HOUSE BILL REPORT

EHB 1778

As Amended by the Senate

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

Majority Report:  Do pass with amendments. (15)

      Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Assistant Ranking Republican Member; Appelwick, Basich, Brumsickle, Fraser, Fuhrman, Grant, Haugen, Phillips, Silver, H. Sommers and Van Luven.

House Staff:Robin Appleford and Bob Longman (786-7136)

AS PASSED HOUSE MARCH 10, 1989

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:

Nonprofit 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.  The show or convention must be sponsored by the nonprofit organization and must not be open to the general public.

EFFECT OF SENATE AMENDMENTS:  The amendment changes the immediate effective date to an effective date of July 1, 1991

Fiscal Note:      Available.

House Committee ‑ Testified For:    Wanetta Krager, Tacoma/Pierce County Convention and Visitors Bureau; Hartley Krager, Spokane Regional Convention and Visitors Bureau; Steve Morris, Seattle Visitor and Convention Bureau; Jim Carpenter, Washington State PTA; Lynn Melby, Washington Society of Association Executives and Mark Allen, WSAE.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    No other state taxes income received by nonprofit associations that sponsor conventions.  The imposition of Washington's business and occupation tax on these associations would have a negative effect on the state's convention business.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 93; Nays 2; Absent 1; Excused 2

Voting Nay: Representatives Braddock and Rust

Absent:     Representative Jacobsen

Excused:    Representatives Bowman and Hankins