BILL REQ. #: H-3905.1
State of Washington | 62nd Legislature | 2012 Regular Session |
READ FIRST TIME 01/27/12.
AN ACT Relating to generating revenue from community residential service businesses; amending RCW 82.16.010, 82.16.020, and 35.21.710; reenacting and amending RCW 82.16.010 and 82.16.020; adding a new section to chapter 71A.12 RCW; creating a new section; providing an effective date; providing a contingent effective date; providing a contingent expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.16.010 and 2010 c 106 s 224 are each amended to
read as follows:
For the purposes of this chapter, unless otherwise required by the
context:
(1) "Express business" means the business of carrying property for
public hire on the line of any common carrier operated in this state,
when such common carrier is not owned or leased by the person engaging
in such business.
(2) "Gas distribution business" means the business of operating a
plant or system for the production or distribution for hire or sale of
gas, whether manufactured or natural.
(3) "Gross income" means the value proceeding or accruing from the
performance of the particular public service or transportation business
involved, including operations incidental thereto, but without any
deduction on account of the cost of the commodity furnished or sold,
the cost of materials used, labor costs, interest, discount, delivery
costs, taxes, or any other expense whatsoever paid or accrued and
without any deduction on account of losses.
(4) "Light and power business" means the business of operating a
plant or system for the generation, production or distribution of
electrical energy for hire or sale and/or for the wheeling of
electricity for others.
(5) "Log transportation business" means the business of
transporting logs by truck, except when such transportation meets the
definition of urban transportation business or occurs exclusively upon
private roads.
(6) "Motor transportation business" means the business (except
urban transportation business) of operating any motor propelled vehicle
by which persons or property of others are conveyed for hire, and
includes, but is not limited to, the operation of any motor propelled
vehicle as an auto transportation company (except urban transportation
business), common carrier, or contract carrier as defined by RCW
81.68.010 and 81.80.010. However, "motor transportation business" does
not mean or include: (a) A log transportation business; or (b) the
transportation of logs or other forest products exclusively upon
private roads or private highways.
(7)(a) "Public service business" means any of the businesses
defined in subsections (1), (2), (4), (6), (8), (9), (10), (12), and
(13) of this section or any business subject to control by the state,
or having the powers of eminent domain and the duties incident thereto,
or any business hereafter declared by the legislature to be of a public
service nature, except telephone business and low-level radioactive
waste site operating companies as redefined in RCW 81.04.010. It
includes, among others, without limiting the scope hereof: Airplane
transportation, boom, dock, ferry, pipe line, toll bridge, toll logging
road, water transportation and wharf businesses.
(b) The definitions in this subsection (7)(b) apply throughout this
subsection (7).
(i) "Competitive telephone service" has the same meaning as in RCW
82.04.065.
(ii) "Network telephone service" means the providing by any person
of access to a telephone network, telephone network switching service,
toll service, or coin telephone services, or the providing of
telephonic, video, data, or similar communication or transmission for
hire, via a telephone network, toll line or channel, cable, microwave,
or similar communication or transmission system. "Network telephone
service" includes the provision of transmission to and from the site of
an internet provider via a telephone network, toll line or channel,
cable, microwave, or similar communication or transmission system.
"Network telephone service" does not include the providing of
competitive telephone service, the providing of cable television
service, the providing of broadcast services by radio or television
stations, nor the provision of internet access as defined in RCW
82.04.297, including the reception of dial-in connection, provided at
the site of the internet service provider.
(iii) "Telephone business" means the business of providing network
telephone service. It includes cooperative or farmer line telephone
companies or associations operating an exchange.
(iv) "Telephone service" means competitive telephone service or
network telephone service, or both, as defined in (b)(i) and (ii) of
this subsection.
(8) "Railroad business" means the business of operating any
railroad, by whatever power operated, for public use in the conveyance
of persons or property for hire. It ((shall)) may not, however,
include any business herein defined as an urban transportation
business.
