FINAL BILL REPORT

SSB 6342

                                  C 228 L 88

BYSenate Committee on Energy & Utilities (originally sponsored by Senators Lee and Talmadge)

Requiring breakdown of taxes paid in utility bills.

Senate Committee on Energy & Utilities

House Committe on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

Some utility billing statements clearly state direct taxes paid by the customer.  In the case of light and power businesses, certain taxes are levied against the income of the business and not on specific transactions.  For example, the public utility tax is calculated as part of the base rate and not charged directly to the customer.

Concern has been raised that the base rate for some utility customers may include taxes levied by a taxing district which does not include these customers.  One example could occur when municipal taxes are included as part of a base rate charged to all customers, including those residing outside of municipal boundaries.

SUMMARY:

Billing statements issued by light and power businesses and gas distribution businesses serving at least 20,000 customers must indicate the rate and amount of direct taxes paid by the customer.  The billing statement also shall list the rate, origin, and approximate amount of each tax levied upon the revenue of the light and power business or gas distribution business and added as a component of the amount charged to the customer.  The following taxes based upon revenue do not need to be listed:  federal, privilege, fees for the public service revolving fund, and business and occupation.

VOTES ON FINAL PASSAGE:

      Senate    48     0

      House 97   0 (House amended)

      Senate    48     0 (Senate concurred)

EFFECTIVE:January 1, 1989