Chapter 5.20
UTILITY TAX
Sections:
5.20.030 Repealed.
5.20.040 Tax on certain businesses.
5.20.050 Deductions from income.
5.20.060 Direct credits against tax.
5.20.080 Payment of tax by purchaser or transferee.
5.20.090 Records and books required.
5.20.100 Penalty for failure to pay tax when due.
5.20.110 Over and under payment.
5.20.130 Penalty for violation.
5.20.010 Exercise of power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. (Ord. 591 § 1, 1968).
5.20.020 Definitions.
In construing the provisions of this chapter save when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
(a) “Gross income” constitutes the value derived or accruing from the sale of tangible personal property, including water, gas, heating fuels or electric energy, or the transmission and distribution by cable of television or radio signals, or the furnishing of sewer service, or of any other service for which compensation shall be due and payable, and it includes all sums earned by reason of investment of capital by way of rents, royalties, fees or other emoluments. Such gross income includes all sums earned, whether or not the same are in fact paid, but is limited to all income derived from the sale of such tangible personal property or the furnishing of such services solely within the limits of the city, as such limits presently exist or as the same may hereafter be extended.
(b) “Person or persons” means persons of either sex, firms, copartnerships, corporations and other associations of natural persons, whether acting by themselves or by servants, agent or employees.
(c) “Taxpayer” means any person liable to the license fee or tax imposed by this chapter.
(d) “Tax year or taxable year” means the year commencing January 1st and ending December 31st of the same year, or in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk to use the same as the tax period. (Ord. 591 § 2, 1968).
5.20.030 License required for certain businesses.
Repealed by Ords. 1233 and 1267. (Ord. 591 § 3, 1968).
5.20.040 Tax on certain businesses.
From and after January 1, 2017, there is hereby levied upon and shall be collected from and paid as hereinafter provided a tax upon gross income of the following defined businesses or pursuits:
(a) Upon every person engaged in or carrying on the business of selling, transmitting and distributing natural gas, a tax equal to six percent of the total gross income from such business within the city during each tax year;
(b) Upon every person engaged in or carrying on the business of providing a community antenna television system within the city, a tax equal to six percent of the total gross income from such business within the city during each tax year;
(c) Upon every person engaged in or carrying on the business of selling, transmitting and distributing water, a tax equal to eight percent of the total gross income from such business within the city during each tax year;
(d) Upon every person engaged in or carrying on the business of selling, transmitting or distributing electrical energy, a tax equal to six percent of the total gross income from such business within the city during each tax year;
(e) Upon every person engaged in or carrying on the business of providing sewer service, a tax equal to six percent of the total gross income from such business within the city during each tax year;
(f) Upon every person engaged in or carrying on the business of providing garbage or refuse removal service, a tax equal to eight and one-half percent of the total gross income from such business within the city shall be levied on a monthly basis and along with such other fees as may be authorized, deducted from the total gross billing revenue from the consumer(s) for such service(s);
(g) Upon every person engaged in or carrying on the business of providing storm water utility service, a tax equal to three percent of the total gross income from such business within the city, a total tax equal to six percent from the total gross billing revenue from such business within the city commencing January 1, 2018, and such six percent total tax will continue each tax year thereafter. (Ord. 1586 § 1, 2016; Ord. 1484 § 1, 2009; Ord. 1366 § 1, 2005; Ord. 1013 § 1, 1992; Ord. 761 § 12, 1981; Ord. 591 § 4, 1968).
5.20.050 Deductions from income.
There shall be deducted from total gross income upon which the above tax is imposed the following items:
(a) All amounts of gross income from business within the city derived from transactions involved in interstate or foreign commerce;
(b) All amounts which the city is prohibited from taxing under the federal or state constitutions and/or laws;
(c) All amounts derived from business taking place outside of the corporate limits of the city;
(d) All bad debts relating to transactions occurring within the city. For purposes of this section a debt shall be deemed bad when written off the books by the taxpayers as uncollectible, and if the debt shall be subsequently collected it shall be reported as income in the year received;
(e) All connection fees or charges, if any, received in payment for making physical connection to the service offered by the taxpayer;
(f) All sums received from another person, firm or organization as compensations for the right to make joint or common use of facilities, i.e., joint use of telephone or utility poles. (Ord. 591 § 5, 1968).