(9) "Railroad car business" means the business of operating stock
cars, furniture cars, refrigerator cars, fruit cars, poultry cars, tank
cars, sleeping cars, parlor cars, buffet cars, tourist cars, or any
other kinds of cars used for transportation of property or persons upon
the line of any railroad operated in this state when such railroad is
not owned or leased by the person engaging in such business.
(10) "Telegraph business" means the business of affording
telegraphic communication for hire.
(11) "Tugboat business" means the business of operating tugboats,
towboats, wharf boats or similar vessels in the towing or pushing of
vessels, barges or rafts for hire.
(12) "Urban transportation business" means the business of
operating any vehicle for public use in the conveyance of persons or
property for hire, insofar as (a) operating entirely within the
corporate limits of any city or town, or within five miles of the
corporate limits thereof, or (b) operating entirely within and between
cities and towns whose corporate limits are not more than five miles
apart or within five miles of the corporate limits of either thereof.
Included herein, but without limiting the scope hereof, is the business
of operating passenger vehicles of every type and also the business of
operating cartage, pickup, or delivery services, including in such
services the collection and distribution of property arriving from or
destined to a point within or without the state, whether or not such
collection or distribution be made by the person performing a local or
interstate line-haul of such property.
(13) "Water distribution business" means the business of operating
a plant or system for the distribution of water for hire or sale.
(14) The meaning attributed, in chapter 82.04 RCW, to the term "tax
year," "person," "value proceeding or accruing," "business," "engaging
in business," "in this state," "within this state," "cash discount" and
"successor" applies equally in the provisions of this chapter.
(15) "Community residential service business" means a business
that:
(a) Is licensed or certified by the department of social and health
services to provide to individuals who have a developmental disability
as defined in RCW 71A.10.020(4):
(i) Group home services;
(ii) Group training home services;
(iii) Supported living services; or
(iv) Voluntary placement services provided in a licensed staff
residential facility for children; and
(b) Has a contract with the division of developmental disabilities
to provide the services identified in (a) of this subsection.
Sec. 2 RCW 82.16.010 and 2009 c 535 s 1110 are each reenacted and
amended to read as follows:
For the purposes of this chapter, unless otherwise required by the
context:
(1) "Express business" means the business of carrying property for
public hire on the line of any common carrier operated in this state,
when such common carrier is not owned or leased by the person engaging
in such business.
(2) "Gas distribution business" means the business of operating a
plant or system for the production or distribution for hire or sale of
gas, whether manufactured or natural.
(3) "Gross income" means the value proceeding or accruing from the
performance of the particular public service or transportation business
involved, including operations incidental thereto, but without any
deduction on account of the cost of the commodity furnished or sold,
the cost of materials used, labor costs, interest, discount, delivery
costs, taxes, or any other expense whatsoever paid or accrued and
without any deduction on account of losses.
(4) "Light and power business" means the business of operating a
plant or system for the generation, production or distribution of
electrical energy for hire or sale and/or for the wheeling of
electricity for others.
(5) "Motor transportation business" means the business (except
urban transportation business) of operating any motor propelled vehicle
by which persons or property of others are conveyed for hire, and
includes, but is not limited to, the operation of any motor propelled
vehicle as an auto transportation company (except urban transportation
business), common carrier, or contract carrier as defined by RCW
81.68.010 and 81.80.010. However, "motor transportation business" does
not mean or include the transportation of logs or other forest products
exclusively upon private roads or private highways.
(6)(a) "Public service business" means any of the businesses
defined in subsections (1), (2), (4), (5), (7), (8), (9), (11), and
(12) of this section or any business subject to control by the state,
or having the powers of eminent domain and the duties incident thereto,
or any business hereafter declared by the legislature to be of a public
service nature, except telephone business and low-level radioactive
waste site operating companies as redefined in RCW 81.04.010. It
includes, among others, without limiting the scope hereof: Airplane
transportation, boom, dock, ferry, pipe line, toll bridge, toll logging
road, water transportation and wharf businesses.
(b) The definitions in this subsection (6)(b) apply throughout this
subsection (6).
