Chapter 3.40
UTILITY TAXES
Sections:
3.40.010 Exercise of revenue license power.
3.40.030 Persons subject to tax – Tax payment periods.
3.40.040 Persons subject to tax and rate.
3.40.060 Tax return and payment – Due date.
3.40.070 Tax computation on gross income – Exceptions and deductions.
3.40.090 Taxpayer to keep books and records – Returns confidential.
3.40.110 Overpayment or deficiency.
3.40.120 Failure to comply – Treasurer to ascertain tax.
3.40.130 Failure to comply – Unlawful.
3.40.140 Payment past due – Interest and penalties.
3.40.150 Unpaid taxes deemed debt against the city.
3.40.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to levy a tax on utility charges. (Ord. 1067 NS § 1, 1993).
3.40.020 Definitions.
In construing this chapter, save when otherwise plainly described or clearly apparent from the context, the following definitions shall be applied:
A. “Person” or “persons” means persons of either sex, firms, copartnerships, corporations, public utility districts, municipal corporations or departments thereof, public or private utilities, and other associations, whether acting by themselves or by servants, agents or employees.
B. “Taxpayers” means any person liable for the tax imposed by this chapter. (Ord. 1067 NS § 2, 1993).
3.40.030 Persons subject to tax – Tax payment periods.
On and after the first day of July, 1993, there is levied upon and shall be collected from and paid as provided in this chapter, by every person on account of transacting or carrying on of such business and for the privilege of engaging in such business activities within the city limits as described in CMC 3.40.040 a utility tax, sometimes referred to as “tax,” against gross income from the sale of defined services or commodities of business for the three calendar months next preceding the beginning of each quarterly period. The quarterly periods are as follows:
A. First quarter: January, February, March;
B. Second quarter: April, May, June;
C. Third quarter: July, August, September;
D. Fourth quarter: October, November, December. (Ord. 1067 NS § 3, 1993).
3.40.040 Persons subject to tax and rate.
There are hereby levied and shall be collected annual occupation taxes against the persons on account of the business activities and in the amounts to be determined by the application of the rates against gross income as follows:
A. Upon every person engaged within the city of Colville in or carrying on a telephone business, a tax equal to six percent of the gross income from such business. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone services, coin telephone services, 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. The term includes cooperative or farmer line telephone companies or associations operating exchanges. “Telephone business” does not include the providing of competitive telephone service, or providing of cable television service, or other providing of broadcast services by radio or television stations. (See RCW 82.04.065, “Competitive telephone service,” “network telephone service,” “telephone service,” “telephone business.”)
1. “Competitive telephone service” means the providing of any person of telecommunications equipment or apparatus or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus 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.
B. Upon every person engaged within the city of Colville in the business of selling or supplying domestic water, sewer and storm and surface water management services, a tax equal to six percent of the total gross income from sale of said services.*
C. Upon every person engaged within the city of Colville in the business of collecting or disposing of garbage and/or sewage or other wastes, a tax equal to six percent of the total gross income from sale of said services.
D. Upon every person engaged within the city of Colville in or carrying on a coaxial television cable distribution business, a tax equal to six percent of the total gross income from such business in the city during the current calendar year.
E. Upon every person, firm, corporation or other entity engaged within the city of Colville in or carrying on the business of transmitting, distributing, selling and furnishing natural and/or manufactured gas, a tax equal to six percent of the total gross income from the sale of gas within the corporate limits of the city during and for the current calendar year.
F. Upon every person engaged within the city of Colville in the business of selling or supplying electricity services a fee or tax equal to six percent of the total gross income from sale of said services. (Ord. 1506 NS § 1, 2013; Ord. 1425 NS § 1, 2009; Ord. 1338 NS § 1, 2005; Ord. 1221 NS § 1, 2000; Ord. 1198 NS § 1, 1999; Ord. 1067 NS § 4, 1993).
* Section 3 of Ord. 1506 NS provides, “Fees for storm and surface water management shall take effect March 1, 2014.”
3.40.050 Failure to pay tax.
Any taxpayer who engages in or carries on any business subject to the tax in this chapter, and/or fails or refuses to pay the tax or any part thereof on or before the due date shall be operating in violation of this chapter. (Ord. 1067 NS § 5, 1993).
3.40.060 Tax return and payment – Due date.
A. 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 succeeding the end of the quarterly period in which the tax accrued. The remittance shall be made as provided in this chapter and shall be accompanied by a return on a form to be provided and prescribed by the city treasurer. To the return the taxpayer is required to swear or affirm that the information given is full and true and that the taxpayer knows the same to be so. Whenever the total tax for which any person is liable under this chapter does not exceed the sum of $150.00 for any quarterly period, an annual return may be made upon written request and subject to the approval of the city clerk.
B. In lieu of the quarterly payment of the tax provided in this chapter, the taxpayer may, when permission is obtained from the city clerk, pay the tax on a monthly basis.
C. Whenever a taxpayer commences to engage in business during any quarterly period, his first return and tax shall be based upon and cover the portion of the quarterly period during which he engaged in business. (Ord. 1067 NS § 6, 1993).
