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ENGROSSED
HOUSE BILL 2755
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Passed
Legislature - 2000 Regular Session
State of Washington 56th
Legislature 2000 Regular Session
By
Read first time 01/19/2000.
Referred to Committee on Technology, Telecommunications & Energy.
Clarifying
the taxation of electrical energy sales.
AN
ACT Relating to clarifying the taxation of electrical energy sales; amending
RCW 82.16.050 and 82.04.310; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.16.050 and 1994 c 124 s 12 are each amended to read as follows:
In
computing tax there may be deducted from the gross income the following items:
(1)
Amounts derived by municipally owned or operated public service businesses,
directly from taxes levied for the support or maintenance thereof: PROVIDED,
That this section shall not be construed to exempt service charges which are
spread on the property tax rolls and collected as taxes;
(2)
Amounts derived from the sale of commodities to persons in the same public
service business as the seller, for resale as such within this state. This
deduction is allowed only with respect to water distribution, ((light and
power,)) gas distribution or other public service businesses which furnish
water, ((electrical energy,)) gas or any other commodity in the
performance of public service businesses;
(3)
Amounts actually paid by a taxpayer to another person taxable under this
chapter as the latter's portion of the consideration due for services furnished
jointly by both, if the total amount has been credited to and appears in the
gross income reported for tax by the former;
(4)
The amount of cash discount actually taken by the purchaser or customer;
(5)
The amount of credit losses actually sustained by taxpayers whose regular books
of accounts are kept upon an accrual basis;
(6)
Amounts derived from business which the state is prohibited from taxing under
the Constitution of this state or the Constitution or laws of the United
States;
(7)
Amounts derived from the distribution of water through an irrigation system,
for irrigation purposes;
(8)
Amounts derived from the transportation of commodities from points of origin in
this state to final destination outside this state, or from points of origin
outside this state to final destination in this state, with respect to which
the carrier grants to the shipper the privilege of stopping the shipment in
transit at some point in this state for the purpose of storing, manufacturing,
milling, or other processing, and thereafter forwards the same commodity, or
its equivalent, in the same or converted form, under a through freight rate
from point of origin to final destination; and amounts derived from the
transportation of commodities from points of origin in the state to an export
elevator, wharf, dock or ship side on tidewater or navigable tributaries
thereto from which such commodities are forwarded, without intervening
transportation, by vessel, in their original form, to interstate or foreign
destinations: PROVIDED, That no deduction will be allowed when the point of
origin and the point of delivery to such an export elevator, wharf, dock, or
ship side are located within the corporate limits of the same city or town;
(9)
Amounts derived from the production, sale, or transfer of electrical energy for
resale within or outside the state or for consumption outside the
state;
(10)
Amounts derived from the distribution of water by a nonprofit water association
and used for capital improvements by that nonprofit water association;
(11)
Amounts paid by a sewerage collection business taxable under RCW
82.16.020(1)(a) to a person taxable under chapter 82.04 RCW for the treatment
or disposal of sewage.
Sec.
2. RCW
82.04.310 and 1989 c 302 s 202 are each amended to read as follows:
(1)
This chapter shall not apply to any person in respect to a business activity
with respect to which tax liability is specifically imposed under the
provisions of chapter 82.16 RCW including amounts derived from ((the sale of
commodities)) activities for which a deduction is allowed under RCW
82.16.050.
(2)
This chapter does not apply to amounts received by any person for the sale of
electrical energy for resale within or outside the state.
NEW
SECTION. Sec. 3. (1)
Section 1 of 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 takes effect immediately.
(2) Section 1 of this act applies to all amounts due prior to and
after the effective date of section 1 of this act.
