H-2744.1  _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 1592

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By House Committee on Finance (originally sponsored by Representatives Bush, Kastama, Mulliken, Regala, K. Schmidt, McDonald, Lantz, Robertson, Chandler, Poulsen, Talcott, Backlund, McMorris, Thompson, O'Brien, Linville, Dunn and Sheldon)

 

Read first time 03/10/97.

  Providing tax exemptions for small water districts and systems.


    AN ACT Relating to tax exemptions for small water districts and systems; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.16 RCW; creating a new section; and providing expiration dates.

 

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

 

    NEW SECTION.  Sec. 1.  The legislature finds that encouraging water districts to better manage state water resources and encouraging satellite management of failing water systems is in the best interests of the people of Washington state.  Continual updates of water quantity and quality, as mandated by federal and state agencies, have revealed that degradation of water quality exists in small water systems throughout the state and that satellite management and consolidation of small systems under a centralized management structure can best utilize existing resources available to assure safe, clean drinking water.  The legislature further finds that costs involved in upgrading these small systems can be extremely burdensome to water customers and public water purveyors.  With diminishing resources available to these small systems, the legislature finds that granting business and occupation and excise tax relief, under certain conditions, will assist smaller water districts to meet state and federal standards.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) This chapter does not apply to amounts received by a water district that has been certified by the department of health as:

    (a) Having less than one thousand five hundred connections; and

    (b) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.

    (2) This chapter does not apply to amounts received by a water system that has been certified by the department of health as:

    (a) Being operated or owned by a qualified satellite management agency under RCW 70.116.134;

    (b) Having less than two hundred connections; and

    (c) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.

    (3) The department of health shall certify to the department of revenue the eligibility of water districts and water systems under this section.  In order to determine eligibility, the department of health may use rate information provided in surveys and reports produced by the association of Washington cities, an association of elected officials, or other municipal association to estimate a state-wide average residential water rate.  The department of health shall update the estimated state-wide average residential water rate by July 1 of each year that this section remains in effect.

    (4) This section expires July 1, 2003.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 82.16 RCW to read as follows:

    (1) This chapter does not apply to amounts received by a water district that has been certified by the department of health as:

    (a) Having less than one thousand five hundred connections; and

    (b) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.

    (2) This chapter does not apply to amounts received by a water system that has been certified by the department of health as:

    (a) Being operated or owned by a qualified satellite management agency under RCW 70.116.134;

    (b) Having less than two hundred connections; and

    (c) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.

    (3) The department of health shall certify to the department of revenue the eligibility of water districts and water systems under this section.  In order to determine eligibility, the department of health may use rate information provided in surveys and reports produced by the association of Washington cities, an association of elected officials, or other municipal association to estimate a state-wide average residential water rate.  The department of health shall update the estimated state-wide average residential water rate by July 1 of each year that this section remains in effect.

    (4) This section expires July 1, 2003.

 


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