GO2-81-125, Forwards Revised Code Re Privilege Taxes & Taxation of Energy Generating Facilities During Const & Operation, in Response to Anl Request

Forwards Revised Code Re Privilege Taxes & Taxation of Energy Generating Facilities During Const & Operation, in Response to Anl Request

ML17275B057
Person / Time
Site:	Columbia
Issue date:	06/02/1981
From:	Bouchey G WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Schwencer A Office of Nuclear Reactor Regulation
Shared Package
ML17275B058	List: GO2-81-125, Forwards Revised Code Re Privilege Taxes & Taxation of Energy Generating Facilities During Const & Operation, in Response to Anl Request ML17275B059
References
GO2-81-125, NS-L-GCS-81-149, NUDOCS 8106080189
Download: ML17275B057 (10)

Text

REGULATORY~AFORMATION DISTRIBUTION S~EM (RIDS)

ACCESSION'BR:8106080189 DOCtDATE; 81/06/02-NOTARIZED: NO, DOCKET FACIL~J50'97 WPPSS Nuclear Pro,tectE. Unit 2E Washington= Publ-ic Powe 05000397 AUTH'AMEl AUTHOR AFFILIATION, BOUGH(YEGG'ash,ington= Public Power>> SUpply System RECIP NAME>>

RECIPIENT AFFILIATION".

SCHWENCER-EA ~

L.icensing Branch 2

SUBJECT:

Fot waI ds revised code. r e pr ivi lese taxes-

& "Taxation of Enengy Generating Faci1.ities Dur ing Const

& Operationi" in r esponse! to "ANL: reque'st; DISTRIBUTION CODE:

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Washington Public Power Supply System A JOINT OPERATING AGENCY P.o. Box 968 3000 GEQ. wAsHINGTQNwAY RIGHLAND,wAsHINGToN 99352 PHDNE I509) 372.5000 June 2, 1981 NS-L-GCS-81-149 G02-81-125 Docket No. 50-397 Director, Division of Licensing U.S. Nuclear Regulatory Commission Washington, D.C.

20555 Attention:

Mr. A. Schwencer, Chief Licensing Branch No.

2

Subject:

TRANSMITTAL OF RE VESTED INFORMATION At the request of Mr. R. Sundell of Argonne National Laboratory, we have enclosed one copy each of the following:

1.

Revised Code of Washington Chapter 54.28, "Privilege Taxes."

2.

"Taxation of Energy Generating Facilities During Construction and Operation,"

Research and Information Division, Washington State Department of Revenue, 1977.

Should you have any questions, please contact Mr. G.

C. Sorensen at (509) 372-5238.

Very truly yours, lc Enclosure cc:

R. Sundell, ANL N. S. Reynolds, DIIL G.

D.

BOUCHEY Director, Nucle afety gooI S

ilr 81 0 6 OIa'0 Igg

r

"'l

Privilege Taxes 54.28.025 Chapter 54.28 PRIVILEGE TAXES Sections 54.28.0 I0 54.28.020 54.28.025 54.28.030 54.28.050 54.28.055 54.28.090 Definitions.

Tax imposed Rates.

Tax imposed with respect io thermal electric generat.

ing faciliiics Rate.

Districts'eport io department of rcvcnue.

Distribution of iax.

Distribution of tax procccds from thermal electric gen.

crating facilitics.

Deposit of funds io credit of taxing district.

54.28.010 Definitions. As used in this chapter:

(I) "Operating property"- means all of the property utilized by a public utility district in the operation of a plant or system I'or thc generation, transmission, or dis-tribution of electric energy for sale; (2)

Taxing districts" means

counties, cities, towns, school districts, and road districts; (3)

"Distributes to consumers means the sale of electric energy to ultimate consumers thereof, and does the voters: Provided further, That a public utilitydistrict located within a county of thc first class may sell and convey to a city of the first class, which owns its own water system, all or any part ol' water system owned by said public utility district where a portion of it is located within thc boundaries of such city, without approval of thc voters upon such terms and conditions as thc district shall determine:

Provided further, That a

public utility district located in a fifth class county and bordcrcd by thc Columbia river may, separately or in connection with the operation of a water system, or as part of a plan for acquiring or constructing and opera-ting a water system, or in connection with the creation of another or subsidiary local utility district, may pro-vide for thc acquisition or construction, additions or improvcmcnts to, or extensions of, and operation of a sewage system within the same scrvicc area as in the judgment of thc district commission is necessary or

'dvisable in order to eliminate or avoid any existing or potential danger to the public health by reason of the lack of sewcragc facilitics or by reason ol'he inadequacy of existing I'acilitics: And provided turther, That a public utility district located within a county of thc first class bordering on Pugct Sound may sell and convey to any city ol'he third class or town all or any part of a water system owned by said public utility district without approval of the voters upon such terms and conditions as the district shall dctcrminc. Public utility districts arc municipal corporations f'r the purposes of this section and the commission shall be held to be thc legislative body and thc prcsidcnt and secretary shall have the same powers and perform the same duties as the mayor and city clerk and thc resolutions of the districts shall be held to be ordinances within the meaning of the statutes governing the sale, Icasc, or other disposal of public util-ities owned by cities and towns. [1977 1st ex.s. c 31

$ I; 1963 c 196 I'l I;.1959 c 275 $ I; 1955 c 390 $ 19. Prior:

1945 c 143 II l(m); 1931 c I II 6(m); Rem. Supp.

