Chapter 3.96
UTILITY TAX CODE1
Sections:
3.96.010 Exercise of revenue license power.
3.96.020 Business license – Required.
3.96.030 Administrative rules and regulations.
3.96.050 Persons subject to tax – Amount.
3.96.080 Late payment remedies.
3.96.090 Preservation of existing obligation – Appeal procedure for same.
3.96.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license and/or tax for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.020 Business license – Required.
It is unlawful for any person to engage in business in the city without having first obtained a business license pursuant to Chapter 6.04 BMC. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.030 Administrative rules and regulations.
The director is hereby authorized to adopt, publish and enforce, from time to time, such rules and regulations for the proper administration of this chapter as shall be necessary, and it shall be a violation of this chapter to violate or to fail to comply with any such rule or regulation lawfully promulgated hereunder. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.040 Definitions.
For the purposes of this chapter, the following definitions will apply:
“Cellular telephone service” is a voice or data telephone/telecommunications system based in whole or substantial part on wireless radio communications, whether or not the communications are subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. Cellular mobile service includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes the same purpose as cellular mobile service.
“Competitive telephone service” means the providing by any person of telephone telecommunications equipment or apparatus, or service related to that equipment or apparatus such as a repair and maintenance service, if the equipment or apparatus is of a type which can be provided by persons who are not subject to regulation as telephone companies under RCW Title 80, and for which a separate charge is made.
“Director” means the finance director of the city of Buckley or his/her duly authorized designee.
“Gross income” means the value proceeding or accruing by reason of the business activity engaged in and operations incidental thereto, and includes gross proceeds of sales, compensation for the rendition of services and other emoluments, but without any deduction on account of the cost of the commodity furnished or sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses.
“Gross income from timber sales” means “stumpage value of timber” as defined in Chapter 84.33 RCW minus the costs of production including, but not limited to, logging and trucking costs, fees and excise taxes.
“Page service” means service provided by means of an electronic device that has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission.
“Person” or “persons” means persons of either sex, firms, copartnerships, corporations, private utilities and other associations of natural persons whether acting by themselves or by servants, agents or employees.
“Reporting period” means:
(a) A one-month period beginning the first day of each calendar month (monthly); or
(b) A three-month period beginning the first day of January, April, July or October of each year (quarterly); or
(c) A 12-month period beginning the first day of January of each year (annual).
“Solid waste collection service” means receiving solid waste from any facility or location within the city for transfer, processing, treatment, storage, or disposal, including, but not limited to, all collection services, public or private dumps or landfills, transfer stations, and other similar operations.
“Solid waste,” for purposes of this chapter, means garbage, trash, rubbish, or other material discarded as worthless or not economically viable for further use, infectious, hazardous, or toxic wastes, and recyclable or reusable materials collected, in whole or part, for recycling or salvage.
“Taxpayer” means any person liable for the tax or fee imposed by this chapter.
“Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or providing telephonic, video, data or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. Telephone business does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio or television stations. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.050 Persons subject to tax – Amount.
In addition to other taxes or fees that may be imposed or levied by the city, there is hereby levied upon all persons (including the city) engaging in business within the city a fee or tax to be collected as follows:
(1) Gas. Upon every person engaging in the business of transmitting, distributing or selling of manufactured or natural gas, a fee or tax equal to six percent of the total gross income from such business conducted within the city.
(2) Water. Upon every person engaging in the business of providing water utility service, a fee or tax equal to 10 percent of the total gross income from such business conducted within the city. The total gross income from the business of providing water utility service includes the “gross income from timber sales” of the utility as that term is defined in this chapter.
(3) Wastewater. Upon every person engaging in the business of providing wastewater utility service, a fee or tax equal to 10 percent of the total gross income from such business conducted within the city.
(4) Stormwater. Upon every person engaging in the business of providing stormwater utility service, a fee or tax equal to 10 percent of the total gross income from such business conducted within the city.
(5) Cable. Upon every person engaging in the business of transmitting television signals by means of a cable distribution system commonly known as television cable service, a fee or tax equal to four percent of the total gross income from such business conducted within the city.
(6) Solid Waste. Upon every person engaging in the business of providing solid waste collection service, a fee or tax equal to 10 percent of the total gross income from such business conducted within the city.
(7) Electricity. Upon every person engaging in the business of producing, transmitting, distributing or selling electricity, a fee or tax equal to six percent of the total gross income from such business conducted within the city.
