CERTIFICATION OF ENROLLMENT
SENATE BILL 5166
Chapter 317, Laws of 2023
68TH LEGISLATURE
2023 REGULAR SESSION
COOPERATIVE FINANCE ORGANIZATIONS—LOANS TO UTILITIES—BUSINESS AND OCCUPATION TAX DEDUCTION—REAUTHORIZATION
EFFECTIVE DATE: July 1, 2023
Passed by the Senate February 27, 2023
  Yeas 47  Nays 0
DENNY HECK

President of the Senate
Passed by the House April 17, 2023
  Yeas 96  Nays 0
LAURIE JINKINS

Speaker of the House of Representatives
CERTIFICATE
I, Sarah Bannister, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5166 as passed by the Senate and the House of Representatives on the dates hereon set forth.
SARAH BANNISTER

Secretary
Secretary
Approved May 4, 2023 3:55 PM
FILED
May 5, 2023
JAY INSLEE

Governor of the State of Washington
Secretary of State
State of Washington

SENATE BILL 5166

Passed Legislature - 2023 Regular Session
State of Washington
68th Legislature
2023 Regular Session
BySenators Boehnke, Mullet, Conway, Short, and Warnick
Prefiled 01/05/23.Read first time 01/09/23.Referred to Committee on Environment, Energy & Technology.
AN ACT Relating to reauthorizing the business and occupation tax deduction for cooperative finance organizations; adding a new section to chapter 82.04 RCW; creating a new section; providing an effective date; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION.  Sec. 1. (1) This section is the tax preference performance statement for the tax preference contained in section 2, chapter . . ., Laws of 2023 (section 2 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).
(3) It is the legislature's specific public policy objective to reduce the tax burden on individuals and businesses imposed by the existing business and occupation tax rates.
(4) If the review finds that at least one cooperative finance organization in this state used the deduction, then the legislature intends to extend the expiration date of this tax deduction.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state.
NEW SECTION.  Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:
(1) In computing tax there may be deducted from the measure of tax, amounts received by a cooperative finance organization where the amounts are derived from loans to rural electric cooperatives or other nonprofit or governmental providers of utility services organized under the laws of this state.
(2) For the purposes of this section, the following definitions apply:
(a) "Cooperative finance organization" means a nonprofit organization with the primary purpose of providing, securing, or otherwise arranging financing for rural electric cooperatives.
(b) "Rural electric cooperative" means a nonprofit, customer-owned organization that provides utility services to rural areas.
(3) This section expires January 1, 2034.
NEW SECTION.  Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2023.
Passed by the Senate February 27, 2023.
Passed by the House April 17, 2023.
Approved by the Governor May 4, 2023.
Filed in Office of Secretary of State May 5, 2023.
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