H-4316.2  _______________________________________________

                          HOUSE BILL 2994

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Representatives Skinner, Kenney, Tokuda, Veloria, Cody, Conway, Constantine, Cole and Ogden

Read first time 01/26/98.  Referred to Committee on Finance.

Authorizing tax exemptions for qualified health centers.

    AN ACT Relating to tax exemptions for federally qualified health centers; amending RCW 82.04.4289; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  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 community and migrant health center, 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.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

    (1) The tax levied by RCW 82.08.020 does not apply to sales of materials, labor, and services used in the construction of health care facilities of a federally qualified health center.

    (2) The tax levied by RCW 82.08.020 does not apply to sales of medical equipment to a federally qualified health center, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the medical equipment, or to sales of tangible personal property that becomes an ingredient or component of the medical equipment during the course of repairing, cleaning, altering, or improving the equipment.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.12 RCW to read as follows:

    (1) The provisions of this chapter do not apply with respect to the use of materials and labor in the construction of health care facilities of a federally qualified health center.

    (2) The provisions of this chapter do not apply with respect to the use of medical equipment by a federally qualified health center, or to the use of tangible personal property that becomes an ingredient or component of the medical equipment during the course of repairing, cleaning, altering, or improving the equipment.

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