H-3556.1  _______________________________________________

                          HOUSE BILL 2654

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Ahern, Miloscia, Benson, Wood, Pearson, Sullivan, Boldt, Cox, Barlean, Schoesler, Schindler, Jackley, Orcutt, Clements, Roach, Skinner, Casada, Lovick, Dunn, Nixon, Talcott, Chandler, Schmidt, Mulliken, Campbell and Esser

Read first time 01/23/2002.  Referred to Committee on Finance.

Providing a sales and use tax exemption for items acquired for donation by a wish granting organization.

    AN ACT Relating to providing a sales and use tax exemption for items acquired for donation by a wish granting organization; 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:

    (1) The tax levied by RCW 82.08.020 does not apply to the sale of items to a nonprofit wish granting organization for donation to children served by the organization.

    (2) For purposes of this section and section 2 of this act:

    (a) "Wish granting organization" means an organization whose purpose is to provide services in the granting of wishes or dreams to children that are seriously or critically ill or injured.

    (b) "Nonprofit" means an organization exempt from federal income tax under section 501(c)(3) of the federal internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)).

    (3) In order to claim an exemption under this section, the purchaser must provide the seller with an exemption certificate in a form and manner prescribed by the department.  The seller shall retain a copy of the certificate for the seller's files.

NEW SECTION. Sec. 2.  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 items by a nonprofit wish granting organization acquired for donation to children served by the organization, or to the use of donated items by children served by the organization.

    (2) The definitions in section 1 of this act apply to this section.

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