82.04.394 - Exemptions -- Amounts received by property management company for on-site personnel. - Washington Statutes

Exemptions — Amounts received by property management company for on-site personnel.

(1) This chapter does not apply to:

     (a) Amounts received by a nonprofit property management company from the owner of a property for gross wages and benefits paid directly to or on behalf of on-site personnel from property management trust accounts that are required to be maintained under RCW 18.85.285; or

     (b) Amounts received by a property management company from a housing authority for gross wages and benefits paid directly to or on behalf of on-site personnel from property management trust accounts that are required to be maintained under RCW 18.85.285.

     (2) The definitions in this subsection apply to this section.

     (a) "On-site personnel" means a person who meets all of the following conditions: (i) The person works primarily at the owner's property; (ii) the person's duties include leasing property units, maintaining the property, collecting rents, or similar activities; and (iii) under a written property management agreement: (A) The person's compensation is the ultimate obligation of the property owner and not the property manager; (B) the property manager is liable for payment only as agent of the owner; and (C) the property manager is the agent of the owner with respect to the on-site personnel and that all actions, including, but not limited to, hiring, firing, compensation, and conditions of employment, taken by the property manager with respect to the on-site personnel are subject to the approval of the property owner.

     (b) "Nonprofit property management company" means a property management company that is exempt from tax under 26 U.S.C. Sec. 501(c) of the federal internal revenue code, as it exists on January 1, 2010.

     (c) "Housing authority" means a city or county housing authority created pursuant to chapter 35.82 RCW.

[2010 1st sp.s. c 23 § 1202; (2010 1st sp.s. c 23 § 1201 expired July 1, 2010); 2010 c 106 § 209; 1998 c 338 § 2.]

Notes: Expiration date -- 2010 1st sp.s. c 23 §§ 106, 901, and 1201: See note following RCW 82.04.2907.

Effective date -- 2010 1st sp.s. c 23 §§ 107, 601, 602, 702, 902, 1202, and 1401-1405: See note following RCW 82.04.2907.

Findings -- Intent -- 2010 1st sp.s. c 23: See notes following RCW 82.04.220.

Effective date -- 2010 1st sp.s. c 23: See note following RCW 82.04.4292.

Effective date -- 2010 c 106: See note following RCW 35.102.145.

Finding -- Intent -- 1998 c 338: "The legislature finds that property owners often hire property management companies to manage their real property. Frequently, the property management companies also manage the personnel who perform the necessary services at the property location. In these cases, the property owners may pay the on-site personnel through the property management company. The property management company is merely acting as a conduit for the property owner's payment to the personnel at the property site.

     This act is not intended to modify the taxation of amounts received by a property management company for purposes other than payment to on-site personnel." [1998 c 338 § 1.]

Effective date -- 1998 c 338: "This act takes effect July 1, 1998." [1998 c 338 § 3.]