FINAL BILL REPORT

HB 1778

PARTIAL VETO

                                  C 392 L 89

BYRepresentatives Holland, Wang, Horn, Morris, Silver, Hine, Brumsickle, Prince, Van Luven, H. Sommers, Fuhrman, Jacobsen, Locke, Bowman, Ferguson, Rector, Youngsman, May, Schoon and Hargrove

Modifying tax status of trade shows and other convention-oriented events.

House Committe on Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Non-profit trade associations and professional societies pay business and occupation tax at the rate of 1.5 percent on income derived from meetings, conventions, seminars, and trade shows held in Washington state.  This income includes fees collected from members as registration fees for attendance and fees charged to exhibitors for occupying space at a convention or trade show.

SUMMARY:

When computing business and occupation tax, non-profit trade and professional organizations may deduct from gross income charges made to members for attending or occupying space at a trade show, convention, or educational seminar.  These deductions apply only if the show or convention is sponsored by the non-profit organization and is not open to the general public.

VOTES ON FINAL PASSAGE:

      House 93   2

      Senate    43     2 (Senate amended)

      House 96   1 (House concurred)

EFFECTIVE:July 23, 1989

Partial Veto Summary:  The delayed effective date of July 1, 1991 is vetoed.  (See VETO MESSAGE)