_______________________________________________
SENATE
BILL 6599
_______________________________________________
Passed
Legislature - 1998 Regular Session
State
of Washington 55th Legislature 1998 Regular Session
By
Read
first time 01/22/98. Referred to Committee on Ways & Means.
Exempting fund-raising activities by nonprofit
organizations from sales and use taxation.
AN
ACT Relating to fund-raising activities; adding a new section to chapter 82.04
RCW; adding a new section to chapter 82.08 RCW; creating a new section; and
repealing RCW 82.04.365, 82.04.366, 82.08.02571, and 82.08.02572.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that nonprofit educational, charitable, religious,
scientific, and social welfare organizations provide many public benefits to
the people of the state of Washington. Therefore, the legislature finds that
it is in the best interests of the state of Washington to provide a limited
excise tax exemption for fund-raising activities for certain nonprofit
organizations.
NEW
SECTION. Sec. 2. A
new section is added to chapter 82.04 RCW to read as follows:
(1)
This chapter does not apply to amounts received by nonprofit organizations, as
defined in subsection (2) of this section, for fund-raising activities.
(2)
As used in this section, a "nonprofit organization" means:
(a)
An organization exempt from tax under section 501(c) (3), (4), or (10) of the
federal internal revenue code (26 U.S.C. Sec. 501(c) (3), (4), or (10));
(b)
A nonprofit organization that would qualify under (a) of this subsection except
that it is not organized as a nonprofit corporation; or
(c)
A nonprofit organization that means all of the following criteria:
(i)
The members, stockholders, officers, directors, or trustees of the organization
do not receive any part of the organization's gross income, except as payment
for services rendered;
(ii)
The compensation received by any person for services rendered to the
organization does not exceed an amount reasonable under the circumstances; and
(iii)
The activities of the organization do not include a substantial amount of
political activity, including but not limited to influencing legislation and
participation in any campaign on behalf of any candidate for political office.
(3)
As used in this section, the term "fund-raising activity" means both
activities involving the direct solicitation of money or other property and the
anticipated exchange of goods or services for money between the soliciting
organization and the organization or person solicited, for the purpose of
furthering the goals of the nonprofit organization. "Fund-raising
activity" does not include the operation of a regular place of business in
which sales are made during regular hours such as a bookstore, thrift shop,
restaurant, or similar business.
NEW
SECTION. Sec. 3. A
new section is added to chapter 82.08 RCW to read as follows:
The
tax levied by RCW 82.08.020 does not apply to a sale made by a nonprofit
organization if the gross income from the sale is exempt under section 2 of
this act.
NEW
SECTION. Sec. 4. The
following acts or parts of acts are each repealed:
(1) RCW
82.04.365 and 1995 2nd sp.s. c 11 s 1 & 1979 ex.s. c 196 s 7;
(2) RCW
82.04.366 and 1991 c 51 s 1;
(3) RCW
82.08.02571 and 1991 c 51 s 2; and
(4) RCW
82.08.02572 and 1995 2nd sp.s. c 11 s 2.
