SENATE BILL REPORT

HB 1613

BYRepresentatives Prince, Chandler, Smith, Nealey and Fuhrman

Revising provisions relating to the privilege tax imposed on public utility districts.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 22, 1988

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7405)

AS OF FEBRUARY 19, 1988

BACKGROUND:

The state imposes excise taxes on the generation and distribution of electrical energy by public utility districts (PUD's).

One tax is imposed on all PUD electrical generation and distribution facilities except for the PUD thermal facility at Hanford.  The receipts from this tax are distributed to the state general fund for the benefit of public schools, and to the county or counties in which the facility is located. 

The state imposes another excise tax on the operation of a thermal generating facility at Hanford at a rate lower than the other PUD tax.  The receipts from this special tax are distributed as follows: (1) fifty percent to the state general fund for the support of schools; (2) twenty two percent to certain counties; (3) twenty three percent to certain cities; (4) three percent to certain fire districts; and (5) two percent to certain library districts.  The local governments that receive these distributions are those located within thirty five miles of the main entrance to Hanford and which are located south of the boundary of township fifteen north.  This excludes Adams County and the local governments located in Adams County.

SUMMARY:

The formula for distributing the special state tax on PUD thermal energy generation at Hanford is altered to remove a requirement that the recipient local governments must be located south of the boundary of township fifteen north.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested