H-284                _______________________________________________

 

                                                    HOUSE BILL NO. 443

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Representatives Sayan, D. Nelson, Vekich, Unsoeld and Todd

 

 

Read first time 2/1/85 and referred to Committee on Energy & Utilities.

 

 


AN ACT Relating to rural telephone service; amending RCW 80.36.090 and 82.16.050; and making an appropriation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

        Sec. 1.  Section 80.36.090, chapter 14, Laws of 1961 and RCW 80.36.090 are each amended to read as follows:

          (1) Every telephone and telegraph company operating in this state shall provide and maintain suitable and adequate buildings and facilities therein, or connected therewith, for the accommodation, comfort and convenience of its patrons and employees.

          (2) Every telephone company shall, upon reasonable notice, furnish to all persons and corporations who may apply therefor and be reasonably entitled thereto suitable and proper facilities and connections for telephonic communication and furnish telephone service as demanded.

          (3) To enable rural residents to obtain telephone service at reasonable cost:

          (a) Rural residents may borrow funds from the state of Washington at a low rate of interest to cover the full cost of obtaining telephone service.  Interest rates shall be set at one-half the current average prime rate charged by commercial banks in Washington and the term of the loan shall be twenty years.

          (b) The rural telephone service fund is hereby established in the custody of the state treasurer.  The utilities and transportation commission shall deposit in the fund all moneys appropriated from the general fund for the purpose of this 1985 act.  Moneys in the fund may be spent only for rural residents to obtain telephone service.  Disbursements from the fund shall be on authorization of the chairman of the utilities and transportation commission or the chairman's designee.  The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

          (c) Telephone companies are authorized to reduce charges for rural customer connection up to fifty percent of actual cost.  The companies may deduct the amount of reduction from state utility taxes as provided in RCW 82.16.050.

          (d) The provisions of this section are not a violation of RCW 80.36.180.

 

        Sec. 2.  Section 82.16.050, chapter 15, Laws of 1961 as last amended by section 3, chapter 9, Laws of 1982 2nd ex. sess. and RCW 82.16.050 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, gas distribution or other public service businesses which furnish water, gas or any other commodity, other than electrical energy, 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 distribution of water by a nonprofit water association and used for capital improvements by that nonprofit water association;

          (10) The amount telephone companies actually reduce charges for rural customer connection in accordance with RCW 80.36.090.

 

          NEW SECTION.  Sec. 3.     The sum of one hundred thousand dollars, or so much thereof as may be necessary is appropriated from the general fund to the rural telephone service fund for the biennium ending June 30, 1987, to carry out the purposes of this act.