H-3321.1  _______________________________________________

                          HOUSE BILL 2288

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Dyer, Zellinsky, Radcliff, Backlund, Crouse, Cooke, Cairnes, Sehlin, B. Thomas, Sherstad, Robertson, Hickel, Pennington, Carlson, Ballasiotes, Carrell, Cody, Fisher, Dickerson, O'Brien and H. Sommers

Read first time 04/25/97.  Referred to Committee on Finance.

Providing equity in business and occupation taxation of hospitals.

    AN ACT Relating to business and occupation taxation of hospitals; amending RCW 82.04.030 and 82.04.4297; providing an effective date; and declaring an emergency.

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

    Sec. 1.  RCW 82.04.030 and 1995 c 318 s 1 are each amended to read as follows:

    "Person" or "company", herein used interchangeably, means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the state of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the United States or any instrumentality thereof.  The term shall also include the state and its departments and institutions with respect to the gross income of the business derived from the operation of a hospital, as defined in chapter 70.41 RCW.

    Sec. 2.  RCW 82.04.4297 and 1988 c 67 s 1 are each amended to read as follows:

    In computing tax there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the state of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization or by a municipal corporation or political subdivision, except deductions are not allowed under this section for amounts that are received under an employee benefit plan or amounts that are received by a person with respect to the operation of a hospital, as defined in chapter 70.41 RCW.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.

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