H-0438.1 _______________________________________________
HOUSE BILL 1077
_______________________________________________
State of Washington 54th Legislature 1995 Regular Session
By Representatives Quall, Lambert, Chandler, Basich, Mielke, Mastin, Kremen, Veloria, Dyer, Hatfield, Campbell, Kessler, Costa, Cody, Sheldon, Poulsen, Mason, Dickerson, Regala, Morris, Chopp, Patterson and Tokuda
Read first time 01/11/95. Referred to Committee on Finance.
AN ACT Relating to sales by nonprofit organizations; amending RCW 82.04.365; and adding a new section to chapter 82.08 RCW.
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)(a) 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))) (i)
The organization does not conduct or participate in more than two bazaars or
rummage sales per year; and
(((b))) (ii)
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)).
(b) This chapter does not apply to amounts derived by a nonprofit organization from sales at a fund-raising drive or concession if:
(i) The organization does not conduct or participate in more than two fund-raising drives or concessions per year;
(ii) Each fund-raising drive or concession does not extend over a period of more than two days; and
(iii) The fund-raising drive or concession is for the support of benevolent, athletic, recreational, or cultural programs.
(c) This chapter does not apply to amounts derived by a nonprofit organization from serving meals, if such meals are served no more frequently than once every two weeks.
(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)(a) The tax imposed by RCW 82.08.020 shall not apply to amounts derived by a nonprofit organization as a result of conducting or participating in a bazaar or rummage sale if:
(i) The organization does not conduct or participate in more than two bazaars or rummage sales per year; and
(ii) Each bazaar or rummage sale does not extend over a period of more than two days.
(b) The tax imposed by RCW 82.08.020 shall not apply to amounts derived by a nonprofit organization from sales at a fund-raising drive or concession if:
(i) The organization does not conduct or participate in more than two fund-raising drives or concessions per year;
(ii) Each fund-raising drive or concession does not extend over a period of more than two days; and
(iii) The fund-raising drive or concession is for the support of benevolent, athletic, recreational, or cultural programs.
(c) The tax imposed by RCW 82.08.020 shall not apply to amounts derived by a nonprofit organization from serving meals, if such meals are served no more frequently than once every two weeks.
(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.
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