Chapter 3.25
UTILITY TAX
Sections:
3.25.030 Businesses and utilities subject to utility tax – Amount.
3.25.010 Exercise of revenue.
The provisions of this chapter shall be deemed as an exercise of the town of La Conner, Washington to obtain revenue, pursuant to state law. [Ord. 571 § 1, 1990.]
3.25.020 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:
“Person” or “persons” means persons of either sex, firms, co-partnerships, corporations and other associations of natural persons, whether acting by themselves or by servants, agents or employees.
“Taxpayer” means any person liable for taxes imposed by this chapter.
“Gross revenue” means received by a utility or business from operations or sales within the town less net uncollectibles. Gross revenues of natural, artificial or mixed gas and electric utilities shall include revenues from the use, rental or lease of operating facilities of the utility other than residential-type space and water heating equipment. Gross revenues shall not include charges which are passed onto the subscribers by a utility pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this section. Gross revenues of telephone utilities shall include 100 percent of the toll service fees from calls originating in and/or billed to subscribers within the town of La Conner including revenue from providing access to a local telephone network switching service, toll service, or coin telephone services, telephonic, video, data or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave or similar communication or transmission system, including transmission of communication for cellular telephones or other wireless phone service. Gross revenues of cable television utilities shall include revenues from the one-way transmission of video programing and associated non-video signals to subscribers which is provided in connection with video programming.
“Utilities” means any business which supplies or provides solid waste pickup and/or disposal, electric power by transmission line, cable television, telephone or telegraph services by transmission line, any form of radio wave transmission and natural gas distributed by pipeline. [Ord. 712 § 1, 1998; Ord. 571 § 2, 1990.]
3.25.030 Businesses and utilities subject to utility tax – Amount.
There are levied and shall be collected utility taxes against persons on account of business activities in the amounts to be determined by the nature of business activities and by the application of rates against gross income as follows:
(1) Utilities.
(a) Electric. Upon every person engaged in or carrying on the business of selling or furnishing electric light and power within the town of La Conner, a tax equal to six percent of the total gross revenue from such business during the tax reporting period.
(b) Natural Gas. Upon every person engaged in or carrying on the business of selling or furnishing natural gas within the town of La Conner, a tax equal to six percent of the total gross revenue from such business during the tax reporting period.
(c) Telephone. Upon every person engaged in or carrying on a telephone business within the town of La Conner, a tax equal to six percent of the total gross revenue from such business during the tax reporting period.
(d) Garbage or Solid Waste. Upon every person engaged in or carrying on the business of collection of garbage or solid waste within the town of La Conner, a tax equal to six percent of the total gross revenue from such business during the tax reporting period.
(e) Cable Television. Upon every person engaged in or carrying on a cable television businesses within the town of La Conner, a tax equal to six percent of the total gross revenue from such business during the tax reporting period.
(f) Occupation Subject to Tax – Sewer Compost Amount. There is hereby levied a separate utility tax upon any person or public or private entity engaged in the conduct, maintenance, and operation of its municipal sewer compost system a tax equal to seven and one-half percent of the total gross operating revenues collected under this section. [Ord. 1147 § 1, 2016; Ord. 1092 § 1, 2012; Ord. 1045 § 1, 2010; Ord. 996 § 1, 2007; Ord. 712 § 2, 1998; Ord. 571 § 3, 1990.]
3.25.033 Payment.
The tax imposed by LCMC 3.25.030(1)(f) shall be due and payable in quarterly installments, and remittance therefor shall be made on or before the last day of the month following the end of the quarterly period in which the tax is accrued. On or before said due date, the finance director shall file with the town administrator a written return upon such form and setting forth such information as the town administrator shall reasonably require relating to the accurate computation and collection of this tax, together with the payment of the amount. [Ord. 1147 § 2, 2016; Ord. 1045 § 2, 2010.]
3.25.037 Use of funds.
All revenues collected pursuant to this chapter shall be deposited into the general fund, and shall be used for the funding of town services or capital facilities as the council shall direct through its annual budget process. [Ord. 1147 § 3, 2016; Ord. 1045 § 3, 2010.]
3.25.040 Debt to town.
Any tax due or unpaid under this chapter and all penalties thereon shall constitute a debt to the town of La Conner 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. 571 § 4, 1990.]
3.25.050 Violation – Penalty.
Any person who engages in or carries on any utility business subject to a tax hereunder without paying such taxes within 75 days of the end of each calendar month shall be penalized one percent of the month’s gross revenue and the amount owing the town for the month (three percent tax plus one percent penalty) shall accrue interest at the rate of 12 percent per annum until paid in full. Additionally, any utility business failing to make payment for any month within 75 days of the end of the month shall be guilty of a misdemeanor for each day the tax is unpaid. Any person violating or failing to comply with any of the provisions of this chapter, upon conviction thereof, shall be punished by a fine not to exceed $500.00, and not less than $50.00 for each violation. Criminal liability is in addition to the penalties prescribed herein. [Ord. 571 § 5, 1990.]