Nonprofits, schools/taxes

AN ACT Relating to exempting nonprofits and schools from certain 1
sales and use taxes on services; amending RCW 82.04.050; and creating 2
a new section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.04.050 and 2025 c 422 s 101 are each amended to 5
read as follows: 6
(1)(a) "Sale at retail" or "retail sale" means every sale of 7
tangible personal property (including articles produced, fabricated, 8
or imprinted) to all persons irrespective of the nature of their 9
business and including, among others, without limiting the scope 10
hereof, persons who install, repair, clean, alter, improve, 11
construct, or decorate real or personal property of or for consumers 12
other than a sale to a person who: 13
(i) Purchases for the purpose of resale as tangible personal 14
property in the regular course of business without intervening use by 15
such person, but a purchase for the purpose of resale by a regional 16
transit authority under RCW 81.112.300 is not a sale for resale; or17
(ii) Installs, repairs, cleans, alters, imprints, improves, 18
constructs, or decorates real or personal property of or for 19
consumers, if such tangible personal property becomes an ingredient 20
H-2522.1
HOUSE BILL 2121
State of Washington 69th Legislature 2026 Regular Session
By Representatives Walsh, Dufault, Ley, Marshall, Jacobsen, Chase,
Schmidt, Abbarno, Low, Barkis, Barnard, Keaton, Connors, McClintock,
Griffey, Valdez, Couture, and Pollet
Prefiled 12/09/25. Read first time 01/12/26. Referred to Committee
on Finance.
p. 1 HB 2121
or component of such real or personal property without intervening 1
use by such person; or 2
(iii) Purchases for the purpose of consuming the property 3
purchased in producing for sale as a new article of tangible personal 4
property or substance, of which such property becomes an ingredient 5
or component or is a chemical used in processing, when the primary 6
purpose of such chemical is to create a chemical reaction directly 7
through contact with an ingredient of a new article being produced 8
for sale; or 9
(iv) Purchases for the purpose of consuming the property 10
purchased in producing ferrosilicon which is subsequently used in 11
producing magnesium for sale, if the primary purpose of such property 12
is to create a chemical reaction directly through contact with an 13
ingredient of ferrosilicon; or 14
(v) Purchases for the purpose of providing the property to 15
consumers as part of competitive telephone service, as defined in RCW 16
82.04.065; or 17
(vi) Purchases for the purpose of satisfying the person's 18
obligations under an extended warranty as defined in subsection (7) 19
of this section, if such tangible personal property replaces or 20
becomes an ingredient or component of property covered by the 21
extended warranty without intervening use by such person.22
(b) The term includes every sale of tangible personal property 23
that is used or consumed or to be used or consumed in the performance 24
of any activity defined as a "sale at retail" or "retail sale" even 25
though such property is resold or used as provided in (a)(i) through 26
(vi) of this subsection following such use. 27
(c) The term also means every sale of tangible personal property 28
to persons engaged in any business that is taxable under RCW 29
82.04.280(1) (a), (b), and (((g))) (f), 82.04.290, and 82.04.2908.30
(2) The term "sale at retail" or "retail sale" includes the sale 31
of or charge made for tangible personal property consumed and/or for 32
labor and services rendered in respect to the following:33
(a) The installing, repairing, cleaning, altering, imprinting, or 34
improving of tangible personal property of or for consumers, 35
including charges made for the mere use of facilities in respect 36
thereto, but excluding charges made for the use of self-service 37
laundry facilities, and also excluding sales of laundry service to 38
nonprofit health care facilities, and excluding services rendered in 39
respect to live animals, birds and insects; 40
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(b) The constructing, repairing, decorating, or improving of new 1
or existing buildings or other structures under, upon, or above real 2
property of or for consumers, including the installing or attaching 3
of any article of tangible personal property therein or thereto, 4
whether or not such personal property becomes a part of the realty by 5
virtue of installation, and also includes the sale of services or 6
charges made for the clearing of land and the moving of earth 7
excepting the mere leveling of land used in commercial farming or 8
agriculture; 9
(c) The constructing, repairing, or improving of any structure 10
upon, above, or under any real property owned by an owner who conveys 11
the property by title, possession, or any other means to the person 12
