S-1388.2  _______________________________________________

                         SENATE BILL 5913

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senator Fraser

Read first time 02/07/2001.  Referred to Committee on Environment, Energy & Water.

Allowing public utility tax deductions for improvements that result in more efficient use of water.

    AN ACT Relating to a public utility tax deduction for expenditures that implement conservation elements of approved water system plans; adding a new section to chapter 82.16 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.16 RCW to read as follows:

    (1) In computing tax under this chapter, there shall be deducted from the gross income those amounts expended to improve consumers' efficiency of water use or to otherwise reduce the use of water by the consumer when the expenditures are implementing elements of the conservation plan within a state approved water system plan.

    (2) This chapter does not apply to amounts received for water services supplied by an entity that holds a permit under RCW 90.46.030 when the water supplied is reclaimed water as defined in RCW 90.46.010.

NEW SECTION. Sec. 2.  The office of financial management, in consultation with the departments of revenue, health, and ecology, must evaluate the long-term revenue impacts of the deductions and exclusions authorized by section 1 of this act, and report its findings by October 1, 2001, to the legislature's standing committees with jurisdiction over water resources and the legislative fiscal committees.

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