Z-1449.1  _______________________________________________

                          HOUSE BILL 2908

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representative Berkey; by request of Department of Revenue

Read first time 02/05/2002.  Referred to Committee on Finance.

Exempting organ procurement organizations from taxation.

    AN ACT Relating to tax exemptions for organ procurement organizations; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; and declaring an emergency.

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 chapter does not apply to amounts received by a qualified organ procurement organization under 42 U.S.C. Sec. 273(2) in effect as of January 1, 2001, to the extent that the amounts are exempt from federal income tax.

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

    The tax levied by RCW 82.08.020 shall not apply to the sales of medical supplies, chemicals, or materials to an organ procurement organization exempt under section 1 of this act.  The definitions of medical supplies, chemicals, and materials in RCW 82.04.324 apply to this section.  This exemption does not apply to the sale of construction materials, office equipment, building equipment, administrative supplies, or vehicles.

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

    The tax levied by RCW 82.08.020 shall not apply to the use of medical supplies, chemicals, or materials by an organ procurement organization exempt under section 1 of this act.  The definitions of medical supplies, chemicals, and materials in RCW 82.04.324 apply to this section.  This exemption does not apply to the use of construction materials, office equipment, building equipment, administrative supplies, or vehicles.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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