5.20.060 Direct credits against tax.
There are hereby allowed as direct credits against tax computed at the rate specified in FMC 5.20.040 upon gross income as defined in FMC 5.20.020, less the deductions to be allowed in FMC 5.20.050, the following items:
(a) All sums paid to the city during the taxable year as a “franchise” fee pursuant to written franchise from the city. (Ord. 1048 § 1, 1993; Ord. 591 § 6, 1968).
5.20.070 When tax due.
The tax imposed by FMC 5.20.040 shall be due and payable in quarterly installments on the twenty-fifth day of each month following the end of each quarterly period in each tax year. The quarterly periods are as follows:
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First quarter |
– |
January, February and March |
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Second quarter |
– |
April, May and June |
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Third quarter |
– |
July, August and September |
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Fourth quarter |
– |
October, November and December |
On or before the due dates, 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. To the return, the taxpayer shall be required to swear or affirm that the information therein given is full and true and that the taxpayers know the same to be so. Whenever the total tax for which any person is liable under this chapter does not exceed the sum of $50.00 for any quarterly period, an annual return may be made upon written request and subject to the approval of the city clerk.
In lieu of the quarterly payment of the tax herein provided, the taxpayer may, when permission is obtained from the city clerk, pay the tax on a monthly basis.
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. 591 § 7, 1968).
5.20.080 Payment of tax by purchaser or transferee.
Upon the sale or transfer during a quarterly period of a business on account of which a tax is hereby 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 carries on such business. (Ord. 591 § 8, 1968).
5.20.090 Records and books required.
It shall be the duty of every person liable for the payment of any taxes imposed by this chapter to keep such books and records as will accurately reflect the amount of gross income as defined herein and from which can be determined the amount of any tax for which he may be liable under the provisions of this chapter, and all books as provided herein shall be open for examination at all reasonable times by the city clerk or his duly authorized agents, for verification of the tax returns or for the figuring of the tax of a taxpayer who shall fail to make such returns.
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 the inspection of any person except the mayor, city attorney, city clerk or his authorized agents and members of the city council. (Ord. 591 § 9, 1968).
5.20.100 Penalty for failure to pay tax when due.
If any taxpayer fails 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 equal to five percent of the amount of tax, which penalty shall be charged for each 30-day period of delinquency. Any tax or license fee due under this chapter and unpaid 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. (Ord. 591 § 10, 1968).
5.20.110 Over and under payment.
If the city clerk upon investigation or upon checking returns finds that the tax paid on any of them is more than the amount required by the taxpayer, the amount overpaid shall, upon request of the taxpayer, be refunded to the taxpayer or be credited against any tax due or to become due from such taxpayer hereunder. If the clerk finds that the tax paid is less than required, he shall mail a statement to the taxpayer showing the balance due, who shall within five days pay the amount shown thereon. (Ord. 591 § 11, 1968).
5.20.120 Violations of tax.
It is unlawful for any person liable to the tax hereunder to fail to pay the tax when due or for any person to make any false or fraudulent application or return, or to evade or abet another in any attempt to evade payment of the tax, or any part thereof.
Any taxpayer who engages in, or carries on, any business subject to a tax hereunder without having his occupation license so to do shall be guilty of a violation of this chapter for each day during which business is so engaged in, or carried on; and any taxpayer who fails or refuses to pay the license fee or tax, or any part thereof, on or before the due date shall be deemed to be operating without a license so to do. (Ord. 591 § 12, 1968).
5.20.130 Penalty for violation.
Any person violating or failing to comply with any provision of this chapter, upon conviction thereof, shall be guilty of a misdemeanor, and shall be punished by a fine in any sum not to exceed $1,000. (Ord. 987 § 4, 1991; Ord. 834 § 4, 1986; Ord. 591 § 13, 1968).