Public utility tax, counties

AN ACT Relating to authorizing counties to impose a public 1
utility tax; and adding a new chapter to Title 36 RCW.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. (1) Subject to the conditions and 4
requirements of this section, the legislative authority of any county 5
may impose an excise tax on the privilege of engaging in business as 6
a utility. The tax is equal to the gross income of the utility 7
derived from providing service to consumers within the county 8
multiplied by the rate imposed by the legislative authority.9
(2) A county may not impose a rate of tax that exceeds three 10
percent. 11
(3) A utility subject to tax under this section must add the tax 12
to the rates or charges it makes for utility services and separately 13
state the amount of tax on billings. 14
(4) A county may initially impose the tax authorized under this 15
section only on the first day of a calendar quarter and no sooner 16
than 75 days from the date the county adopts the ordinance or 17
resolution imposing the tax. 18
(5) A county may provide exemptions for sales by utilities to 19
business customers, such as manufacturing facilities, aircraft repair 20
facilities, industrial parks, industrial facilities, farm businesses, 21
H-0877.1
HOUSE BILL 1702
State of Washington 69th Legislature 2025 Regular Session
By Representatives Wylie, Fitzgibbon, and Pollet
Read first time 01/29/25. Referred to Committee on Finance.
p. 1 HB 1702
and computer data centers. A county may not provide a general 1
exemption for sales by utilities to residential customers unless 2
business customers are also exempt. 3
(6) A county must allow a credit against the tax imposed under 4
the authority of this section for the amount of any similar utility 5
tax imposed by a city or town on the same taxable event. The credit 6
required by this subsection may not exceed the amount of tax 7
otherwise due. 8
NEW SECTION. Sec. 2. The definitions in this section apply 9
throughout this chapter unless the context clearly requires 10
otherwise.11
(1) "Cable service utility" means a person providing cable 12
service as defined in the federal telecommunications act of 1996.13
(2) "Electrical power utility" means a light and power business 14
as defined in RCW 82.16.010. 15
(3) "Gas utility" means a gas distribution business as defined in 16
RCW 82.16.010. 17
(4) "Gross income" has the same meaning as provided in RCW 18
82.16.010. 19
(5) "Sewer utility" means a sewerage collection business as that 20
term is used in chapter 82.16 RCW. 21
(6) "Solid waste utility" means a solid waste collection business 22
as defined in RCW 82.18.010. 23
(7) "Telephone utility" means a person providing 24
telecommunications service as defined in RCW 82.04.065.25
(8) "Utility" means an electrical power utility, gas utility, 26
telephone utility, water utility, sewer utility, solid waste utility, 27
or cable service utility. 28
(9) "Water utility" means a water distribution business as 29
defined in RCW 82.16.010. 30
NEW SECTION. Sec. 3. Sections 1 and 2 of this act constitute a 31
new chapter in Title 36 RCW.32
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p. 2 HB 1702