SENATE BILL REPORT

SB 5200

BYSenators Nelson, Vognild, Talmadge, Warnke and Moore

Exempting adult family homes from business and occupation taxation.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 3, 1987

Senate Staff:William Bafus (786-7437)

AS OF FEBRUARY 2, 1987

BACKGROUND:

Adult family homes are private homes which provide care for up to four adults who do not require hospitalization or other full time care but who cannot safely live in an independent setting.  These facilities are also licensed by the state and may be a party to a service delivery contract with the Department of Social and Health Services.  At the present time, adult family homes are not considered to be included within the definition of "health or social welfare organizations" as outlined in RCW 82.04.431.  Thus, their revenues are subject to the state business and occupation tax.

SUMMARY:

The business and occupation tax is declared not to apply to adult family homes.

Revenue:    yes

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.