FINAL BILL REPORT

                            SB 5290

                          C 205 L 93

                      SYNOPSIS AS ENACTED

Brief Description:  Reducing the tax burden on free hospitals.

SPONSORS: Senators Wojahn, Snyder, Moyer, Sellar, Bauer, McCaslin, Deccio, Vognild and Winsley

SENATE COMMITTEE ON HEALTH & HUMAN SERVICES

HOUSE COMMITTEE ON REVENUE

BACKGROUND:

Sales to hospitals of tangible goods which are used to operate the hospital or provide health care services are subject to retail and use taxes.  Certain items, such as prescription drugs and prosthetic devices, are currently exempt.

SUMMARY:

Free hospitals are defined as those which do not charge patients for health care.  These hospitals are exempt from retail and use taxes on items sold to them for the reasonably necessary operation of and provision of health care.

VOTES ON FINAL PASSAGE:

Senate    49   0

House     88   9

EFFECTIVE:May 6, 1993