H-3455.1 _______________________________________________
HOUSE BILL 2614
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State of Washington 52nd Legislature 1992 Regular Session
By Representatives Wang, Chandler, R. Fisher and Winsley
Read first time 01/22/92. Referred to Committee on Revenue.
AN ACT Relating to limits on local privilege taxes on municipally owned utilities; and amending RCW 35.21.870.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 35.21.870 and 1984 c 225 s 6 are each amended to read as follows:
(1) No city or town may impose a tax on the privilege of conducting an electrical energy, natural gas, steam energy, or telephone business at a rate which exceeds six percent unless the rate is first approved by a majority of the voters of the city or town voting on such a proposition. This limitation does not apply to taxes levied by a city on its municipally owned utilities.
(2) If a city or town is imposing a rate of tax under subsection (1) of this section in excess of six percent on April 20, 1982, the city or town shall decrease the rate to a rate of six percent or less by reducing the rate each year on or before November 1st by ordinances to be effective on January 1st of the succeeding year, by an amount equal to one-tenth the difference between the tax rate on April 20, 1982, and six percent.
Nothing in this subsection prohibits a city or town from reducing its rates by amounts greater than the amounts required in this subsection.
Voter approved rate increases under subsection (1) of this section shall not be included in the computations under this subsection.