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WAC 169 Nonprofit organizations.    
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-169 02/01/10 These rules all refer to resale certificates. Proposed action is to add standard language to recognize reseller permits for sales made on or after January 1, 2010.
  458-20-169   04/16/2001 Nonprofit organizations.  Effective 5/17/01.
RCW:    
  82.04.070   1935 Gross proceeds of sales
  82.04.080   1935 Gross income of the business
  82.04.220   1935 Business and occupation tax imposed
  82.04.363   1997 Exemptions -- Camp or conference center -- Items sold or furnished by nonprofit organization.
  82.04.3395   1995 Exemptions -- Child care resource and referral services by nonprofit organizations
  82.04.368   1993 Exemptions -- Nonprofit organizations -- Credit and debt services
  82.04.339   1992 Exemptions — Day care provided by churches
  82.04.3651   1998 Exemptions -- Amounts received by nonprofit organizations for fund-raising activities
  82.04.367   1987 Exemptions — Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans.
  82.04.4297   1980 Deductions -- Compensation from public entities for health or social welfare services -- Exception.
  82.04.385   1988 Exemptions -- Operation of sheltered workshops
  82.04.370   1961 Exemptions - Certain fraternal and beneficiary organizations.
  82.04.4282   1994 Deductions--Fees, dues, charges.
  82.04.327   1987 Exemptions -- Adult family homes.
  82.08.02915   1995 Exemptions -- Sales used by health or social welfare organizations for alternative housing for youth in crisis.
  82.08.02573   1998 Exemptions -- Sales by a nonprofit organization for fund-raising activities.
  82.12.02915   1995 Exemptions -- Use of items by health or social welfare organizations for alternative housing for youth in crisis.
  82.08.997   2008 Exemptions - Temporary medical housing
ETA: 3039.2009 2/2/09 Agricultural fair association exemption
  434.04.169 7/9/71 BUSINESS AND OCCUPATION TAX - SALES TAX:  NONPROFIT ORGANIZATION'S RETAILING MAGAZINES -  This document fails to recognize subsequent legislation (Chapter 336, Laws of 1998) that provides B&O and retail sales tax exemptions for certain fund-raising sales.  It also provides an incorrect definition of "newspaper", which is defined in RCW 82.04.214.  Cancelled by ETA 2003-3s 02/15/2001
  571.04.169 6/30/02 Taxability of Investment Income - Information is out of date. They fail to recognize that chapter 150, laws of 2002 (HB 2641), made substantial changes to the B&O tax deduction provided for certain investment income by RCW 82.04.4281. Cancelled 6/30/02.
  572.04.169 7/1/95 GRANTS RECEIVED BY NONPROFIT OR GOVERNMENTAL ENTITIES -  This document explains the Department’s position regarding the taxation of grants received by nonprofit or governmental entities from governmental or private sources.  It explains that the B&O tax deduction available for bona fide contributions and donations is not lost if the person making the gift requires some accountability for how the gift is used as a condition of receiving the gift.  While this information is correct, it is no longer needed.  The latest revision of WAC 458-20-169 (Nonprofit organizations), effective May 17, 2001, sufficiently addresses this subject. Cancelled by ETA 2003-3s 05/17/2001
INDUSTRY GUIDES:   Jun-07 Nonprofit Organizations Guide 
      2002 Child Care Tax Guide 
        Hospital Guide 
SPECIAL NOTICES:      
Subject Title Reference:      
      06/16/1998 Important Changes for Non-Profit Org & Local Governments
Chemical Dependency     06/23/2003 Chemical Dependency Service Providers-Tax Change
      01/05/2004 Nonprofit Fundraising
Salmon Restoration     04/19/2004 Grants for Salmon Restoration -- Tax Change
Gambling     06/10/2005 Gambling Business and Occupation Tax (Nonprofit Organizations-Fundraising Exemption)
