SENATE BILL REPORT

HB 200

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

Senate Hearing Date(s):March 23, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Cantu, Craswell, Deccio, Kreidler, McDonald, Moore, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Stephen Rose (786-7443)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 23, 1987

BACKGROUND:

Engrossed Substitute Senate Bill No. 4228 (Chapter 471, Laws of 1985) made sewerage collection businesses subject to the public utility tax.  The Department of Revenue originally defined sewerage collection to include treatment and disposal.  In the summer of 1986, the Joint Administrative Rules Review Committee found that this interpretation did not reflect legislative intent.  The Department changed its ruling to exclude treatment and disposal.

SUMMARY:

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

Fiscal Note:      available

Senate Committee - Testified: No one