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 to address the questions of equity, fairness, and consistent tax
treatment by state and local 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 any inconsistencies that may 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 shall
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 shall 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
complete inventory of all types of state and local 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 an advisory study committee with
balanced representation from different segments of government and industry.
The advisory committee must include, but need not be limited to, two members
from the house of representatives, two members from the senate, persons
representing the department, cellular communication companies, tax specialists,
representatives from county and city government, large and small businesses
that use cellular communication devices.
(3)
The department shall provide staff for the purposes of the study.
(4)
The department shall present an interim report of the findings of the study to
the committees of the legislature that deal with revenue matters no later than
December 1, 1992, and shall present a final report to the same committees no
later than December 1, 1993.
NEW
SECTION. Sec. 4. If
specific funding for this act, referencing this act by bill number, is not
provided by June 30, 1992, in the supplemental biennial operating
appropriations act, this act shall be null and void.
NEW
SECTION. Sec. 5. 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.