1945 I) 11610(m).)

not include sales of electric energy for resale by the purchaser;

'(4) "Wholesale value'eans all costs of' public utility district associated with the generation and trans-mission of energy from its own generation and transmis-sion system to the point or points of inter-connection with a distribution system owned'and used by a district to distribute such energy to consumers, or in the event a distribution system owned by a district is not used to distribute such

energy, then the term means the gross revenues derived by a district from the sale of such energy to consumers; (5) "Thermal electric generating facility means a

steam-powered electrical energy producing facility'ti-lizing nuclear or fossil fuels; (6) 'Placed in operation'eans delivery of energy into a transmission or distribution system for use or sale in such a manner as to establish a value accruing to the pow r plant operator, except operation incidental to cstin or startup adjustments; (7)

Impacted area'or a thermal electric generating a

ity on a federal reservation means that area in the state lying within thirty-five statute miles of the most commonly used entrance of the federal reservation and which is south of the southern boundary of township fif-teen north. [1977 1st ex.s. c 366

$ I; 1967 ex.s. c 26 II 22; 1959 c 274 I) I; 1957 c 278 Il 7. Prior: (i) 1941 c 245

$ I, part; Rem. Supp.

1941

$ 11616-1, part. (ii) 1949 c 227 $ l(f); Rcm. Supp.

1949 $ 11616-2(f).)

Effective date Savings 1967 ex+. c 26: Sec note following RC W 82.01.050.

54.28.020 Tax imposed Rates. There is hereby levied and there shall be collected from every district a tax for the act or privilege of engaging within this state in the business of operating works, plants or facilities for thc generation, distribution and sale of electric cncrgy.

With respect to each such district, except with respect to thermal clcctric generating facilitics taxed under RCW 54.28.025, such tax shall be the sum of the following amounts: (I) Two percent of thc gross revenues derived by the district from the sale of all electric energy which it distributes to consumers who are served by a distribu-tion system owned by the district; (2) five percent of the first four mills per kilowatt-hour of wholcsalc value of self-generated cncrgy distributed to consumers by a dis-trict; (3) five percent of the first four mills per kilowatt-hour of revenue obtained by the district from the sale of self-gencratcd energy for resale.

[1977 1st ex.s. c 366 $

2: 1959 c 274 I) 2; 1957 c 278

$ 2. Prior: 1949 c 227 l(a); 1947 c 259 $ l(a); 1941 c 245 $ 2(a); Rem. Supp.

1949 I) 11616-2(a).]

Severability 1947 c 259: 'lfany section, subsection, clause, scn.

tencc or phrase of this act bc for any reason adjudged unconstitutional, such adjudication shall not invalidate thc remaining portions of this act, and the legislature hereby dec!arcs that it would have enacted this act notwithstanding thc omission of the portion so adjudicated invalid.'

l947 c 259 $ 2.1 54.28.025 x imposed with respect to thermal electri g facilitics Rate. There is hereby levied and there shall be collected from every district operating a thermal electric generating facility, as 11977 RCW Supp page 6471

~ g T

U

54.28.025 Title 54:

Public dcfincd in RCW 54.28.010 as now or hcrcaftcr

amended, having a design capacity of two hundred fifty thousand kilowatts or morc, located on a federal rcscr; vation, which is placed in operation after September 21, 1977.

a tax for thc act or privilege of engaging within thc state in the business ol'enerating clcctricity I'or use or'sale, equal to one and onc-half percent of wholesale value of cncrgy produced for use or sale, except energy used in thc operation of component parts of the power plant and associated transmission facilitics under control ol'hc person operating the power plant. [1977 1st ex.s. c 366 3 6.]

54.28.030 Districts'eport to department of reve-nue. On or before the fifteenth day of March of each year, each district subject to this tax shall file with the department of revenue a report verified by the affidavit of its manager or sccrctary on forms prescribed by the department of revenue.

