BILL REQ. #:  H-4453.1 

Read first time 01/30/2004.   Referred to Committee on Finance.

     AN ACT Relating to eliminating the expiration dates on tax exemptions for water services supplied by certain water-sewer districts and irrigation districts; and amending RCW 82.04.312 and 82.16.042.

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

Sec. 1   RCW 82.04.312 and 1998 c 316 s 1 are each amended 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 or by an irrigation district established under Title 87 RCW that:
     (a) Has less than one thousand five hundred connections; and
     (b) Charges residential water rates that exceed one hundred twenty-five percent of the statewide average residential water rate published on or before July 1st of each year by the department of health.
     (2) This chapter does not apply to amounts received for water services supplied by a water system that:
     (a) Is operated or owned by a qualified satellite management agency under RCW 70.116.134;
     (b) Has less than two hundred connections; and
     (c) Charges residential water rates that exceed one hundred twenty-five percent of the statewide average residential water rate published on or before July 1st of each year by the department of health.
     (3) To receive an exemption under this section, the water system or irrigation district shall supply to the department of revenue 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.
     (4) 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 statewide average residential water rate.
     (((5) This section expires July 1, 2004.))

Sec. 2   RCW 82.16.042 and 1998 c 316 s 2 are each amended 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 or by an irrigation district established under Title 87 RCW that:
     (a) Has less than one thousand five hundred connections; and
     (b) Charges residential water rates that exceed one hundred twenty-five percent of the statewide average residential water rate published on or before July 1st of each year by the department of health.
     (2) This chapter does not apply to amounts received for water services supplied by a water system that:
     (a) Is operated or owned by a qualified satellite management agency under RCW 70.116.134;
     (b) Has less than two hundred connections; and
     (c) Charges residential water rates that exceed one hundred twenty-five percent of the statewide average residential water rate.
     (3) To receive an exemption under this section, the water system or irrigation district shall supply to the department of revenue 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.
     (4) For the purposes of this section, "statewide average residential water rate" means the statewide average residential water rate published under RCW 82.04.312.
     (((5) This section expires July 1, 2004.))