JLARC Report

LEGISLATIVE Auditor’s CONCLUSION:

The Legislature should clarify whether the preferences are intended solely for tax relief. If so, the Legislature should remove the expiration dates.

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December 2018

Tax exemptions for nonprofits that own aircraft used exclusively for emergency medical transportation

An aircraft excise tax exemption and a property tax exemption are provided for nonprofit 501(c)(3) organizations that own aircraft used exclusively for emergency medical transportation.

The preferences are scheduled to expire January 1, 2020.

Estimated Biennial Beneficiary Savings

$0

Tax Type

Aircraft Excise Tax, Property Tax

RCW 82.48.100(8), 84.36.575

Applicable Statutes

Inferred public policy objective met

The Legislature did not state a public policy objective for either preference when they were passed in 2010. JLARC staff infer an objective based on testimony to the Legislature.

Objective (inferred) Results
Provide tax relief to nonprofit organizations that own aircraft used exclusively for emergency medical transportation. Met. The preferences provided tax relief to a nonprofit air ambulance service provider for six years. No organizations currently qualify for the preferences, but they could provide tax relief to qualifying nonprofits in the future.

Recommendations

Legislative Auditor's Recommendation: Continue and clarify (structural purpose)

The Legislature should clarify the two preferences to add performance statements, specify public policy objectives, and eliminate expiration dates.

More information is available on the Recommendations Tab.

Commissioners' Recommendation

The Commission endorses the Legislative Auditor’s recommendation without comment.

Committee Action to Distribute Report

On December 12, 2018 this report was approved for distribution by the Joint Legislative Audit and Review Committee.

Action to distribute this report does not imply the Committee agrees or disagrees with the Legislative Auditor recommendations.