House of Representatives

HB 2459

sales tax; charitable organization

Sponsors: Representatives Marsh, Groscost

DPA	Committee on Ways and Means
DPA	Caucus and COW
X	As Passed the House

HB 2459 exempts nonprofit organizations that provide community-based activities for children, adults or the elderly from the retail classification of the transaction privilege tax.

History

Under current law, certain 501 (c) (3s) are exempted from the retail classification of the transaction privilege tax in certain circumstances. HB 2459 would extend an exemption to the gross proceeds or income associated with sales to 501 (c) (3s) organizations that provide community-based services to children, adults or the elderly.

Provisions

· Provides a retail classification transaction privilege tax and use tax exemption for qualified nonprofit religious organizations if the organization regularly provides community based activities and services for children, adults, or the elderly.

Ways and Means Committee Amendment

· Adds a delayed effective date of from and after September 30, 2000.

The Committee of the Whole adopted the Ways and Means Committee Amendment and further amended the bill as follows:

· Eliminates the requirement for the nonprofits to be religious organizations.

· Provides that the nonprofit organization may provide services to children, adults or the elderly.

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44th Legislature Analyst Initials _______

Second Regular Session March 15, 2000

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