performing such construction, repair, or improvement for the purpose 13
of performing such construction, repair, or improvement and the 14
property is then reconveyed by title, possession, or any other means 15
to the original owner; 16
(d) The cleaning, fumigating, razing, or moving of existing 17
buildings or structures, but does not include the charge made for 18
janitorial services; and for purposes of this section the term 19
"janitorial services" means those cleaning and caretaking services 20
ordinarily performed by commercial janitor service businesses 21
including, but not limited to, wall and window washing, floor 22
cleaning and waxing, and the cleaning in place of rugs, drapes and 23
upholstery. The term "janitorial services" does not include painting, 24
papering, repairing, furnace or septic tank cleaning, snow removal or 25
sandblasting; 26
(e) Automobile towing and similar automotive transportation 27
services, but not in respect to those required to report and pay 28
taxes under chapter 82.16 RCW; 29
(f) The furnishing of lodging and all other services by a hotel, 30
rooming house, tourist court, motel, trailer camp, and the granting 31
of any similar license to use real property, as distinguished from 32
the renting or leasing of real property, and it is presumed that the 33
occupancy of real property for a continuous period of one month or 34
more constitutes a rental or lease of real property and not a mere 35
license to use or enjoy the same. For the purposes of this 36
subsection, it is presumed that the sale of and charge made for the 37
furnishing of lodging for a continuous period of one month or more to 38
a person is a rental or lease of real property and not a mere license 39
to enjoy the same. For the purposes of this section, it is presumed 40
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that the sale of and charge made for the furnishing of lodging 1
offered regularly for public occupancy for periods of less than a 2
month constitutes a license to use or enjoy the property subject to 3
sales and use tax and not a rental or lease of property;4
(g) The installing, repairing, altering, or improving of digital 5
goods for consumers; 6
(h) Persons taxable under (a), (b), (c), (d), (e), (f), and (g) 7
of this subsection when such sales or charges are for property, labor 8
and services which are used or consumed in whole or in part by such 9
persons in the performance of any activity defined as a "sale at 10
retail" or "retail sale" even though such property, labor and 11
services may be resold after such use or consumption. Nothing 12
contained in this subsection may be construed to modify subsection 13
(1) of this section and nothing contained in subsection (1) of this 14
section may be construed to modify this subsection.15
(3) The term "sale at retail" or "retail sale" includes the sale 16
of or charge made for personal, business, or professional services 17
including amounts designated as interest, rents, fees, admission, and 18
other service emoluments however designated, received by persons 19
engaging in the following business activities: 20
(a) Abstract, title insurance, and escrow services;21
(b) Credit bureau services; 22
(c) Automobile parking and storage garage services;23
(d) Landscape maintenance and horticultural services but 24
excluding (i) horticultural services provided to farmers and (ii) 25
pruning, trimming, repairing, removing, and clearing of trees and 26
brush near electric transmission or distribution lines or equipment, 27
if performed by or at the direction of an electric utility;28
(e) Service charges associated with tickets to professional 29
sporting events; 30
(f) The following personal services: Tanning salon services, 31
tattoo parlor services, steam bath services, turkish bath services, 32
escort services, and dating services; 33
(g) Information technology training services, technical support, 34
and other services including, but not limited to, assisting with 35
network operations and support, help desk services, in-person 36
training related to hardware or software, network system support 37
services, data entry services, and data processing services;38
(h) Custom website development services. For the purposes of this 39
subsection (3), "website development services" means the design, 40
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development, and support of a website provided by a website developer 1
to a customer; 2
(i) Investigation, security services, security monitoring 3
services, and armored car services including, but not limited to, 4
background checks, security guard and patrol services, personal and 5
event security, armored car transportation of cash and valuables, and 6
security system services and monitoring. This does not include 7
locksmith services; 8
