Chapter 3.10
UTILITY BUSINESS TAX
Sections:
3.10.010 Exercise of license revenue power.
3.10.030 Utility business license required.
3.10.035 Business license posted.
3.10.040 Businesses subject to tax – Amount.
3.10.060 Exceptions and deductions.
3.10.070 Remittance required quarterly.
3.10.074 Remittance authorization for public funds.
3.10.090 Applications and returns confidential.
3.10.100 City Clerk/Treasurer to make rules.
3.10.110 Failure to make return or pay full tax.
3.10.120 Overpayment or underpayment of tax.
3.10.130 Delinquent payment – Penalty.
3.10.140 Taxes, penalties and fees constitute debt to municipality.
3.10.170 Noncompliance – Remedies.
3.10.010 Exercise of license revenue power.
The provisions of this chapter shall be deemed an exercise of the power of the City of Everson to license for revenue. [Ord. 336 § 1, 1986.]
3.10.020 Definitions.
In construing the provisions of this chapter, except when otherwise expressly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Gross income” means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like) and without any deduction on account of losses.
B. “Person” or “persons” means persons of either gender, firms, corporations, co-partnerships, and other associations of natural persons whether acting by themselves or by servants, agents or employees.
C. “Tax year” or “taxable year” means the calendar year or, in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the City Clerk/Treasurer to use the same as the tax year. [Ord. 336 § 1, 1986.]
3.10.030 Utility business license required.
No person, firm or corporation shall engage in or carry on any business, occupation, pursuit or privilege for which a license fee or tax is imposed by this chapter without first having obtained, and being the holder of, a valid and subsisting license to do so, to be known as a “utility business license.” Each person, firm or corporation shall promptly apply to the City Clerk/Treasurer for a license upon the appropriate form provided by the City Clerk/Treasurer, giving such information as is reasonably necessary for the administration and enforcement of this chapter; and upon acceptance, the City Clerk/Treasurer shall thereupon issue such a license to the applicant. A utility business license shall be personal and nontransferable. Such license is in addition to the general business registration and administrative provisions required by Chapter 3.30 EMC. If there is a conflict or inconsistency between Chapter 3.30 EMC and this chapter in the implementation of the utility business tax, the provisions of this chapter shall control. [Ord. 814 § 1, 2020; Ord. 336 § 1, 1986.]
3.10.035 Business license posted.
All licenses issued pursuant to the provisions of this chapter shall be kept posted by the licensee in a conspicuous place in his principal place of business located in the City. No person to whom a license has been issued shall suffer or allow any other persons chargeable with a separate license to operate under or display his license, nor shall such other person operate under or display such license. [Ord. 336 § 1, 1986.]
3.10.040 Businesses subject to tax – Amount.
There is levied upon, and shall be collected from persons, including the City, on account of certain business activities engaged in or carried on, license fees or business taxes in the amount to be determined by the application of rates given against gross income as follows:
A. Upon every person engaged in or carrying on the business of selling or furnishing electric energy, a fee or tax equal to six percent of the total gross income derived from such business in the City during the period for which the license fee or tax is due;
B. Upon every person engaged in or carrying on a telephone business as defined in RCW 82.04.065, a fee or tax equal to six percent of the total gross income derived excluding revenues received from 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 access to, or charges for, interstate services; and excluding charges which are passed onto the subscriber 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 section;
C. Upon every person engaged in or carrying on the business of selling or furnishing natural gas for domestic, business or industrial consumption, a fee or tax equal to six percent of the total gross income derived from such business in the City during the period for which the license fee or tax is due;
D. Upon every person engaged in or carrying on the business of transmitting television or video signals by cable, a fee or tax equal to six percent of the total gross income derived from such business in the City during the period for which the license fee or tax is due;
E. Upon every person, including the City, engaged in or carrying on the business of operating or conducting a water system for domestic, business or industrial consumption, a fee or tax equal to six percent of the total gross income derived from such business in the City during the period for which the license fee or tax is due;
F. Upon every person, including the City, engaged in or carrying on the business of operating or conducting a sewerage system for domestic, business or industrial use, a fee or tax equal to six percent of the total gross income derived from such business in the City during the period for which the license fee or tax is due;
G. Upon every person, including the City, engaged in or carrying on the business of operating or conducting a garbage or solid waste refuse collection system for domestic, business or industrial use, a fee or tax equal to six percent of the total gross income derived from such business in the City during the period for which the license fee or tax is due. [Ord. 355 § 1, 1987; Ord. 336 § 1, 1986.]
