SB 5024 — Concerning the transparency of local taxing districts.

S-1007.1SUBSTITUTES-0229.1SENATE SENATE BILL 5024State of Washington66th Legislature2019 Regular SessionBySenateSessionBySenators LocalHasegawa Governmentand (originallyFortunatoPrefiled sponsored12/12/18.Read byfirst Senatorstime Hasegawa01/14/19.Referred andto Fortunato)READCommittee FIRSTon TIMELocal 01/25/19.ANGovernment.AN ACT Relating to the transparency of local taxing districts;

A new section is added to chapter 35.58 RCW to read as follows:(1) ByAny September 1, 2019, any metropolitan municipal corporation serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the corporation with respect to the billed services, if any.

The corporation must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A metropolitan municipal corporation serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) Metropolitan municipal corporations serving five thousand or less customers or taxpayers are encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a metropolitan municipal corporation does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5)boundaries.NEW TheSECTION.  Sec. disclosure requirements of subsection (1) of this section may be satisfied by the following methods:(a) As part of a regular billing statement issued to each customer or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.

Disclosures in accordance with this subsection must be issued on an annual basis, if no rate change has occurred during the previous twelve months, or within thirty days of the effective date of any subsequent rate change.

Disclosures may be issued electronically to a customer or taxpayer if that is the method the customer or taxpayer typically receives billing statements or other related information from the corporation.

Publication of state and local tax rate information on a public web site is encouraged but does not, by itself, satisfy the requirements of this section.(6) Any metropolitan municipal corporation collecting a tax on behalf of another political subdivision is authorized to collect reimbursement from that political subdivision for the cost of collection.NEW SECTION.  Sec.

A new section is added to chapter 54.04 RCW to read as follows:(1) ByAny September 1, 2019, any public utility district serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the districtcorporation with respect to the billed services, if any.

The district must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A public utility district serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) Public utility districts serving five thousand or less customers or taxpayers are encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a public utility district does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5)boundaries.NEW TheSECTION.  Sec. disclosure requirements of subsection (1) of this section may be satisfied by the following methods:(a) As part of a regular billing statement issued to each customer or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.

Disclosures in accordance with this subsection must be issued on an annual basis, if no rate change has occurred during the previous twelve months, or within thirty days of the effective date of any subsequent rate change.

Disclosures may be issued electronically to a customer or taxpayer if that is the method the customer or taxpayer typically receives billing statements or other related information from the district.

Publication of state and local tax rate information on a public web site is encouraged but does not, by itself, satisfy the requirements of this section.(6) Any public utility district collecting a tax on behalf of another political subdivision is authorized to collect reimbursement from that political subdivision for the cost of collection.NEW SECTION.  Sec.

A new section is added to chapter 85.08 RCW to read as follows:(1) ByAny September 1, 2019, any diking, drainage, and sewerage improvement districtdistricts serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the districtcorporation with respect to the billed services, if any.

The districtdistricts must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A diking, drainage, and sewerage improvement district serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) Diking, drainage, and sewerage improvement districts serving five thousand or less customers or taxpayers are encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a diking, drainage, and sewerage improvement district does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5)boundaries.NEW TheSECTION.  Sec. disclosure requirements of subsection (1) of this section may be satisfied by the following methods:(a) As part of a regular billing statement issued to each customer or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.

Disclosures in accordance with this subsection must be issued on an annual basis, if no rate change has occurred during the previous twelve months, or within thirty days of the effective date of any subsequent rate change.

Disclosures may be issued electronically to a customer or taxpayer if that is the method the customer or taxpayer typically receives billing statements or other related information from the district.

Publication of state and local tax rate information on a public web site is encouraged but does not, by itself, satisfy the requirements of this section.(6) Any diking, drainage, and sewerage improvement district collecting a tax on behalf of another political subdivision is authorized to collect reimbursement from that political subdivision for the cost of collection.NEW SECTION.  Sec.

A new section is added to chapter 36.58A RCW to read as follows:(1) ByAny September 1, 2019, any solid waste collection districtdistricts serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the districtcorporation with respect to the billed services, if any.

The districtdistricts must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A solid waste collection district serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) Solid waste collection districts serving five thousand or less customers or taxpayers are encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a solid waste collection district does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5)boundaries.NEW TheSECTION.  Sec. disclosure requirements of subsection (1) of this section may be satisfied by the following methods:(a) As part of a regular billing statement issued to each customer or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.

