HOUSE BILL REPORT

HB 836

BYRepresentatives Sprenkle, Dellwo, Grant, Scott and Todd

Changing provisions relating to excise taxation of amounts derived from bazaars and rummage sales.

House Committe on Ways & Means/Revenue

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (11)

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

House Staff:Bill Freund (786-7093)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE MARCH 5, 1987

BACKGROUND:

Under current law, bazaars and rummage sales conducted by religious, charitable, benevolent and nonprofit service associations are exempt from the business and occupation tax if:  1) sales are held not more than twice a year and each sale does not last more than two days; and 2) gross receipts derived from each sale do not exceed $1,000.

By rule, the Department of Revenue has extended the exemption to sales tax as well.

SUMMARY:

SUBSTITUTE BILL:  The number of tax exempt bazaars and rummage sales which can be held per year by nonprofit associations is increased from two to four and the duration of each is increased from two days to three days.

The $1,000 gross receipts limit for business and occupation tax exemption is eliminated.  Sales of each bazaar and rummage sale are subject to sales tax if the gross proceeds exceed $1,000.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The provision making sales of bazaars and rummage sales subject to sales tax is modified to apply only to situations in which the gross proceeds exceed $1,000.

Fiscal Note:    Requested March 2, 1987.

House Committee ‑ Testified For:     None Presented.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     None Presented.

House Committee - Testimony Against: None Presented.