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SB 5748

Clarifying the excise tax treatment of meals furnished to tenants of senior living communities as part of their rental agreement.

2023-2024 Regular Session Introduced by Mark Mullet and 2 co-sponsors

Exempts meals included in rent at senior living communities from state sales/use tax when no separate meal charge is billed and the rental is an exempt real estate lease.

Senate Rules "X" file.
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Bill Summary · SB 5748

Summary — SB 5748

Status: Senate Rules "X" file (reintroduced and retained in present status).
Introduced (most recent activity): Feb 13, 2025. Bill has prior activity in the 2023 session; the 2023/2024 versions addressed excise‑tax treatment of meals for senior living tenants, while a different 2025 draft with the same bill number addresses local impact‑fee offset taxes. Below summarizes both subjects and highlights the excise‑tax (senior living) provisions that were the focus of the 2023 session.

Purpose

  • 2023 version (primary subject): Clarify that amounts received for food, drink, or meals furnished by a senior living community to tenants as part of a rental/residency agreement — where no separate charge for meals is made and the agreement constitutes an exempt lease of real estate — are not subject to the state retail sales and use tax regime (chapter 82.04 RCW and related chapters).
  • 2025 version: Authorize counties and cities to adopt (by local vote) an additional local sales/use tax (up to 1%) to replace revenue lost if the locality substantially reduces or eliminates developer impact fees; taxes must be earmarked for the same public facilities previously financed by impact fees.

Key provisions — Senior living / excise tax (2023 substitute)

  • Adds a new section to chapter 82.04 RCW stating that chapter 82.04 does not apply to amounts received for meals furnished by a “senior living community” to tenants as part of a rental/residency agreement for which no separate charge is made, provided the rental agreement constitutes a lease/rental of real estate exempt from taxation under chapter 82.04.
  • Defines “senior living community” as a facility/campus operated under a license or registration issued under RCW chapters 18.20 or 18.390.
  • Amends chapters 82.08 and 82.12 (sections 82.08.0293 and 82.12.0293) to align exemptions and definitions for taxable food, prepared foods, bottled water, dietary supplements, and related sales/use tax rules with the new senior‑living carve‑out.
  • The substitute narrows and clarifies the scope compared with earlier drafts that attempted to modify the general statutory definition of “sale.”

Who is affected

  • Senior living communities (assisted living, memory care, continuing care retirement communities licensed under chapters 18.20 or 18.390).
  • Tenants/residents who receive meals included in rent without a separately stated charge.
  • Operators that separately bill meals or provide meals to non‑tenants would not automatically be covered.
  • Department of Revenue (administration and guidance) and potentially local governments (tax base/revenue implications).

Potential impacts

  • Removes sales/use tax liability on meals bundled into rent where no separate charge is made and rental is an exempt lease of real estate — reducing tax burden on affected senior living operators and residents in those scenarios.
  • Could reduce state and local excise tax revenue to the extent such bundled meals had been previously taxed; the precise fiscal impact would depend on prevalence/value of meals included in rent and was not specified in the bill text.
  • Clarifies compliance and audit standards by tying the exemption to licensure and to the contractual treatment of the rental (i.e., no separate meal charge).

Procedural history (selected)

  • 2023: Introduced Feb 17; referred to Ways & Means; public hearings March 9 and 16 (WM exec action: WM majority recommended substitute, do pass); passed to Rules March 20.
  • 2024: By resolution, reintroduced and retained in present status; Senate Rules “X” file (Jan 8, 2024).
  • 2025: New unrelated draft (impact‑fee offset tax) introduced Feb 13, 2025 and referred to Ways & Means; executive session scheduled Feb 27, 2025 (no action taken).

Notes
- Because SB 5748 has different substantive drafts across sessions, confirm which session/version is of interest for implementation, fiscal analysis, or stakeholder review.

Compiled from official sources — confirm details with the bill’s official record.

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