S-867                 _______________________________________________

                                                   SENATE BILL NO. 3505

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Wojahn, Hayner, McDermott and Zimmerman

Read first time 1/31/85 and referred to Committee on Ways and Means.

AN ACT Relating to excise taxation of municipal amusement and recreational activities; amending RCW 82.04.419; adding a new section to chapter 82.04 RCW; and adding a new section to chapter 82.08 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) This chapter shall not apply or be deemed to apply to amounts or value paid or contributed to any municipality that represent charges imposed to defray costs of amusement and recreational activities.  The exemption under this section applies equally to amusement and recreational activities otherwise classifiable as enterprise activities under RCW 82.04.419.

          (2) For the purposes of this section:

          (a) "Municipality" means any county, city, town, political subdivision, or municipal or quasi-municipal corporation of the state of Washington.

          (b) "Amusement and recreational activities" includes, but is not limited to, public swimming pools, playgrounds, parks, zoos, golf courses, movies, concerts, sports events, and activities of an instructional nature, whether or not the person charged for the amusement or activity is an active participant or a spectator or passive participant in the amusement or activity.

        Sec. 2.  Section 3, chapter 66, Laws of 1983 1st ex. sess. and RCW 82.04.419 are each amended to read as follows:

          This chapter shall not apply to any county, city, town, school district, or fire district activity, regardless of how financed, other than a utility or enterprise activity as defined by the state auditor pursuant to RCW 35.33.111 and 36.40.220 and upon which the tax imposed pursuant to this chapter had previously applied:  PROVIDED, That this chapter shall not apply to enterprise activities specified in section 1 of this 1985 act.  Nothing contained in this section shall limit the authority of the legislature to authorize the imposition of such tax prospectively upon such activities as the legislature shall specifically designate.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.08 RCW to read as follows:

          (1) The tax levied by RCW 82.08.020 shall not apply to sales of or charges made for amusement and recreational activities by any municipality, including sales to or charges received from persons to actively participate in an amusement or recreational activity.

          (2) For the purposes of this section:

          (a) "Municipality" means any county, city, town, political subdivision, or municipal or quasi-municipal corporation of the state of Washington.

          (b) "Amusement and recreational activities" includes, but is not limited to, public swimming pools, playgrounds, parks, zoos, golf courses, movies, concerts, sports events, and activities of an instructional nature.