Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Local Government Committee

HB 2889

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Concerning utility tax disclosures.

Sponsors: Representative Griffey.

Brief Summary of Bill

Requires that any city or town that operates its own water, sewer or wastewater, or stormwater utility and imposes a tax or fee on the operation of that utility must disclose the tax or fee on the billing statements it provides to its customers.

Hearing Date: 2/4/20

Staff: Kellen Wright (786-7134).

Background:

Cities and towns may operate municipal utilities, including utilities providing water, sewage, and stormwater services.

Cities and towns may impose license or excise taxes on business activities, including the provision of services by utilities. These taxes may be imposed by a city or town on the operation of its own utility.

Summary of Bill:

Any city or town that operates its own water, sewer or wastewater, or stormwater utility and imposes a tax or fee on the gross revenue of the utility must disclose the tax or fee on each billing statement provided to its utility customers.

Appropriation: None.

Fiscal Note: Requested on January 30, 2020.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.