HOUSE BILL REPORT

HB 1090

BYRepresentatives Jacobsen, Miller, Hine and P. King 

Exempting from taxation certain nonprofit organizations involved with student loans.

House Committe on Ways & Means/Revenue

Majority Report:  Do pass.  (10)

      Signed by Representatives Appelwick, Chair; Basich, Bristow, Holland, Madsen, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Bill Freund (786-7093)

AS PASSED HOUSE MARCH 18, 1987

BACKGROUND:

The gross income of nonprofit guarantee agencies that operate under the federal guaranteed student loan program or that issue debt to provide or acquire student loans is subject to business and occupation tax.  The property of such nonprofit agencies is not exempt from property tax.

SUMMARY:

Exempts from the business and occupation tax the gross income of nonprofit guarantee agencies operating under the federal guaranteed student loan program or which issue debt to provide or acquire student loans.  Property owned by such entities is exempted from the property tax.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Carl Donovan, Washington Student Loan Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The tax exemption requested will reduce costs to students with guaranteed student loans by about 3 percent.

House Committee - Testimony Against:      None Presented.