6826AMHFINH5488.1SB 6826H COMM AMDBy Committee on Finance Strike everything after the enacting clause and insert thefollowing:Sec. RCW 82.16.050 and 2004 c 153 s 308 are each amended toread as follows: In computing tax there may be deducted from the gross income thefollowing items: (1) Amounts derived by municipally owned or operated public servicebusinesses, directly from taxes levied for the support or maintenancethereof: PROVIDED, That this section shall not be construed to exemptservice charges which are spread on the property tax rolls andcollected as taxes; (2) Amounts derived from the sale of commodities to persons in thesame public service business as the seller, for resale as such withinthis state. This deduction is allowed only with respect to waterdistribution, gas distribution or other public service businesses whichfurnish water, gas or any other commodity in the performance of publicservice businesses; (3) Amounts actually paid by a taxpayer to another person taxableunder this chapter as the latter's portion of the consideration due forservices furnished jointly by both, if the total amount has beencredited to and appears in the gross income reported for tax by theformer; (4) The amount of cash discount actually taken by the purchaser orcustomer; (5) The amount of bad debts, as that term is used in 26 U.S.C. Sec.166, as amended or renumbered as of January 1, 2003, on which tax waspreviously paid under this chapter; (6) Amounts derived from business which the state is prohibitedfrom taxing under the Constitution of this state or the Constitution orlaws of the United States; Official Print - 1 (7) Amounts derived from the distribution of water through anirrigation system, for irrigation purposes; (8) Amounts derived from the transportation of commodities frompoints of origin in this state to final destination outside this state,or from points of origin outside this state to final destination inthis state, with respect to which the carrier grants to the shipper theprivilege of stopping the shipment in transit at some point in thisstate for the purpose of storing, manufacturing, milling, or otherprocessing, and thereafter forwards the same commodity, or itsequivalent, in the same or converted form, under a through freight ratefrom point of origin to final destination; and amounts derived from thetransportation of commodities from points of origin in the state to anexport elevator, wharf, dock or ship side on tidewater or navigabletributaries thereto from which such commodities are forwarded, withoutintervening transportation, by vessel, in their original form, tointerstate or foreign destinations: PROVIDED, That no deduction willbe allowed when the point of origin and the point of delivery to suchan export elevator, wharf, dock, or ship side are located within thecorporate limits of the same city or town; (9) Amounts derived from the production, sale, or transfer ofelectrical energy for resale within or outside the state or forconsumption outside the state; (10) Amounts derived from the distribution of water by a nonprofitwater association and used for capital improvements by that nonprofitwater association; (11) Amounts paid by a sewerage collection business taxable underRCW 82.16.020(1)(a) to a person taxable under chapter 82.04 RCW for thetreatment or disposal of sewage; (12) Amounts derived from fees or charges imposed on persons fortransit services provided by a public transportation agency. For thepurposes of this subsection, "public transportation agency" means amunicipality, as defined in RCW 35.58.272, and urban publictransportation systems, as defined in RCW 47.04.082. Publictransportation agencies shall spend an amount equal to the reduction intax provided by this tax deduction solely to adjust routes to improveaccess for citizens using food banks and senior citizen services or toextend or add new routes to assist lowincome citizens and seniors.--- END --- Official Print - 2