H-3507.1          _______________________________________________

                                  HOUSE BILL 2373

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Backlund, Chopp, Lambert, Veloria, Thompson, Sterk, McMahan, Basich, Dyer, Crouse, Morris, Radcliff, Hankins, Quall, Murray, Schoesler, Huff, Conway, Smith, Costa and Kessler

Read first time 01/10/96.  Referred to Committee on Finance.

Providing a tax exemption for nonprofit organizations that support libraries.

     AN ACT Relating to tax exemptions for nonprofit organizations that support libraries; amending RCW 82.04.365; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 82.04.365 and 1995 2nd sp.s. c 11 s 1 are each amended to read as follows:

     (1) This chapter does not apply to the first twenty thousand dollars received in a calendar year 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 bazaars or rummage sales per year; and

     (b) Each bazaar or rummage sale does not extend over a period of more than two days.

     (2) This chapter does not apply to the first twenty thousand dollars received in a calendar year by a nonprofit organization from sales of used books, used videos, used sound recordings, or similar used information products, if substantially all of the net proceeds from the sales are used to support a library as defined in RCW 27.12.010.

(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.  This act shall take effect July 1, 1996.

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