Page 201 - Washington Nonprofit Handbook 2018 Edition

• Office supplies, if purchased from out-of-state sources.

c. Donations of Property

The use tax does not apply to use by a nonprofit charitable organization or
state or local governmental entity of any item of tangible personal property that
has been donated to the nonprofit charitable organization or state or local
governmental entity. See RCW 82.12.02595.

The use tax does not apply to the donation of tangible personal property
without intervening use to a nonprofit charitable organization, or to the
incorporation of tangible personal property without intervening use into real or
personal property of or for a nonprofit charitable organization in the course of
installing, repairing, cleaning, altering, imprinting, improving, constructing, or
decorating the real or personal property for no charge.

d. Donations of Retailing Services

The use tax does not apply to the use by a nonprofit charitable organization
of labor and services rendered in respect to installing, repairing, cleaning, altering,
imprinting, or improving personal property provided to the charitable organization
at no charge, or to the donation of such services. See RCW 82.12.02595.

The use tax does not apply to the donation of amusement and recreation
services without intervening use to a nonprofit organization or state or local
governmental entity, to the use by a nonprofit organization or state or local
governmental entity of amusement and recreation services, or to the subsequent
use of the services by a person to whom the services are donated or bailed in
furtherance of the purpose for which the services were originally donated.

e. Real Estate Excise Tax Issues

Washington imposes a transfer tax on the sale of real property including
leasehold improvements and those involving a 50% or more controlling interest in
any entity that owns the real property.

Nonprofit organizations, even if exempt from real or personal property
taxes, are nevertheless subject to the real estate excise tax unless the transaction is
otherwise specifically exempt.

There are numerous exceptions to the real estate excise tax, including:

WASHINGTON NONPROFIT HANDBOOK -190- 2018