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HOUSE BILL 2665
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Passed Legislature - 1994 Regular Session
State of Washington 53rd Legislature 1994
Regular Session
By
Read first time 01/19/94. Referred to Committee
on Revenue.
Providing a gross receipts tax
deduction for low-density light and power businesses.
AN ACT Relating to
excise taxation of low-density light and power businesses; 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) In computing tax
under this chapter, a light and power business may deduct from gross income the
lesser of the amounts determined under subsections (2) through (4) of this
section.
(2)(a) Twenty-five
percent of wholesale power cost paid during the reporting period, if the light
and power business has fewer than five and one-half customers per mile of line.
(b) Twenty percent of
wholesale power cost paid during the reporting period, if the light and power
business has more than five and one-half but less than eleven customers per
mile.
(c) Fifteen percent of
the wholesale power cost paid during the reporting period, if the light and
power business has more than eleven but less than seventeen customers per mile
of line.
(d) Zero if the light
and power business has more than seventeen customers per mile of line.
(3) Wholesale power
cost multiplied by the percentage by which the average retail electric power rates
for the light and power business exceed the state average electric power rate.
If more than fifty percent of the kilowatt hours sold by a light and power
business are sold to irrigators, then only sales to nonirrigators shall be used
to calculate the average electric power rate for that light and power
business. For purposes of this subsection, the department shall determine
state average electric power rate each year based on the most recent available
data and shall inform taxpayers of its determination.
(4) Two hundred
thousand dollars per month.
NEW
SECTION. Sec. 2. This act shall take
effect July 1, 1994.
