S-3942               _______________________________________________

                                                   SENATE BILL NO. 4945

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State of Washington                              49th Legislature                              1986 Regular Session

By Senators Thompson and McDonald

Read first time 1/24/86 and referred to Committee on Governmental Operations.

AN ACT Relating to the taxation of telecommunications services by cities; amending RCW 35.21.714 and 35A.82.060; and declaring an emergency.

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

        Sec. 1.  Section 10, chapter 144, Laws of 1981 as amended by section 37, chapter 3, Laws of 1983 2nd ex. sess. and RCW 35.21.714 are each amended to read as follows:

          Any city which imposes a license fee or tax upon the business activity of engaging in the telephone business, as defined in RCW 82.04.065, which is measured by gross receipts or gross income may impose the fee or tax, if it desires, on one hundred percent of the total gross revenue derived from intrastate toll telephone services subject to the fee or tax:  PROVIDED, That the city shall not impose the fee or tax on that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services ((for which rates are contained in tariffs filed with the federal communications commission)).

        Sec. 2.  Section 11, chapter 144, Laws of 1981 as amended by section 38, chapter 3, Laws of 1983 2nd ex. sess. and RCW 35A.82.060 are each amended to read as follows:

          Any code city which imposes a license fee or tax upon the business activity of engaging in the telephone business, as defined in RCW 82.04.065, which is measured by gross receipts or gross income may impose the fee or tax, if it desires, on one hundred percent of the total gross revenue derived from intrastate toll telephone services subject to the fee or tax:  PROVIDED, That the city shall not impose the fee or tax on that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services ((for which rates are contained in tariffs filed with the federal communications commission)).

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.