Interscholastic programs/tax

AN ACT Relating to tax exemptions for nonprofit organizations 1
that manage interscholastic programs for public and private schools; 2
amending RCW 82.04.3651 and 82.04.4282; and creating a new section.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.04.3651 and 2010 c 106 s 208 are each amended to 5
read as follows: 6
(1) This chapter does not apply to amounts received from fund-7
raising activities by nonprofit organizations, as defined in 8
subsection (2) of this section, and libraries as defined in RCW 9
27.12.010. 10
(2) As used in this section, a "nonprofit organization" means:11
(a) An organization exempt from tax under section 501 (c) (3), 12
(4), or (10) of the federal internal revenue code (26 U.S.C. Sec. 13
501(c) (3), (4), or (10)); 14
(b) A nonprofit organization that would qualify under (a) of this 15
subsection except that it is not organized as a nonprofit 16
corporation; or 17
(c) A nonprofit organization that meets all of the following 18
criteria: 19
S-4437.2
SENATE BILL 6349
State of Washington 69th Legislature 2026 Regular Session
By Senator King
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(i) The members, stockholders, officers, directors, or trustees 1
of the organization do not receive any part of the organization's 2
gross income, except as payment for services rendered;3
(ii) The compensation received by any person for services 4
rendered to the organization does not exceed an amount reasonable 5
under the circumstances; and 6
(iii) The activities of the organization do not include a 7
substantial amount of political activity, including but not limited 8
to influencing legislation and participation in any campaign on 9
behalf of any candidate for political office. 10
(3) As used in this section, the term "fund-raising activity" 11
means soliciting or accepting contributions of money or other 12
property or activities involving the anticipated exchange of goods or 13
services for money between the soliciting organization and the 14
organization or person solicited, for the purpose of furthering the 15
goals of the nonprofit organization. For nonprofit organizations that 16
operate exclusively to manage interscholastic programs for public and 17
private schools, "fund-raising activity" also includes all activities 18
that serve the purpose of the nonprofit organization including, but 19
not limited to, sponsorships, ticket sales, sales of radio and 20
television broadcasting rights, coaching workshops, and similar 21
activities, provided that all amounts received in exchange for the 22
activity are used solely to support the nonprofit organization. 23
"Fund-raising activity" does not include the operation of a regular 24
place of business in which sales are made during regular hours such 25
as a bookstore, thrift shop, restaurant, or similar business or the 26
operation of a regular place of business from which services are 27
provided or performed during regular hours such as the provision of 28
retail, personal, or professional services. The sale of used books, 29
used videos, used sound recordings, or similar used information 30
products in a library, as defined in RCW 27.12.010, is not the 31
operation of a regular place of business for the purposes of this 32
section, if the proceeds of the sales are used to support the 33
library. 34
Sec. 2. RCW 82.04.4282 and 2009 c 535 s 410 are each amended to 35
read as follows: 36
In computing tax there may be deducted from the measure of tax 37
amounts derived from bona fide (1) initiation fees, (2) dues, (3) 38
contributions, (4) donations, (5) tuition fees, (6) charges made by a 39
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nonprofit trade or professional organization for attending or 1
occupying space at a trade show, convention, or educational seminar 2
sponsored by the nonprofit trade or professional organization, which 3
trade show, convention, or educational seminar is not open to the 4
general public, (7) charges made for operation of privately operated 5
kindergartens, and (8) endowment funds. This section may not be 6
construed to exempt any person, association, or society from tax 7
liability upon selling tangible personal property, digital goods, 8
digital codes, or digital automated services, or upon providing 9
facilities or other services for which a special charge is made to 10
members or others. If dues are in exchange for any significant amount 11
of goods or services rendered by the recipient thereof to members 12
without any additional charge to the member, or if the dues are 13
graduated upon the amount of goods or services rendered, the value of 14
such goods or services shall not be considered as a deduction under 15
this section. 16
For the purpose of nonprofit organizations that operate 17
exclusively to manage interscholastic programs for public or private 18
schools, the term "dues" includes membership fees, assessments, or 19
similar amounts received from participating schools or school 20
districts, provided that all proceeds are used solely to support the 21
purpose of the nonprofit organization.22
NEW SECTION. Sec. 3. RCW 82.32.805 and 82.32.808 do not apply 23
to this act.24
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