Free DME providers/tax

AN ACT Relating to exempting providers of free durable medical 1
equipment from retail sales and use tax for certain items; adding a 2
new section to chapter 82.08 RCW; adding a new section to chapter 3
82.12 RCW; creating a new section; providing an effective date; and 4
providing expiration dates. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. A new section is added to chapter 82.08 7
RCW to read as follows: 8
(1) The tax levied under this chapter does not apply to sales 9
made to free durable medical equipment providers of items reasonably 10
necessary for the operation of, and provision of health care by, free 11
durable medical equipment providers. 12
(2) "Durable medical equipment" means the same as in RCW 13
82.08.0283. 14
(3) "Free durable medical equipment provider" means a licensed 15
nonprofit organization exempt from federal income tax under Title 26 16
U.S.C. Sec. 501(c) of the federal internal revenue code that does not 17
charge patients for the durable medical equipment provided to the 18
patients by the nonprofit. 19
(4) This section expires January 1, 2037. 20
H-2549.1
HOUSE BILL 2175
State of Washington 69th Legislature 2026 Regular Session
By Representatives Klicker, Rude, Dufault, Ley, Schmidt, Marshall,
Barnard, Nance, Jacobsen, Dye, Stuebe, and Graham
Prefiled 12/19/25. Read first time 01/12/26. Referred to Committee
on Finance.
p. 1 HB 2175
NEW SECTION. Sec. 2. A new section is added to chapter 82.12 1
RCW to read as follows: 2
(1) The tax levied under this chapter does not apply to sales 3
made to free durable medical equipment providers of items reasonably 4
necessary for the operation of, and provision of health care by, free 5
durable medical equipment providers. 6
(2) "Durable medical equipment" means the same as in RCW 7
82.08.0283. 8
(3) "Free durable medical equipment provider" means a licensed 9
nonprofit organization exempt from federal income tax under Title 26 10
U.S.C. Sec. 501(c) of the federal internal revenue code that does not 11
charge patients for the durable medical equipment provided to the 12
patients by the nonprofit. 13
(4) This section expires January 1, 2037. 14
NEW SECTION. Sec. 3. (1) This section is the tax preference 15
performance statement for the tax preference contained in sections 1 16
and 2, chapter . . ., Laws of 2026 (sections 1 and 2 of this act). 17
This performance statement is only intended to be used for subsequent 18
evaluation of the tax preference. It is not intended to create a 19
private right of action by any party or to be used to determine 20
eligibility for preferential tax treatment.21
(2) The legislature categorizes this tax preference as one 22
intended to provide tax relief for certain businesses or individuals, 23
as indicated in RCW 82.32.808(2)(e). 24
(3) It is the legislature's specific public policy objective to 25
exempt nonprofit providers of free durable medical equipment from 26
retail sales and use tax for items reasonably necessary for the 27
operation of, and provision of health care by, the providers.28
(4) If a review finds that after the effective date of this tax 29
preference the amount of free durable medical equipment provided to 30
Washingtonians by nonprofits qualifying under this act increases by 31
any amount, then the legislature intends to extend the expiration 32
date of this tax preference. 33
(5) In order to obtain the data necessary to perform the review 34
in subsection (4) of this section, the joint legislative audit and 35
review committee may refer to any data collected by the state.36
p. 2 HB 2175
NEW SECTION. Sec. 4. This act takes effect January 1, 2027.1
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p. 3 HB 2175