HOUSE BILL REPORT
EHB 1129
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Passed House:
February 13, 2008
Title: An act relating to the excise taxation of zoos.
Brief Description: Providing excise tax relief for zoos.
Sponsors: By Representatives Dickerson and McIntire.
Brief History:
Finance: 2/2/07, 3/2/07 [DP].
Floor Activity:
Passed House: 2/13/08, 95-1.
Brief Summary of Engrossed Bill |
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HOUSE COMMITTEE ON FINANCE
Majority Report: Do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Conway, Ericks, McIntire, Roach and Santos.
Staff: Rick Peterson (786-7150).
Background:
Washington's major business tax is the business and occupation (B&O) tax. The B&O tax is
imposed on the gross receipts of business activities conducted within the state, without any
deduction for the costs of doing business. The tax is imposed on the gross receipts from all
business activities conducted within the state. Revenues are deposited in the State General
Fund. A business may have more than one B&O tax rate, depending on the types of activities
conducted. The tax rate for most types of businesses that provide services is 1.5 percent.
Nonprofit organizations are generally subject to the B&O. However, nonprofit artistic and
cultural organizations are not taxed on income from business activities and income received
from governments.
Summary of Engrossed Bill:
Nonprofit organizations that operate zoos and facilities that are accredited by the Association
of Zoos and Aquariums are exempt from B&O tax on income received from business
activities at the zoo. They are also exempt from tax on income received from governments to
support zoological exhibitions, presentations, performances, and education programs. The
value of articles manufactured by the nonprofit organization for use by the zoo in displaying
or presenting zoological exhibitions is exempt from the B&O tax.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) This legislation seeks to designate the Woodland Park Zoo as a cultural treasure
for our state. The Legislature has allowed tax exemptions for nonprofit organizations that
have art and cultural exhibits for the benefit of the public. Now the Department of Revenue,
while acknowledging the value of the zoo, says that the zoo does not fit the definition of a
cultural or artistic organization. This will grant the zoo the same tax status as other similar
organizations. This committee unanimously passed this bill out last year. Please do so again.
For over 100 years, the zoo has provided the public with a unique cultural, artistic, and
educational opportunity. This bill will grant the zoo the same tax status as other cultural
venues, such as the Pacific Science Center and Seattle Art Museum already enjoy. The fiscal
impact on the state is minimal, but will ensure that the zoo will keep tens of thousands of
dollars in the future to build new exhibits and educational programs.
(Opposed) None.
Persons Testifying: (In support) Representative Dickerson, prime sponsor; and Erin Walker, Woodland Park Zoo Society.