CERTIFICATION OF ENROLLMENT

 

                   SUBSTITUTE HOUSE BILL 1592

 

 

                   Chapter 407, Laws of 1997

 

 

 

 

                        55th Legislature

                      1997 Regular Session

 

 

TAX EXEMPTIONS FOR SMALL WATER-SEWER DISTRICTS

 

 

 

                    EFFECTIVE DATE:  7/27/97

Passed by the House April 22, 1997

  Yeas 97   Nays 0

 

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

 

Passed by the Senate April 17, 1997

  Yeas 47   Nays 0

             CERTIFICATE

 

I, Timothy A. Martin, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 1592  as passed by the House of Representatives and the Senate on the dates hereon set forth.

 

 

 

             IRV NEWHOUSE

President of the Senate

          TIMOTHY A. MARTIN

                          Chief Clerk

 

 

Approved May 16, 1997 Place Style On Codes above, and Style Off Codes below.   

                                FILED          

 

 

             May 16, 1997 - 3:33 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 1592

          _______________________________________________

 

             Passed Legislature - 1997 Regular Session

 

                     AS AMENDED BY THE SENATE

                                

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 for water services supplied by a water-sewer district established under Title 57 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) This chapter does not apply to amounts received for water services supplied 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)  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 90 percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.

    (4) 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.

    (5) 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 for water services supplied by a water-sewer district established under Title 57 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) This chapter does not apply to amounts received for water services supplied 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) 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 90 percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.

    (4) 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.

    (5) This section expires July 1, 2003.


    Passed the House April 22, 1997.

    Passed the Senate April 17, 1997.

Approved by the Governor May 16, 1997.

    Filed in Office of Secretary of State May 16, 1997.