(i) "Competitive telephone service" has the same meaning as in RCW
82.04.065.
(ii) "Network telephone service" means the providing by any person
of access to a telephone network, telephone network switching service,
toll service, or coin telephone services, or the providing of
telephonic, video, data, or similar communication or transmission for
hire, via a telephone network, toll line or channel, cable, microwave,
or similar communication or transmission system. "Network telephone
service" includes the provision of transmission to and from the site of
an internet provider via a telephone network, toll line or channel,
cable, microwave, or similar communication or transmission system.
"Network telephone service" does not include the providing of
competitive telephone service, the providing of cable television
service, the providing of broadcast services by radio or television
stations, nor the provision of internet access as defined in RCW
82.04.297, including the reception of dial-in connection, provided at
the site of the internet service provider.
(iii) "Telephone business" means the business of providing network
telephone service. It includes cooperative or farmer line telephone
companies or associations operating an exchange.
(iv) "Telephone service" means competitive telephone service or
network telephone service, or both, as defined in (b)(i) and (ii) of
this subsection.
(7) "Railroad business" means the business of operating any
railroad, by whatever power operated, for public use in the conveyance
of persons or property for hire. It ((shall)) may not, however,
include any business herein defined as an urban transportation
business.
(8) "Railroad car business" means the business of operating stock
cars, furniture cars, refrigerator cars, fruit cars, poultry cars, tank
cars, sleeping cars, parlor cars, buffet cars, tourist cars, or any
other kinds of cars used for transportation of property or persons upon
the line of any railroad operated in this state when such railroad is
not owned or leased by the person engaging in such business.
(9) "Telegraph business" means the business of affording
telegraphic communication for hire.
(10) "Tugboat business" means the business of operating tugboats,
towboats, wharf boats or similar vessels in the towing or pushing of
vessels, barges or rafts for hire.
(11) "Urban transportation business" means the business of
operating any vehicle for public use in the conveyance of persons or
property for hire, insofar as (a) operating entirely within the
corporate limits of any city or town, or within five miles of the
corporate limits thereof, or (b) operating entirely within and between
cities and towns whose corporate limits are not more than five miles
apart or within five miles of the corporate limits of either thereof.
Included herein, but without limiting the scope hereof, is the business
of operating passenger vehicles of every type and also the business of
operating cartage, pickup, or delivery services, including in such
services the collection and distribution of property arriving from or
destined to a point within or without the state, whether or not such
collection or distribution be made by the person performing a local or
interstate line-haul of such property.
(12) "Water distribution business" means the business of operating
a plant or system for the distribution of water for hire or sale.
(13) The meaning attributed, in chapter 82.04 RCW, to the term "tax
year," "person," "value proceeding or accruing," "business," "engaging
in business," "in this state," "within this state," "cash discount" and
"successor" ((shall apply)) applies equally in the provisions of this
chapter.
(14) "Community residential service business" means a business
that:
(a) Is licensed or certified by the department of social and health
services to provide to individuals who have a developmental disability
as defined in RCW 71A.10.020(4):
(i) Group home services;
(ii) Group training home services;
(iii) Supported living services; or
(iv) Voluntary placement services provided in a licensed staff
residential facility for children; and
(b) Has a contract with the division of developmental disabilities
to provide the services identified in (a) of this subsection.
Sec. 3 RCW 82.16.020 and 2011 1st sp.s. c 48 s 7032 are each
reenacted and amended to read as follows:
(1) There is levied and ((there shall be)) collected from every
person a tax for the act or privilege of engaging within this state in
any one or more of the businesses herein mentioned. The tax ((shall
be)) is equal to the gross income of the business, multiplied by the
rate set out after the business, as follows:
(a) Express, sewerage collection, and telegraph businesses: Three
and six-tenths percent;
(b) Light and power business: Three and sixty-two one-hundredths
percent;
(c) Gas distribution business: Three and six-tenths percent;
(d) Urban transportation business: Six-tenths of one percent;
(e) Vessels under sixty-five feet in length, except tugboats,
operating upon the waters within the state: Six-tenths of one percent;
(f) Motor transportation, railroad, railroad car, and tugboat
businesses, and all public service businesses other than ones mentioned
above: One and eight-tenths of one percent;
(g) Water distribution business: Four and seven-tenths percent;
(h) Log transportation business: One and twenty-eight one-hundredths percent;
(i) Community residential service business: Four and seven-tenths
percent.
