Chapter 5.03
BUSINESS AND OCCUPATION TAX
Sections:
5.03.087 Disposition of garbage and sewer taxes.
5.03.100 Deductions from revenues.
5.03.110 Records – Inspection.
5.03.120 Delinquency penalty – Collection action.
5.03.140 Notice of annexations.
5.03.150 Rules and regulations.
5.03.010 Authority.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. [Ord. 915 § 1, 1981.]
5.03.020 License.
After January 1, 1982, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by CMC 5.03.030 without first having obtained, and being the holder of, a license so to do, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the city clerk for such license upon such forms as the clerk shall prescribe, giving such information as the clerk shall deem reasonably necessary to enable said clerk’s office to administer and enforce this chapter; and, upon acceptance of such application by the clerk, such clerk shall thereupon issue such license to the applicant. Such occupation license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in said business and shall comply with this chapter. [Ord. 915 § 2, 1981.]
5.03.030 Tax.
From and after January 1, 1982, there is hereby levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the businesses described in CMC 5.03.040 through CMC 5.03.085 for hire or for sale of a commodity or a service within or partly within the corporate limits of the city the tax for the privilege of so doing business as hereinafter defined. [Ord. 915 § 3, 1981.]
5.03.040 Telephone.
(1) Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenue from intrastate toll telephone service derived from the operation of such business within the city. Gross operating revenues for this purpose shall not include the charges which are passed on to the subscribers by a telephone company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter.
(2) “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 or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” shall also include cellular telephone services. “Telephone business” does not include the providing of competitive telephone service nor the providing of cable television service.
(3) “Competitive telephone service” means the providing by any person of telephone equipment, apparatus or service, other than toll service, which is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made. [Ord. 1291 § 1, 1998; Ord. 1159 § 1, 1993; Ord. 1098 § 1, 1990; Ord. 1070 § 1, 1989; Ord. 1053 § 1, 1988; Ord. 1033 § 1, 1987; Ord. 1019 § 1, 1986; Ord. 984 § 1, 1985; Ord. 973 § 1, 1984; Ord. 936 § 1, 1983; Ord. 915 § 3(a), 1981.]
5.03.050 Electricity.
There is levied a tax on the sale, delivery or distribution of electricity and electrical energy and for the privilege of carrying on said business, such tax to be equal to six percent of the total gross operating revenue derived from such sales of electricity to ultimate users within the city; provided, however, that there shall not be any tax levied on the installation charges of electrical units. [Ord. 1098 § 2, 1990; Ord. 1070 § 2, 1989; Ord. 1053 § 2, 1988; Ord. 1033 § 2, 1987; Ord. 1019 § 2, 1986; Ord. 984 § 2, 1985; Ord. 973 § 2, 1984; Ord. 936 § 2, 1983; Ord. 915 § 3(b), 1981.]
5.03.060 Gas.
There is levied a tax on the sale of natural, manufactured or mixed gas for residential, commercial or industrial consumption and for the privilege of carrying on said business, such tax to be equal to six percent of the gross operating revenues from such sales of natural, manufactured or mixed gas within the limits of the city. [Ord. 1098 § 3, 1990; Ord. 1070 § 3, 1989; Ord. 1053 § 3, 1988; Ord. 1033 § 3, 1987; Ord. 1019 § 3, 1986; Ord. 984 § 3, 1985; Ord. 973 § 3, 1984; Ord. 936 § 3, 1983; Ord. 915 § 3(c), 1981.]
5.03.070 Water.
There is levied a tax upon every person engaged in the sale of water for domestic or commercial use, such tax to be equal to six percent of the gross operating revenues from such sales of water. [Ord. 1098 § 4, 1990; Ord. 1070 § 4, 1989; Ord. 1053 § 4, 1988; Ord. 1033 § 4, 1987; Ord. 1019 § 4, 1986; Ord. 984 § 4, 1985; Ord. 973 § 4, 1984; Ord. 936 § 4, 1983; Ord. 915 § 3(d), 1981.]
5.03.080 Garbage.
There is levied a tax upon every person, firm or corporation, both public and private, engaged in or carrying on the business of, or providing for a fee the service of, collecting and disposing of garbage within the corporate limits of the city. Said tax shall be equal to six percent of the gross operating revenues or gross fees derived from such collection and/or disposal activities. [Ord. 1102 § 1, 1990; Ord. 1098 § 5, 1990; Ord. 1070 § 5, 1989; Ord. 1053 § 5, 1988; Ord. 1033 § 5, 1987; Ord. 1019 § 5, 1986; Ord. 984 § 5, 1985; Ord. 973 § 5, 1984; Ord. 936 § 5, 1983; Ord. 915 § 3(e), 1981.]
5.03.085 Sewage.
There is levied a tax upon every person, firm or corporation, both public and private, engaged in or carrying on the business of, or providing for a charge the service of, collecting and disposing of sewage within the corporate limits of the city. Said tax shall be equal to six percent of the gross operating revenues or gross fees received from such collection and disposal activities. [Ord. 1102 § 2, 1990.]
5.03.087 Disposition of garbage and sewer taxes.
The tax levied by CMC 5.03.080 upon the garbage (sanitation) utility shall be collected and deposited to Fund No. 106, vehicle replacement fund, and the tax levied by CMC 5.03.085 upon the sewer utility shall be collected and deposited into Fund No. 106, vehicle replacement fund. [Ord. 1299 § 1, 1999; Ord. 1156 § 1, 1993; Ord. 1102 § 3, 1990.]
5.03.090 Quarterly payments.
The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the thirtieth day of the month next succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:
First Quarter – January, February, March
Second Quarter – April, May, June
Third Quarter – July, August, September
Fourth Quarter – October, November, December
The first payment made hereunder shall be made by April 30, 1982, for the three-month period ending March 31, 1982. On or before said due date the taxpayer shall file with the city clerk a written return, upon such form and setting forth such information as the clerk shall reasonably require, together with the payment of the amount of the tax. [Ord. 915 § 4, 1981.]
5.03.100 Deductions from revenues.
In computing the tax, there shall be deducted from gross operating revenues the following items:
(1) The amount of credit losses and uncollectibles actually sustained by the taxpayer;
(2) 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;
(3) Amounts derived by the taxpayer from the city. [Ord. 915 § 5, 1981.]
5.03.110 Records – Inspection.
Each taxpayer shall keep records reflecting the amount of his gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk, or his duly authorized subordinates, for verification of tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. [Ord. 915 § 6, 1981.]
5.03.120 Delinquency penalty – Collection action.
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 a tax a penalty of 10 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. 915 § 7, 1981.]
5.03.130 Credits and refunds.
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. 915 § 8, 1981.]
5.03.140 Notice of annexations.
Whenever the boundaries of said city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the city. [Ord. 915 § 9, 1981.]
5.03.150 Rules and regulations.
The city clerk is 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. 915 § 11, 1981.]