SENATE BILL REPORT

SB 5355

BYSenators Talmadge, Moore and Fleming

Providing a sales and use tax exemption for clothing donated to low-income persons.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 16, 1987; February 17, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Deccio, Kreidler, Lee, McDonald, Moore, Rinehart, Talmadge, Wojahn.

Senate Staff:William Bafus (786-7437)

                  March 12, 1987

AS PASSED SENATE, MARCH 11, 1987

BACKGROUND:

Nonprofit corporations or associations who purchase clothing at the supplier's cost for donation to the poor are presently subject to the state retail sales tax (or use tax if applicable) on the purchase price of that clothing.

SUMMARY:

Sales of clothing are exempt from the retail sales or use tax if:  (1) the purchaser is a nonprofit corporation or association which is exempt from federal taxation under the Internal Revenue Code; (2) the clothing is purchased at the seller's cost; and (3) the clothing is purchased solely for donation to low-income persons.

Fiscal Note:      available

Senate Committee - Testified: No one