(j) Temporary staffing services. For the purposes of this 9
subsection (3), "temporary staffing services" means providing workers 10
to other businesses, except for hospitals licensed under chapter 11
70.41 or 71.12 RCW, for limited periods of time to supplement their 12
workforce and fill employment vacancies on a contract or for fee 13
basis; 14
(k) Advertising services. (i) For the purposes of this subsection 15
(3), "advertising services" means all digital and nondigital services 16
related to the creation, preparation, production, or dissemination of 17
advertisements including, but not limited to: 18
(A) Layout, art direction, graphic design, mechanical 19
preparation, production supervision, placement, referrals, 20
acquisition of advertising space, and rendering advice concerning the 21
best methods of advertising products or services; and22
(B) Online referrals, search engine marketing ((,)) and lead 23
generation optimization, web campaign planning, the acquisition of 24
advertising space in the internet media, and the monitoring and 25
evaluation of website traffic for purposes of determining the 26
effectiveness of an advertising campaign. 27
(ii) "Advertising services" do not include: 28
(A) Web hosting services and domain name registration;29
(B) Services rendered in respect to the following:30
(I) "Newspapers" as defined in RCW 82.04.214; 31
(II) Printing or publishing under RCW 82.04.280; and32
(III) "Radio and television broadcasting" within this state as 33
defined in RCW 82.04.281; and 34
(C) Services rendered in respect to out-of-home advertising, 35
including: Billboard advertising; street furniture advertising; 36
transit advertising; place-based advertising, such as in-store 37
display advertising or point-of-sale advertising; dynamic or static 38
signage at live events; naming rights; and fixed signage advertising. 39
Out-of-home advertising does not include direct mail;40
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(l) Live presentations including, but not limited to, lectures, 1
seminars, workshops, or courses where participants attend either in-2
person or via the internet or telecommunications equipment that 3
allows audience members and the presenter or instructor to give, 4
receive, and discuss information with each other in real time; and5
(m)(i) Operating an athletic or fitness facility, including all 6
charges for the use of such a facility or for any associated services 7
and amenities, except as provided in (m)(ii) of this subsection.8
(ii) Notwithstanding anything to the contrary in (m)(i) of this 9
subsection (3), the term "sale at retail" and "retail sale" under 10
this subsection does not include: 11
(A) Separately stated charges for the use of an athletic or 12
fitness facility where such use is primarily for a purpose other than 13
engaging in or receiving instruction in a physical fitness activity;14
(B) Separately stated charges for the use of a discrete portion 15
of an athletic or fitness facility, other than a pool, where such 16
discrete portion of the facility does not by itself meet the 17
definition of "athletic or fitness facility" in this subsection;18
(C) Separately stated charges for services, such as massage, 19
nutritional consulting, and body composition testing, that do not 20
require the customer to engage in physical fitness activities to 21
receive the service. The exclusion in this subsection (3)(m)(ii)(C) 22
does not apply to personal training services and instruction in a 23
physical fitness activity; 24
(D) Separately stated charges for physical therapy provided by a 25
physical therapist, as those terms are defined in RCW 18.74.010, or 26
occupational therapy provided by an occupational therapy 27
practitioner, as those terms are defined in RCW 18.59.020, when 28
performed pursuant to a referral from an authorized health care 29
practitioner or in consultation with an authorized health care 30
practitioner. For the purposes of this subsection (3)(m)(ii)(D), an 31
authorized health care practitioner means a health care practitioner 32
licensed under chapter 18.83, 18.25, 18.36A, 18.57, 18.71, or 18.71A 33
RCW, or, until July 1, 2022, chapter 18.57A RCW; 34
(E) Rent or association fees charged by a landlord or residential 35
association to a tenant or residential owner with access to an 36
athletic or fitness facility maintained by the landlord or 37
residential association, unless the rent or fee varies depending on 38
whether the tenant or owner has access to the facility;39
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(F) Services provided in the regular course of employment by an 1
employee with access to an athletic or fitness facility maintained by 2
the employer for use without charge by its employees or their family 3
members; 4
(G) The provision of access to an athletic or fitness facility by 5
