SENATE BILL REPORT

EHB 1778

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

Senate Hearing Date(s):March 31, 1989; April 3, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Hayner, Johnson, Lee, Matson, Moore, Newhouse, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Bill Freund (786-7715)

                  April 4, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 3, 1989

BACKGROUND:

Nonprofit 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENT:

The act is null and void if specific funding is not provided in the budget.

Senate Committee - Testified: PRO:  Mark Allen, Len Melby, Washington Society of Assoc. Executives;  Jim Carpenter, Washington State PTA; Becky Bogard, Washington State Lodging Association; Randy Ray, Puget Sound Steamship Operators; Mark Cohen, Seattle Chamber of Commerce