Fireworks Sales     05/30/2007 Fireworks Sales: Distributors and Retail Sales by Nonprofit Organizations Tax Registration and Reporting Requirements Information Notice
Hotel / Motel     05/22/2008 Tax Exemptions for Temporary Medical Housing Provided by Health or Social Welfare Organizations
Incentives      05/22/2008 Tax Exemptions for Temporary Medical Housing Provided by Health or Social Welfare Organizations
Fireworks Sales   8/13/09 Fireworks Sales, Distributors and Retail Sales by Nonprofit Organizations Tax Registration and Reporting Requirements Information Notice
Nonprofit Fundraising     8/13/09 Nonprofit Fundraising
Economic Nexus 05/28/2010 New "Economic Nexus" in Washington State May Impact "Foreign Corporations"
Economic Nexus 05/28/2010 New Apportionment Method
Economic Nexus 05/28/2010 Tax Attorneys and CPAs New "Economic Nexus" in Washington State May Impact Your Clients
Economic Nexus 05/28/2010 Registered Out-of-state Businesses Currently not Reporting Income from Service Activities - New Apportionment for Certain Income
Economic Nexus 09/10/2010 B&O Tax Reporting Requirement Continues After Business Activity Stops (Trailing Nexus)
         
B&O Tax 06/18/2012 B&O Tax Deduction Related to Qualified Dispute Resolution Centers
Dispute Resolution Centers 06/18/2012 B&O Tax Deduction Related to Qualified Dispute Resolution Centers
Nonprofit Gun Clubs 11/18/2013 Purchase of Clay Targets by a Nonprofit Gun Club
Clay Targets 11/18/2013 Purchase of Clay Targets by a Nonprofit Gun Club
         
DIRECTIVE: 9400.1   03/01/1988 FRATERNAL BENEFIT SOCIETIES - RCW 48.36A.240 Cancelled 07/17/02.
RPM: None      
         
WTD: 2 WTD 39 86-302   SALES TAX -- USE TAX -- COMMUNITY ACTION AGENCY -- MATERIALS USED IN WEATHERIZATION FOR LOW INCOME PERSONS. The purchase of materials by a community action agency is exempt of sales and use tax where the agency installs the materials into the homes of low income persons.
  2 WTD 417 87-94   MINISTERS -- RELIGIOUS ORGANIZATIONS -- SERVICE B&O TAX. There is no general exemption from B&O tax for religious organizations.  Fees received by a minister for performing wedding ceremonies are taxable as B&O Service.
  4 WTD 179 86-302A   RETAIL SALES TAX -- HEALTH AND SOCIAL SERVICE ORGANIZATIONS -- HEALTH AND SOCIAL SERVICES -- WEATHERIZATION ASSISTANCE -- GRANTS. Qualified health and social service organizations which perform health and social services by providing weatherization assistance or minor home repair for low income homeowners or renters are not making "retail sales", notwithstanding that the work entails constructing, repairing, decorating or improving homes. Grants received from the Federal or State government to provide such services are not subject to retail sales tax in any part.
  4 WTD 399 87-376   B&O TAX -- DEDUCTION -- HEALTH OR SOCIAL WELFARE SERVICES -- HEALTH OR SOCIAL WELFARE ORGANIZATION -- HOSPITAL CLINICS AND DEPARTMENTS. Compensation for health care services provided by a hospital department or clinic are entitled to the deduction of  RCW 82.04.4297 if the hospital is a health or social welfare organization and the compensation is from the state or federal government.
  5 WTD 273 88-173   B&O TAX -- EXEMPTION -- SHELTERED WORKSHOPS -- JANITORIAL SERVICES. Income of a non-profit corporation whose handicapped workers provide janitorial services is exempt under the sheltered workshop statute, so long as the taxpayer complies with all other requirements of that statute, RCW 82.04.385.
  6 WTD 51 88-228   B&O TAX -- EXEMPTION -- SHELTERED WORKSHOPS. Income of a non-profit corporation is exempt from B&O tax liability if manufacturing or handiwork is carried on at the rehabilitation facility and if the facility is operated for the purpose of providing gainful employment or services to the handicapped or is providing evaluation and work adjustment services for handicapped individuals.