3.40.070 Tax computation on gross income – Exceptions and deductions.
A. There is excepted and deducted from the total gross income upon which the tax is computed all bad debts for services incurred, rendered or charged for during the tax year. Debts shall be deemed bad and uncollectible when the same have been written off the books of the taxpayer. In the event debts are subsequently collected, the income shall be reported in the return for the quarter in which the debts are collected and at the rate prevailing in the tax year when collected.
B. There is excepted and deducted from the total gross income upon which the tax is computed all cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
C. Nothing in this chapter shall be construed as requiring a license, or the payment of a license fee or tax, or the doing of any act, which would constitute an unlawful burden or interference in violation of the Constitution or laws of the United States or which would not be consistent with the Constitution or laws of the state of Washington. (Ord. 1067 NS § 7, 1993).
3.40.080 Payment.
The tax shall be paid at the time the tax return is filed with the city clerk to the city treasurer. (Ord. 1067 NS § 8, 1993).
3.40.090 Taxpayer to keep books and records – Returns confidential.
A. It is the duty of each taxpayer taxed upon his or its gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his or its gross income, which account shall always be open at the principal place of business to the inspection of the city clerk, or his duly authorized agent, and from which the officer or his agent may verify the return made by the taxpayer. The records shall be preserved for a period of five years.
B. The applications, statements or returns made to the city clerk, pursuant to this chapter, shall not be made public, nor shall they be subject to inspection of any person except the mayor, city attorney, city clerk or his authorized agent, and members of the city council. (Ord. 1067 NS § 9, 1993).
3.40.100 Sale during quarter.
Upon the sale or transfer during a quarterly period of a business or account of which a tax is required, the purchaser or transferee shall, if the tax has not been paid in full for the quarterly period, be responsible for the payment of the tax for that portion of the quarterly period during which he or it carries on such business. (Ord. 1067 NS § 10, 1993).
3.40.110 Overpayment or deficiency.
If the city treasurer upon investigation or upon checking returns finds that the tax paid on any of them is more than the amount required of the taxpayer, he shall refund the amount by a treasurer’s check upon the general fund. If the treasurer finds that the tax is less than required, he shall mail a statement to the taxpayer showing the balance due, who shall within 10 days pay the amount shown thereon to the city treasurer. (Ord. 1067 NS § 11, 1993).
3.40.120 Failure to comply – Treasurer to ascertain tax.
If any taxpayer fails, neglects or refuses to make his return as and when required herein, the city treasurer is authorized to determine the amount of tax payable and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon become the tax and be immediately due and payable. (Ord. 1067 NS § 12, 1993).
3.40.130 Failure to comply – Unlawful.
It is unlawful for any person liable to tax hereunder to fail or refuse to make the returns when required, or to pay the tax when due, or return of any false statement or representation in, or in connection with, any such return, or to aid or abet another in an attempt to evade payment of the tax, or any part thereof, or for any person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon any investigation of the correctness of a return, or upon the hearing of any appeal, or in any manner to hinder or delay the city or any of its officers in carrying out the provisions of this chapter. (Ord. 1067 NS § 13, 1993).
3.40.140 Payment past due – Interest and penalties.
When any payment is not received when due, there is an added 10 percent penalty. In addition, interest shall be charged at one percent of the unpaid tax per month. (Ord. 1067 NS § 14, 1993).
3.40.150 Unpaid taxes deemed debt against the city.
A. Any tax due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies.
B. The above remedies set forth for the city shall be deemed nonexclusive and cumulative. The city council may, either before or after the fixing of the tax by the treasurer authorize the city attorney to commence an action in the superior court of Stevens County, or such other county as may have proper venue, for the fixing the amount of such tax and judgement against the taxpayer therefor. (Ord. 1067 NS § 15, 1993).
3.40.160 Appeal.
A. Any taxpayer aggrieved by the amount of the tax found by the treasurer to be required under the provisions of this chapter may appeal to the city council from such finding by filing a written notice of appeal with the city clerk within 30 days from the time such taxpayer was given notice of such amount. The clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not more than 60 days after the filing of the notice of appeal, and he shall cause a notice of the time and place thereof to be mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence in his or its own behalf. The city council shall thereupon ascertain the correct amount of the tax by resolution and the city clerk shall immediately notify the appellant thereof by mail, which amount, together with costs of the appeal, if applicant is unsuccessful therein, must be paid to the city treasurer within 10 days after such notice is given.
B. The mayor may, by subpoena, require the attendance thereat of any person, and may also require him to produce any pertinent books or records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the chairman in charge of the matter required of him pertinent to the appeal, and it shall be unlawful for him to fail or refuse to do so. (Ord. 1067 NS § 18, 1993).
3.40.170 Violation – Penalty.
Any person violating or failing to comply with any of the provisions of this chapter, upon conviction thereof, shall be guilty of a misdemeanor. (Ord. 1067 NS § 16, 1993).