H-4557              _______________________________________________

                                                   HOUSE BILL NO. 1881

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representative Appelwick

Read first time 1/29/88 and referred to Committee on Ways & Means.

AN ACT Relating to excise taxation of electrical energy; amending RCW 54.28.010; adding a new section to chapter 82.04 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 7, chapter 278, Laws of 1957 as last amended by section 1, chapter 366, Laws of 1977 ex. sess. and RCW 54.28.010 are each amended to read as follows:

          As used in this chapter:

          (1) "Operating property" means all of the property utilized by a public utility district in the operation of a plant or system for the generation, transmission, or distribution of electric energy for sale;

          (2) "Taxing districts" means counties, cities, towns, school districts, and road districts;

          (3) "Distributes to consumers" means the sale of electric energy to ultimate consumers thereof, and does not include sales of electric energy for resale by the purchaser:  PROVIDED, That a purchaser not subject to taxation under chapter 82.16 RCW acquiring electric energy for resale shall be considered an ultimate consumer;

          (4) "Wholesale value" means all costs of a public utility district associated with the generation and transmission of energy from its own generation and transmission system to the point or points of inter-connection with a distribution system owned and used by a district to distribute such energy to consumers, or in the event a distribution system owned by a district is not used to distribute such energy, then the term means the gross revenues derived by a district from the sale of such energy to consumers;

          (5) "Thermal electric generating facility" means a steam-powered electrical energy producing facility utilizing nuclear or fossil fuels;

          (6) "Placed in operation" means delivery of energy into a transmission or distribution system for use or sale in such a manner as to establish a value accruing to the power plant operator, except operation incidental to testing or startup adjustments;

          (7) "Impacted area" for a thermal electric generating facility on a federal reservation means that area in the state lying within thirty-five statute miles of the most commonly used entrance of the federal reservation and which is south of the southern boundary of township fifteen north.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

          This chapter does not apply to any person in respect to the business of selling electric energy, if tax has been paid under chapter 54.28 RCW in respect to that electric energy.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.