SENATE BILL REPORT

SB 6342

BYSenators Lee and Talmadge

Requiring tax breakdown in customer billings by light and power businesses.

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)

                  January 26, 1988

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, JANUARY 26, 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 must indicate direct taxes paid by the customer, as well as the rate and origin of taxes figured into the rate base.

EFFECT OF PROPOSED SUBSTITUTE:

The bill is extended to cover gas distribution businesses.  Billing statements must include the origin, rate and amount of direct taxes as well as the origin, rate and approximate amount of indirect taxes.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

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