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                          HOUSE BILL 2483

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State of Washington      53rd Legislature     1994 Regular Session

By Representatives Romero, G. Fisher, Brough, B. Thomas, Springer, Cothern and Anderson; by request of Department of Revenue

Read first time 01/17/94.  Referred to Committee on Revenue.

Excluding from the definition of "sale" certain food prepared and served as meals.

    AN ACT Relating to the taxation of food prepared and served as meals; amending RCW 82.04.040; and providing an effective date.

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

    Sec. 1.  RCW 82.04.040 and 1961 c 15 s 82.04.040 are each amended to read as follows:

(1) "Sale" means any transfer of the ownership of, title to, or possession of property for a valuable consideration and includes any activity classified as a "sale at retail" or "retail sale" under RCW 82.04.050.

    ((It)) (2) The term "sale" includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price.

    ((It)) (3) The term "sale" also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not; but the term does not include meals furnished:

(a) By an employer to an employee for no specific charge as compensation for services rendered by the employee in the course of employment;

(b) By a hospital, nursing home, or similar institutions to patients as a part of the service rendered by the institution; and

(c) By a public or private school, college, or university in a lunch room, cafeteria, or dining room, that is operated for the exclusive purpose of providing meals to students, faculty, and their guests, and that is not open to the general public.

(4) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved.

NEW SECTION. Sec. 2.  This act shall take effect July 1, 1994.

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