Chapter 3.60
ELECTRICAL, TELEPHONE, CELLULAR TELEPHONE, CABLE TELEVISION, GARBAGE, AND NATURAL GAS UTILITY TAX
Sections:
3.60.020 License required – Application – Limitations.
3.60.035 Repealed.
3.60.037 Cellular telephone service – Income allocation.
3.60.070 Late payment remedies.
3.60.090 Annexation – Applicability.
3.60.100 Administrative rules and regulations.
3.60.010 Authority.
The provisions of this chapter shall be deemed to be an exercise of the power of the city. (Ord. 885 § 1, 1986).
3.60.020 License required – Application – Limitations.
On and after January 1, 1987, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by FMC 3.60.030 without first having obtained, and being the holder of, a license so to do, to be known as an occupational license. Each such person, firm or corporation shall promptly apply to the city clerk for such license upon such forms as the city clerk shall prescribe, giving such information as the city clerk shall deem reasonably necessary to enable the city clerk’s office to administer and enforce this chapter; and, upon acceptance of such application by the city clerk, the city clerk shall thereupon issue such license to the applicant. Such occupational license shall be personal and nontransferable and shall be valid as long as the licensee continues in said business and complies with this chapter. (Ord. 1751 § 1 (Exh. A), 2011; Ord. 885 § 2, 1986).
3.60.030 Tax levied – Electrical, telephone, cellular telephone, cable television, garbage, and natural gas.
There is hereby levied upon and there shall be collected from every person, firm or corporation engaged in or 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 the tax for the privilege of so doing business as hereinafter defined:
A. Upon the sale, delivery or distribution of electricity and electrical energy, such tax to be equal to three percent of the total gross revenues derived from the sales of such electricity to ultimate users within the city limits; provided, that from January 1, 2012, through December 31, 2035, such tax shall be equal to six percent of the total gross revenue derived from the sales of such electricity to ultimate users within the city limits. For purposes of determining gross revenues, amounts received from contract industrial service contract power (CP) customers (industrial nonportfolio power contracts) shall be as if the gross revenues so received equaled the amount that would have been received if the power rate charged to contract industrial service contract power customers equaled the amount that would have been received for the same power at contract industrial service schedule CP rates for portfolio power. No tax shall be imposed upon that portion of gross revenues that is attributable to a temporary rate surcharge imposed by the electrical utility upon its ratepayers.
B. Upon the sale, delivery or distribution of natural gas and/or artificial gas for domestic, business or industrial consumption, such tax to be equal to four and one-half percent of the total gross revenues derived from the sales of such gas to ultimate users within the city; provided, that from January 1, 2013, through December 31, 2035, such tax shall be equal to six percent of the total gross revenue derived from the sales of such gas to ultimate users within the city.
C. Upon any telephone business there shall be levied a tax equal to four and one-half percent of the total gross revenues, including revenues from intrastate toll, derived from the operation of such business within the city limits; provided, that from January 1, 2013, through December 31, 2035, such tax shall be equal to six percent of the total gross revenue, including revenues from intrastate toll, derived from the operation of such business within the city limits. Gross operating revenues for this purpose shall not include 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.
“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 lines telephone companies or associations operating an exchange. “Telephone business” does not include the providing of competitive telephone service, nor the providing of cable television service.
“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.
D. From January 1, 2013, through December 31, 2035, upon the business of providing cellular telephone service, a tax equal to six percent of the total gross income from such business in the city. “Cellular telephone service” means 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 the same purpose as cellular mobile service.
E. From January 1, 2013, through December 31, 2035, upon the business of providing garbage collection service, including recyclables and yard waste, such tax to be equal to six percent of the total gross revenues of such business within the city.
F. From January 1, 2013, through December 31, 2035, upon the business of providing cable television services, a tax equal to six percent of the total gross income from gross subscriber revenues in the city. For purposes of this chapter, “gross subscriber revenues” means and includes those revenues derived from the supplying of subscription services, that is, installation fees, disconnect and reconnect fees, fees for regular cable benefits including the transmission of broadcast signals and access and origination channels and per-program or per-channel charges; it does not include leased channel revenue, advertising revenue, or any other income derived from the system. For purposes of this chapter, “cable television services” means the one-way transmission of video programming and associated nonvideo signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming. (Ord. 1893 § 1, 2014; Ord. 1815 § 2, 2012; Ord. 1754 § 1, 2011; Ord. 1417 § 1, 2001; Ord. 1397 § 1, 2000; Ord. 1254 § 1, 1996; Ord. 1238 § 1, 1996; Ord. 1186 § 1, 1994; Ord. 1141 § 1, 1993; Ord. 1108 § 1, 1992; Ord. 1087 §§ 2, 3, 4, 1991; Ord. 1055 § 1, 1990; Ord. 1049 § 1, 1990; Ord. 885 § 3, 1986).
3.60.035 Tax levied – Electricity.
Repealed by Ord. 1754. (Ord. 1141 § 2, 1993; Ord. 1108 § 2, 1992; Ord. 1055 § 2, 1990).
3.60.037 Cellular telephone service – Income allocation.
A. Service Address. Payments by a customer for cellular 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. When the cellular telephone 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. 1815 § 3, 2012).
3.60.040 When due.
The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:
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First Quarter: |
January, February, March |
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Second Quarter: |
April, May, June |
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Third Quarter: |
July, August, September |
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Fourth Quarter: |
October, November, December |
The first payment hereunder shall be made by January 31, 1997, for the first three-month period ending December 31, 1996. On or before said due date, the taxpayer shall file with the finance director-treasurer a written report on such form provided by the city, information that the finance director-treasurer deems reasonable for tax collection purposes. (Ord. 1751 § 1 (Exh. A), 2011; Ord. 1238 § 2, 1996; Ord. 1186 § 2, 1994; Ord. 1049 § 2, 1990; Ord. 885 § 4, 1986).
3.60.050 Deductions.
In computing said tax, there shall be deducted from said gross operating revenues the following items:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. 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;
C. Amounts derived by the taxpayer from the city. (Ord. 885 § 5, 1986).
3.60.060 Records.
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 city clerk, or her duly authorized subordinates, for verification of said tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 1751 § 1 (Exh. A), 2011; Ord. 885 § 6, 1986).
3.60.070 Late payment remedies.
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. 885 § 7, 1986).
3.60.080 Erroneous payments.
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. 885 § 8, 1986).
3.60.090 Annexation – Applicability.
Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the first of the succeeding year. (Ord. 885 § 9, 1986).
3.60.100 Administrative rules and regulations.
The city clerk 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. 1751 § 1 (Exh. A), 2011; Ord. 885 § 10, 1986).
3.60.110 Penalties.
Any person, firm or corporation subject to this chapter who fails or refuses to apply for any occupational license or to make said tax returns or to pay said tax when due, or who makes any false statements or representations in or in connection with any such application for an occupational license or on such tax return, or otherwise violates or refuses or fails to comply with this chapter, shall be guilty of a misdemeanor. (Ord. 1777 § 1 (Exh. A), 2012; Ord. 885 § 11, 1986).