an educational institution to its students and staff. However, 6
charges made by an educational institution to its alumni or other 7
members of the public for the use of any of the educational 8
institution's athletic or fitness facilities are a retail sale under 9
this subsection (3)(m). For purposes of this subsection 10
(3)(m)(ii)(G), "educational institution" has the same meaning as in 11
RCW 82.04.170; 12
(H) Yoga, chi gong, or martial arts classes, training, or events 13
held at a community center, park, school gymnasium, college or 14
university, hospital or other medical facility, private residence, or 15
any other facility that is not operated within and as part of an 16
athletic or fitness facility. 17
(iii) Nothing in (m)(ii) of this subsection (3) may be construed 18
to affect the taxation of sales made by the operator of an athletic 19
or fitness facility, where such sales are defined as a retail sale 20
under any provision of this section other than this subsection (3).21
(iv) For the purposes of this subsection (3)(m), the following 22
definitions apply: 23
(A) "Athletic or fitness facility" means an indoor or outdoor 24
facility or portion of a facility that is primarily used for: 25
Exercise classes; strength and conditioning programs; personal 26
training services; tennis, racquetball, handball, squash, or 27
pickleball; or other activities requiring the use of exercise or 28
strength training equipment, such as treadmills, elliptical machines, 29
stair climbers, stationary cycles, rowing machines, pilates 30
equipment, balls, climbing ropes, jump ropes, and weightlifting 31
equipment. 32
(B) "Martial arts" means any of the various systems of training 33
for physical combat or self-defense. "Martial arts" includes, but is 34
not limited to, karate, kung fu, tae kwon do, Krav Maga, boxing, 35
kickboxing, jujitsu, shootfighting, wrestling, aikido, judo, hapkido, 36
Kendo, tai chi, and mixed martial arts. 37
(C) "Physical fitness activities" means activities that involve 38
physical exertion for the purpose of improving or maintaining the 39
general fitness, strength, flexibility, conditioning, or health of 40
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the participant. "Physical fitness activities" includes participating 1
in yoga, chi gong, or martial arts. 2
(n)(i) For the purposes of (g) through (i) and (k) of this 3
subsection (3), the terms "sale at retail" and "retail sale" do not 4
include a sale between members of an affiliated group as defined in 5
RCW 82.04.299(1)(f). 6
(ii) For the purposes of (g) through (l) of this subsection (3), 7
the terms "sale at retail" and "retail sale" do not include a sale to 8
a nonprofit as defined in RCW 82.04.635, a school regulated under 9
Title 28A RCW or chapter 72.40 RCW, or an educational institution as 10
defined in RCW 26.30.010.11
(4)(a) The term also includes the renting or leasing of tangible 12
personal property to consumers. 13
(b) The term does not include the renting or leasing of tangible 14
personal property where the lease or rental is for the purpose of 15
sublease or subrent. 16
(5) The term also includes the providing of "competitive 17
telephone service," "telecommunications service," or "ancillary 18
services," as those terms are defined in RCW 82.04.065, to consumers.19
(6)(a) The term also includes the sale of prewritten computer 20
software, custom software, and customization of prewritten computer 21
software to a consumer, regardless of the method of delivery to the 22
end user. For purposes of this subsection (6)(a), the sale of 23
prewritten computer software includes the sale of or charge made for 24
a key or an enabling or activation code, where the key or code is 25
required to activate prewritten computer software and put the 26
software into use. There is no separate sale of the key or code from 27
the prewritten computer software, regardless of how the sale may be 28
characterized by the vendor or by the purchaser. 29
(b)(i) The term also includes the charge made to consumers for 30
the right to access and use prewritten computer software, custom 31
software, and customization of prewritten computer software, where 32
possession of the software is maintained by the seller or a third 33
party, regardless of whether the charge for the service is on a per 34
use, per user, per license, subscription, or some other basis.35
(ii)(A) The service described in (b)(i) of this subsection (6) 36
includes the right to access and use prewritten computer software, 37
custom software, and customization of prewritten computer software to 38
perform data processing. 39
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(B) For purposes of this subsection (6)(b)(ii), "data processing" 1
means the systematic performance of operations on data to extract the 2