Such report shall state (I) the-gross revenues derived by thc district from the sale of all distributed energy to consumers and the respective amounts derived from such sales within each county; (2) thc gross rcvcnues derived by the district from the sale of self-generated energy for resale; (3) the amount of all generated energy distributed from each of the facilities subject to taxation by a district from its'wn generating facilities. the wholesale value thereof, and thc basis on which the value is computed; (4) the total cost of all generating facilities and the cost of acquisition of land and land rights for such facilities or for reservoir pur-poses in each county; and (5) such other and further informatio'n as the department of revenue reasonably may require in order to administer the provisions of this chapter.

fn case of failure by a district to file such

report, the department may proceed to determine the information, which determination shall be contestable by the district only for actual fraud. [1977 1st ex.s. c 366 $

3; 1975 1st ex.s. c 278 $ 30; 1959 c 274 $ 3; 1957 c 278

$ 3. Prior: 1949 c 227

$ I (b); 1947 c 259 $ l(b); 1941 c 245 $ 2(b); Rem. Supp. 1949

$ 11616-2(b).]

Construction Sererability 1975 1st ex.s.

c 278: Sec notes following RCtV 11.08.160.

54.28.050 Distribution of tax. After computing the tax imposed by RCW 54.28.020, the department of rev-enue shall instruct the state treasurer, after placing four percent in the state general fund, to distribute the bal-ance collected under RCW, 54.28.020 subsection (I) to each county in proportion to the gross r'evenue from sales made within each county; and to distribute the balance collected under RCW 54.28.020 (2) and (3) as follows: Ifthe entire generating facility, including reser-voir, if any, is in a single county then all of the balance to thc county where such generating facility is located. If any reservoir is in more than one county, then to each county in which the reservoir or any portion thereof is located a percentage equal to thc percentage determined by dividing the total cost of the generating facilities, including adjacent switching facilities, into twice the cost of land and land rights acquired for any reservoir within each county, land and land rights to be dcfincd the same as used by the federal power commission. If 11977 RDV Supp page 6481 Utility Districts thc powerhouse and dam, ifany, in connection with such rcscrvoir are in more than onc county, thc balance shall bc divided sixty percent to thc county in which thc own-ing district is located and forty pcrccnt to thc other county or counties or if said powcrhousc and dam, if any, arc owned by a joint operating agency organized under chapter 43.52.RCW, or by morc than one district or are outside the county of thc owning district, then to be divided equally between the counties in which such facilities are located. Ifall of the powerhouse and dam, if any, are in one county, then the balance shall be dis-tributed to thc county in which the facilitics are located.

The provisions of this section shall not apply to the distribution of taxes collected under RCW 54.28.025.

[1977 1st ex.s. c 366 $ 4; 1975 1st cx.s. c 278 $ 32; 1959 c 274 g 4; 1957 c 278

$ 5. Prior:

1949 c 227

$ 1(d);

1947 c 259 $ l(d); 1941 c 245 II 2(d); Rem. Supp.

1949

$ 11616-2(d),]

Construction Sererability 1975 1st ex.s.

c 278: Sce notes following RCIV 11.08.160.

Effectire Cate 1959 c 274: 'The effective date of section 4 of this 1959 amendatory act shall bc January I, !960.

(1959 c 274'$6.I This applies io RCIV 54.28.050.

54.28.055 Distribution of tax proceeds from.thermal e ec crating facilities. (I) After computing the tax imposed by RCW 54.28.025, the department of reveltue shall instruct the state treasurer to distribute the amount collec'ted as follows:

(a) Fifty percent to the state general fund for the support of schools; and (b) Twenty-two percent to the counties, twenty-three percent to the cities, three percent to the fire protection districts, and two percent to the library districts.

(2)

Each county, city, fire protection district and library.district shall receive a percentage of the amount for distribution to counties, cities, fire protection dis-tricts and library districts, respectively, in thc proportion that the population of such district residing within the impacted area bears to the total'population of all such districts residing within the impacted area.

(3) If any distribution pursuant to subsection (1)(b) of this this section cannot be made, then that sharc shall be prorated among the state and remaining local districts.

(4) All distributions directed by this section to be made on the basis of population shall be calculated in accordance with data to be provided by the office of program planning and fiscal management.

[1977 1st ex.s. c 366 $ 7.]

Reriser's note: 'office of program planning and fiscal management'edesignated as 'office of financial managemcn't'y 1977 1st cx.s. c 114. Sce RCIV 43.41.035.

54.28.090 Deposit of funds to credit of taxing dis-trict. Thc county commissioners of each county shall direct the county treasurer to deposit funds to the credit of each taxing district in the county according to the manner they deem most equitable; except not less than thirty-five percent of all moneys so received shall be apportioned to thc school districts within the county having district properties within their limits, and not less

0 N

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~ f First Class Districts 54A0.050 Chapter 54AO FIRST CLASS DISTRICTS Sections 54.40.010 54A0.020 54.40.030 54A0.040 54.40.050 54A0.060 54.40.070 Five commissioner districts Requiremcnts

'hree commissioner districts.

