H-0434.1  _______________________________________________

                          HOUSE BILL 2034

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Carrell, Dunshee, Mulliken, Morris, Dyer, Kastama, Schoesler, Boldt, Pennington, Kessler and Costa

Read first time 02/18/97.  Referred to Committee on Finance.

Exempting licensed nursing homes and licensed boarding homes from the business and occupation tax.

    AN ACT Relating to business and occupation tax exemption for licensed nursing homes and licensed boarding homes; amending RCW 82.04.390 and 82.04.4289; and adding new sections to chapter 82.04 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:

    This section clarifies and affirms that licensed boarding homes, regardless of the personal and professional services that may be provided therein, shall be exempt from the provisions of this chapter.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

    This chapter does not apply to amounts derived as compensation for services rendered to residents of nursing homes.

    Sec. 3.  RCW 82.04.390 and 1961 c 15 s 82.04.390 are each amended to read as follows:

    This chapter shall not apply to gross proceeds derived from the sale or rental of real estate.  There is established an irrebuttable presumption that providing a room to residents of licensed nursing homes constitutes a rental of real estate.  This however, shall not be construed to allow a deduction of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions.

    Sec. 4.  RCW 82.04.4289 and 1993 c 492 s 305 are each amended to read as follows:

    This chapter does not apply to amounts derived as compensation for services rendered to patients or from sales of prescription drugs as defined in RCW 82.08.0281 furnished as an integral part of services rendered to patients by a kidney dialysis facility operated as a nonprofit corporation, ((nursing homes,)) and homes for unwed mothers operated as religious or charitable organizations, but only if no part of the net earnings received by such an institution inures directly or indirectly, to any person other than the institution entitled to deduction hereunder.

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