required information in an appropriate form or to convert the data to 3
usable information. Data processing includes check processing, image 4
processing, form processing, survey processing, payroll processing, 5
claim processing, and similar activities. 6
(7) The term also includes the sale of or charge made for an 7
extended warranty to a consumer. For purposes of this subsection, 8
"extended warranty" means an agreement for a specified duration to 9
perform the replacement or repair of tangible personal property at no 10
additional charge or a reduced charge for tangible personal property, 11
labor, or both, or to provide indemnification for the replacement or 12
repair of tangible personal property, based on the occurrence of 13
specified events. The term "extended warranty" does not include an 14
agreement, otherwise meeting the definition of extended warranty in 15
this subsection, if no separate charge is made for the agreement and 16
the value of the agreement is included in the sales price of the 17
tangible personal property covered by the agreement. For purposes of 18
this subsection, "sales price" has the same meaning as in RCW 19
82.08.010. 20
(8)(a) The term also includes the following sales to consumers of 21
digital goods, digital codes, and digital automated services:22
(i) Sales in which the seller has granted the purchaser the right 23
of permanent use; 24
(ii) Sales in which the seller has granted the purchaser a right 25
of use that is less than permanent; 26
(iii) Sales in which the purchaser is not obligated to make 27
continued payment as a condition of the sale; and 28
(iv) Sales in which the purchaser is obligated to make continued 29
payment as a condition of the sale. 30
(b) A retail sale of digital goods, digital codes, or digital 31
automated services under this subsection (8) includes any services 32
provided by the seller exclusively in connection with the digital 33
goods, digital codes, or digital automated services, whether or not a 34
separate charge is made for such services. 35
(c) A retail sale of digital goods, digital codes, or digital 36
automated services does not include the following services if the 37
sale is to a nonprofit as defined in RCW 82.04.635, a school 38
regulated under Title 28A RCW or chapter 72.40 RCW, an educational 39
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institution as defined in RCW 26.30.010, or occurs between members of 1
an affiliated group as defined in RCW 82.04.299(1)(f):2
(i) Any service that primarily involves the application of human 3
effort by the seller, and the human effort originated after the 4
customer requested the service; 5
(ii) Live presentations, such as lectures, seminars, workshops, 6
or courses, where participants are connected to other participants 7
via the internet or telecommunications equipment, which allows 8
audience members and the presenter or instructor to give, receive, 9
and discuss information with each other in real time;10
(iii) Advertising services. For purposes of this subsection 11
(8)(c), "advertising services" means all services directly related to 12
the creation, preparation, production, or dissemination of 13
advertisements. Advertising services include layout, art direction, 14
graphic design, mechanical preparation, production supervision, 15
placement, and rendering advice to a client concerning the best 16
methods of advertising that client's products or services. 17
Advertising services also include online referrals, search engine 18
marketing and lead generation optimization, web campaign planning, 19
the acquisition of advertising space in the internet media, and the 20
monitoring and evaluation of website traffic for purposes of 21
determining the effectiveness of an advertising campaign. Advertising 22
services do not include web hosting services and domain name 23
registration; and 24
(iv) Data processing services. For purposes of this subsection 25
(8)(c), "data processing service" means a primarily automated service 26
provided to a business or other organization where the primary object 27
of the service is the systematic performance of operations by the 28
service provider on data supplied in whole or in part by the customer 29
to extract the required information in an appropriate form or to 30
convert the data to usable information. Data processing services 31
include check processing, image processing, form processing, survey 32
processing, payroll processing, claim processing, and similar 33
activities. Data processing does not include the service described in 34
subsection (6)(b) of this section. 35
(d) For purposes of this subsection, "permanent" means perpetual 36
or for an indefinite or unspecified length of time. A right of 37
permanent use is presumed to have been granted unless the agreement 38
