Page 199 - Washington Nonprofit Handbook 2018 Edition

• Sales to artistic or cultural organizations of certain objects acquired for
exhibition or presentation. This includes objects of art and objects to
be used in presenting cultural exhibitions or performances;

• Certain fundraising activities;

• Dues or membership fees paid to nonprofits that do not operate a
health or fitness facility, such as an aquatic facility for swimming, gun
clubs or gun ranges, or skating facility;

• Sales of medical supplies, chemicals, or materials to a blood, bone, or
tissue bank, comprehensive cancer center, or organ procurement
organization;

• Sales of lodging, meals, and books at a nonprofit camp or conference
center;

• Sales of drugs for human use pursuant to a prescription;

• Sales of certain medical items such as prosthetic devices, medically
prescribed oxygen, osmotic items, and disposable devices used to
deliver drugs for human use;

• Sales of meals provided to senior citizens, disabled persons, or low-
income persons by a nonprofit organization;

• Sales of emergency lodging for the homeless; and

• Purchases of items for resale, including items resold as part of
fundraising events.

b. Collection of Sales Tax

The seller acts as the collection agent for the state in collecting the retail
sales tax. A seller commits a misdemeanor if it fails to pay collected retail sales
taxes to the state by the due date. If a seller fails to collect the required tax on a

taxable transaction, the tax remains a debt owed by the buyer to the seller and the
seller becomes personally liable for the uncollected tax to the state.

c. Rates

On the Washington State Combined Excise tax return, filers must use four-
digit location codes to source local sales or use taxes to the correct jurisdiction. The

WASHINGTON NONPROFIT HANDBOOK -188- 2018