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               ENGROSSED SUBSTITUTE SENATE BILL 5929

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State of Washington      52nd Legislature     1991 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Cantu, McDonald and Rasmussen).

Read first time March 11, 1991.Providing tax exemptions for nonprofit organizations serving meals for fundraising purposes.

    AN ACT Relating to an exemption from retail sales tax and business and occupation tax for meals served no more frequently than once a week by a nonprofit organization for fundraising purposes; amending RCW 82.04.365 and 82.08.0251; adding a new section to chapter 82.12 RCW; and declaring an emergency.

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

    Sec. 1.  RCW 82.04.365 and 1979 ex.s. c 196 s 7 are each amended to read as follows:

    (1) This chapter does not apply to amounts derived by a nonprofit organization as a result of conducting or participating in a bazaar or rummage sale if:

    (a) The organization does not conduct or participate in more than two bazaars or rummage sales per year; and

    (b) Each bazaar or rummage sale does not extend over a period of more than two days((; and

    (c) The gross income received by each organization from each bazaar or rummage sale does not exceed one thousand dollars)).

    (2) This chapter does not apply to amounts derived by a nonprofit organization as a result of serving meals for fundraising purposes if the meals are served no more frequently than once a week.

(3) This chapter does not apply to amounts derived from the sale of food products by a nonprofit organization operating an area, district, county, or community fair, or an agricultural fair or exhibition as defined in chapters 15.76 and 36.37 RCW.

(4) For purposes of this section, "nonprofit organization" means an organization that meets all of the following criteria:

    (a) The members, stockholders, officers, directors, or trustees of the organization do not receive any part of the organization's gross income, except as payment for services rendered;

    (b) The compensation received by any person for services rendered to the organization does not exceed an amount reasonable under the circumstances; and

    (c) The activities of the organization do not include a substantial amount of political activity, including but not limited to influencing legislation and participation in any campaign on behalf of any candidate for political office.

    Sec. 2.  RCW 82.08.0251 and 1980 c 37 s 19 are each amended to read as follows:

    The tax levied by RCW 82.08.020 shall not apply to casual and isolated sales of property or service, unless made by a person who is engaged in a business activity taxable under chapters 82.04 or 82.16 RCW:  PROVIDED, That the exemption provided by this section shall not be construed as providing any exemption from the tax imposed by chapter 82.12 RCW.

As used in this section "casual and isolated" includes, but is not limited to, sales in which the gross proceeds of sales are exempt under RCW 82.04.365.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.12 RCW to read as follows:

    The provisions of this chapter shall not apply to meals which are exempt from tax under RCW 82.04.365.

NEW SECTION. Sec. 4.     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.