S-3551.2  _______________________________________________

                         SENATE BILL 6415

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Senators Hale, Loveland and Oke

Read first time 01/19/98.  Referred to Committee on Ways & Means.

Providing tax exemptions for neighborhood recreational organizations.

    AN ACT Relating to taxation of neighborhood recreational organizations; adding a new section to chapter 82.04 RCW; 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:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) In computing tax due under this chapter, there may be deducted from the measure of tax all amounts received by a nonprofit neighborhood recreational organization:

    (a) As membership fees or dues, irrespective of the fact that the payment of the membership fees or dues to the organization might entitle its members, in addition to other rights or privileges, to use the organization's facilities; and

    (b) From members of the organization for recreational services provided by the organization or for the use of the organization's recreational facilities.

    (2) For the purposes of this section, "nonprofit neighborhood recreational organization" means a nonprofit organization engaged in providing recreational, swimming pool, and tennis court facilities to members who share ownership of the facilities.

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

    (1) The tax imposed by RCW 82.08.020 does not apply to sales by a nonprofit neighborhood recreational organization of:

    (a) Membership fees or dues, irrespective of the fact that the payment of the membership fees or dues to the organization might entitle its members, in addition to other rights or privileges, to use the organization's facilities; and

    (b) Recreational services provided by the organization or for the use of the organization's recreational facilities, to members of the organization.

    (2) For the purposes of this section, "nonprofit neighborhood  recreational organization" means a nonprofit organization engaged in providing recreational, swimming pool, and tennis court facilities to members who share ownership of the facilities.

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 in respect to the use of the following items provided by a nonprofit neighborhood  recreational organization:

    (a) Membership fees or dues, irrespective of the fact that the payment of the membership fees or dues to the organization might entitle its members, in addition to other rights or privileges, to use the organization's facilities; and

    (b) Recreational services provided by the organization or for the use of the organization's recreational facilities, to members of the organization.

    (2) For the purposes of this section, "nonprofit neighborhood  recreational organization" means a nonprofit organization engaged in providing recreational, swimming pool, and tennis court facilities to members who share ownership of the facilities.

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