H-3990.2 _______________________________________________
HOUSE BILL 2672
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives Wang, Ebersole, Ballard, Brumsickle and Wynne
Read first time 01/23/92. Referred to Committee on Revenue.
AN ACT Relating to the tax status of cellular communications; creating new sections; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. As used in this act "cellular communications" includes radio common carrier communications.
NEW SECTION. Sec. 2. (1) The legislature finds that:
(a) Cellular communications is a new, rapidly changing, capital-intensive, and complex industry;
(b) Cellular technology is so new that there are substantial public policy questions regarding valuation, taxation, and other assessments of cellular communication equipment and services;
(c) A thorough study of cellular communications equipment, property, and services is necessary before a permanent tax policy can be adopted that addresses the questions of equity, fairness, and consistent tax treatment by all taxing units of government.
(2) The intent of this act is to study and define what cellular communications is, recommend to the legislature how it is to be taxed and assessed, and to clear up the current inconsistencies that now exist among different units of government.
NEW SECTION. Sec. 3. (1) The department of revenue shall conduct a study of the taxation and assessment of cellular communications property, equipment, and services. The study must focus on the policy implications involved in developing clear definitions of cellular communications equipment, property, and services that should be taxable, at what rate, and under what definition, as well as what should be exempt. The study must include an examination of:
(a) Definitions of cellular communications real property, equipment, and services;
(b) Taxation of cellular communication in other states;
(c) Alternatives to the current methods of taxation;
(d) The advantages or disadvantages of change, revision, or alternatives to the present tax treatment of cellular communications;
(e) A comparison and analysis as to the similarities and differences between cellular communications and traditional telecommunications defined as utilities and how they should be treated for tax purposes either differently or similarly;
(f) A complete inventory of all types of taxes paid including, but not limited to, utility taxes, property taxes, sales and use taxes, and per-line charges paid to the state and local governments.
(2) To perform the study, the department shall form a study committee with balanced representation from different segments of government and industry. The study committee must include, but need not be limited to, two members from the house of representatives revenue committee, two members from the senate ways and means committee, persons representing the department, cellular communication companies, tax specialists, representatives from county and city government, large and small businesses, as well as individuals that use cellular communication devices.
(3) The department shall provide staff for the purposes of the study.
(4) The department shall report the findings of the study to the committees of the legislature that deal with revenue matters no later than December 1, 1992.
NEW SECTION. Sec. 4. This act is 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 immediately.