H-1357              _______________________________________________

                                                    HOUSE BILL NO. 951

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Dellwo, Bristow and Taylor

Read first time 2/16/87 and referred to Committee on Local Government.

AN ACT Relating to local government; amending RCW 35.21.870; and declaring an emergency.

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

        Sec. 1.  Section 4, chapter 49, Laws of 1982 1st ex. sess. as last amended by section 6, chapter 225, Laws of 1984 and RCW 35.21.870 are each amended to read as follows:

          (1) No city or town may impose a tax on the privilege of conducting an electrical energy, natural gas, steam energy, or telephone business at a rate which exceeds six percent unless the rate is first approved by a majority of the voters of the city or town voting on such a proposition.

          (2) If a city or town is imposing a rate of tax under subsection (1) of this section in excess of six percent on April 20, 1982, the city or town shall decrease the rate to a rate of six percent or less by reducing the rate each year on or before November 1st by ordinances to be effective on January 1st of the succeeding year, by an amount equal to one-tenth the difference between the tax rate on April 20, 1982, and six percent:  PROVIDED, That where a city or town does not otherwise impose a local business and occupation tax upon the taxpayer's privilege of engaging in business activities in the city or town, the requirement of tax reductions in this subsection shall not apply, and any tax reduction or franchise fee reduction or elimination action taken by the city of town in fulfillment of the requirements in this subsection after April 20, 1982, and before the effective date of this 1987 section, may be rescinded by the city or town.

          Nothing in this subsection prohibits a city or town from reducing its rates by amounts greater than the amounts required in this subsection.

          Voter approved rate increases under subsection (1) of this section shall not be included in the computations under this subsection.

NEW SECTION. Sec. 2.     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.