Chapter 3.12
UTILITIES OCCUPATION TAX1
Sections:
3.12.040 Tax – Payment schedule.
3.12.050 Tax – Deductions and exemptions.
3.12.060 Allocation of income – Cellular telephone service.
3.12.070 Authority of administrator.
3.12.120 Annexation notification.
3.12.130 Regulation promulgation.
3.12.010 Definitions.
A. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone 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 as well as cellular telephone service. “Telephone business” does not include the providing of competitive telephone service, nor the providing of one-way cable television or one-way satellite-based television service; provided, however, that if the television provider provides service, or provides access to service, which allows the subscriber to communicate with another party through the medium which transports the television signal, the television service shall become subject to the tax described herein. Furthermore, providing access to the internet, any computer bulletin board service, or any similar service through any medium whatsoever shall be considered two-way communication, and any person, firm, corporation or other entity providing access to such service(s) shall be considered a “telephone business”.
B. “Cellular telephone service” is a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of 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 a purpose similar to cellular mobile service.
C. “Competitive telephone service” means the providing by any person of telecommunications equipment, apparatus, or service related to that equipment or apparatus, such as repair or maintenance services, 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. Transmission of communication through cellular telephones is classified as “telephone business” rather than “competitive telephone service.”
D. “Gross revenues” means the value proceeding or accruing from the performance of the particular service or business involved, including operations incidental thereto, but without any dedication 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. The above definition is taken from RCW 82.16.010. (Ord. 1914 § 1, 1996).
3.12.020 License – Required.
No person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed under this chapter without first having obtained, and being the holder of, a license so to do, to be known as a business license as may be required by city ordinance. Each such person, firm or corporation shall promptly apply to the Enumclaw 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 the clerk’s office to administer and enforce this chapter, and, upon acceptance of such application by the clerk, the clerk shall thereupon issue such license to the applicant. Such business license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in the business and shall comply with this chapter. (Ord. 1914 § 2, 1996).
3.12.030 Tax – Imposed.
There is levied upon, and there shall be collected from, every person, firm, corporation, or other entity engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city, a tax for the privilege of so doing business as defined in this chapter.
A. Upon any telephone business there shall be levied a tax equal to six percent of the total gross revenues; provided, however, that there shall be no fee or tax on that portion of network telephone service, as defined in RCW 82.04.065, which represents the following:
1. Charges to another telecommunications company (as defined in RCW 80.04.010) for connecting fees; or
2. Charges to another telecommunications company for switching charges; or
3. Charges to another telecommunications company for carrier access charges relating to intrastate toll telephone services; or
4. Charges for access to, or charges for, interstate services; or
5. Charges for network telephone service that is purchased for the purpose of resale.
B. 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 revenue derived from sales of such electricity to ultimate users within the city; provided, however, that there shall not be any tax levied for the installation charges of electrical units. (Ord. 1925 § 2, 1997; Ord. 1914 § 3, 1996).
3.12.040 Tax – Payment schedule.
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.
On or before the due date the taxpayer shall file with the city’s finance director a written return, upon such form and setting forth such information as the finance director shall reasonably require, together with the payment of the amount of the tax. (Ord. 1914 § 4, 1996).
3.12.050 Tax – Deductions and exemptions.
A. In computing the tax there shall be deducted from the gross 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 of Washington.
B. If the total tax due during any quarter as computed under this chapter is less than $5.00, the taxpayer may request permission from the finance director to pay the taxes imposed by this chapter on a semiannual or annual basis. Any such request must be in writing, and unless the request is approved, the taxpayer shall be responsible for paying the tax according to the standard schedule set forth herein. If the finance director grants permission to the taxpayer to pay taxes under this chapter semiannually or annually, the taxpayer may proceed to pay taxes on the semiannual or annual basis until the amount due during any quarter as computed under this chapter exceeds $5.00, at which time the taxpayer must pay the taxes in question on a quarterly basis. (Ord. 1914 § 5, 1996).
3.12.060 Allocation of income – Cellular telephone service.
A. 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.
B. Presumption. There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.
C. 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.
D. Dispute Resolution. If there is a dispute between or among the city and another city or cities as to the service address of the customer who is receiving cellular telephone service and the dispute is not resolved by negotiation among the parties, then the dispute shall be submitted to the King County superior court for resolution. Once the taxes on the disputed revenues have been paid by one of the contesting cities, the cellular phone service shall have no further liability with respect to additional taxes, penalties, or interest on the disputed revenues so long as it promptly changes its billing records for future revenues to comport with the agreement between the cities affected or order of the court. (Ord. 2012 § 1, 1999; Ord. 1914 § 6, 1996).
3.12.070 Authority of administrator.
The finance director is authorized to represent the city in negotiations with other cities for the proper allocation of taxes due under this chapter. (Ord. 1914 § 7, 1996).
3.12.080 Rate change.
No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than 60 days following the enactment of the ordinance establishing the change. The finance director shall send to each cellular telephone service company, at the address on its license or prior tax return, as applicable, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment; provided, however, that each telephone business shall be responsible for keeping abreast of any such ordinance change, and shall be responsible for paying taxes according to the rates imposed by any subsequent ordinance, regardless of whether the telephone business receives a copy of said ordinance. (Ord. 1914 § 8, 1996).
3.12.090 Records required.
Each taxpayer shall keep records reflecting the amount of his or her gross revenues, and such records shall be open at all reasonable times to the inspection of the city finance director, or his or her duly authorized subordinates, agents, representatives or other individual or organization hired by the city to audit the taxpayer’s accounts, for verification of the tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 1914 § 9, 1996).
3.12.100 Tax – Late penalty.
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, plus interest at the rate of 12 percent per annum, and all penalties thereon which shall include court costs and collection fees (including attorney’s fees), shall constitute a debt to the city of Enumclaw, Washington and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 1914 § 10, 1996).
3.12.110 Credit and refund.
Any money paid to the city of Enumclaw, Washington through error or otherwise not in payment of the tax imposed 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 under this chapter or, upon the taxpayer’s ceasing to do business in the city of Enumclaw, Washington, be refunded to the taxpayer. (Ord. 1914 § 11, 1996).
3.12.120 Annexation notification.
Whenever the boundaries of the city of Enumclaw, Washington are extended by annexation, the city finance director shall make his or her best efforts to provide all persons, firms and corporations subject to this chapter notice of annexation by the first of the succeeding year. However, each person, firm, or corporation performing a business subject to the tax imposed by this chapter shall be responsible for promptly reporting their business activity to the city finance director and every person, firm, or corporation shall be responsible for keeping appraised of whether their operations extend into the now existing or later expanded boundaries of the city of Enumclaw, regardless of whether said person, firm or corporation receives notice of annexation. (Ord. 1914 § 12, 1996).
3.12.130 Regulation promulgation.
The finance director 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 under this section. (Ord. 1914 § 13, 1996).
Prior legislation: 1958 Code Ch. 3.44; Ords. 1079 and 1359.