H-0555.3 _______________________________________________
HOUSE BILL 1129
_______________________________________________
State of Washington 54th Legislature 1995 Regular Session
By Representatives Schoesler, Brown, Mulliken, Sheahan, Robertson, Buck, Dyer, Delvin, Skinner, Cooke, McMorris, Talcott, Fuhrman, Brumsickle, Sheldon, Campbell, Boldt, Elliot, Koster, Chandler, Van Luven, K. Schmidt, L. Thomas, Casada, Carlson, Backlund, Basich, Huff, Mitchell, Kremen and Benton
Read first time 01/13/95. Referred to Committee on Finance.
AN ACT Relating to tax exemptions for nonprofit organizations; amending RCW 82.04.365, 82.04.366, and 82.08.02571; adding a new section to chapter 82.08 RCW; creating a new section; providing an effective date; 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:
BAZAARS, RUMMAGE SALES, AND MEALS‑-BUSINESS
AND OCCUPATION TAX EXEMPTION. (1) This chapter does not
apply to amounts ((derived)) received 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)) three
bazaars or rummage sales per year; and
(b) Each bazaar or
rummage sale does not extend over a period of more than ((two)) five
days; and
(c) The gross income
received by each organization from each bazaar or rummage sale does not exceed
((one)) five thousand dollars.
(2) This chapter does not apply to amounts received by a nonprofit organization as a result of serving meals for fund-raising purposes, if the meals are served no more frequently than once every two weeks and the gross income received by each organization from each meal-serving event does not exceed five thousand dollars.
(3) 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:
BAZAARS, RUMMAGE SALES, AND MEALS‑-SALES TAX EXEMPTION. The tax levied by RCW 82.08.020 does not apply to sales made by a nonprofit organization if the gross income from the sales is exempt under RCW 82.04.365.
Sec. 3. RCW 82.04.366 and 1991 c 51 s 1 are each amended to read as follows:
AUCTIONS‑-BUSINESS AND OCCUPATION TAX EXEMPTION. (1) This chapter does not apply to amounts received by a public benefit nonprofit organization from sales at an auction that the organization conducts or participates in, if:
(a) The organization
does not conduct or participate in more than ((one)) two auctions
per year; and
(b) The auction does
not extend over a period of more than ((two)) five days.
(2) As used in this section, "public benefit nonprofit organization" means an organization exempt from tax under section 501(c)(3) of the federal internal revenue code, as in effect on January 1, 1991, or a subsequent date provided by the director by rule consistent with the purpose of this section.
Sec. 4. RCW 82.08.02571 and 1991 c 51 s 2 are each amended to read as follows:
AUCTIONS‑-SALES TAX EXEMPTION. (1) The tax levied by RCW 82.08.020 does not apply to sales made by a public benefit nonprofit organization at an auction that the organization conducts or participates in, if:
(a) The organization
does not conduct or participate in more than ((one)) two auctions
per year; and
(b) The auction does
not extend over a period of more than ((two)) five days.
(2) As used in this section, "public benefit nonprofit organization" means an organization exempt from tax under section 501(c)(3) of the federal internal revenue code, as in effect on January 1, 1991, or a subsequent date provided by the director by rule consistent with the purpose of this section.
NEW SECTION. Sec. 5. CAPTIONS. Captions as used in this act constitute no part of the law.
NEW SECTION. Sec. 6. EFFECTIVE DATE. 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 July 1, 1995.
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