3.10.050 License tax year.
Utility business licenses shall be valid for the tax year for which issued and shall expire at the end of the tax year. [Ord. 336 § 1, 1986.]
3.10.060 Exceptions and deductions.
There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, or any amount paid to the Federal, State and local governmental entities as excise taxes levied or imposed upon the sale or distribution of property or services or business which the City is prohibited from taxing under the Constitution or laws of the State of Washington. [Ord. 336 § 1, 1986.]
3.10.070 Remittance required quarterly.
Commencing with January 1st of the tax year, each three-month period constitutes a quarter, for which on or before the last day of the month following the end of such quarterly period the license fee or tax for the quarterly period is due. A monthly installment is permissible with the approval of the City Clerk/Treasurer; provided, that installments are likewise due on or before the last day of the succeeding month and further that monthly installments may not be converted to quarterly period installments except on January 1st of the tax year. [Ord. 336 § 1, 1986.]
3.10.074 Remittance authorization for public funds.
The remittance due by City-operated utility businesses subject to this tax shall be paid by means of a transfer of funds from the appropriate utility fund to the general or current expense fund of the City, and the City Clerk/Treasurer is hereby authorized and directed to make such transfer as set forth above. [Ord. 336 § 1, 1986.]
3.10.078 Reserved.
Repealed by Ord. 814. [Ord. 336 § 1, 1986.]
3.10.080 Reserved.
Repealed by Ord. 814. [Ord. 336 § 1, 1986.]
3.10.090 Applications and returns confidential.
The applications, statements or returns made to the City pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of any person other than the Mayor, City Attorney, City Clerk/Treasurer or her designate, and members of the City Council except upon prior written notice to the affected utility business. Disclosure will not be made if within 24 hours such utility business objects in writing to such disclosure, citing authority for nondisclosure, and undertaking to defend the City and pay any judgment fees, penalties, costs or attorney’s fees assessed for improper nondisclosure; provided, the foregoing shall not be construed to prohibit the City Clerk/Treasurer from making known or revealing facts contained in any return, or disclosed in any examination for official purposes. [Ord. 336 § 1, 1986.]
3.10.100 City Clerk/Treasurer to make rules.
The City Clerk/Treasurer shall have the power, and it shall be her duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with the law for the purpose of carrying out the provisions thereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. [Ord. 336 § 1, 1986.]
3.10.110 Failure to make return or pay full tax.
If any taxpayer fails, neglects or refuses to apply for a license, or make his return, or pay the tax in full as required herein, the City Clerk/Treasurer is authorized to determine the amount of the tax payable and by mail to notify such taxpayer of the amount so determined. The amount so affixed shall thereupon be the tax and be immediately due and payable. Failure to comply with the provisions of this chapter will subject the taxpayer to provisions contained in the delinquent penalty sections of this chapter and Chapter 3.30 EMC. [Ord. 814 § 1, 2020; Ord. 336 § 1, 1986.]
3.10.120 Overpayment or underpayment of tax.
If, upon application by a taxpayer for a refund or for an audit of his records, or upon any examination of the returns of any taxpayer, it is determined by the City Clerk/Treasurer that within four years immediately proceeding the above that an error has occurred, then:
A. If a tax or other fee has been paid in excess of that properly due, the total excess paid over all amounts due to the City within a period of four years shall be credited to the taxpayer’s account or shall be paid directly to the taxpayer, at the City’s option.
