H-0718.2  _______________________________________________

                          HOUSE BILL 1640

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Kenney, Skinner, Veloria, Tokuda, Reardon, Santos, Conway, O'Brien, Lantz, Murray, Kessler, Rockefeller, Ogden, Wood and Van Luven

Read first time 02/01/1999.  Referred to Committee on Finance.

Authorizing tax exemptions for community health clinics.

    AN ACT Relating to tax exemptions for community health clinics; amending RCW 82.04.4289; 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:

    Sec. 1.  RCW 82.04.4289 and 1998 c 325 s 1 are each amended to read as follows:

    This chapter does not apply to amounts derived as compensation for services rendered to patients or from sales of prescription drugs as defined in RCW 82.08.0281 furnished as an integral part of services rendered to patients by a community and migrant health center, a kidney dialysis facility operated as a nonprofit corporation, a nonprofit hospice agency licensed under chapter 70.127 RCW, and nursing homes and homes for unwed mothers operated as religious or charitable organizations, but only if no part of the net earnings received by such an institution inures directly or indirectly, to any person other than the institution entitled to deduction hereunder.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

    (1) The tax levied by RCW 82.08.020 does not apply to sales of materials, labor, and services used in the construction of health care facilities of a community health clinic as defined in WAC 182-20-010(1).

    (2) The tax levied by RCW 82.08.020 does not apply to sales of medical equipment to a community health clinic, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the medical equipment, or to sales of tangible personal property that becomes an ingredient or component of the medical equipment during the course of repairing, cleaning, altering, or improving the equipment.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.12 RCW to read as follows:

    (1) The provisions of this chapter do not apply with respect to the use of materials and labor in the construction of health care facilities of a community health clinic.

    (2) The provisions of this chapter do not apply with respect to the use of medical equipment by a community health clinic, or to the use of tangible personal property that becomes an ingredient or component of the medical equipment during the course of repairing, cleaning, altering, or improving the equipment.

                            --- END ---