S-0780.1  _______________________________________________

                         SENATE BILL 5631

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Senators Wood, Jacobsen and Oke

Read first time 02/04/97.  Referred to Committee on Higher Education.

Exempting education loan guarantee services from business and occupation tax.

    AN ACT Relating to imposition of the business and occupation tax on education loan guarantee services; and amending RCW 82.04.367.

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

    Sec. 1.  RCW 82.04.367 and 1987 c 433 s 1 are each amended to read as follows:

    This chapter does not apply to gross income received by nonprofit organizations exempt from federal income tax under section 501(c)(3) of the internal revenue code of 1954, as amended, that:

(1) Are guarantee agencies under the federal guaranteed student loan program or that issue debt to provide or acquire student loans; or

(2) Provide guarantees for student loans made through programs other than the federal guaranteed student loan program.

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