ENGROSSED HOUSE BILL NO. 1778


                                                           AS AMENDED BY THE SENATE


                                                                          C 392 L 89 PV



State of Washington                               51st Legislature                              1989 Regular Session


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



Read first time 2/3/89 and referred to Committee on Revenue.



AN ACT Relating to the business and occupation tax on nonprofit trade and professional organizations for convention, educational seminar, and trade show registration income; amending RCW 82.04.4282; and providing an effective date.




        Sec. 1.  Section 3, chapter 37, Laws of 1980 and RCW 82.04.4282 are each amended to read as follows:

          In computing tax there may be deducted from the measure of tax amounts derived from (1) bona fide initiation fees, (2) dues, (3) contributions, (4) donations, (5) tuition fees, (6) charges made by a nonprofit trade or professional organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the nonprofit trade or professional organization, which trade show, convention, or educational seminar is not open to the general public, (7) charges made for operation of privately operated kindergartens, and (8) endowment funds.  This paragraph shall not be construed to exempt any person, association, or society from tax liability upon selling tangible personal property or upon providing facilities or services for which a special charge is made to members or others.  If dues are in exchange for any significant amount of goods or services rendered by the recipient thereof to members without any additional charge to the member, or if the dues are graduated upon the amount of goods or services rendered, the value of such goods or services shall not be considered as a deduction hereunder.


          NEW SECTION.  Sec. 2.     This act shall take effect July 1, 1991.

                                                                                                                           Passed the House April 18, 1989.


                                                                                                                                         Speaker of the House.


                                                                                                                           Passed the Senate April 13, 1989.


                                                                                                                                       President of the Senate.