S-1566               _______________________________________________

                                                   SENATE BILL NO. 6006

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Lee and Moore

Read first time 2/22/89 and referred to Committee on  Economic Development & Labor.

AN ACT Relating to the business and occupation tax on nonprofit trade and professional organizations for convention, educational seminar, and trade show registration income; amending RCW 82.04.4282; adding a new section to chapter 82.04 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 3, chapter 37, Laws of 1980 and RCW 82.04.4282 are each amended to read as follows:

          In computing tax there may be deducted from the measure of tax amounts derived from (1) bona fide initiation fees, (2) dues, (3) contributions, (4) donations, (5) tuition fees, (6) charges made by a nonprofit trade or professional organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the nonprofit trade or professional organization, which trade show, convention, or educational seminar is not open to the general public, (7) charges made for operation of privately operated kindergartens, and (8) endowment funds.  This paragraph shall not be construed to exempt any person, association, or society from tax liability upon selling tangible personal property or upon providing facilities or services for which a special charge is made to members or others.  If dues are in exchange for any significant amount of goods or services rendered by the recipient thereof to members without any additional charge to the member, or if the dues are graduated upon the amount of goods or services rendered, the value of such goods or services shall not be considered as a deduction hereunder.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

          A nonprofit trade or professional organization that registers or has registered with the department of revenue by September 1, 1989, shall be absolved of any liability for taxes due from the organization and unpaid under this chapter for taxes due prior to the date of registration or the effective date of this section, whichever is earlier, for charges made by such organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the nonprofit trade or professional organization, which trade show, convention, or educational seminar is open or not open to the general public.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.