H-1721.1  _______________________________________________

                          HOUSE BILL 1884

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Constantine, Poulsen, Carrell and Butler

Read first time 02/12/97.  Referred to Committee on Government Administration.

Requiring voter approval for utility tax changes.

    AN ACT Relating to city and town utility taxes; amending RCW 35.21.870; and repealing RCW 35.21.871 and 35A.82.070.

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

    Sec. 1.  RCW 35.21.870 and 1984 c 225 s 6 are each amended to read as follows:

    (((1) No)) After the effective date of this act, a city or town may not impose a tax or increase the rate of tax on the privilege of conducting an electrical energy, natural gas, steam energy, or telephone business ((at a rate which exceeds six percent)) unless the rate is first approved by a majority of the voters of the city or town voting on such a proposition.

    (((2) If a city or town is imposing a rate of tax under subsection (1) of this section in excess of six percent on April 20, 1982, the city or town shall decrease the rate to a rate of six percent or less by reducing the rate each year on or before November 1st by ordinances to be effective on January 1st of the succeeding year, by an amount equal to one-tenth the difference between the tax rate on April 20, 1982, and six percent.

    Nothing in this subsection prohibits a city or town from reducing its rates by amounts greater than the amounts required in this subsection.

    Voter approved rate increases under subsection (1) of this section shall not be included in the computations under this subsection.))

NEW SECTION. Sec. 2.  The following acts or parts of acts are each repealed:

(1) RCW 35.21.871 and 1986 c 70 s 3; and

(2) RCW 35A.82.070 and 1986 c 70 s 6.

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