Z-1008.1  _______________________________________________

 

                          HOUSE BILL 2600

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representatives Robertson, Hatfield and K. Schmidt; by request of Department of Revenue

 

Read first time 01/16/98.  Referred to Committee on Finance.

Modifying the definition of a transportation business.


    AN ACT Relating to public utility tax on motor transportation business; amending RCW 82.16.010 and 82.16.020; and providing an effective date.

 

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

 

    Sec. 1.  RCW 82.16.010 and 1996 c 150 s 1 are each amended to read as follows:

    For the purposes of this chapter, unless otherwise required by the context:

    (1) "Railroad business" means the business of operating any railroad, by whatever power operated, for public use in the conveyance of persons or property for hire.  It shall not, however, include any business herein defined as an urban transportation business.

    (2) "Express business" means the business of carrying property for public hire on the line of any common carrier operated in this state, when such common carrier is not owned or leased by the person engaging in such business.

    (3) "Railroad car business" means the business of operating stock cars, furniture cars, refrigerator cars, fruit cars, poultry cars, tank cars, sleeping cars, parlor cars, buffet cars, tourist cars, or any other kinds of cars used for transportation of property or persons upon the line of any railroad operated in this state when such railroad is not owned or leased by the person engaging in such business.

    (4) "Water distribution business" means the business of operating a plant or system for the distribution of water for hire or sale.

    (5) "Light and power business" means the business of operating a plant or system for the generation, production or distribution of electrical energy for hire or sale and/or for the wheeling of electricity for others.

    (6) "Telegraph business" means the business of affording telegraphic communication for hire.

    (7) "Gas distribution business" means the business of operating a plant or system for the production or distribution for hire or sale of gas, whether manufactured or natural.

    (8) "((Motor)) Transportation business" means the business (((except urban transportation business))) of operating any motor propelled vehicle by which persons or property of others are conveyed for hire, and includes, but is not limited to, the operation of any motor propelled vehicle as an auto transportation company (((except urban transportation business))), common carrier or contract carrier as defined by RCW 81.68.010 and 81.80.010:  PROVIDED, That "((motor)) transportation business" shall not mean or include the transportation of logs or other forest products exclusively upon private roads or private highways.

    (((9) "Urban)) "Transportation business" also means the business of operating any vehicle for public use in the conveyance of persons or property for hire((, insofar as (a) operating entirely within the corporate limits of any city or town, or within five miles of the corporate limits thereof, or (b) operating entirely within and between cities and towns whose corporate limits are not more than five miles apart or within five miles of the corporate limits of either thereof)).  Included herein, but without limiting the scope hereof, is the business of operating passenger vehicles of every type and also the business of operating cartage, pickup, or delivery services, including in such services the collection and distribution of property arriving from or destined to a point within or without the state, whether or not such collection or distribution be made by the person performing a local or interstate line-haul of such property.

    (((10))) (9) "Public service business" means any of the businesses defined in ((subdivisions)) subsections (1), (2), (3), (4), (5), (6), (7), and (8)((, and (9))) of this section or any business subject to control by the state, or having the powers of eminent domain and the duties incident thereto, or any business hereafter declared by the legislature to be of a public service nature, except telephone business as defined in RCW 82.04.065 and low-level radioactive waste site operating companies as redefined in RCW 81.04.010.  It includes, among others, without limiting the scope hereof:  Airplane transportation, boom, dock, ferry, pipe line, toll bridge, toll logging road, water transportation and wharf businesses.

    (((11))) (10) "Tugboat business" means the business of operating tugboats, towboats, wharf boats, or similar vessels in the towing or pushing of vessels, barges, or rafts for hire.

    (((12))) (11) "Gross income" means the value proceeding or accruing from the performance of the particular public service or transportation business involved, including operations incidental thereto, but without any deduction on account of the cost of the commodity furnished or sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses.

    (((13))) (12) The meaning attributed, in chapter 82.04 RCW, to the term "tax year," "person," "value proceeding or accruing," "business," "engaging in business," "in this state," "within this state," "cash discount" and "successor" shall apply equally in the provisions of this chapter.

 

    Sec. 2.  RCW 82.16.020 and 1996 c 150 s 2 are each amended to read as follows:

    (1) There is levied and there shall be collected from every person a tax for the act or privilege of engaging within this state in any one or more of the businesses herein mentioned.  The tax shall be equal to the gross income of the business, multiplied by the rate set out after the business, as follows:

    (a) Express, sewerage collection, and telegraph businesses:  Three and six-tenths percent;

    (b) Light and power business:  Three and sixty-two one-hundredths percent;

    (c) Gas distribution business:  Three and six-tenths percent;

    (d) ((Urban)) Transportation ((business)), railroad, and railroad car businesses:  Six-tenths of one percent;

    (e) Vessels under sixty-five feet in length, except tugboats, operating upon the waters within the state:  Six-tenths of one percent;

    (f) ((Motor transportation, railroad, railroad car, and)) Tugboat businesses((,)) and all public service businesses other than ones mentioned above:  One and eight-tenths of one percent;

    (g) Water distribution business:  Four and seven-tenths percent.

    (2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.

    (3) Twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses shall be deposited in the public works assistance account created in RCW 43.155.050.

 

    NEW SECTION.  Sec. 3.  This act takes effect July 1, 1998.

 


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