The bill creates a new sales and use tax exemption by adding sections to chapters 82.08 and 82.12 RCW for sales made to "free durable medical equipment providers" of items reasonably necessary for their operation and the provision of health care. The new exemption takes effect January 1, 2027, and the exemption sections expire January 1, 2037. The act defines a "free durable medical equipment provider" as a licensed nonprofit organization exempt from federal income tax under 26 U.S.C. §501(c) that does not charge patients for the durable medical equipment provided. The term "durable medical equipment" is referenced to the definition in RCW 82.08.0283, but that definition text is not included here; the statute also does not enumerate the specific items that qualify as "reasonably necessary." The bill includes a tax preference performance statement, categorizing the preference under RCW 82.32.808(2)(e), and states that if reviews after the effective date show any increase in the amount of free durable medical equipment provided by qualifying nonprofits, the legislature intends to extend the expiration date. The joint legislative audit and review committee may use state-collected data to obtain data needed for that review. The extracted text does not specify administrative procedures for claiming the exemption, which agency will administer it, the timing or methodology for the review, or the complete chapter citation referenced for the act.

If enacted, starting January 1, 2027 and running through January 1, 2037, licensed nonprofit organizations that are tax-exempt under federal law and that give durable medical equipment to patients at no charge would no longer have to pay Washington sales and use tax on purchases of items judged reasonably necessary to run their operations and provide care. That will lower these nonprofits’ acquisition costs for equipment and other operational items, likely freeing up funds that could be used for more patient services or reduced fundraising needs; organizations that charge patients, for-profit suppliers, and charities that don’t meet the exact nonprofit/license rules would not get these savings. The law also creates a review expectation: if qualifying nonprofits increase the amount of free durable medical equipment provided after the law takes effect, the legislature intends to extend the exemption beyond 2037, and JLARC may use state data to support that review. Important implementation details are missing from the extract — notably the exact statutory definition of “durable medical equipment,” which purchases qualify as “reasonably necessary,” and how nonprofits will document and claim the exemption or which state agency will administer it — so there is some uncertainty about how easily nonprofits will realize the savings and what paperwork or verification will be required.