FINAL BILL REPORT

                  HB 1884

PARTIAL VETO

                     Synopsis as Enacted

                         C 390 L 93

Brief Description:  Exempting nonprofit organizations providing credit services from the business and occupation tax.

By Representatives Holm, G. Fisher, Edmondson, Kremen and Rayburn.

House Committee on Revenue

Senate Committee on Ways & Means

Background:  Nonprofit organizations pay state Business and Occupation (B&O) tax unless specifically exempted by statute.  Exemption from federal income tax does not automatically provide exemption from state taxes.  Most nonprofit organizations pay B&O tax at the services rate of 1.5 percent.

Summary:  Nonprofit organizations that provide credit and debt education, counselling, and negotiation services are exempt from Business and Occupation tax.

Votes on Final Passage:

House  93 4

Senate 40 4

Effective:  July 25, 1993

Partial Veto Summary: The veto removes a section that would have applied the tax exemption retroactively for activities occurring before the effective date of the act.  (See VETO MESSAGE)