<p>An artistic or cultural organization may deduct revenue from certain arts and cultural activities.</p>
<p>The deduction is for amounts received by an artistic or cultural organization which must be a not-for-profit corporation organized under <a href="https://app.leg.wa.gov/RCW/default.aspx?cite=24.03A" target="_blank" rel="noopener">RCW Ch. 24.03</a> and exclusively provide artistic or cultural exhibitions, presentations, or performances or cultural or art education programs. Therefore, you must be a non-profit organization performing artistic or cultural activities as defined in <a href="https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IITA_CH5.45BULITA_5.45.100DE" target="_blank" rel="noopener">SMC 5.45.100(B)</a>.</p>
<p>In computing tax, there may be deducted from the measure of tax those amounts received by artistic or cultural organizations, as defined in <a href="https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IGERE_CH5.30DE_5.30.020DE" target="_blank" rel="noopener">SMC 5.30.020</a>, which represent:</p>
<ol>
<li>Income derived from business activities conducted by the organization, provided that this deduction does not apply to retail sales made by artistic and cultural organizations (the rental of space and the casual sales of props and fixtures used in or culture productions will be exempt from tax);</li>
<li>Amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or subdivision thereof as compensation for, or to support, artistic or cultural exhibitions, performances, or programs provided by an artistic or cultural organization for attendance or viewing by the general public; or</li>
<li>Amounts received as tuition charges collected for the privilege of attending artistic or cultural education programs.</li>
</ol>
<p>The value of items manufactured for public arts events can be deducted as well. You cannot, however, deduct retail sales revenue.</p>
<p> <a href="https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IGERE_CH5.30DE_5.30.020DE" target="_blank" rel="noopener">SMC 5.30.020(D)</a>: Definition of "Artistic or cultural organization."</p>