Chapter 3.06
PUBLIC UTILITY BUSINESS TAX
Sections:
3.06.010 Exercise of revenue license power.
3.06.030 Persons subject to tax – Payment periods.
3.06.040 Persons subject to tax – Rate.
3.06.060 Exceptions – Deductions.
3.06.070 Business license required.
3.06.100 Ascertainment of tax – Notice.
3.06.110 Failure to comply – Unlawful.
3.06.120 Violations – Operating without a license.
3.06.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. [Ord. 881 § 1, 2014; Ord. 408 § 1, 1988.]
3.06.020 Definitions.
In construing this chapter, save when otherwise plainly described or clearly apparent from the context, the following definitions shall be applied:
(A) “Gross income” means the value proceeding or accruing from the performance of the particular public service business involved, including operations incidental thereto, but without any deduction 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.
(B) “Person” or “persons” means persons of either sex, firms, copartnerships, corporations, public utility districts, municipal corporation or departments thereof, public or private utilities, and other associations, whether acting by themselves or by servants, agents 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 first and ending on the last day of December of the 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. 881 § 1, 2014; Ord. 408 § 2, 1988.]
3.06.030 Persons subject to tax – Payment periods.
There is levied upon and shall be collected from, and paid as hereinafter provided, 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 of the city as described in GFMC 3.06.040 an occupation tax sometimes referred to in this chapter as “tax” against gross income of business as defined 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. 881 § 1, 2014; Ord. 408 § 3, 1988.]
3.06.040 Persons subject to tax – Rate.
There are hereby levied and shall be collected license fees or occupation taxes upon every person engaged in or carrying on the business of seller or furnishing electric lights and power, natural or manufactured gas (through mains), telephone and/or telegraph service, in the amount of six percent of such total gross income from the business, excluding all income derived from long distance telephone toll charges. [Ord. 881 § 1, 2014; Ord. 408 § 4, 1988.]
3.06.050 Failure to pay tax.
Any taxpayer who engages in or carries on any business subject to the tax under 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. 881 § 1, 2014; Ord. 408 § 5, 1988.]
3.06.060 Exceptions – Deductions.
(A) 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 the transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state, as excise taxes levied or imposed upon the sale or distribution of property or service.
(B) There shall be 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 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 at the rate prevailing in the tax year when collected.
(C) There shall be 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.
(D) 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 state. [Ord. 881 § 1, 2014; Ord. 408 § 6, 1988.]
3.06.070 Business license required.
(A) No person subject to the payment of the tax provided in this chapter shall engage in any business, occupation, or activity in the city without first having obtained and being the holder of a valid and existing license so to do, to be known as “business license” for which the applicant shall pay the applicable fees. Such business license shall expire at the end of the calendar year in which it is issued and a new license shall be required for each calendar year; provided however, that if the taxpayer in transacting his or its business on a fiscal year and not on a calendar year, he or it may, with the consent of the city clerk, obtain his or its license for the period of his or its current fiscal year which shall be deemed his or its tax year.
(B) Application for the business license shall be made to the city clerk who shall issue the same on forms provided by him/her.
(C) Said license shall be personal and nontransferable. Each business license shall be numbered, shall show the name, place and character of business of the taxpayer and such other information as the city clerk deems necessary and shall at all times be conspicuously posted in the place of business for which it is issued.
(D) No person to whom a business license has been issued pursuant to this chapter shall suffer or allow any other person for whom a separate license is required to operate under or display his license; nor shall such other person operate under or display such license. [Ord. 881 § 1, 2014; Ord. 408 § 7, 1988.]
3.06.080 Payment.
The tax shall be paid at the time the tax return is filed with the city clerk to the city treasurer. [Ord. 881 § 1, 2014; Ord. 408 § 8, 1988.]
3.06.090 Books – Records.
(A) It shall be 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 application, 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 city manager, city attorney, city clerk or his authorized agent and members of the city council. [Ord. 904 § 10, 2015; Ord. 881 § 1, 2014; Ord. 408 § 9, 1988.]
3.06.100 Ascertainment of tax – Notice.
If any taxpayer fails, neglects or refuses to make his return as and when required in this chapter, the city clerk 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. 881 § 1, 2014; Ord. 408 § 10, 1988.]
3.06.110 Failure to comply – Unlawful.
It is unlawful for any person liable to tax under this chapter to fail or refuse to secure the license, or to make the returns when required, or to pay the license fee or tax 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 an attempt to evade payment of the fee or tax, or any part thereof. [Ord. 881 § 1, 2014; Ord. 408 § 11, 1988.]
3.06.120 Violations – Operating without a license.
Any taxpayer who engages in, or carries on, any business subject to a tax under this chapter without having his business license to do so, or who fails or refuses to pay the license fee or tax, or any part thereof, on or before the due date, shall be guilty of a misdemeanor and shall be punishable by a fine not to exceed $300.00, or by imprisonment for not more than 90 days, or by both such fine and imprisonment. [Ord. 881 § 1, 2014; Ord. 408 § 12, 1988.]