HOUSE BILL REPORT

HB 916

BYRepresentative Appelwick

Providing an excise tax on refuse collection businesses.

House Committe on Ways & Means/Revenue

Majority Report:     Do pass.  (10)

     Signed by Representatives Appelwick, Chair; Basich, Bristow, Grimm, Holland, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 9, 1987

BACKGROUND:

A refuse collection tax was imposed by the Legislature in 1985 to fund a state public works program.  In 1986, further clarification changed the rate of the refuse tax to an excise tax of 3.6 percent to be collected from refuse customers.  In the intervening changes, the business and occupation tax service rate applied to refuse businesses was not clarified.

SUMMARY:

The bill clarifies that a refuse business is subject to a business and occupation tax at the service rate of 1.5 percent.

Fiscal Note:    Requested February 16, 1987.

House Committee ‑ Testified For:     Barney McClure, Department of Revenue.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     The Department of Revenue needs statutory clarification that refuse collection businesses operating under RCW 82.18.010 are subject to the business and occupation tax at the 1.5 percent service rate.

House Committee - Testimony Against: None Presented.