FINAL BILL REPORT

HB 200

                                  C 207 L 87

BYRepresentative Madsen; by request of Department of Revenue

Clarifying the public utility tax on sewerage collection businesses.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

In 1985, sewerage collection businesses were made subject to the public utility tax.  The Department of Revenue in its implementing regulations defined sewerage collection to include collection, treatment and disposal.  In 1986, the Joint Administrative Rules Review Committee found that this interpretation did not reflect legislative intent and should not include treatment and disposal.  Subsequently, the department changed its ruling to exclude treatment and disposal, and indicated that the law should be clarified to reflect legislative intent.

SUMMARY:

The costs of treatment and disposal of sewerage is not included in the base upon which the public utility tax liability is calculated.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    47     0

EFFECTIVE:July 26, 1987