S-1525.2          _______________________________________________

                                 SENATE BILL 5832

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By Senator Madsen.

Read first time February 25, 1991.  Referred to Committee on Energy & Utilities.Imposing a privilege tax on certain city owned hydropower facilities located in other counties.

     AN ACT Relating to imposing a privilege tax on certain city-owned hydropower facilities located in other counties; adding a new section to chapter 82.16 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.16 RCW to read as follows:

     (1) For purposes of this section, "remote hydroelectric generating facility" means a facility originally licenced on or before January 1, 1935, by the federal energy regulatory commission or predecessor agency for the generation and distribution of electricity from hydropower that is owned and operated by a city or town located within a class 2 or 3 county west of the Cascades and that facility is located in a county other than the one where the city or town is located.

     (2) In addition to any other tax imposed under this chapter, there is levied and collected from every person a tax for the act or privilege of engaging, within this state, in the business of operating a remote hydroelectric generating facility for the generation, distribution, and sale of electrical energy.  With respect to each facility, the tax is equal to one and one-half percent of the wholesale value of energy produced for use or sale.

     (3) The tax imposed in this section is due as provided in RCW 82.32.045.  Moneys received under this section are deposited in the general fund as provided in RCW 82.32.380 and used as follows:

     (a) Fifty percent is for the support of the schools;

     (b) Twenty-two percent is distributed to the county where the hydroelectric generating facilities are located;

     (c) Twenty-three percent is distributed to the cities and towns in the county where the hydroelectric generating facilities are located;

     (d) Three percent is distributed to the fire protection districts in the county where the hydroelectric generating facilities are located; and

     (e) Two percent is distributed to the library districts in the county where the hydroelectric generating facilities are located.

     Distributions under this subsection are made monthly based on the ratio that the population of the appropriate district bears to the total population of the county.  The distribution made to the county is based on the ratio that the population of the unincorporated area bears to the total population of the county.

     (4) A credit against the tax imposed in this section is allowed to a city or town operating a remote hydroelectric generating facility, in the amount of a payment in the reporting period that is made under RCW 35.21.420, to the county where the remote hydroelectric generating facility is located.  A credit in excess of the tax imposed in this section may be carried over to the subsequent reporting periods.

NEW SECTION. Sec. 2.      This act shall take effect August 1, 1991.