[atlas:bill]

AN ACT Relating to mitigating the impacts of revenue reductions on local governments; and adding a new section to chapter 36.01 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 36.01 RCW to read as follows:

(1) The governing body of any county may by ordinance levy a tax on the privilege of conducting any of the following businesses within the territorial boundaries of the county.

(a) An electrical energy business;

(b) A natural or manufactured gas distribution business;

(d) A sewer business;

(e) A water distribution business;

(f) A solid waste collection business; and

(g) A telephone business.

(2)(a) The rate of tax shall not exceed one percent of the gross revenues derived by businesses, except for telephone businesses as provided in (b) of this subsection, from sales made within the county, exclusive of sales for resale. The rate imposed on each business must be uniform as to all businesses in that class.

(b) A county may not impose a tax on the gross revenues derived by a telephone business which represents charges to another telecommunication company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale.

(c) By a vote of the people the county may impose a rate of tax not to exceed three percent of the gross revenues. In addition, by a vote of the people the county may include the gross revenues derived from sales for resale made by any business except for a telephone business in the gross revenues subject to tax.

(3) In addition to the provisions for levying and collecting a tax, the ordinance must include, but is not limited to, the following provisions:

(a) Exemptions, deductions, and credits;

(b) Place of sale; and

(4) Money collected under this section must be used exclusively for any of the following purposes:

(a) To assist the criminal justice system. Activities assisting the criminal justice system may include police protection, mitigation of congested court systems, relief for overcrowded jails, domestic violence services, community and legal advocates, hearings and ancillary services related to at-risk youth, truancy, and children in need of services;

(b) To maintain and improve the health of citizens. Activities maintaining and improving the health of citizens may include providing access to personal health and preventative care, and providing for environmental health protection services;

(c) To provide for human services. Activities that provide for human services may include providing for the care of persons who, as a result of their economic, social, or health condition require financial assistance, institutional care, or rehabilitation.

(5) The tax authorized by this section is in addition to other taxes and does not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind.

(6) For the purposes of this section, unless the context clearly requires otherwise, the following definitions apply.

(a) "Electrical energy business" means the business of producing, distributing, or selling electrical energy.

(b) "Natural or manufactured gas distribution business" means the business of operating a plant or system for the production, sale, or distribution of natural or manufactured gas by a pipeline.

(c) "Steam energy business" means the business of operating a plant or system for the production, sale, or distribution of steam used for energy.

(d) "Sewer business" means a business that collects, treats, and/or disposes of sewage. A sewer business may include storm or surface water drainage and channeling facilities.

(e) "Water distribution business" means the business of operating a plant or system for the production, sale, or distribution of water.

(f) "Solid waste collection business" means the business of collecting, hauling, transferring, and/or storing garbage or other materials discarded as worthless.

(g) "Telephone business" means the business of providing network telephone service as that phrase is defined in RCW 82.04.065 and includes cooperative or farmer line telephone companies or associations operating an exchange.