S-0746.1 _______________________________________________
SENATE BILL 5258
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State of Washington 53rd Legislature 1993 Regular Session
By Senators Sutherland and McCaslin
Read first time 01/20/93. Referred to Committee on Ways & Means.
AN ACT Relating to local utility taxes, fees, and charges; and amending RCW 35.21.860, 35.21.865, and 35.21.870.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 35.21.860 and 1983 2nd ex.s. c 3 s 39 are each amended to read as follows:
(1) No city or town may impose a franchise fee or any other fee or charge of whatever nature or description upon the water distribution, light and power, or gas distribution businesses, as defined in RCW 82.16.010, sewerage collection business subject to the tax imposed in RCW 82.16.020, or telephone business, as defined in RCW 82.04.065, except that (a) a tax authorized by RCW 35.21.865 may be imposed and (b) a fee may be charged to such businesses that recovers actual administrative expenses incurred by a city or town that are directly related to receiving and approving a permit, license, and franchise, to inspecting plans and construction, or to the preparation of a detailed statement pursuant to chapter 43.21C RCW.
(2)(a) Subsection (1) of this section does not prohibit franchise fees imposed on an electrical energy, natural gas, or telephone business, by contract existing on April 20, 1982, with a city or town, for the duration of the contract, but the franchise fees shall be considered taxes for the purposes of the limitations established in RCW 35.21.865 and 35.21.870 to the extent the fees exceed the costs allowable under subsection (1) of this section.
(b) Subsection (1) of this section does not prohibit franchise fees imposed on a water distribution or sewerage collection business, by contract existing on the effective date of this act with a city or town, for the duration of the contract, but the franchise fees shall be considered taxes for the purposes of the limitations established in RCW 35.21.865 and 35.21.870 to the extent the fees exceed the costs allowable under subsection (1) of this section.
Sec. 2. RCW 35.21.865 and 1983 c 99 s 4 are each amended to read as follows:
No city or town may change the rate of tax it
imposes on the privilege of conducting ((an)) a water distribution,
electrical energy, natural gas, sewerage collection, or telephone
business which change applies to business activities occurring before the
effective date of the change, and no rate change may take effect before the
expiration of sixty days following the enactment of the ordinance establishing
the change except as provided in RCW 35.21.870.
Sec. 3. RCW 35.21.870 and 1984 c 225 s 6 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.
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.
(3) No city or town may impose a tax on the privilege of conducting a water distribution or sewerage collection business at a rate which exceeds six percent. If a city or town is imposing a rate of tax under this subsection in excess of six percent on the effective date of this act, 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 the effective date of this act and six percent, or by one percent, whichever is greater.
Nothing in this subsection prohibits a city or town from reducing its rates by amounts greater than the amounts required in this subsection.
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