2026-S AMH ____ H2592.2

SHB 2026 - H AMD TO REV COMM AMD (H-2478.1/91)  297 Adopted 3-20-91

By Representatives Silver, Fraser, Wang and Miller

    On page 26, after line 13 of the amendment, strike all material through "act."" on line 19 and insert the following:

    "NEW SECTION. Sec. 24.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Water distribution business" shall have the meaning in RCW 82.16.010(4).

    (2) "Person" shall have the meaning in RCW 82.04.030 or any later, superseding action.

    (3) "Department" means the department of revenue.

    (4) "Water system operator" means any person engaged in the water distribution business.

    (5) "Customer" means any person to whom a water system operator furnishes water for sale or hire.

    (6) "Taxable year" shall have the meaning in RCW 82.04.020."

    "NEW SECTION. Sec. 25.  There is levied and there shall be collected from every water system operator a tax for the act or privilege of providing water for sale or hire to any customer.  The tax shall be equal to two dollars for each customer served by the water system operator during a taxable year."

    "NEW SECTION. Sec. 26.  The tax imposed under this chapter shall be due and payable on or before the last day of the first month following the end of a taxable year or at more frequent intervals as the department may prescribe by rule."

    "NEW SECTION. Sec. 27.  Taxes received by the state under this chapter shall be deposited into the water management account created in section 22 of this act and shall be used exclusively to fund grants to local governments to participate in the water resource planning and management process, including data management."

    "NEW SECTION. Sec. 28.  The taxes imposed in this chapter shall not apply to any agency, division, or branch of the federal government."

    "NEW SECTION. Sec. 29.  Chapter 82.32 RCW applies to the taxes imposed under this chapter."

    "NEW SECTION. Sec. 30.  The department of revenue shall adopt such rules as may be necessary to enforce and administer this chapter."

    "NEW SECTION. Sec. 31.  This chapter expires June 30, 1993.  The expiration of this chapter shall not be construed as affecting any existing right acquired or liability or obligation incurred under any section making up a part of this chapter or under any rule or order adopted under that section, nor as affecting any proceeding instituted under that section."

    "NEW SECTION. Sec. 32.  A new section is added to chapter 90.03 RCW to read as follows:

    (1) Each person holding a water right established under this chapter or chapter 90.44 RCW and each person or successor in title claiming a right to water under chapter 90.14 RCW shall remit to the department a one-time fee of fifteen dollars for each water right owned or claimed.  The purpose of this fee is to provide a source of funds for updating the pertinent information on each right or claim in the water resource information system.  Any water system operator subject to taxation pursuant to section 25 of this act shall not be required to remit the fee required by this subsection.

    (2) The department shall provide a notice to each water right holder and claimant that the fees required in this section are due and payable to the department no later than two calendar months after the date such notice is mailed.  The department shall send a second notice to any person who fails to remit the fee by the due date.  Any fee received by the department more than two weeks after the due date shall be assessed a ten-dollar penalty plus interest from the due date.  The department shall send a final notice of delinquency to any person who fails to remit the fee by one month after the due date.

    (3) Failure to remit fees or penalties shall, in addition to penalties provided in this chapter, constitute a lien against the real property to which the water right is appurtenant, and shall be reported to the county auditor by the department, supported by proper and conclusive evidence, and collected in the manner and with the same priority over other creditors as prescribed for the collection of delinquent taxes.  The final notice of delinquency shall notify the person that the failure to remit fees or penalties shall constitute a lien against the real property to which the water right is appurtenant.  Water rights or claims may not be transferred unless the holder or claimant has paid the fee and any penalties in full.

    (4) Any person receiving the notice of fees due under this section who does not wish to retain a water right or claim or who does not wish to pay the fee required under this section may elect to voluntarily relinquish the right or claim.  If such right is voluntarily relinquished in writing by the owner or claimant prior to two months after the due date, no fee required by this section is payable.

