Page 187 - Washington Nonprofit Handbook 2018 Edition

value and objects to be used in displaying art or presenting artistic or cultural
exhibitions or performances.

d. Exemptions for Other Specified Organizations

• Blood, Bone, and Tissue Banks. Blood, bone and tissue banks are
exempt from the B&O tax to the extent amounts received are exempt
from federal income tax. See RCW 82.04.324.

• Adult Family Homes. Adult family homes are exempt from the B&O
tax. See RCW 82.04.327.

• The Red Cross. State law specifically exempts this organization from
the B&O tax. See WAC 458-20-190.

• Sheltered Workshops. Sheltered workshops are exempt from the
B&O tax. The operation of sheltered workshops means performance
of business activities of any kind, on or off the premises of a nonprofit
organization, which are performed for the primary purpose of either
(1) providing gainful employment or rehabilitation services to the
handicapped as an interim step in the rehabilitation process for
handicapped individuals who cannot be readily absorbed in the
competitive labor market or during such time as employment
opportunities for the handicapped in the competitive labor market do
not exist; or (2) providing evaluation and work adjustment services for
handicapped individuals. See RCW 82.04.385.

• Comprehensive Cancer Centers. Comprehensive cancer centers are
exempt from the B&O tax to the extent amounts received are exempt
from federal income tax. See 82.04.4265.

• Organ Procurement Organizations. Organ procurement
organizations are exempt from the B&O tax to the extent amounts
received are exempt from federal income tax. See 82.04.326.

• The State, the Federal Government, and Housing Authorities.
These organizations are exempt from B&O tax.

• Nonprofits providing legal services to low-income persons.
Nonprofit legal services organizations serving low-income individuals
that do not charge or services are exempt from State B&O taxes. See
RCW 82.04.635 & 82.04.431.

WASHINGTON NONPROFIT HANDBOOK -176- 2018