SENATE BILL REPORT

SB 5240

BYSenators McDermott and Gaspard; by request of Department of Revenue

Clarifying the business and occupation taxation of mini-storage warehouse and refuse collection businesses.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 27, 1987

Senate Staff:Stephen Rose (786-7443)

AS OF JANUARY 26, 1987

BACKGROUND:

In Shurgard Mini-Storage v. State of Washington, the Thurston County Court ruled that the public utility tax on self-storage and mini-storage facilities was a tax on rental income and thus resembled a property tax, violating our Constitution's uniformity requirement.

Chapter 226, Laws of 1986, removed warehouse and refuse collection businesses from the public utility tax.

SUMMARY:

Mini-storage facilities and refuse collection businesses are expressly included as being subject to the business and occupation tax as other service and business activities at the rate of 1-1/2 percent.

Fiscal Note:      available