H-1320.1  _______________________________________________

 

                          HOUSE BILL 1900

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By Representatives Mastin, Grant, Van Luven, Dyer, Chandler, McMorris, Thompson and Mulliken

 

Read first time 02/12/97.  Referred to Committee on Children & Family Services.

Allowing tax credits for charitable contributions.


    AN ACT Relating to tax credits for charitable contributions; adding a new section to chapter 82.04 RCW; and adding a new chapter to Title  84 RCW.

 

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) In computing tax imposed under this chapter, a credit is allowed against the tax otherwise due in an amount equal to charitable contributions made by the taxpayer to organizations that qualify under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)) that exceed the contributions by the taxpayer to those organizations in 1995 or 1996.

    (2) The amount of credit under this section, when added to the amount of credit available under section 2 of this act, may not exceed five thousand dollars per year per taxpayer.

 

    NEW SECTION.  Sec. 2.  (1) There is allowed a credit in the form of a remittance against the state regular property tax for a business in an amount equal to charitable contributions made by the business to organizations that qualify under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)) that exceed the contributions by the business to those organizations in 1995 or 1996.

    (2) The credit in any tax year shall not exceed the amount of the state property tax imposed on the property.

    (3) The amount of credit under this section, when added to the amount of credit available under section 1 of this act, shall not exceed five thousand dollars per year per taxpayer.

 

    NEW SECTION.  Sec. 3.  (1) There is allowed a credit in the form of a remittance against the state regular property tax for an owner in an amount equal to charitable contributions made by the owner to organizations that qualify under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)) that exceed the contributions by the business to those organizations in 1995 or 1996. In computing tax imposed under this title, a credit is allowed against the tax otherwise due in an amount equal to charitable contributions made by the owner of an owner-occupied single-family residence to organizations that qualify under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)) that exceed the owner=s contributions to those organizations in 1995 or 1996.

    (2) The credit in any tax year shall not exceed the amount of the state property tax imposed on the property.

    (3) The amount of credit under this section shall not exceed five hundred dollars per year per taxpayer.

 

    NEW SECTION.  Sec. 4.  A person or business claiming a credit from state property tax in the form of a remittance under sections 2 and 3 of this act shall pay the state property tax to the county treasurer who shall remit the tax to the state.  The person claiming the credit may then apply to the department for remittance of all or part of the state property tax paid.  The department shall determine eligibility under this section based on information provided by the taxpayer and through audit and other administrative records.  The taxpayer shall submit information to the department, in adequate detail to enable the department to determine whether the donation meets the criteria under sections 2 and 3 of this act.  The department shall, within sixty days of receiving its portion of the tax obligation, remit credited amounts to those persons determined to be eligible under this section.

 

    NEW SECTION.  Sec. 5.  Sections 2 through 4 of this act constitute a new chapter in Title 84 RCW.

 


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