S-0162.1  _______________________________________________

                         SENATE BILL 5114

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Senator Oke

Read first time 01/15/97.  Referred to Committee on Ways & Means.

Including solid waste collection in the taxation of retail sales of tangible personal property.

    AN ACT Relating to including solid waste collection in the taxation of retail sales of tangible personal property; and amending RCW 35.21.710.

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

    Sec. 1.  RCW 35.21.710 and 1983 2nd ex.s. c 3 s 33 are each amended to read as follows:

    Any city which imposes a license fee or tax upon business activities consisting of the making of retail sales of tangible personal property which are measured by gross receipts or gross income from such sales, shall impose such tax at a single uniform rate upon all such business activities.  The taxing authority granted to cities for taxes upon business activities measured by gross receipts or gross income from sales shall not exceed a rate of .0020; except that any city with an adopted ordinance at a higher rate, as of January 1, 1982 shall be limited to a maximum increase of ten percent of the January 1982 rate, not to exceed an annual incremental increase of two percent of current rate:  PROVIDED, That any adopted ordinance which classifies according to different types of business or services shall be subject to both the ten percent and the two percent annual incremental increase limitation on each tax rate:  PROVIDED FURTHER, That all surtaxes on business and occupation classifications in effect as of January 1, 1982, shall expire no later than December 31, 1982, or by expiration date established by local ordinance.  Cities which impose a license fee or tax upon business activities consisting of the making of retail sales of tangible personal property which are measured by gross receipts or gross income from such sales shall be required to submit an annual report to the state auditor identifying the rate established and the revenues received from each fee or tax.  This section shall not apply to any business activities subject to the tax imposed by chapter 82.16 RCW.  For purposes of this section, the providing to consumers of competitive telephone service, as defined in RCW 82.04.065, and solid waste collection, as defined in RCW 82.18.010, shall be deemed to be the retail sale of tangible personal property.

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