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                                          ENGROSSED SENATE BILL NO. 5451

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State of Washington                               51st Legislature                              1989 Regular Session

By Senators Talmadge and Moore

Read first time 1/25/89 and referred to Committee on   Ways & Means.

AN ACT Relating to clothing donations to low-income persons; adding a new section to chapter 82.08 RCW; and adding a new section to chapter 82.12 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.08 RCW to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales of clothing when the following applies:

          (1) The purchaser is a nonprofit corporation or association which is exempt from federal income taxation under the internal revenue code;

          (2) The seller sells such clothing at cost to such purchaser; and

          (3) The clothing is purchased solely for donation to low-income persons.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.12 RCW to read as follows:

          The provisions of this chapter shall not apply in respect to the use of any article of clothing by a purchasing organization or its donees when the clothing has been obtained by purchase under the following conditions:

          (1) The purchaser is a nonprofit corporation or association which is exempt from federal taxation under the internal revenue code;

          (2) The seller has sold such clothing at cost to the purchaser; and

          (3) The clothing has been purchased solely for donation to low-income persons.