SENATE BILL REPORT

ESB 5908

BYSenators Hansen, Madsen, Bailey, Barr, Gaspard, Newhouse, Anderson and Bauer

Extending food tax exemption to not-for-profit fairs.

Senate Committee on Agriculture

Senate Hearing Date(s):February 28, 1989

Majority Report:  Do pass.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Gaspard, Hansen, Madsen, Newhouse.

Senate Staff:Bob Lee (786-7404)

                  February 5, 1990

AS PASSED SENATE, FEBRUARY 2, 1989

BACKGROUND:

State law requires that a sales or use tax of 6.5 percent be imposed on the sale of food at restaurants or other places where food is to be immediately consumed.  There are a number of exemptions from this requirement, including those for senior citizen nutrition programs and for meals programs provided by nonprofit corporations for seniors, disabled, and low-income persons.

SUMMARY:

An exemption from the sales and use tax levy is provided for not-for-profit corporations selling food at district, county, or community fairs, or an agricultural fair or exhibition.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Marlyta Deck, Washington Cattlemen's Association (pro)