City of Spokane v. Department of Revenue

This case concerns the apportionment of sewerage1 between collection sewerage subject to the 3.6 percent public utility tax and sewerage concerned with the transportation and treatment of sewage, which is subject to the business and occupation (B&O) services tax rate. The B&O tax rate varies, but is always lower than the public utility tax rate, and at the time of the complaint was 2.0 percent. At an administrative hearing, the Board of Tax Appeals (BTA) concluded that collection (subject to the higher tax rate) continues up to the point where no new sewage is introduced into the system. The…