Page 197 - Washington Nonprofit Handbook 2018 Edition

(j) Deductions for Group Training Homes

The B&O tax does not apply to income received from the Department of

Social and Health Services for the cost of care, maintenance, support, and training
of persons with developmental disabilities at nonprofit group training homes.
“Group training home” means a facility equipped, supervised, managed, and
operated on a full-time basis for the full-time care, treatment, training, and
maintenance of persons with developmental disabilities.

(k) Deductions for Student Loan Programs

B&O tax does not apply to gross income received by nonprofit organizations
that are guarantee agencies under the federal guaranteed student loan program,
that issue debt to provide or acquire student loans, or that provide guarantees for
student loans made through programs other than the federal guaranteed student
loan program. Qualifying organizations are nonprofit organizations exempt from
federal income tax under section 501(c)(3) of Code. See RCW 82.04.367.

(l) Deductions for Nonprofit Boarding Homes

The B&O tax does not apply to amounts received by a nonprofit boarding
home for providing room and domiciliary care to residents of the boarding home.
“Domiciliary care” means assistance with activities of daily living, health support
services, or intermittent nursing services, any of which may be provided by the
boarding home either directly or indirectly. “Nonprofit boarding home” means a
boarding home that is operated as a religious or charitable organization, is exempt
from federal income tax under section 501(c)(3) of the Code, is incorporated under

RCW 24.03, is operated as part of a nonprofit hospital, or is operated as part of a
public hospital district.

CHAPTER 53. Local Licensing and Local B&O Taxes

State law permits cities to impose a local business and occupation tax. Forty
Washington cities assess such a tax, including Seattle, Tacoma, Bellevue,
Bellingham, Everett, and Olympia. Each city administers its business and
occupation tax independently.

Most cities imposing a local B&O tax follow the state-level definitions of
activities such as manufacturing, wholesaling, retailing and services. However,
cities offer far fewer exemptions and deductions to their local B&O tax than
Washington State does. Moreover, unlike the state-level tax, local B&O taxes are

WASHINGTON NONPROFIT HANDBOOK -186- 2018