(8) Telephone. Upon every person engaged in carrying on a telephone business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city, for the privilege of so doing business a tax equal to six percent of the total gross income rendered within the city.
(a) Deductions. In computing the telephone tax, there shall be deducted from the gross operating revenues the following items:
(i) Amounts derived from transactions in interstate or foreign commerce or from any business which the city is prohibited from taxing under the Constitutions of the United States or the state of Washington.
(ii) Amounts derived from that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services or charges for network telephone service that is purchased for the purpose of resale.
(iii) Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was not properly a debt of a customer.
(iv) A complete deduction from gross income shall be allowed for credit losses, only to cellular telephone service companies which keep their regular books of account on an accrual basis, for cash discounts and credit losses actually sustained by a taxpayer as a result of telephone service business.
(b) Allocation of Income – Cellular Telephone Service.
(i) Service Address. Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies.
(ii) Roaming Phones. When the service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call. (Ord. 01-09 § 1, 2009; Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.060 Deductions.
(1) There may be deducted from the total gross income, upon which the license fee or tax is computed, revenues derived from business which the city is prohibited from taxing under the Constitutions or laws of the state of Washington or the United States or the charter of the city.
(2) There may be deducted from the total gross income, upon which the license fee or tax is computed, the amount of state excise taxes, pursuant to Chapter 82.18 RCW, imposed directly upon persons using the service of a solid waste collection business and collected for payment to the state by the solid waste collection business.
(3) There may be deducted from the total gross income, upon which the license fee or tax is imposed under BMC 3.96.050, revenues derived from providing the service of collecting recyclable materials, as follows:
(a) Commercial Recycling. Revenues derived from the service of collecting commercial recyclable materials. This exemption is limited to materials actually resold and computed in proportion to weight, as follows:
(i) Any weight added by processing or treatment after collection is subtracted from the weight as sold to obtain the allowable weight as sold; and
(ii) Revenues are multiplied by a fraction, the numerator of which is the allowable weight as sold and the denominator of which is the weight as collected.
(b) This deduction does not apply to any energy recovery or fuel-use process, nor in any case where materials collected have not been sold for commercial reuse within 100 days from the date of collection. This period may be extended when a taxpayer shows to the department’s satisfaction that market conditions necessitate a longer period for sale. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.070 Tax – When due.
The tax imposed by this chapter shall be due and payable in monthly installments. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.075 Records.2
Each taxpayer shall keep records reflecting the amount of his said gross operating revenues, and such records shall be open at all reasonable times to the inspection of the director for verification of said tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 23-06 § 1, 2006).
3.96.080 Late payment remedies.2
If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 12 percent of the amount of such tax, and any tax due under this chapter and unpaid and all penalties thereon shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 23-06 § 1, 2006).
3.96.085 Erroneous payments.2
Any money paid to the city through error or otherwise not in payment of the tax imposed hereby or in excess of such tax shall, upon request of the taxpayer, be credited against any tax due or to become due from such taxpayer hereunder or, upon the taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. (Ord. 23-06 § 1, 2006).
3.96.090 Preservation of existing obligation – Appeal procedure for same.
Notwithstanding the repeal of this Chapter 3.96 BMC and enactment of a new Chapter 3.96 BMC, all tax obligations accruing under Chapter 3.96 BMC prior to its repeal remain in full force and effect. Appeal from any obligation arising out of Chapter 3.96 BMC prior to its repeal shall be according to procedures in effect at the time of the appeal. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.095 Violation – Penalty.
In addition to any liability for civil remedies in favor of the city for collection of any delinquent taxes under the provisions of this chapter, and in addition to any penalties that might be imposed by the state, a violation of the provisions of this chapter is a misdemeanor punishable in accordance with BMC 1.04.020. (Ord. 23-06 § 1, 2006).
3.96.100 Savings.
Nothing in this chapter shall affect the rights of the city or the responsibilities of a taxpayer arising under former Chapter 3.96 BMC prior to the effective date of this chapter. Rather, all taxes, fees, and assessments accruing under the former Chapter 3.96 BMC shall remain in full force and effect. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
3.96.110 Severability.
If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions, and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. (Ord. 23-06 § 1, 2006; Ord. 03-05 § 3, 2005).
Prior legislation: Ords. 50-97, 27-99 and 35-99.
Code reviser’s note: Ordinance 23-06 adds the provisions of BMC 3.96.075 through 3.96.085 as Sections 3.60.060 through 3.60.080. The sections have been editorially renumbered to prevent duplication of numbering.