between the seller and the purchaser specifies or the circumstances 39
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surrounding the transaction suggest or indicate that the right to use 1
terminates on the occurrence of a condition subsequent.2
(9) The term also includes the charge made for providing tangible 3
personal property along with an operator for a fixed or indeterminate 4
period of time. A consideration of this is that the operator is 5
necessary for the tangible personal property to perform as designed. 6
For the purpose of this subsection (9), an operator must do more than 7
maintain, inspect, or set up the tangible personal property.8
(10) The term does not include the sale of or charge made for 9
labor and services rendered in respect to the building, repairing, or 10
improving of any street, place, road, highway, easement, right-of-11
way, mass public transportation terminal or parking facility, bridge, 12
tunnel, or trestle which is owned by a municipal corporation or 13
political subdivision of the state or by the United States and which 14
is used or to be used primarily for foot or vehicular traffic 15
including mass transportation vehicles of any kind.16
(11) The term also does not include sales of chemical sprays or 17
washes to persons for the purpose of postharvest treatment of fruit 18
for the prevention of scald, fungus, mold, or decay, nor does it 19
include sales of feed, seed, seedlings, fertilizer, agents for 20
enhanced pollination including insects such as bees, and spray 21
materials to: (a) Persons who participate in the federal conservation 22
reserve program, the environmental quality incentives program, the 23
wetlands reserve program, and the wildlife habitat incentives 24
program, or their successors administered by the United States 25
department of agriculture; (b) farmers for the purpose of producing 26
for sale any agricultural product; (c) farmers for the purpose of 27
providing bee pollination services; and (d) farmers acting under 28
cooperative habitat development or access contracts with an 29
organization exempt from federal income tax under 26 U.S.C. Sec. 30
501(c)(3) of the federal internal revenue code or the Washington 31
state department of fish and wildlife to produce or improve wildlife 32
habitat on land that the farmer owns or leases. 33
(12) The term does not include the sale of or charge made for 34
labor and services rendered in respect to the constructing, 35
repairing, decorating, or improving of new or existing buildings or 36
other structures under, upon, or above real property of or for the 37
United States, any instrumentality thereof, or a county or city 38
housing authority created pursuant to chapter 35.82 RCW, including 39
the installing, or attaching of any article of tangible personal 40
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property therein or thereto, whether or not such personal property 1
becomes a part of the realty by virtue of installation. Nor does the 2
term include the sale of services or charges made for the clearing of 3
land and the moving of earth of or for the United States, any 4
instrumentality thereof, or a county or city housing authority. Nor 5
does the term include the sale of services or charges made for 6
cleaning up for the United States, or its instrumentalities, 7
radioactive waste and other by-products of weapons production and 8
nuclear research and development. 9
(13) The term does not include the sale of or charge made for 10
labor, services, or tangible personal property pursuant to agreements 11
providing maintenance services for bus, rail, or rail fixed guideway 12
equipment when a regional transit authority is the recipient of the 13
labor, services, or tangible personal property, and a transit agency, 14
as defined in RCW 81.104.015, performs the labor or services.15
(14) The term does not include the sale for resale of any service 16
described in this section if the sale would otherwise constitute a 17
"sale at retail" and "retail sale" under this section.18
(15)(a) The term "sale at retail" or "retail sale" includes 19
amounts charged, however labeled, to consumers to engage in any of 20
the activities listed in this subsection (15)(a), including the 21
furnishing of any associated equipment or, except as otherwise 22
provided in this subsection, providing instruction in such 23
activities, where such charges are not otherwise defined as a "sale 24
at retail" or "retail sale" in this section: 25
(i)(A) Golf, including any variant in which either golf balls or 26
golf clubs are used, such as miniature golf, hitting golf balls at a 27
driving range, and golf simulators, and including fees charged by a 28
golf course to a player for using his or her own cart. However, 29
charges for golf instruction are not a retail sale, provided that if 30
