Chapter 5.06
UTILITY TAX
Sections:
5.06.020 Exercise of revenue license power.
5.06.030 Administrative provisions.
5.06.040 Registration required for engaging in business.
5.06.060 Failure to obtain current business license – Penalty.
5.06.080 Nontransferable – Term.
5.06.090 Separate licenses and certificates required – When.
5.06.120 Imposition of the tax – Tax or fee levied.
5.06.130 Pass through of utility taxes.
5.06.010 Purpose.
The provisions of this chapter shall be deemed an exercise of the power of the city, as provided in Chapter 35A.11 RCW, to license and/or tax for revenue, the privilege of engaging in utility business in the city. For the purpose of this chapter, the terms “license” and “tax” shall be synonymous. (Ord. 2914 § 1, 2004).
5.06.020 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. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. (Ord. 2914 § 1, 2004).
5.06.030 Administrative provisions.
The administrative provisions contained in Chapter 5.03 LMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 2914 § 1, 2004).
5.06.040 Registration required for engaging in business.
No person shall engage in any business for which a license is required, whether subject to this chapter or subject to taxation and/or regulation under another provision of this code, without being registered and licensed in compliance with the provisions of LMC 5.06.040 through 5.06.110. (Ord. 2914 § 1, 2004).
5.06.050 Business license.
Every person who is subject to the provisions of this chapter shall, on or before the twenty-fifth day of January of each calendar year or before engaging in any business or performing any act for which a license fee is required, apply for and obtain from the director of finance a registration certificate and business license for each calendar year or portion thereof. (Ord. 2914 § 1, 2004).
5.06.060 Failure to obtain current business license – Penalty.
A penalty of $2.00 per month, or any fraction thereof, shall be assessed after the last day of January on all persons or companies engaged in business and who have not obtained their current business licenses. (Ord. 2914 § 1, 2004).
5.06.070 Fee.
The fee for the registration certificate and business license shall be the sum of $20.00 for each calendar year if application therefor is made prior to June 30th of any calendar year, or the sum of $10.00 if application therefor is made after June 30th of any calendar year, which fee shall be in addition to all other license fees or taxes as required by the provisions of this chapter. The fee shall be paid before any registration certificate and license is issued. (Ord. 2914 § 1, 2004).
5.06.080 Nontransferable – Term.
The registration certificate and license shall be personal and nontransferable, and shall be valid until the end of the year for which issued or as long as the license payer shall continue in business and pay the license fee required to the city under the provisions of this chapter, whichever event shall terminate first. (Ord. 2914 § 1, 2004).
5.06.090 Separate licenses and certificates required – When.
In case business is transacted at two or more separate places by one license payer, a separate registration certificate and license for each place at which business is transacted with the public shall be required, but for such additional certificates and licenses no license fee shall be required. (Ord. 2914 § 1, 2004).
5.06.100 Numbering.
Each certificate and license shall be numbered and shall show the name, residence and place and character of business of the license payer, and such other information as the director shall deem necessary, and shall be posted in a conspicuous place at the place of business of the license payer for which it is issued. (Ord. 2914 § 1, 2004).
5.06.110 Change of location.
Where a place of business of the license payer is changed, the license payer must return to the director the existing certificate and license and a new certificate and license will be issued for the new place of business free of charge. (Ord. 2914 § 1, 2004).
5.06.120 Imposition of the tax – Tax or fee levied.
(1) Upon every person engaging within this city in any one or more of the businesses hereinafter mentioned, as to such person the license fee shall be a tax equal to the gross operating revenue of the business multiplied by the rate set out after the business as follows:
(a) The business of selling or furnishing water for hire, 14.5 percent;
(b) The business of selling or furnishing or distributing electrical energy within the city, exclusive of the revenue derived from the sale of electrical energy for the purpose of resale, six percent; provided, however, to encourage the location of new manufacturing industries within the city and the expansion of existing manufacturing industries therein, thereby increasing the ultimate revenue to the city, the tax shall not apply to that portion of any monthly billing in excess of $1,000 charged to any person or company using electrical energy primarily for manufacturing purposes;
(c) Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenue derived from the operation of such businesses within the city;
(d) The business of selling or furnishing sanitary sewer service, 14.5 percent;
(e) The business of selling or furnishing a garbage or refuse collection service, 14.5 percent;
(f) The business of selling or furnishing or distributing natural gas, six percent; provided, however, to encourage the location of new manufacturing industries within the city and the expansion of existing manufacturing industries therein, thereby increasing the ultimate revenue to the city, the tax shall not apply to that portion of any monthly billing in excess of $1,000 charged to any person or company using natural gas primarily for manufacturing purposes;
(g) The business of selling or furnishing or distributing television by way of coaxial cable within the city, six percent;
(h) The business of conducting wireless telecommunications carrier services, as defined in Chapter 16.75 LMC, by wireless telecommunications carrier providers that are regulated by Chapter 80.36 RCW, six percent;
(i) The business of selling or furnishing stormwater services, 14.5 percent. (Ord. 3472 § 1, 2022; Ord. 3333 § 9, 2016; Ord. 3282 § 1, 2014; Ord. 3229 § 1, 2012; Ord. 3147 § 1, 2010; Ord. 3072 § 1, 2008; Ord. 2914 § 1, 2004).
5.06.130 Pass through of utility taxes.
Utility taxes described herein are eligible for “pass through” to subscribers or customers of the utility and separate itemization on such utility’s bills to its customers. At the utility’s discretion, these itemized charges may be shown either “above-the-line” (i.e., prior to the summation of the total amount due) or “below-the-line” (i.e., as a description of specific items included in the total amount due). (Ord. 2914 § 1, 2004).
5.06.140 Severability clause.
If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. (Ord. 2914 § 1, 2004).