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               ENGROSSED SUBSTITUTE SENATE BILL 5739

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State of Washington      54th Legislature     1995 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Strannigan, Rinehart, Johnson, Quigley, Long, Owen, Cantu, Hale, Finkbeiner, McCaslin, Palmer, Hochstatter, McDonald, Spanel, Schow, Prentice, Moyer, Loveland, Swecker, West, Rasmussen, Smith, Drew, Haugen, Franklin, Fairley, A. Anderson, Wojahn, Heavey, McAuliffe, Kohl, Hargrove, Oke and Bauer)

Read first time 02/23/95.

Exempting certain sales by nonprofit organizations from sales and use taxes.

    AN ACT Relating to sales by nonprofit organizations; amending RCW 82.04.365; adding a new section to chapter 82.08 RCW; 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:

    Sec. 1.  RCW 82.04.365 and 1979 ex.s. c 196 s 7 are each amended to read as follows:

    (1) This chapter does not apply to ((amounts derived)) 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((; and

    (c) The gross income received by each organization from each bazaar or rummage sale does not exceed one thousand dollars)).

    (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:

    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.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.04 RCW to read as follows:

    This chapter does not apply to nonprofit organizations in respect to amounts derived from the provision of child care resource and referral services.

NEW SECTION. Sec. 4.  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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