H-876                _______________________________________________

                                                   HOUSE BILL NO. 1519

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Wang and R. Fisher

Read first time 1/27/89 and referred to Committee on Revenue.

AN ACT Relating to telephone business activities; and amending RCW 35.21.714 and 35.21.715.

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

        Sec. 1.  Section 10, chapter 144, Laws of 1981 as last amended by section 1, chapter 70, Laws of 1986 and RCW 35.21.714 are each amended to read as follows:

          Any city which imposes a license fee or tax upon the business activity of engaging in the telephone business, as defined in RCW 82.04.065, which is measured by gross receipts or gross income may impose the fee or tax, if it desires, on one hundred percent of the total gross revenue derived from intrastate and interstate toll telephone services subject to the fee or tax:  PROVIDED, That the city shall not impose the fee or tax on that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate and interstate toll telephone services, or for access to, or charges for, interstate services.

        Sec. 2.  Section 2, chapter 70, Laws of 1986 and RCW 35.21.715 are each amended to read as follows:

          Notwithstanding RCW 35.21.714 or 35A.82.060, any city or town which imposes a tax upon business activities measured by gross receipts or gross income from sales, may impose such tax on that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate and interstate toll services.  Such tax shall be levied at the same rate as is applicable to other competitive telephone service as defined in RCW 82.04.065.