Disclosures in accordance with this subsection must be issued on an annual basis, if no rate change has occurred during the previous twelve months, or within thirty days of the effective date of any subsequent rate change.

Disclosures may be issued electronically to a customer or taxpayer if that is the method the customer or taxpayer typically receives billing statements or other related information from the district.

Publication of state and local tax rate information on a public web site is encouraged but does not, by itself, satisfy the requirements of this section.(6) Any solid waste collection district collecting a tax on behalf of another political subdivision is authorized to collect reimbursement from that political subdivision for the cost of collection.NEW SECTION.  Sec.

A new section is added to chapter 36.58 RCW to read as follows:(1) ByAny September 1, 2019, any solid waste disposal districtdistricts serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the districtcorporation with respect to the billed services, if any.

The districtdistricts must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A solid waste disposal district serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) Solid waste disposal districts serving five thousand or less customers or taxpayers are encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a solid waste disposal district does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5)boundaries.NEW TheSECTION.  Sec. disclosure requirements of subsection (1) of this section may be satisfied by the following methods:(a) As part of a regular billing statement issued to each customer or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.

Disclosures in accordance with this subsection must be issued on an annual basis, if no rate change has occurred during the previous twelve months, or within thirty days of the effective date of any subsequent rate change.

Disclosures may be issued electronically to a customer or taxpayer if that is the method the customer or taxpayer typically receives billing statements or other related information from the district.

Publication of state and local tax rate information on a public web site is encouraged but does not, by itself, satisfy the requirements of this section.(6) Any solid waste disposal district collecting a tax on behalf of another political subdivision is authorized to collect reimbursement from that political subdivision for the cost of collection.NEW SECTION.  Sec.

A new section is added to chapter 57.02 RCW to read as follows:(1) ByAny September 1, 2019, any water-sewer districtdistricts serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the districtcorporation with respect to the billed services, if any.

The districtdistricts must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A water-sewer district serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) Water-sewer districts serving five thousand or less customers or taxpayers are encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a water-sewer district does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5) TheAny disclosurewater-sewer requirementsdistrict ofcollecting subsectiona (1)tax ofon thisbehalf sectionof mayanother bepolitical satisfiedsubdivision byis theauthorized followingto methods:(a)collect Asreimbursement partfrom ofthat apolitical regularsubdivision billingfor statementthe issuedcost toof eachcollection.NEW customerSECTION.  Sec. or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.

Disclosures in accordance with this subsection must be issued on an annual basis, if no rate change has occurred during the previous twelve months, or within thirty days of the effective date of any subsequent rate change.

Disclosures may be issued electronically to a customer or taxpayer if that is the method the customer or taxpayer typically receives billing statements or other related information from the district.

Publication of state and local tax rate information on a public web site is encouraged but does not, by itself, satisfy the requirements of this section.(6) Any water-sewer district collecting a tax on behalf of another political subdivision is authorized to collect reimbursement from that political subdivision for the cost of collection.NEW SECTION.  Sec.

A new section is added to chapter 35.92 RCW to read as follows:(1) ByAny September 1, 2019, any city or town operating as a municipal utility under this chapter serving ten thousand or more customers or taxpayers must disclose on each billing statement the rates of state and local taxes imposed on the municipalcorporation utility with respect to the billed services, if any.

The municipal utility must also disclose the amount of any such taxes to be paid directly by the customer or taxpayer.(2)taxpayer through the billing statement.(2) A city or town operating as a municipal utility under this chapter serving less than ten thousand but more than five thousand customers or taxpayers must disclose the state and local tax information required in subsection (1) of this section upon the next update to its billing system or by January 1, 2024,2023, whichever is earlier.(3) A city or town operating as a municipal utility under this chapter serving five thousand or less customers or taxpayers is encouraged, but not required, to provide the state and local tax information as described in subsection (1) of this section.(4) If a city or town operating as a municipal utility under this chapter does not issue billing statements for any of the services it provides, it must make the state and local tax information in this section for each such service available upon the request of any taxpayer within its service boundaries.(5)boundaries.Sec. The disclosure requirements of subsection (1) of this section may be satisfied by the following methods:(a) As part of a regular billing statement issued to each customer or taxpayer;

or(b) In writing to each customer or taxpayer, either as a billing insert or in a newsletter, describing in as much specificity as reasonably possible, the rates of state and local taxes imposed and the amount or a method to calculate the amount of any such taxes paid directly by the customer or taxpayer.