SENATE BILL REPORT

SB 6002

BYSenators McDermott, Owen, Craswell, Moore and Pullen

Exempting from excise tax certain recreational services furnished by nonprofit organizations.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1987

Majority Report:  That Substitute Bill No. 6002 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bluechel, Cantu, Craswell, Fleming, Hayner, Lee, Moore, Owen, Rasmussen, Saling, Talmadge, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  March 4, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 3, 1987

BACKGROUND:

Nonprofit organizations as defined in RCW 84.36.030 are subject to the business and occupation tax or the retail sales/use tax if they rent or lease their recreational facilities or provide services associated with those facilities to other qualifying nonprofit organizations.  The principal class of facilities subject to these taxes are adult church camps and the recreational services associated with them.  The American Red Cross and organizations serving young people (such as the Boy Scouts, Girl Scouts, Campfire Girls and youth church camps) are already exempt under existing statute.

SUMMARY:

The original bill was not considered by the committee.

EFFECT OF PROPOSED SUBSTITUTE:

Qualifying nonprofit organizations are exempted from payment of the business and occupation tax or the retail sales/use tax on payments received from other qualifying nonprofit organizations for camping, conference or recreational services.

Revenue:    yes

Fiscal Note:      available

Effective Date:An emergency is declared and the bill has an effective date of July 1, 1987.

Senate Committee - Testified: Larry Hill, Seabeck Conference Center; Mike Hull, Lutheran Outdoor Ministry Association