H-2216.1 _______________________________________________
HOUSE BILL 2187
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Representatives O'Brien, Dellwo, Brough, Anderson, May, Kremen, Beck, Zellinsky, Miller, Day, Basich, Riley, R. King, Rasmussen, Prentice, Ferguson, Padden, Broback, Ballard, Edmondson, Brumsickle, P. Johnson, Bowman, Wynne, Mielke, Casada, Nealey, Van Luven, Fuhrman, Holland, Wilson, Schmidt, Neher, Lisk, Rayburn, Scott, Roland, Ogden, Orr, Haugen, Jacobsen, Cole, Pruitt, McLean, Tate, Morton, Valle, Dorn, Heavey, Franklin, Cantwell and Leonard.
Read first time March 22, 1991. Referred to Committee on Revenue.
AN ACT Relating to auctions conducted by nonprofit organizations; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW 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 fundraising auction.
(2) 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.
NEW SECTION. Sec. 2. A new section is added to chapter 82.08 RCW to read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to fundraising auction sales conducted or participated in by nonprofit organizations.
(2) 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.
NEW SECTION. Sec. 3. A new section is added to chapter 82.12 RCW to read as follows:
(1) The provisions of this chapter shall not apply in respect to the use of tangible personal property that has been purchased from a nonprofit organization at a fundraising auction sale that was conducted by the nonprofit organization or in which the nonprofit organization participated.
(2) 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.