SUBSTITUTE HOUSE BILL 2672






                        52nd Legislature

                      1992 Regular Session

Passed by the House February 17, 1992

  Yeas 91   Nays 0




Speaker of the

       House of Representatives


Passed by the Senate March 5, 1992

  Yeas 48   Nays 0



I, Alan Thompson, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2672 as passed by the House of Representatives and the Senate on the dates hereon set forth.




President of the Senate

                               Chief Clerk



Approved Place Style On Codes above, and Style Off Codes below.





Governor of the State of Washington

                        Secretary of State

                       State of Washington



                            SUBSTITUTE HOUSE BILL 2672



                     Passed Legislature - 1992 Regular Session



State of Washington              52nd Legislature             1992 Regular Session


By House Committee on Revenue (originally sponsored by Representatives Wang, Ebersole, Ballard, Brumsickle and Wynne)


Read first time 02/11/92.  Initiating a study of the tax status of cellular communications.

     AN ACT Relating to the tax status of cellular communications; creating new sections; and declaring an emergency.




     NEW SECTION.  Sec. 1.      As used in this act "cellular communications" includes radio common carrier communications.


     NEW SECTION.  Sec. 2.      (1) The legislature finds that:

     (a) Cellular communications is a new, rapidly changing, capital-intensive, and complex industry;

     (b) Cellular technology is so new that there are substantial public policy questions regarding valuation, taxation, and other assessments of cellular communication equipment and services;

     (c) A thorough study of cellular communications equipment, property, and services is necessary to address the questions of equity, fairness, and consistent tax treatment by state and local government.

     (2) The intent of this act is to study and define what cellular communications is, recommend to the legislature how it is to be taxed and assessed, and to clear up any inconsistencies that may exist among different units of government.


     NEW SECTION.  Sec. 3.      (1) The department of revenue shall conduct a study of the taxation and assessment of cellular communications property, equipment, and services.  The study shall focus on the policy implications involved in developing clear definitions of cellular communications equipment, property, and services that should be taxable, at what rate, and under what definition, as well as what should be exempt.  The study shall include an examination of:

     (a) Definitions of cellular communications real property, equipment, and services;

     (b) Taxation of cellular communication in other states;

     (c) Alternatives to the current methods of taxation;

     (d) The advantages or disadvantages of change, revision, or alternatives to the present tax treatment of cellular communications;

     (e) A complete inventory of all types of state and local taxes paid including, but not limited to, utility taxes, property taxes, sales and use taxes, and per-line charges paid to the state and local governments.

     (2) To perform the study, the department shall form an advisory study committee with balanced representation from different segments of government and industry.  The advisory committee must include, but need not be limited to, two members from the house of representatives, two members from the senate, persons representing the department, cellular communication companies, tax specialists, representatives from county and city government, large and small businesses that use cellular communication devices.

     (3) The department shall provide staff for the purposes of the study.

     (4) The department shall present an interim report of the findings of the study to the committees of the legislature that deal with revenue matters no later than December 1, 1992, and shall present a final report to the same committees no later than December 1, 1993.


     NEW SECTION.  Sec. 4.      If specific funding for this act, referencing this act by bill number, is not provided by June 30, 1992, in the supplemental biennial operating appropriations act, this act shall be null and void.


     NEW SECTION.  Sec. 5.      This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.