AN ACT
Relating to tax exemptions for nonprofit blood banks; amending RCW 84.36.035
and 84.36.805; adding a new section to chapter 82.04 RCW; adding a new section
to chapter 82.08 RCW; adding a new section to chapter 82.12 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
84.36.035 and 1971 ex.s. c 206 s 1 are each amended to read as follows:
The
following property shall be exempt from taxation:
All
property, whether real or personal, belonging to or leased by any
nonprofit corporation or association and used exclusively in the business of ((procuring,
processing, storing, distributing, or using whole blood, plasma, blood
products, and blood derivatives)) a blood, bone, or tissue bank as
defined in section 3 of this act, or in the administration of such
business. If the real or personal property is leased, the benefit of the
exemption shall inure to the nonprofit corporation or association.
Sec.
2. RCW
84.36.805 and 1993 c 79 s 3 are each amended to read as follows:
In
order to be exempt pursuant to RCW 84.36.030, 84.36.550, 84.36.035, 84.36.037,
84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060,
84.36.350, and 84.36.480, the nonprofit organizations, associations or
corporations shall satisfy the following conditions:
(1)
The property is used exclusively for the actual operation of the activity for
which exemption is granted, unless otherwise provided, and does not exceed an
amount reasonably necessary for that purpose, except:
(a)
The loan or rental of the property does not subject the property to tax if:
(i)
The rents and donations received for the use of the portion of the property are
reasonable and do not exceed the maintenance and operation expenses
attributable to the portion of the property loaned or rented; and
(ii)
Except for the exemptions under RCW 84.36.030(4) and 84.36.037, the property
would be exempt from tax if owned by the organization to which it is loaned or
rented;
(b)
The use of the property for fund-raising activities does not subject the
property to tax if the fund-raising activities are consistent with the purposes
for which the exemption is granted;
(2)
The property is irrevocably dedicated to the purpose for which exemption has
been granted, and on the liquidation, dissolution, or abandonment by said
organization, association, or corporation, said property will not inure
directly or indirectly to the benefit of any shareholder or individual, except
a nonprofit organization, association, or corporation which too would be
entitled to property tax exemption: PROVIDED, That the property need not be
irrevocably dedicated if it is leased or rented to those qualified for
exemption pursuant to RCW 84.36.035, 84.36.040, 84.36.041, or 84.36.043
or those qualified for exemption as an association engaged in the production or
performance of musical, dance, artistic, dramatic, or literary works pursuant
to RCW 84.36.060, but only if under the terms of the lease or rental agreement
the nonprofit organization, association, or corporation receives the benefit of
the exemption;
(3)
The facilities and services are available to all regardless of race, color,
national origin or ancestry;
(4)
The organization, association, or corporation is duly licensed or certified
where such licensing or certification is required by law or regulation;
(5)
Property sold to organizations, associations, or corporations with an option to
be repurchased by the seller shall not qualify for exempt status;
(6)
The director of the department of revenue shall have access to its books in
order to determine whether such organization, association, or corporation is
exempt from taxes within the intent of RCW 84.36.030, 84.36.035, 84.36.037,
84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060,
84.36.350, and 84.36.480.
NEW
SECTION. Sec. 3. A new
section is added to chapter 82.04 RCW to read as follows:
(1) As
used in this section:
(a)
"Blood" includes human whole blood, plasma, blood derivatives, and
related products.
(b)
"Bone" includes human bone, bone marrow, and related products.
(c)
"Tissue" includes human musculoskeletal tissue, musculoskeletal
tissue derivatives, and related products.
(d)
"Blood, bone, or tissue bank" means an organization exempt from
federal income tax under section 501(c)(3) of the federal internal revenue
code, organized solely for the purpose of performing research on, procuring,
testing, processing, storing, packaging, distributing, or using blood, bone, or
tissue.
(e)
"Medical supplies" means any item of tangible personal property,
including any repair and replacement parts for such tangible personal property,
used by a blood, tissue, or bone bank for the purpose of performing research
on, procuring, testing, processing, storing, packaging, distributing, or using
blood, bone, or tissue. The term includes tangible personal property used to:
(i)
Provide preparatory treatment of blood, bone, or tissue;
(ii)
Control, guide, measure, tune, verify, align, regulate, test, or physically
support blood, bone, or tissue; and
(iii)
Protect the health and safety of employees or others present during research
on, procuring, testing, processing, storing, packaging, distributing, or using
blood, bone, or tissue.
(f)
"Chemical" means any catalyst, solvent, water, acid, oil, or other
additive that physically or chemically interacts with blood, bone, or tissue.
(g)
"Materials" means any item of tangible personal property, including,
but not limited to, bags, packs, collecting sets, filtering materials, testing
reagents, antisera, and refrigerants used or consumed in performing research
on, procuring, testing, processing, storing, packaging, distributing, or using
blood, bone, or tissue.
(h)
"Research" means basic and applied research that has as its objective
the design, development, refinement, testing, marketing, or commercialization
of a product, service, or process.
(2)
This chapter does not apply to amounts received by blood, bone, or tissue
banks, to the extent the amounts are exempt from federal income tax.
NEW
SECTION. Sec. 4. A new
section is added to chapter 82.08 RCW to read as follows:
The
tax levied by RCW 82.08.020 does not apply to the sale of medical supplies,
chemicals, or materials to a blood, bone, or tissue bank. The definitions in
section 3 of this act apply to this section. The exemption in this section
does not apply to the sale of construction materials, office equipment, building
equipment, administrative supplies, or vehicles.
NEW
SECTION. Sec. 5. A new
section is added to chapter 82.12 RCW to read as follows:
The
provisions of this chapter do not apply in respect to the use of medical supplies,
chemicals, or materials by a blood, bone, or tissue bank. The definitions in
section 3 of this act apply to this section. The exemption in this section
does not apply to the use of construction materials, office equipment, building
equipment, administrative supplies, or vehicles.
NEW
SECTION. Sec. 6. Sections
1 and 2 of this act are effective for taxes levied for collection in 1996 and
thereafter.
NEW SECTION. Sec. 7. 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.