(2) An additional tax is imposed equal to the rate specified in RCW
82.02.030 multiplied by the tax payable under subsection (1) of this
section.
(3) Twenty percent of the moneys collected under subsection (1) of
this section on water distribution businesses and sixty percent of the
moneys collected under subsection (1) of this section on sewerage
collection businesses shall be deposited in the public works assistance
account created in RCW 43.155.050((: PROVIDED, That)). However,
during the fiscal year 2011, twenty percent of the moneys collected
under subsection (1) of this section on water distribution businesses
and sixty percent of the moneys collected under subsection (1) of this
section on sewerage collection businesses must be deposited in the
general fund for general purpose expenditures.
(4)(a) One hundred percent of the moneys collected under subsection
(1)(i) of this section must be deposited in the developmental
disabilities community residential investment account created in
section 5 of this act.
(b) The tax imposed under subsection (1)(i) of this section shall
be administered as provided in RCW 82.16.080.
(5) The tax imposed under subsection (1)(i) of this section is
subject to the contingency in section 10 of this act.
Sec. 4 RCW 82.16.020 and 2011 1st sp.s. c 48 s 7033 are each
amended to read as follows:
(1) There is levied and ((there shall be)) collected from every
person a tax for the act or privilege of engaging within this state in
any one or more of the businesses herein mentioned. The tax ((shall
be)) is equal to the gross income of the business, multiplied by the
rate set out after the business, as follows:
(a) Express, sewerage collection, and telegraph businesses: Three
and six-tenths percent;
(b) Light and power business: Three and sixty-two one-hundredths
percent;
(c) Gas distribution business: Three and six-tenths percent;
(d) Urban transportation business: Six-tenths of one percent;
(e) Vessels under sixty-five feet in length, except tugboats,
operating upon the waters within the state: Six-tenths of one percent;
(f) Motor transportation, railroad, railroad car, and tugboat
businesses, and all public service businesses other than ones mentioned
above: One and eight-tenths of one percent;
(g) Water distribution business: Four and seven-tenths percent;
(h) Community residential service business: Four and seven-tenths
percent.
(2) An additional tax is imposed equal to the rate specified in RCW
82.02.030 multiplied by the tax payable under subsection (1) of this
section.
(3) Twenty percent of the moneys collected under subsection (1) of
this section on water distribution businesses and sixty percent of the
moneys collected under subsection (1) of this section on sewerage
collection businesses shall be deposited in the public works assistance
account created in RCW 43.155.050((: PROVIDED, That)). However,
during the fiscal year 2011, twenty percent of the moneys collected
under subsection (1) of this section on water distribution businesses
and sixty percent of the moneys collected under subsection (1) of this
section on sewerage collection businesses must be deposited in the
general fund for general purpose expenditures.
(4)(a) One hundred percent of the moneys collected under subsection
(1)(h) of this section must be deposited in the developmental
disabilities community residential investment account created in
section 5 of this act.
(b) The tax imposed under subsection (1)(h) of this section shall
be administered as provided in RCW 82.16.080.
(5) The tax imposed under subsection (1)(h) of this section is
subject to the contingency in section 10 of this act.
NEW SECTION. Sec. 5 A new section is added to chapter 71A.12 RCW
to read as follows:
(1) The developmental disabilities community residential investment
account is created in the state treasury. Moneys in the account may be
spent only after appropriation. Expenditures from the account may only
be used for payments to community residential service businesses.
(2) Payment rates established by the department for community
residential service businesses must include the cost of all taxes
imposed on community residential service businesses under Title 82 RCW.
