Brief Description: Exempting fees and charges for public transportation services from public utility taxes.

Sponsors: Senator Benton.

Senate Committee on Transportation
Senate Committee on Ways & Means
House Committee on Finance

Background: Public and private entities who transport people or goods for hire are subject to the public utility tax. The measure of the tax is the gross receipts of the business for providing transportation for hire. Under current state law, certain deductions are provided to public transit services when calculating gross receipts upon which state public utility taxes are levied.

Summary: This bill allows fare-box revenue collected by county, city, and public transportation that benefit district transit agencies to also be deducted from the gross receipts upon which state public utility taxes are levied.

Votes on Final Passage:

Senate      46   0
House      98   0   (House amended)
Senate      48   0   (Senate concurred)

Effective: June 7, 2006