HOUSE BILL REPORT

SSB 6561

BYSenate Committee on Ways & Means (originally sponsored by Senators Saling, Gaspard, Bailey, Patterson, Deccio, Barr and Garrett)

Exempting from use tax certain property acquired by institutions of higher education.

House Committe on Higher Education

Majority Report:  Do pass.  (12)

      Signed by Representatives Jacobsen, Chair; Heavey, Vice Chair; Barnes, Basich, Fox, Jesernig, Miller, Nelson, Prince, Silver, Unsoeld and K. Wilson.

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 17, 1988

BACKGROUND:

With certain exceptions, institutions of higher education are subject to the use tax for items that are purchased, or acquired by lease, gift, repossession, or bailment. Items exempted from the use tax include: computers, computer components, computer accessories, or computer software irrevocably donated to public or private nonprofit schools and colleges.

According to a memorandum from the Attorney General's office, dated November 21, 1979, items that are loaned to a college or university by the federal government are subject to the use tax.

SUMMARY:

Equipment accepted and acquired by a public or private institution of higher education through intergovernmental transfer or loan is exempt from the use tax if the equipment is intended for direct use in research or instruction, and the title to the equipment is not vested in the institution of higher education.

Fiscal Note:      Requested February 17, 1988.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.