the instruction involves the use of a golfing facility that would 31
otherwise require the payment of a fee, such as green fees or driving 32
range fees, such fees, including the applicable retail sales tax, 33
must be separately identified and charged by the golfing facility 34
operator to the instructor or the person receiving the instruction.35
(B) Notwithstanding (a)(i)(A) of this subsection (15) and except 36
as otherwise provided in this subsection (15)(a)(i)(B), the term 37
"sale at retail" or "retail sale" does not include amounts charged to 38
participate in, or conduct, a golf tournament or other competitive 39
event. However, amounts paid by event participants to the golf 40
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facility operator are retail sales under this subsection (15)(a)(i). 1
Likewise, amounts paid by the event organizer to the golf facility 2
are retail sales under this subsection (15)(a)(i), if such amounts 3
vary based on the number of event participants; 4
(ii) Ballooning, hang gliding, indoor or outdoor sky diving, 5
paragliding, parasailing, and similar activities; 6
(iii) Air hockey, billiards, pool, foosball, darts, shuffleboard, 7
ping pong, and similar games; 8
(iv) Access to amusement park, theme park, and water park 9
facilities, including but not limited to charges for admission and 10
locker or cabana rentals. Discrete charges for rides or other 11
attractions or entertainment that are in addition to the charge for 12
admission are not a retail sale under this subsection (15)(a)(iv). 13
For the purposes of this subsection, an amusement park or theme park 14
is a location that provides permanently affixed amusement rides, 15
games, and other entertainment, but does not include parks or zoos 16
for which the primary purpose is the exhibition of wildlife, or 17
fairs, carnivals, and festivals as defined in (b)(i) of this 18
subsection; 19
(v) Batting cage activities; 20
(vi) Bowling, but not including competitive events, except that 21
amounts paid by the event participants to the bowling alley operator 22
are retail sales under this subsection (15)(a)(vi). Likewise, amounts 23
paid by the event organizer to the operator of the bowling alley are 24
retail sales under this subsection (15)(a)(vi), if such amounts vary 25
based on the number of event participants; 26
(vii) Climbing on artificial climbing structures, whether indoors 27
or outdoors; 28
(viii) Day trips for sightseeing purposes; 29
(ix) Bungee jumping, zip lining, and riding inside a ball, 30
whether inflatable or otherwise; 31
(x) Horseback riding offered to the public, where the seller 32
furnishes the horse to the buyer and providing instruction is not the 33
primary focus of the activity, including guided rides, but not 34
including therapeutic horseback riding provided by an instructor 35
certified by a nonprofit organization that offers national or 36
international certification for therapeutic riding instructors;37
(xi) Fishing, including providing access to private fishing areas 38
and charter or guided fishing, except that fishing contests and 39
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license fees imposed by a government entity are not a retail sale 1
under this subsection; 2
(xii) Guided hunting and hunting at game farms and shooting 3
preserves, except that hunting contests and license fees imposed by a 4
government entity are not a retail sale under this subsection;5
(xiii) Swimming, but only in respect to (A) recreational or 6
fitness swimming that is open to the public, such as open swim, lap 7
swimming, and special events like kids night out and pool parties 8
during open swim time, and (B) pool parties for private events, such 9
as birthdays, family gatherings, and employee outings. Fees for 10
swimming lessons, to participate in swim meets and other 11
competitions, or to join a swim team, club, or aquatic facility are 12
not retail sales under this subsection (15)(a)(xiii);13
(xiv) Go-karting, bumper cars, and other motorized activities 14
where the seller provides the vehicle and the premises where the 15
buyer will operate the vehicle; 16
(xv) Indoor or outdoor playground activities, such as inflatable 17
bounce structures and other inflatables; mazes; trampolines; slides; 18
ball pits; games of tag, including laser tag and soft-dart tag; and 19
human gyroscope rides, regardless of whether such activities occur at 20
the seller's place of business, but not including playground 21
activities provided for children by a licensed child day care center 22
or licensed family day care provider as those terms are defined in 23
RCW 43.216.010; 24
(xvi) Shooting sports and activities, such as target shooting, 25
skeet, trap, sporting clays, "5" stand, and archery, but only in 26
respect to discrete charges to members of the public to engage in 27