B. If a tax or other fee has been paid which is less than that properly due, or no tax or fee has been paid, the City Clerk/Treasurer shall mail a statement to the taxpayer showing the balance due, including the tax amount and penalty assessments and fees, and it shall be a separate, additional violation of this chapter, both civil and criminal, if the taxpayer fails to make such payment in full within 10 calendar days of mailing, or fails to appeal the payment per the provisions of this chapter. [Ord. 814 § 1, 2020; Ord. 336 § 1, 1986.]
3.10.130 Delinquent payment – Penalty.
For each quarterly or monthly period payment due under the provisions of this chapter, if such payment is not made by the persons subject to the tax by the due date thereof, there shall be added a penalty as follows:
A. If payment in full is received on or within 30 days from the due date, 10 percent of the accrued tax;
B. If payment in full is received after 30 but on or within 60 days from the due date, 20 percent of the accrued tax; and
C. If payment in full is received beyond 60 days from the due date, 30 percent of the accrued tax. [Ord. 336 § 1, 1986.]
3.10.140 Taxes, penalties and fees constitute debt to municipality.
Any tax due and unpaid under this chapter, and all penalties or fees unpaid shall constitute a debt to the City, and may be collected by judicial proceedings the same as any other debt in like amount which shall be in addition to all other existing remedies. On any civil action the City shall recover reasonable attorney’s fees and audit costs, if the City is the prevailing party. [Ord. 336 § 1, 1986.]
3.10.150 Reserved.
Repealed by Ord. 814. [Ord. 336 § 1, 1986.]
3.10.160 False returns.
It shall be unlawful for any person subject to this chapter to fail or refuse to make application or return for a license or to pay the fee or tax or installment thereof when due, or for any person to make any false or fraudulent application or return or any false statement or representation in, or in connection with any such application or return, or to aid or abet another in any attempt to evade payment of the fee or tax, or any part thereof, or to fail to appear at or 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. 336 § 1, 1986.]
3.10.170 Noncompliance – Remedies.
A. Misdemeanor. Any person subject to this chapter who fails or refuses to apply for a utility business license or to make tax returns or to pay the tax or penalties when due, or who makes any false statement or representation in or in connection with any such application, or who otherwise violates or refuses to comply with the provisions of this chapter, shall be deemed guilty of a misdemeanor, and each such person is guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this chapter is committed, continued or permitted.
B. Suspension or Revocation. The Director or designee shall have the power and authority to suspend or revoke any license issued under the provisions of this chapter and subject to the procedure in EMC 3.30.230, Suspension or revocation of business license.
C. Cumulative. The exercise of either of the remedies for noncompliance hereunder does not preclude exercising the other remedy hereunder. Additionally, these remedies are in addition to any other remedy the City may have at law or equity. [Ord. 814 § 1, 2020; Ord. 336 § 1, 1986.]
3.10.180 Appeals to Council.
Any taxpayer aggrieved by the amount of the fee or tax found by the City Clerk/Treasurer to be required under the provisions of this chapter may appeal to the City Council from such finding by paying the amount due and filing a written notice of appeal with the City Clerk/Treasurer within seven days from the time such taxpayer was given notice of such amount. A $100.00 filing fee shall be submitted with the appeal, which filing fee is required to process the appeal. The City Clerk/Treasurer shall, as soon as practicable, fix a time and place for the hearing of such appeal, and she shall cause a notice of the time and place hereof to be delivered or mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence on his own behalf. The City Council shall thereupon ascertain the correct amount of the fee or tax by resolution, and the City Clerk/Treasurer shall immediately notify the appellant thereof, which amount, together with the costs of appeal, if such applicant is unsuccessful therein, must be paid within five days after such notice is given. The Mayor may, by subpoena, require the attendance thereat of any person, and may also require him to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated, produce the records required, if any, and shall testify truthfully under oath administered by the Mayor as to any matter required of him pertinent to the appeal, and it shall be unlawful for him to fail or refuse so to do. [Ord. 814 § 1, 2020; Ord. 336 § 1, 1986.]