H-863                _______________________________________________

                                                   HOUSE BILL NO. 1421

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Smith, Chandler, Baugher, Rayburn and Ballard

Read first time 1/25/89 and referred to Committee on Revenue.

AN ACT Relating to exemptions from utility taxes for businesses engaged in the provision of domestic water; and amending RCW 82.16.040.

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

        Sec. 1.  Section 82.16.040, chapter 15, Laws of 1961 and RCW 82.16.040 are each amended to read as follows:

(1) The provisions of this chapter shall not apply to persons engaging in one or more businesses taxable under this chapter whose total gross income is less than five hundred dollars for a monthly period or portion thereof.  Any person claiming exemption under this subsection may be required to file returns even though no tax may be due.  If the total gross income for a taxable monthly period is five hundred dollars, or more, no exemption or deductions from the gross operating revenue is allowed by this provision.

(2) The provisions of chapter 82.16 RCW shall not apply to persons engaging in one or more businesses supplying potable water that are taxable under chapter 82.16 RCW whose total gross income is less than three thousand dollars for a monthly period or portion thereof.  Any person claiming exemption under this subsection may be required to file returns even though no tax may be due.  If the total gross income for a taxable monthly period is three thousand dollars, or more, no exemption or deductions from the gross operating revenue is allowed by this subsection.