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ENGROSSED SUBSTITUTE SENATE BILL 5739
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Passed Legislature - 1995 Second Special
Session
State of Washington 54th Legislature 1995
Regular Session
By
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.
