Exemption for residential care facilities operated in conjunction with a licensed nursing care institution. Sales of tangible personal property to a qualifying hospital are exempt from transaction privilege tax. A corresponding use tax exemption is provided for purchases of tangible personal property by a qualifying hospital. Although the residential units need not qualify for a license as residential care institutions, the nursing care institutions are required to hold a license.
Facilities providing such services operate under two general arrangements.
Life care contracts contemplate a progression from independent living to a time of complete dependence on nursing care. Residents are initially provided a minimal level of support, emphasizing self-sufficiency on the part of the resident. When a resident loses the ability to be self-sufficient, that person is transferred to the nursing care institution. Organizations may also operate residential and nursing care facilities without entering life care contracts. In such situations, the residential units are rented on a periodic basis, with the nursing care institution available to residents if needed.