Nonprofit youth organizations

From the 2024 DOR Tax Exemption Study

3/26/25, 7:27 PM Nonprofit youth organizations | Washington Department of Revenue Nonprofit youth organizations HB 1550 did not affect the nonprofit B&O and sales and use tax exemptions found in RCW 82.04.4271 and 82.08.0291, respectively. In the past, certain nonprofit youth organizations qualified for a business and occupation tax and retail sales tax exemption on membership fees and certain service fees, and they remain eligible for these exemptions. Qualifications In order to qualify for the exemption from B&O tax and the deduction from retail sales tax, a nonprofit youth organization must be: A nonprofit organization engaged in the character building of youth (“character building” is defined as “activities for children under eighteen years of age that are for the general public good. The activities may build, improve, or enhance a child's moral constitution by developing moral or ethical strength, leadership, integrity, self-discipline, fortitude, self- esteem, and reputation); and Exempt or eligible to be exempt from property tax under RCW 84.36.030. If the nonprofit youth organization met or meets these eligibility requirements, it is not required to pay B&O tax or collect r