for articles of tangible personal property that are purchased, or acquired by lease, gift, repossession, or bailment. Items exempted from the use tax include, among others: computers, computer components, computer accessories, or computer software irrevocably donated to public or nonprofit schools and colleges.

SUMMARY:

Personal property donated to state and independent nonprofit institutions of higher education is exempt from state use taxes.

After issuing a needs statement and accepting a donation of personal property, an institution of higher education must have the fair market value of the property assessed.  The assessment can be performed by either a qualified, independent expert, or through the use of current catalogs or price lists.  The institution will provide the results of the assessment to the donor, who is responsible for reporting the information to the Department of Revenue, upon request.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Fred Romero, State Board for Community College Education.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Passage of this legislation will provide an incentive for equipment donations to the state's colleges and universities.

House Committee - Testimony Against:      None Presented.