BILL REQ. #:  H-5055.1 

Read first time 02/05/08.   Referred to Committee on Finance.

     AN ACT Relating to excise tax parity for voice over internet protocol services; amending RCW 82.14.020; reenacting and amending RCW 82.14B.030; adding a new section to chapter 82.32 RCW; and providing an effective date.

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

Sec. 1   RCW 82.14.020 and 2007 c 6 s 502 are each amended to read as follows:
     For purposes of this chapter:
     (1) "City" means a city or town;
     (2) The meaning ascribed to words and phrases in chapters 82.04, 82.08 and 82.12 RCW, as now or hereafter amended, insofar as applicable, shall have full force and effect with respect to taxes imposed under authority of this chapter;
     (3) "Taxable event" shall mean any retail sale, or any use, upon which a state tax is imposed pursuant to chapter 82.08 or 82.12 RCW, as they now exist or may hereafter be amended: PROVIDED, HOWEVER, That the term shall not include a retail sale taxable pursuant to RCW 82.08.150, as now or hereafter amended;
     (4) "Treasurer or other legal depository" shall mean the treasurer or legal depository of a county or city.
     (5) "Voice over internet protocol service provider" means a provider of telephone services that offers access to the public switched telephone network for a fee using broadband internet access.

Sec. 2   RCW 82.14B.030 and 2007 c 54 s 17 and 2007 c 6 s 1024 are each reenacted and amended to read as follows:
     (1) The legislative authority of a county may impose a county enhanced 911 excise tax on the use of switched access lines in an amount not exceeding fifty cents per month for each switched access line. The amount of tax shall be uniform for each switched access line. Each county shall provide notice of such tax to all local exchange companies serving in the county at least sixty days in advance of the date on which the first payment is due.
     (2) The legislative authority of a county may also impose a county enhanced 911 excise tax on the use of radio access lines whose place of primary use is located within the county in an amount not exceeding fifty cents per month for each radio access line. The amount of tax shall be uniform for each radio access line. The county shall provide notice of such tax to all radio communications service companies serving in the county at least sixty days in advance of the date on which the first payment is due. Any county imposing this tax shall include in its ordinance a refund mechanism whereby the amount of any tax ordered to be refunded by the judgment of a court of record, or as a result of the resolution of any appeal therefrom, shall be refunded to the radio communications service company or local exchange company that collected the tax, and those companies shall reimburse the subscribers who paid the tax. The ordinance shall further provide that to the extent the subscribers who paid the tax cannot be identified or located, the tax paid by those subscribers shall be returned to the county.
     (3) The legislative authority of a county may impose a county enhanced 911 excise tax in an amount not exceeding fifty cents per month for each voice over internet protocol telephone subscriber. The amount of tax shall be uniform for each voice over internet protocol subscriber. Each county shall provide notice of such tax to all voice over internet protocol service providers serving the county at least sixty days in advance of the date on which the first payment is due.
     (4) A state enhanced 911 excise tax is imposed on all switched access lines in the state. The amount of tax shall not exceed twenty cents per month for each switched access line. The tax shall be uniform for each switched access line. The tax imposed under this subsection shall be remitted to the department of revenue by local exchange companies on a tax return provided by the department. Tax proceeds shall be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540.
     (((4))) (5) As of January 1, 2009, a state enhanced 911 excise tax is imposed for each voice over internet protocol telephone subscriber. The amount of tax shall be uniform for each voice over internet protocol subscriber. The state shall provide notice of such tax to all voice over internet protocol service providers serving the state at least sixty days in advance of the date on which the first payment is due.
     (6) A state enhanced 911 excise tax is imposed on all radio access lines whose place of primary use is located within the state in an amount of twenty cents per month for each radio access line. The tax shall be uniform for each radio access line. The tax imposed under this section shall be remitted to the department of revenue by radio communications service companies, including those companies that resell radio access lines, on a tax return provided by the department. Tax proceeds shall be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540. The tax imposed under this section is not subject to the state sales and use tax or any local tax.
     (((5))) (7) By August 31st of each year the state enhanced 911 coordinator shall recommend the level for the next year of the state enhanced 911 excise tax imposed by subsection (((3))) (4) of this section, based on a systematic cost and revenue analysis, to the utilities and transportation commission. The commission shall by the following October 31st determine the level of the state enhanced 911 excise tax for the following year.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.32 RCW to read as follows:
     The department must study an appropriate funding mechanism for the implementation of costs associated with next generation 911. The department must submit a report to the finance committee of the house of representatives and the ways and means committee of the senate by December 1, 2008.

NEW SECTION.  Sec. 4   This act takes effect July 1, 2008.