2023 Revised Code of Washington › Title 82 - Excise Taxes › Chapter 82.04 - Business and Occupation Tax. › 82.04.431 - "Health or social welfare organization" defined—Conditions for exemption—"Health or social welfare services" defined.

RCW 82.04.431
"Health or social welfare organization" defined—Conditions for exemption—"Health or social welfare services" defined.
(1) The term "health or social welfare organization" means an organization, including any community action council, which renders health or social welfare services as defined in subsection (2) of this section, which is a domestic or foreign nonprofit corporation under chapter 24.03A RCW and which is managed by a governing board of not less than eight individuals none of whom is a paid employee of the organization or which is a corporation sole under chapter 24.12 RCW. Health or social welfare organization does not include a corporation providing professional services as authorized in chapter 18.100 RCW. In addition a corporation in order to be exempt under RCW 82.04.4297 must satisfy the following conditions:
(a) No part of its income may be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws;
(b) Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the public service of the state;
(c) Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, may not inure directly or indirectly to the benefit of any member or individual except a nonprofit organization, association, or corporation which also would be entitled to the exemption;
(d) The corporation must be duly licensed or certified where licensing or certification is required by law or regulation;
(e) The amounts received qualifying for exemption must be used for the activities for which the exemption is granted;
(f) Services must be available regardless of race, color, national origin, or ancestry; and
(g) The director of revenue must have access to its books in order to determine whether the corporation is exempt from taxes within the intent of RCW 82.04.4297 and this section.
(2) The term "health or social welfare services" includes and is limited to:
(a) Mental health, drug, or alcoholism counseling or treatment;
(b) Family counseling;
(c) Health care services;
(d) Therapeutic, diagnostic, rehabilitative, or restorative services for the care of the sick, aged, or physically, developmentally, or emotionally-disabled individuals;
(e) Activities which are for the purpose of preventing or ameliorating juvenile delinquency or child abuse, including recreational activities for those purposes;
(f) Care of orphans or foster children;
(g) Day care of children;
(h) Employment development, training, and placement;
(i) Legal services to the indigent;
(j) Weatherization assistance or minor home repair for low-income homeowners or renters;
(k) Assistance to low-income homeowners and renters to offset the cost of home heating energy, through direct benefits to eligible households or to fuel vendors on behalf of eligible households;
(l) Community services to low-income individuals, families, and groups, which are designed to have a measurable and potentially major impact on causes of poverty in communities of the state; and
(m) Temporary medical housing, as defined in RCW 82.08.997, if the housing is provided only:
(i) While the patient is receiving medical treatment at a hospital required to be licensed under RCW 70.41.090 or at an outpatient clinic associated with such hospital, including any period of recuperation or observation immediately following such medical treatment; and
(ii) By a person that does not furnish lodging or related services to the general public.
[ 2021 c 176 § 5246; 2011 1st sp.s. c 19 § 3; 2008 c 137 § 1; 1986 c 261 § 6; 1985 c 431 § 3; 1983 1st ex.s. c 66 § 1; 1980 c 37 § 80; 1979 ex.s. c 196 § 6.]
NOTES:
Effective date—2021 c 176: See note following RCW 24.03A.005.
Application—2011 1st sp.s. c 19: See note following RCW 82.04.4297.
Effective date—2008 c 137: See note following RCW 82.08.997.
Intent—1980 c 37: See note following RCW 82.04.4281.
Effective date—1979 ex.s. c 196: See note following RCW 82.04.240.