  7 WTD 316-1 89-234   RETAILING B&O TAX -- RETAIL SALES TAX -- EXEMPTION -- NONPROFIT ORGANIZATION -- FUND RAISING DRIVE -- DURATION -- GROSS INCOME. The gross receipts of a fund raising activity conducted by a non-profit organization is not exempt from the  B&O tax and sales tax liability where the activity extends over a period of more than two days and/or the gross income exceeds one thousand dollars.
  9 WTD 286-25 90-151   B&O TAX -- SALES TAX -- EXEMPTION -- BENEVOLENT ORGANIZATIONS -- CONCESSION SALES. The sale of concession food items by a nonprofit theater group for 45 minutes per performance exceeds the two day limit for excise tax exemption. 
  10 WTD 87 90-297   B&O TAX -- DEDUCTION -- HEALTH OR SOCIAL WELFARE SERVICES -- HEALTH OR SOCIAL WELFARE ORGANIZATION -- FOR-PROFIT GROUP HOME. Amounts received from federal, state or local governments are deductible from the measure of B&O tax under RCW 82.04.4297 if the recipient is a nonprofit health or social welfare organization.  A for-profit group home, as such, is not a "health and social welfare organization" within the meaning of RCW 82.04.431, and therefore, does not qualify for the deduction. THIS DETERMINATION HAS BEEN OVERRULED OR MODIFIED IN WHOLE OR PART BY DET.NO. 04-0022E, 23 WTD 198 (2004) AND DET.NO. 04-0023E, 23 WTD 206 (2004).
  11 WTD 95 91-077   HEALTH AND SOCIAL WELFARE ORGANIZATION -- BLOOD BANK -- TISSUE BANK --HEALTH CARE ACTIVITIES. As long as a blood/tissue/bone bank meets the requirements of RCW 82.04.431 for a health and social welfare organization, including being a nonprofit corporation and having at least eight seats on its board, it will qualify for the B&O tax deduction for amounts sold to federal, state, and municipal entities.  The activity of obtaining and selling blood, tissue, and bone is a health care activity.
  11 WTD 107 91-090   SERVICE B&O TAX -- HEALTH OR SOCIAL WELFARE ORGANIZATION -- DEDUCTION -- COMPENSATION FROM PUBLIC ENTITIES -- CONDITIONS FOR DEDUCTION.  A "health or social welfare organization" may deduct amounts received from public entities for health or social welfare services if the organization meets the requirements of RCW 82.04.431. The requirements include having a minimum of eight members on its governing board, none of whom is a paid employee.
  11 WTD 107 91-090   NONPROFIT CORPORATION -- LIABILITY FOR B&O TAX. Washington's Revenue Act contains no general exemption from taxation for nonprofit corporations.
  11 WTD 107 91-090   SERVICE B&O TAX -- HEALTH OR SOCIAL WELFARE SERVICES -- NEIGHBORHOOD REVITALIZATION -- LOW INCOME DEFINED.  Health or social welfare services include neighborhood revitalization programs for home buyers who qualify for low-income housing assistance. Low income means income does not exceed eighty percent of the median income for the area.
  11 WTD 183 92-150   B&O TAX -- EXEMPTION -- SHELTERED WORKSHOPS. The definition of "handicapped" under RCW 82.04.385 includes recovering substance abusers who have completed rehabilitation programs.  A nonprofit organization operating a sheltered workshop which also includes among its clients "vocationally-disadvantaged" persons who do not qualify as handicapped will not lose entitlement to the exemption if it otherwise meets the statutory requirements,  including proving its "primary purpose" is to provide training and employment to clients who qualify as "handicapped" under the statute.
  11 WTD 257 91-233   B&O TAX -- HEALTH OR SOCIAL WELFARE SERVICES -- COMPENSATION FROM PUBLIC ENTITIES -- CONDITIONS FOR DEDUCTION. A health or social welfare organization may deduct amounts received from public entities for health or social welfare services if the organization's structure and activities meet the statutory requirements.  Regional community action council established by law to plan for and coordinate emergency medical and trauma services may deduct income received from state, federal, and local sources.  ACCORD: Det. No. 91-090, 11 WTD_ (1991), 86-302A, 4 WTD 39 (1987).
