City of Kennewick v. State

— The State Tax Commission, pursuant to RCW 82.16.020, assessed a public utility tax upon the revenues received by the City of Kennewick (hereinafter called the city) from the operation of its water system. The taxes here in question were assessed upon revenues received from January 1, 1953, to January 1, 1957, and from January 1, 1958, through December 31, 1961.

A public utility tax was also assessed upon the revenues received from prospective water users who had reimbursed the city, under its ordinance No. 843, for capital expenditures which enabled them to receive water service. These funds…