Existing districts Qualifications Votersv approval.

Transmittal of copies of federal hydroelectric license to county auditor.

Election to reclassify district as a five commissioner district Ballot form Vote rcquircd.

, Petition for rcclassiiication Certificate of sufii.

ciency Election, date, notice.

Division of district into at large districts.

Election of commissioners from at large districts Special clcction Terms.

54A0.010 Five commissioner districts Require-ments Three commissioner districts. A five commis-sioner public utilitydistrict is a district which shall have a license from thc federal power commission to construct a hydroclcctric project of an estimated cost of more than two hundred and fifty million dollars, including interest during construction, and which shall have received the approval of'hc voters of thc district to become a five commissioner district as provided herein. All other pub-lic utility districts shall be known as three commissioner districts. [1977 1st ex.s. c 36 II I; 1959 c 265 II 2.]

54.40.020 Existing districts Qualifications Voters'pproval.

Every public utility district which on

• the effective date of this amendatory act shall be in existence and have such a license shall be qualified to bccomc a five commissioner, district upon approval 'of'he voters of said district, and every 'public utility district which on 'thc cffcctive date of this amendatory act shall have become a first class district as previously provided by chapter 265, Laws of 1959 shall be a five commis-sioner district. [1977 1st ex.s. c 36 II 2; 1959 c 265 II 3.]

'Reviser's note:

the cffcctivc date of this amendatory act'l977 I st <<x.s. c 36l was September

21. l977, sce preface l977 session hws.

54A0.030 Transmittal of copies of federal hydro-electric license to county auditor. Within five days after a public utility district shall receive a license from the fcdcral power commission to construct a hydroelectric project of an cstimatcd cost of more than two hundred and fifty million dollars, including interest during con-struction, or, in the case of a district which on 'the effective date of this amendatory act is in existence and has such a license within five days of *the eff'ective date of this amendatory act the district shall forward a true than an amount equal to three-fourths of one percent of thc gross rcvcnues obtained by a district from the sale of clcctric cncrgy within any incorporated city or town shall bc remitted to such city or town. Inf'ormation fur-nished by the district to thc county commissioners shall bc thc basis for thc determination of the amount to be paid to such cities or towns.

The provisions of this section shall not apply to the distribution'f taxes collected under RCW 54.28.025.

[1977 1st ex.s. c.366 II'5; 1957 c 278 II 10.]

II copy of said license, certified by the secretary of the dis-trict, to the county auditor of the county wherein said district is located. [1977 1st ex.s. c 36 I] 3; 1959 c 265 I]

4.]

'Reviser's note: 'thc cfi'ective date of this amendatory act'l977 lst ex.s. c 36] was September 2l, l977, see preface l977 session hws.

54A0.040 Election to reclassify district as a

five commissioner district Ballot form Vote required.

A public utilitydistrict shall be classified as a five com-missioner district only by approval of'he qualified voters of the district. Such approval shall be by an election upon petition as hereinafter provided. In submitting the question to the voters for their approval or rejection, thc proposition shall be expressed on the ballot in substan-tially the following terms:

Shall Public Utility District No.

be reclassified a

Five Commissioner District for the purpose of increasing the num-ber of commissioners to five...... YES Cl NO 0 Should a majority of the voters voting on the question approve thc proposition, the district shall be declared a

five commissioner district upon the completion of the canvass of thc election returns. [1977 1st ex.s. c 36 Il 4; 1959 c 265 $ 5.]

54.40.050 Petition for reclassiTication Certifi-cate of sufficiency Election, date, notice. The ques-tion of reclassification of a public utilitydistrict as a five commissioner public utility district shall be submitted to the voters only upon filing a petition with the county auditor of thc county in which said district is located, identifying the district by number and praying that an election bc held to determine whether it shall become a

five commissioner district. The petition must be signed by a number of qualified voters of the district equal to at least ten percent of the number of voters in the district who voted at the last general election. In addition to the signature of the voter, the petition must indicate each signer's residence address and further indicate whether he is rcgistercd in a precinct in an unincorporated area or a precinct in an incorporated area and if the latter, give thc name of the city or town wherein he is regis-tered.

Said petition shall be presented to the county

,auditor for verification of the validity of the signatures.

Within thirty days after receipt of thc petition, the county auditor, in conjunction with thc city clerks of thc incorporated areas in which any signer is registered, shall determine the sufficiency of the petition. If the petition is found insufficient, the person who filed the same shall be notified by mail and he shall have an additional fifteen days from the date of mailing such notice within which to submit additional signatures, and the county auditor shall have an additional thirty days after the submission of such additional signatures to determine the validity of the entire petition. No signa-ture may be withdrawn after the petition has been filed.

If the petition, including these additional signatures if any, is found sufficient, the county auditor shall certify