  11 WTD 379 91-187   HEALTH OR SOCIAL WELFARE ORGANIZATION -- OFFICERS -- PAID EMPLOYEES. A nonprofit corporation with a governing board of eight individuals, five of whom are officers indirectly paid through another entity does not qualify as a health or social welfare organization.
  12 WTD 183  92-150   B&O TAX -- EXEMPTION -- SHELTERED WORKSHOPS.  The definition of "handicapped" under RCW 82.04.385 includes recovering substance abusers who have completed rehabilitation programs.  A nonprofit organization operating a sheltered workshop which also includes among its clients "vocationally-disadvantaged" persons who do not qualify as handicapped will not lose entitlement to the exemption if it otherwise meets the statutory requirements, including proving its "primary purpose" is to provide training and employment to clients who qualify as "handicapped" under the statute.
  15 WTD 145 95-124   B&O TAX -- HEALTH OR SOCIAL WELFARE ORGANIZATION DEFINED.  A health or social welfare organization must be a nonprofit entity governed by a board of directors of at least eight individuals none of whom may be an employee. If any director, regardless of the number of members of the board, is an employee, then the entity does not qualify as a health or social welfare organization. 
  17 WTD 231 98-004   B&O TAX -- EXEMPTION -- DONATION -- GRANTS FOR MEDICAL RESEARCH.  A grant received by the corporate affiliate of a VA Hospital for medical research may be excluded from the measure of the affiliate’s B&O tax if the three requirements of ETB 572.04.169 are met.  Amounts excluded include those used to defray administrative expenses, as well as amounts used directly for the qualifying charitable purpose.
  19 WTD 283 99-195   B&O TAX – NONPROFIT ORGANIZATIONS – AMOUNTS RECEIVED TO ADMINISTER QUALIFIED CHARITABLE PURPOSES.  B&O tax does not apply to amounts received from a grantor by a qualifying nonprofit organization for use in offsetting the administrative expenses of administering the grants and carrying out the nonprofit’s charitable purpose. 
  19 WTD 1043 00-087   B&O TAX – EXEMPTIONS – HEALTH OR SOCIAL ORGANIZATIONS – PRIVATE PAYORS.  RCW 82.04.4297 provides an exemption from B&O tax for payments that qualifying health or social organizations receive from governmental agencies.  In the absence of a provision that exempts payments that a qualifying health or social organization receives from private individuals, such payments are subject to B&O tax.
  23 WTD 377 04-0156   RETAIL SALES TAX -- FUNDRAISING ACTIVITIES – NONPROFITS.  A nonprofit high school’s sale of course books to students is not a fundraising activity.
  24 WTD 464 05-0075   USE TAX -- EXEMPTION FOR DONATED ITEMS.  Printing charges for coupons used to track and quantify a subsequent donation to a non-profit organization were properly subject to retail sales tax.  The use tax exemption for donated items does not provide a basis for refund of retail sales tax properly paid when purchasing items.
  31 WTD 19 11-0068 05/31/2012 RCW 82.04.4297 -- B&O TAX -- COMPENSATION FROM PUBLIC ENTITIES FOR HEALTH OR SOCIAL WELFARE SERVICES. A health or social welfare organization, as defined in RCW 82.04.431, may deduct amounts received from public entities for health or social welfare services if the organization's structure and activities meet the statutory requirements. Local community action council established by law to oversee and manage emergency medical and trauma services, as well as to train emergency medical and trauma personnel, may deduct income received from state, federal, and local government sources. ACCORD: Det. No. 91-323, 11 WTD 257 (1991).
OTHER: COURT CASES:   10/22/1999 CHAMPUS - Employee Benefit Plan - Superior Court, Thurston County - Letter Opinion - Empire Health Services, et al v. State of Washington, Depart. of Revenue, et al Thurston County Cause No. 99-2-00312-5.