SENATE BILL REPORT

ESSB 5294

BYSenate Committee on Ways & Means (originally sponsored by Senators Newhouse, Moore, Warnke, Hayner, Saling, Owen, Sellar, Stratton, Amondson, Bauer, Matson, Benitz, Smitherman, Smith, Craswell, Nelson, Madsen, Conner, Hansen, Patterson, Bluechel, Johnson, Vognild, von Reichbauer and Lee)

Modifying the business and occupation tax on low-level waste.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 27, 1989; March 6, 1989

Majority Report:  That Substitute Senate Bill No. 5294 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bluechel, Cantu, Hayner, Johnson, Lee, Matson, Newhouse, Owen, Saling, Smith, Williams.

Senate Staff:William Bafus (786-7437)

                  March 14, 1989

AS PASSED SENATE, MARCH 13, 1989

BACKGROUND:

Under current law, persons engaging in the business of disposing of low level nuclear waste are assessed a business and occupation tax at a rate of 30 percent of the gross proceeds from such activity.  An additional 10 percent surcharge brings the total tax rate applicable to such activity to 33 percent.

SUMMARY:

The business and occupation tax rate applicable to disposal of low-level radioactive wastes is modified as follows:

      1.The basic rate shall be 30 percent whenever the volume of waste exceeds 500,000 cubic feet per year, or whenever the volume of waste is less than or equal to 300,000 feet per year prior to December 31, 1992.

      2.The basic rate shall be 20 percent in 1989 when the volume of waste is equal to or less than 500,000 cubic feet or is greater than 300,000 cubic feet.

      3.The basic rate shall be 10 percent in 1990 and 1991 when the volume of waste is equal to or less than 500,000 cubic feet or is greater than 300,000 cubic feet.

      4.The basic rate shall be 5 percent in 1992 when the volume of waste is equal to or less than 500,000 cubic feet or is greater than 300,000 cubic feet.

      5.The basic rate shall be 5 percent in 1993 and thereafter when the volume of waste is equal to or less than 500,000 cubic feet.

The 10 percent surcharge applies to all rates.  If the volume of waste is less than or equal to 300,000 cubic feet before 1993 because of explicit state regulatory or statutory action, the basic rates in 2 through 4, above, apply.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Jon Scoville, US Ecology (for); Barry Bede, US Ecology (for); Cliff Ellenwood, Department of Revenue; Joanne Buehler, US Ecology (for)