    (5) For purposes of efficient administration, the department may undertake the fee notification and payment process required by this section by geographical regions or by counties.  This process shall be completed by June 30, 1993.

    (6) The funds collected by the department under this section shall be deposited in the water management account created in section 22 of this act.  The account shall reimburse the general fund for any costs necessary to initiate the collection of fees required by this section."

    "NEW SECTION. Sec. 33.  A new section is added to chapter 65.08 RCW to read as follows:

    If a conveyance of real property is recorded pursuant to this chapter, the recording office shall notify the purchaser of the need to notify the department of ecology within thirty days of the recording of that property to which a water right established under chapter 90.03 or 90.44 RCW, or to which a water right claim under chapter 90.14 RCW is appurtenant has changed ownership.  The department of ecology shall require the purchaser to provide information sufficient to update the water resource information system."

    "NEW SECTION. Sec. 34.  A new section is added to chapter 65.12 RCW to read as follows:

    If a conveyance of real property is recorded pursuant to this chapter, the recording officer shall notify the purchaser of the need to notify the department of ecology within thirty days of the recording of that property to which a water right established under chapter 90.03 or 90.44 RCW, or to which a water right claim under chapter 90.14 RCW is appurtenant has changed ownership.  The department of ecology shall require the purchaser to provide information sufficient to update the water resource information system."

    "NEW SECTION. Sec. 35.  A new section is added to chapter 90.03 RCW to read as follows:

    Upon recording of a conveyance of real property pursuant to chapter 65.08 or 65.12 RCW, the purchaser shall inform the department of the change of ownership of property to which a water right established under this chapter or chapter 90.44 RCW, or to which a water right claim under chapter 90.14 RCW is appurtenant has changed ownership.  The department shall require the purchaser to provide ownership sufficient to update the water resource information system."

    "NEW SECTION. Sec. 36.  A new section is added to chapter 84.36 RCW to read as follows:

    (1) All water-conserving irrigation equipment, both real and personal, shall be exempt from ad valorem taxation.

    (2) The exemption shall apply only if the taxpayer provides, upon an application provided by the department of revenue and supplied by the county assessor, sufficient information for the county assessor to determine that the property for which the exemption is sought meets the requirements of this section.

    (3) The county legislative authority may require that a reasonable one-time processing fee accompany the application.

    (4) The county assessor shall make the necessary information, including copies of chapter ..., Laws of 1991 (this act) and accompanying rules, readily available to interested persons, and the county assessor shall render reasonable assistance upon request.

    (5) For purposes of this exemption, the term "water-conserving irrigation equipment" means all irrigation equipment, that when put to use, results in the more efficient use of water to grow crops.

    (6)(a) Upon removal from agricultural use of the land upon which water conservation equipment has been installed for which an exemption has been granted under this section, the owner of the equipment at the time of such removal shall remit all amounts of tax that would have been paid during the seven previous years had the equipment not been exempt from tax under this section, including applicable interest.  In the case of equipment that has become affixed to the land so as to become a part of the realty, the owner of the land so removed from agricultural use shall be liable for the amount of real property tax attributable to the equipment so affixed during such seven-year period.  The taxes payable under this subsection shall be due and payable at the time of such removal from agricultural use and shall be considered delinquent thereafter.

    (b) Interest shall be charged on any amount of tax becoming due by reason of removal from agricultural use at the statutory rate charged on delinquent property taxes from the dates on which such tax could have been paid without penalty if the irrigation equipment had been assessed without regard to this section.

    (c) All amounts of tax becoming due as a result of removal from agricultural use, together with applicable interest, shall become a lien at the time of removal upon the property against which such taxes are imposed.  This lien shall have priority to and shall be fully paid and satisfied before any recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which such property may become chargeable.

    (d) In the case of real property taxes becoming due as a result of removal from agricultural use, the lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes as provided in RCW 84.64.050.

