This bill authorizes counties in Washington State to impose a public utility tax on the gross income of utilities providing services within their jurisdiction. The tax rate cannot exceed three percent and must be added to the utility's rates or charges, clearly stated on customer billings. Counties can only implement this tax at the beginning of a calendar quarter and must provide at least 75 days' notice after adopting the relevant ordinance. Additionally, counties have the discretion to exempt certain business customers from this tax, but cannot offer a general exemption for residential customers unless business customers are also exempt. Furthermore, counties must allow a credit against the tax for any similar utility tax imposed by cities or towns.

The bill also establishes definitions for various types of utilities, including cable service, electrical power, gas, sewer, solid waste, telephone, and water utilities, ensuring clarity in the application of the tax. This legislation introduces a new chapter in Title 82 of the Revised Code of Washington, specifically codified as chapter 82.16A RCW, which encompasses the provisions outlined in the bill.