AN
ACT Relating to tax exemptions for small water districts and systems; adding a
new section to chapter 82.04 RCW; adding a new section to chapter 82.16 RCW;
creating a new section; and providing expiration dates.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that encouraging water districts to better manage state water
resources and encouraging satellite management of failing water systems is in
the best interests of the people of Washington state. Continual updates of
water quantity and quality, as mandated by federal and state agencies, have
revealed that degradation of water quality exists in small water systems
throughout the state and that satellite management and consolidation of small
systems under a centralized management structure can best utilize existing
resources available to assure safe, clean drinking water. The legislature
further finds that costs involved in upgrading these small systems can be extremely
burdensome to water customers and public water purveyors. With diminishing
resources available to these small systems, the legislature finds that granting
business and occupation and excise tax relief, under certain conditions, will
assist smaller water districts to meet state and federal standards.
NEW
SECTION. Sec. 2. A
new section is added to chapter 82.04 RCW to read as follows:
(1)
This chapter does not apply to amounts received for water services supplied by
a water-sewer district established under Title 57 RCW that has been certified
by the department of health as:
(a)
Having less than one thousand five hundred connections; and
(b)
Charging residential water rates that exceed one hundred twenty-five percent of
the state-wide average water rate.
(2)
This chapter does not apply to amounts received for water services supplied by
a water system that has been certified by the department of health as:
(a)
Being operated or owned by a qualified satellite management agency under RCW
70.116.134;
(b)
Having less than two hundred connections; and
(c)
Charging residential water rates that exceed one hundred twenty-five percent of
the state-wide average water rate.
(3)
To receive an exemption under this section, the water system shall supply to
the department of health proof that an amount equal to at least 90 percent of
the value of the exemption shall be expended to repair, equip, maintain, and
upgrade the water system.
(4)
The department of health shall certify to the department of revenue the
eligibility of water districts and water systems under this section. In order
to determine eligibility, the department of health may use rate information
provided in surveys and reports produced by the association of Washington cities,
an association of elected officials, or other municipal association to estimate
a state-wide average residential water rate. The department of health shall
update the estimated state-wide average residential water rate by July 1 of
each year that this section remains in effect.
(5)
This section expires July 1, 2003.
NEW
SECTION. Sec. 3. A
new section is added to chapter 82.16 RCW to read as follows:
(1)
This chapter does not apply to amounts received for water services supplied by
a water-sewer district established under Title 57 RCW that has been certified
by the department of health as:
(a)
Having less than one thousand five hundred connections; and
(b)
Charging residential water rates that exceed one hundred twenty-five percent of
the state-wide average water rate.
(2)
This chapter does not apply to amounts received for water services supplied by
a water system that has been certified by the department of health as:
(a)
Being operated or owned by a qualified satellite management agency under RCW
70.116.134;
(b)
Having less than two hundred connections; and
(c)
Charging residential water rates that exceed one hundred twenty-five percent of
the state-wide average water rate.
(3)
To receive an exemption under this section, the water system shall supply to
the department of health proof that an amount equal to at least 90 percent of
the value of the exemption shall be expended to repair, equip, maintain, and
upgrade the water system.
(4)
The department of health shall certify to the department of revenue the
eligibility of water districts and water systems under this section. In order
to determine eligibility, the department of health may use rate information
provided in surveys and reports produced by the association of Washington
cities, an association of elected officials, or other municipal association to
estimate a state-wide average residential water rate. The department of health
shall update the estimated state-wide average residential water rate by July 1
of each year that this section remains in effect.
(5)
This section expires July 1, 2003.
