H-3555.1 _______________________________________________
HOUSE BILL 2711
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Representatives Parlette, Chandler, Mulliken and Sump
Read first time 01/19/98. Referred to Committee on Finance.
AN ACT Relating to tax exemptions for small irrigation districts; 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 irrigation districts to better manage state water resources 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. 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 irrigation 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 for water services supplied by an irrigation district established under Title 87 RCW 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) To receive an exemption under this section, the water system shall supply to the department of health proof that an amount equal to at least ninety percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.
(3) The department of health shall certify to the department of revenue the eligibility of irrigation districts 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, 2004.
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 for water services supplied by an irrigation district established under Title 87 RCW 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) To receive an exemption under this section, the water system shall supply to the department of health proof that an amount equal to at least ninety percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.
(3) The department of health shall certify to the department of revenue the eligibility of irrigation districts 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, 2004.
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