these activities, but not including fees to enter a competitive 28
event, instruction that is entirely or predominately classroom based, 29
or to join or renew a membership at a club, range, or other facility;30
(xvii) Paintball and airsoft activities; 31
(xviii) Skating, including ice skating, roller skating, and 32
inline skating, but only in respect to discrete charges to members of 33
the public to engage in skating activities, but not including skating 34
lessons, competitive events, team activities, or fees to join or 35
renew a membership at a skating facility, club, or other 36
organization; 37
(xix) Nonmotorized snow sports and activities, such as downhill 38
and cross-country skiing, snowboarding, ski jumping, sledding, snow 39
tubing, snowshoeing, and similar snow sports and activities, whether 40
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engaged in outdoors or in an indoor facility with or without snow, 1
but only in respect to discrete charges to the public for the use of 2
land or facilities to engage in nonmotorized snow sports and 3
activities, such as fees, however labeled, for the use of ski lifts 4
and tows and daily or season passes for access to trails or other 5
areas where nonmotorized snow sports and activities are conducted. 6
However, fees for the following are not retail sales under this 7
subsection (15)(a)(xix): (A) Instructional lessons; (B) permits 8
issued by a governmental entity to park a vehicle on or access public 9
lands; and (C) permits or leases granted by an owner of private 10
timberland for recreational access to areas used primarily for 11
growing and harvesting timber; and 12
(xx) Scuba diving; snorkeling; river rafting; surfing; 13
kiteboarding; flyboarding; water slides; inflatables, such as water 14
pillows, water trampolines, and water rollers; and similar water 15
sports and activities. 16
(b) Notwithstanding anything to the contrary in this subsection 17
(15), the term "sale at retail" or "retail sale" does not include 18
charges: 19
(i) Made for admission to, and rides or attractions at, fairs, 20
carnivals, and festivals. For the purposes of this subsection, fairs, 21
carnivals, and festivals are events that do not exceed 21 days and a 22
majority of the amusement rides, if any, are not affixed to real 23
property; 24
(ii) Made by an educational institution to its students and staff 25
for activities defined as retail sales by (a)(i) through (xx) of this 26
subsection. However, charges made by an educational institution to 27
its alumni or other members of the general public for these 28
activities are a retail sale under this subsection (15). For purposes 29
of this subsection (15)(b)(ii), "educational institution" has the 30
same meaning as in RCW 82.04.170; 31
(iii) Made by a vocational school for commercial diver training 32
that is licensed by the workforce training and education coordinating 33
board under chapter 28C.10 RCW; or 34
(iv) Made for day camps offered by a nonprofit organization or 35
state or local governmental entity that provide youth not older than 36
age 18, or that are focused on providing individuals with 37
disabilities or mental illness, the opportunity to participate in a 38
variety of supervised activities. 39
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(16)(a) The term "sale at retail" or "retail sale" includes the 1
purchase or acquisition of tangible personal property and specified 2
services by a person who receives either a qualifying grant exempt 3
from tax under RCW 82.04.767 or 82.16.320 or a grant deductible under 4
RCW 82.04.4339, except for transactions excluded from the definition 5
of "sale at retail" or "retail sale" by any other provision of this 6
section. Nothing in this subsection (16) may be construed to limit 7
the application of any other provision of this section to purchases 8
by a recipient of either a qualifying grant exempt from tax under RCW 9
82.04.767 or a grant deductible under RCW 82.04.4339, or by any other 10
person. 11
(b) For purposes of this subsection (16), "specified services" 12
means: 13
(i) The constructing, repairing, decorating, or improving of new 14
or existing buildings or other structures under, upon, or above real 15
property, including the installing or attaching of any article of 16
tangible personal property therein or thereto, whether or not such 17
personal property becomes a part of the realty by virtue of 18
installation; 19
(ii) The clearing of land or the moving of earth, whether or not 20
associated with activities described in (b)(i) of this subsection 21
(16); 22
(iii) The razing or moving of existing buildings or structures; 23
and 24
(iv) Landscape maintenance and horticultural services.25
NEW SECTION. Sec. 2. RCW 82.32.805 and 82.32.808 do not apply 26
to this act.27
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