Bake sales, car washes can go on without being taxed

OLYMPIA – Senate Bill 6405, which provides clarity on how non-profit, tax-exempt property may be used without jeopardizing the property’s tax-exempt status, was signed into law by Gov. Jay Inslee yesterday.

The bill, sponsored by Sen. Michael Baumgartner (R-Spokane), will allow community events to maintain their tax exempt status, which overturns last year’s state department of revenue decision.

Baumgartner said community organizations, churches and other non-profits have used things like bake sales, sausage feeds and small-scale bingo to help raise the funding needed for community building activities.

Last year, the state decided to start taxing those activities. SB 6405 clarifies those activities. The bill unanimously passed both chambers and was signed by the governor yesterday.

“I’m not sure why the state ever thought it should be taxing bake sales and community car washes in the first place,” Baumgartner said. “But I’m glad we got it fixed.”



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