AGO 1951-53 No. 21.

• Case Date: April 20, 1951
• Court: Washington

Washington Attorney General Opinions 1951. AGO 1951-53 No. 21. April 20, 1951[Orig. Op. Page 1]PRIVATETAXATION --- EXCISES --- EXEMPTION --- DISCRIMINATION MUNICIPAL CORPORATIONS --- EXCISE TAXES --- DISCRIMINATION.An excise tax levied by a city on persons distributing and selling electrical energy measured by the gross revenues from such business, but exempting from the tax revenues derived from the sale of electricity to manufacturers, is not invalidated by reason of such exemption.Honorable Cliff YelleState AuditorLegislative BuildingOlympia, WashingtonCite as: AGO 1951-53 No. 21Attention: !ttA. E. Hankins, Chief Examiner Division of Municipal Corporations Dear Sir: This is in answer to your request for our opinion as to the validity of a certain provision of an ordinance of the City of Vancouver. You have furnished us with a copy of this ordinance which imposes an excise upon those persons engaged in the distribution and sale of electricity measured by the gross revenues therefrom, but exempting revenues derived from the sale of electricity to manufacturers, and have asked whether the ordinance is rendered invalid by such exemption. Our conclusion may be summarized as follows: An excise tax levied by a city on persons distributing and selling electrical energy measured by the gross revenues from such business, but exempting from the tax revenues derived from the sale of electricity to manufacturers, is not invalidated by reason of such exemption. ANALYSIS [Orig. Op. Page 2] We have before us a copy of an ordinance of the City of Vancouver enacted January 24, 1951, levying a tax upon "* * * every person, firm, corporation and municipal corporation which operates in the city of Vancouver works, plants or facilities for the distribution and sale of electricity, a tax in the amount of three per cent (3%) of the gross revenues derived from the sale of electricity within the city of Vancouver." A further provision defines the term "gross revenues" to exclude revenues derived from the sale of electricity to persons, firms and corporations engaged in manufacturing. We are informed that the sale and distribution of all electrical energy within the city of Vancouver is performed by the Clark County Public Utility District. Therefore, this tax is in reality one imposed by the city of Vancouver upon this public utility district...