H-3704              _______________________________________________

                                                   HOUSE BILL NO. 2710

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Appelwick, Silver and Horn

Read first time 1/19/90 and referred to Committee on Revenue.

AN ACT Relating to radio communications service companies; amending RCW 82.04.065; adding a new section to chapter 35.21 RCW; and adding a new section to chapter 35A.82 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 35.21 RCW to read as follows:

          (1) For purposes of RCW 35.21.710, the department of revenue shall promulgate, under chapter 34.05 RCW, rules establishing uniform methods of ascertaining the taxability of and division of gross receipts or income of the business of radio communications service companies, as defined in RCW 80.04.010, which are taxable under RCW 35.21.710, between those cities, towns, and unincorporated areas in which such radio communications service companies engage in business.

          (2) No city may tax a radio communications service company in a fashion or pursuant to principles or procedures inconsistent with the rules promulgated by the department of revenue under this section.

NEW SECTION. Sec. 2.  A new section is added to chapter 35A.82 RCW to read as follows:

          (1) For purposes of RCW 35A.82.050, the department of revenue shall promulgate, under chapter 34.05 RCW, rules establishing uniform methods of ascertaining the taxability of and division of gross receipts or income of the business of radio communications service companies, as defined in RCW 80.04.010, which are taxable under RCW 35A.82.050, between those cities, towns and unincorporated areas in which such radio communications service companies engage in business.

          (2) No code city may tax a radio communications service company in a fashion or pursuant to principles or procedures inconsistent with the rules promulgated by the department of revenue under this section.

        Sec. 3.  Section 24, chapter 3, Laws of 1983 2nd ex. sess. andRCW 82.04.065 are each amended to read as follows:

          (1) "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as ((telephone)) telecommunications companies under Title 80 RCW, and the providing of any telephone service by radio communications service companies, as defined in RCW 80.04.010, and for which a separate charge is made.

          (2) "Network telephone service" means the providing by any person of access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system.  "Network telephone service" includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state.  "Network telephone service" does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio or television stations.

          (3) "Telephone service" means competitive telephone service or network telephone service, or both, as defined in subsections (1) and (2) of this section.

          (4) "Telephone business" means the business of providing network telephone service, as defined in subsection (2) of this section.  It includes cooperative or farmer line telephone companies or associations operating an exchange.