Sec. 6 RCW 35.21.710 and 2002 c 179 s 1 are each amended to read
as follows:
(1) Any city which imposes a license fee or tax upon business
activities consisting of the making of retail sales of tangible
personal property which are measured by gross receipts or gross income
from such sales, ((shall)) must impose such tax at a single uniform
rate upon all such business activities. The taxing authority granted
to cities for taxes upon business activities measured by gross receipts
or gross income from sales ((shall)) may not exceed a rate of .0020;
except that any city with an adopted ordinance at a higher rate, as of
January 1, 1982, ((shall be)) is limited to a maximum increase of ten
percent of the January 1982 rate, not to exceed an annual incremental
increase of two percent of current rate((: PROVIDED, That)). However,
any adopted ordinance which classifies according to different types of
business or services ((shall be)) is subject to both the ten percent
and the two percent annual incremental increase limitation on each tax
rate((: PROVIDED FURTHER, That)); and all surtaxes on business and
occupation classifications in effect as of January 1, 1982, ((shall))
must expire no later than December 31, 1982, or by expiration date
established by local ordinance. Cities ((which)) that impose a license
fee or tax upon business activities consisting of the making of retail
sales of tangible personal property, which are measured by gross
receipts or gross income from such sales ((shall be)), are required to
submit an annual report to the state auditor identifying the rate
established and the revenues received from each fee or tax. This
section ((shall)) does not apply to any business activities subject to
the tax imposed by chapter 82.16 RCW, except community residential
service businesses.
(2) For purposes of this section, the providing to consumers of
competitive telephone service, as defined in RCW 82.04.065, or the
providing of payphone service, ((shall be)) is subject to tax at the
same rate as business activities consisting of the making of retail
sales of tangible personal property.
(3) As used in this section, "payphone service" means making
telephone service available to the public on a fee-per-call basis,
independent of any other commercial transaction, for the purpose of
making telephone calls, when the telephone can only be activated by
inserting coins, calling collect, using a calling card or credit card,
or dialing a toll-free number, and the provider of the service owns or
leases the telephone equipment but does not own the telephone line
providing the service to that equipment and has no affiliation with the
owner of the telephone line.
NEW SECTION. Sec. 7 By June 30, 2016, the joint legislative
audit and review committee, in consultation with the department of
social and health services and the department of revenue, must conduct
a review of the taxes imposed by this act on community residential
service businesses. In this review, the committee must consult with a
broad range of interested stakeholders. The review must consider
issues including benefits of the tax, compliance with the tax, any
determinations by the centers for medicaid and medicare services
regarding the tax, administrative costs, other administrative issues,
and other issues deemed appropriate. The committee must report to the
legislature on its findings and any recommendations related to the
taxes imposed in this act and related services funded by these taxes by
December 1, 2016.
NEW SECTION. Sec. 8 Sections 2 and 4 of this act take effect
June 30, 2013.
NEW SECTION. Sec. 9 Sections 1 and 3 of this act expire the
earlier of June 30, 2013, or the date on which the contingency in
section 10 of this act occurs.
NEW SECTION. Sec. 10 (1) This act does not take effect or it
expires, as applicable, and the tax under section 3 or 4 of this act
ceases to be imposed if, and to the extent that, an appellate court or
the centers for medicare and medicaid services make a final
determination that any element of this act may not be validly
implemented, including that federal matching funds do not apply to the
tax imposed under section 3 or 4 of this act. If the contingency in
this section occurs, any moneys remaining in the fund created in
section 5 of this act must be refunded to taxpayers in proportion to
the amounts paid by such taxpayers.
(2) If the contingency in subsection (1) of this section occurs,
the department of social and health services must provide written
notice to the department of revenue, affected parties, the chief clerk
of the house of representatives, the secretary of the senate, the
office of the code reviser, the office of financial management, and
others as deemed appropriate by the department of social and health
services of the date on which the contingency occurred.
NEW SECTION. Sec. 11 Except for sections 2 and 4 of this act,
this act is necessary for the immediate preservation of the public
peace, health, or safety, or support of the state government and its
existing public institutions, and takes effect immediately.