H-987                _______________________________________________

                                                    HOUSE BILL NO. 836

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Sprenkle, Dellwo, Grant, Scott and Todd

Read first time 2/11/87 and referred to Committee on Ways & Means.

AN ACT Relating to excise taxation of bazaars and rummage sales; amending RCW 82.04.365 and 82.08.0251; providing an effective date; and declaring an emergency.

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

        Sec. 1.  Section 7, chapter 196, Laws of 1979 ex. sess. and RCW 82.04.365 are each amended to read as follows:

          (1) This chapter does not apply to amounts derived by a nonprofit organization as a result of conducting or participating in a bazaar or rummage sale if:

          (a) The organization does not conduct or participate in more than ((two)) four bazaars or rummage sales per year; and

          (b) Each bazaar or rummage sale does not extend over a period of more than ((two)) three days((; and

          (c) The gross income received by each organization from each bazaar or rummage sale does not exceed one thousand dollars)).

          (2) For purposes of this section, "nonprofit organization" means an organization that meets all of the following criteria:

          (a) The members, stockholders, officers, directors, or trustees of the organization do not receive any part of the organization's gross income, except as payment for services rendered;

          (b) The compensation received by any person for services rendered to the organization does not exceed an amount reasonable under the circumstances; and

          (c) The activities of the organization do not include a substantial amount of political activity, including but not limited to influencing legislation and participation in any campaign on behalf of any candidate for political office.

        Sec. 2.  Section 19, chapter 37, Laws of 1980 and RCW 82.08.0251 are each amended to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to casual and isolated sales of property or service, unless made by a person who is engaged in a business activity taxable under chapters 82.04 or 82.16 RCW:  PROVIDED, That the exemption provided by this section shall not be construed as providing any exemption from the tax imposed by chapter 82.12 RCW.

Sales made at bazaars and rummage sales are not exempt under this section.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987.