H-0554.1  _______________________________________________

                          HOUSE BILL 1168

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Stevens, Thompson, Casada, McMorris, Sherstad, Backlund, McMahan, Fuhrman, Radcliff, Goldsmith, Crouse, Schoesler, Mulliken, Padden, Blanton, Boldt, Benton, Campbell, Mastin, Chandler, Johnson, D. Schmidt, Koster, Hymes and Mielke

Read first time 01/16/95.  Referred to Committee on Finance.

Providing a business and occupation tax exemption for certain nonprofit organizations.

    AN ACT Relating to tax exemptions for nonprofit organizations; adding a new section to chapter 82.04 RCW; providing an effective date; and declaring an emergency.

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) Except as provided in subsection (2) of this section, the taxes imposed in this chapter do not apply to organizations described in section 501(c) (3) and (4) of the federal internal revenue code.

    (2) Amounts received from any unrelated trade or business regularly carried on by an organization are not exempt under this section.  As used in this section "unrelated trade or business" has the meaning given in section 513 of the federal internal revenue code.

NEW SECTION. Sec. 2.  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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