    (e) Personal property taxes becoming due as a result of removal from agricultural use shall be subject to collection by the county treasurer in the manner as provided for the collection of delinquent personal property taxes in chapter 84.56 RCW.

    (7) The department of revenue shall adopt such rules as are necessary for the administration of this section.

    (8) This exemption shall be effective for taxes assessed in 1992 and 1993.

    (9) This section shall expire December 31, 1993, unless extended by the legislature."

    "NEW SECTION. Sec. 37.  A new section is added to chapter 82.04 RCW to read as follows:

    The tax imposed by RCW 82.04.240 shall not apply to the treatment or processing of effluent water purchased for commercial use directly from a sewage treatment facility operated by any county, city, town, political subdivision, or municipal or quasi-municipal corporation of this state.  This section shall expire December 31, 1993, unless extended by the legislature."

    "NEW SECTION. Sec. 38.  A new section is added to chapter 82.12 RCW to read as follows:

    This chapter shall not apply with respect to the use of treated or processed effluent water purchased for commercial use directly from a sewage treatment facility operated by any county, city, town, political subdivision, or municipal or quasi-municipal corporation of this state.  This section shall expire December 31, 1993, unless extended by the legislature."

    "NEW SECTION. Sec. 39.  The sum of three million nine hundred thirty-six thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of ecology for the purposes of implementing a cooperative regional water resources planning and management process, specifically including (1) conservation pursuant to this act; (2) the water resources forum; (3) the critical area consultation process; (4) enhanced compliance efforts; and (5) a participatory grant program."

    "NEW SECTION. Sec. 40.  The sum of six hundred seventy-four thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of health for the purposes of implementing a cooperative regional water resources planning and management process, specifically including water reuse standards, model rates, and a metering program."

    "NEW SECTION. Sec. 41.  The sum of sixty-seven thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the state building code council for the purposes of section 13 of this act."

    "NEW SECTION. Sec. 42.  The sum of seventy-seven thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of agriculture."

    "NEW SECTION. Sec. 43.  The sum of thirty-four thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the parks and recreation commission."

    "NEW SECTION. Sec. 44.  The sum of thirty-four thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of wildlife."

    "NEW SECTION. Sec. 45.  The sum of thirty-four thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of fisheries."

    "NEW SECTION. Sec. 46.  If specific funding for the purposes of an appropriation in sections 39 through 45 of this act is provided by June 30, 1991, in the omnibus appropriations act, then the appropriation in this act for which specific funding is provided in the omnibus appropriations act is null and void."

    "NEW SECTION. Sec. 47.  Sections 39 through 45 of this act are a one-time appropriation to implement a cooperative water resources planning and management process.  By August 31, 1992, the department of ecology, based on consultation with the water resources forum, shall submit to the legislature recommendations for the long-term funding needs and revenue sources for continuing the cooperative water resources planning and management process.  Such recommendations shall also include whether to continue the tax incentives contained in sections 24 through 38 of this act."

    "NEW SECTION. Sec. 48.  Sections 24 through 31 of this act are 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 July 1, 1991."

    "NEW SECTION. Sec. 49.  Sections 3 through 10 of this act shall constitute a new chapter in Title 90 RCW."

    "NEW SECTION. Sec. 50.  Sections 24 through 31 of this act shall constitute a new chapter in Title 82 RCW."

    Renumber the remaining section consecutively.

SHB 2026 - H AMD TO REV COMM AMD (H-2478.1/91)

By Representative

    On page 27, line 10 of the title amendment, after "90.14 RCW;" strike the remainder of the title and insert "adding new sections to chapter 90.03 RCW; adding a new section to chapter 18.104 RCW; adding a new section to chapter 65.08 RCW; adding a new section to chapter 65.12 RCW; adding a new section to chapter 84.36 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.12 RCW; adding a new chapter to Title 90 RCW; adding a new chapter to Title 82 RCW; creating new sections; making appropriations; providing an effective date; providing an expiration date; and declaring an emergency."