Chapter 3.64
UTILITIES TAX
Sections:
3.64.060 Tax rebate – Eligibility conditions.
3.64.070 Tax rebate – Claim procedure.
3.64.080 Tax rebate – False claim – Penalty.
3.64.090 Tax rebate – Effective date.
3.64.180 Penalty for delinquent payment.
3.64.190 Interest charge for delinquent taxes and penalties.
3.64.010 Generally.
Business or utility taxes in an amount specified in this chapter are levied and shall be collected against purveyors of utilities in the city of Marysville. (Ord. 882 § 1, 1975).
3.64.020 Telephone business.
(1) Upon any telephone business there is levied a tax equal to six percent of the total gross operating revenues, including revenues from intrastate toll, derived from the operation of such business within the city. The tax shall be paid monthly on or before the twentieth day of the following month. In computing the tax there shall be deducted from the revenues the following items:
(a) 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 herein;
(b) The amount of uncollectible service charges actually sustained by the telephone company;
(c) 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 state of Washington or the United States.
(2) “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 telephone, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, microwave, radio or similar communication or transmission system, including cellular telephone service. It includes cooperative or farmer-line 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.
(3) “Competitive telephone service” means the providing by any person of telephone equipment, apparatus, or service related to that equipment or apparatus, such as repair or maintenance 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. Transmission of communications through cellular telephones is classified as “telephone business” rather than “competitive telephone service.”
(4) “Cellular telephone service” means the two-way voice and data telephone/telecommunication system based in whole or substantially in part on wireless radio communications and which is not currently subject to regulation by the Washington Utilities and Transportation Commission (WUTC). Cellular telephone service 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. (Ord. 3117 § 1 (Exh. A), 2018; Ord. 3041 § 1, 2016; Ord. 2861 §§ 1, 2, 3, 2011; Ord. 1975 § 1, 1993; Ord. 1740 §§ 1, 2, 1989; Ord. 1754 § 1, 1990; Ord. 1214, 1981; Ord. 1209, 1981; Ord. 882 § 2, 1975).
3.64.030 Sale of gases.
Upon any business engaged in the sale of artificial, natural or mixed gases, there is levied a tax equal to five percent of the total gross monthly service charge billed to business and residence customers within the corporate limits of the city, exclusive of moneys collected by such business for reimbursement of such tax. The tax shall be paid monthly on or before the twentieth day of the following month. In computing the tax, there shall be deducted from the revenues the amount of any uncollectible service charges actually sustained by the taxpayer. (Ord. 1975 § 3, 1993; Ord. 1754 § 2, 1990; Ord. 1230, 1982; Ord. 882 § 3, 1975).
3.64.040 Sale of electricity.
Upon every business engaged in the sale of electricity, including a public utility district, there is levied a tax equal to five percent of the total gross monthly service charges billed to business and residence customers within the corporate limits of the city. The tax shall be payable monthly on or before the twentieth day of the following month. In computing the tax, there shall be deducted from the revenues the amount of any uncollectible service charges actually sustained by the taxpayer. (Ord. 1975 § 3, 1993; Ord. 1754 § 3, 1990; Ord. 1263, 1982; Ord. 882 § 4, 1975).
3.64.060 Tax rebate – Eligibility conditions.
The occupant of a dwelling unit in the city of Marysville shall be eligible for a 100 percent utility tax rebate under the following conditions:
(1) The dwelling unit must have been occupied by the person claiming the rebate as a principal place of residence through the term for which the rebate is claimed.
(2) The person claiming the rebate must be the head of the household for the dwelling unit in question.
(3) The utility account must be in the name of the person claiming the rebate.
(4) The utility accounts must have been paid in full by the person claiming the rebate throughout the period for which the claim is filed.
(5) No person may claim a rebate for more than one dwelling unit during the same period.
(6) The person claiming the rebate must have been qualified in one of the following categories throughout the period for which the rebate is claimed:
(a) Low-Income Senior Citizen. “Low-income senior citizen” means a person who is 62 years of age or older and whose total income, including that of his or her spouse or cotenant, does not exceed the amount specified in RCW 84.36.381(5)(b), as now or hereafter amended.
(b) Low-Income Disabled Citizen. “Low-income disabled citizen” means:
(i) A person qualifying for special parking privileges under RCW 46.16.381(1)(a) through (f);
(ii) A blind person as defined in RCW 74.18.020; or
(iii) A disabled, handicapped or incapacitated person as defined under any other existing state or federal program and whose income, including that of his or her spouse or cotenant, does not exceed the amount specified in RCW 70.164.020 (4). (Ord. 1787 § 1, 1990; Ord. 1634 §§ 1, 2, 1988; Ord. 1338 § 1, 1984; Ord. 1333 §§ 1, 2, 1984; Ord. 1108 § 1, 1980).
3.64.070 Tax rebate – Claim procedure.
(1) Claims for utility tax rebates shall be made annually, and filed between January 2nd and February 28th of the year following the period for which the rebate is claimed. Claims shall be filed on forms prescribed and furnished by the city clerk. Said forms shall require the claimant to certify his or her eligibility under this chapter. The claimant shall attach proof of all utility taxes which qualify for a rebate and which were paid by him or her during the preceding calendar year. Upon being satisfied that a claim is in compliance with this chapter, the city treasurer shall issue a warrant payable to the claimant for 100 percent of the utility taxes paid during the claim period.
