SENATE BILL REPORT

ESSB 6342

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

Senate Hearing Date(s):January 22, 1988; January 26, 1988

Majority Report:  That Substitute Senate Bill No. 6342 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Madsen, Newhouse, Owen, Pullen, Williams.

Senate Staff:Phil Moeller (786-7455)

                  March 4, 1988

AS PASSED SENATE, FEBRUARY 13, 1988

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 rate base charged to all customers, including those residing outside of municipal boundaries.

SUMMARY:

All billing statements by light and power businesses and gas distribution businesses must indicate direct taxes paid by the customer, as well as the rate, origin, and approximate amount of taxes levied upon the revenues of the light and power business or gas distribution business and added as a component of the amount charged to a customer.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Ron Newbry, Pacific Power; Steve Mullin, Washington PUDs

HOUSE AMENDMENT:

It is clarified that the following taxes and fees based on revenue do not need to be listed on billing statements of light and power and gas distribution businesses with at least 20,000 customers (changed from 5,000 customers):  federal taxes, privilege taxes, fees for the public service revolving fund, and business and occupation taxes.