(2) In the event that a person qualifying for a utility tax rebate under this chapter resides in a dwelling unit which is not issued individual billing statements from the utility companies, or in the event that a qualified claimant, for good cause, cannot produce proof of the exact amount of utility taxes paid during the claim period, the city administrator shall be authorized to estimate the amount of rebate owed, based upon utility taxes paid by other persons in similar circumstances. (Ord. 1108 § 2, 1980).
3.64.080 Tax rebate – False claim – Penalty.
Upon determination by the city administrator that any person has knowingly filed a false claim for a utility tax rebate, the claim shall be denied, and such person, and all other persons residing in his or her dwelling unit, shall forfeit their eligibility for utility tax rebates. (Ord. 1108 § 3, 1980).
3.64.090 Tax rebate – Effective date.
The utility tax rebate provided for in this chapter shall apply to all utility taxes paid on or after January 1, 1980. The first filing period for claims shall open on January 2, 1981. (Ord. 1108 § 4, 1980).
3.64.100 Applicability.
The procedures for appeal established by MMC 3.64.110 through 3.64.150 shall apply to all utility taxes imposed by the city of Marysville. (Ord. 2362 § 1, 2001).
3.64.110 Administrative appeal for taxes assessed, due or to be paid after the effective date of MMC 3.64.110 through 3.64.150.
Any taxpayer aggrieved by the amount of the fee or tax assessed or found due by the city finance director or his designee after the effective date of the ordinance codified in this section may file a written appeal with the city clerk requesting a hearing before the city hearing examiner established under Chapter 22G.060 MMC whose duties are hereby expanded consistent with this section. The appeal must be filed within 20 days from the date such taxpayer was given notice of the fee or tax assessed or found due. The city clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal. A notice of the time and place of the appeal shall be mailed to the taxpayer. The hearing shall be conducted in accordance with the procedures established by the hearing examiner, including any rules as may be adopted in accordance with MMC 3.64.130. The hearing examiner may reverse, affirm or modify any action of the finance director or his designee and ascertain the correct amount of the tax assessed or due in accordance with this chapter and general law. The hearing examiner’s decision shall be in writing, supported by findings of fact and conclusions of law, and shall be issued within 20 days of the conclusion of the hearing. The decision of the hearing examiner, subject to any appeal to court as provided for herein, shall be final. During the appeal, interest on any taxes owed and unpaid will continue to accrue until payment is received. The taxpayer may stop the accrual of interest by paying the tax, and then appealing the tax. If the taxpayer pays the tax, and then prevails on appeal, any part of the tax paid but found not owing will be refunded, plus any interest which has accrued on such funds. If no such written appeal as provided for herein is filed within the 30-day period, the tax shall be final and be due in accordance with the other provisions of this chapter for the payment and collection of fees and taxes.
The hearing examiner shall have the authority to require the attendance of witnesses, by subpoena, and to direct that any person appear and produce pertinent books and records for inspection. Any person served with such subpoena shall appear at the time and place therein stated and produce books and records as required. The city attorney is hereby authorized to enforce any subpoena issued in court as the hearing examiner may from time to time direct. (Ord. 2362 § 1, 2001).
3.64.120 Administrative appeal for refund of any tax paid prior to the effective date of MMC 3.64.110 through 3.64.150.
Unless a taxpayer shall have litigation pending against the city on the effective date of the ordinance codified in this section, any taxpayer who has paid a tax to the city prior to the effective date of the ordinance codified in this section, who claims he/she is aggrieved and asserts a refund is due, may file a written claim with the city clerk requesting a hearing before the city hearing examiner pursuant to Chapter 22G.060 MMC, whose duties are hereby expanded consistent with this section. The claim shall be deemed an appeal. The appeal shall be filed within 60 days from the effective date of the ordinance codified in this section. The city clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal. A notice of the time and place of the appeal shall be mailed to the taxpayer. The hearing shall be conducted in accordance with the procedures established by the hearing examiner, including any rules as may be adopted in accordance with MMC 3.64.130. The hearing examiner may reverse, affirm or modify any action of the city, ascertain the correct amount of the tax, and direct a refund (including interest) consistent with this chapter and general law. The hearing examiner’s decision shall be in writing, supported by findings of fact and conclusions of law, and shall be issued within 20 days of the conclusion of the hearing. The decision of the hearing examiner, subject to any appeal to court as provided for herein, shall be final.
The hearing examiner shall have the authority to require the attendance of witnesses, by subpoena, and to direct that any person appear and produce pertinent books and records for inspection. Any person served with such subpoena shall appear at the time and place therein stated and produce books and records as required. The city attorney is hereby authorized to enforce any subpoena issued in court as the hearing examiner may from time to time direct. (Ord. 2362 § 1, 2001).
3.64.130 Additional rules.
The hearing examiner shall have the power, from time to time, to adopt, publish and enforce rules consistent with the purposes of this chapter. Before such rules shall be enforced, they shall be presented to and approved by the city council by appropriate resolution. (Ord. 2362 § 1, 2001).
3.64.140 Notices.
Any notice required by this chapter to be mailed to any taxpayer shall be sent ordinary mail, postage prepaid, addressed to the address of the taxpayer as shown by the records of the city of Marysville, or if no such address is shown, to such address as the city clerk is able to ascertain by reasonable effort. Failure of the taxpayer to receive any such mailed notice shall not release the taxpayer from any tax, or any penalties, and any tax nonetheless shall become final in accordance with the provisions of this chapter. The failure to receive notice shall not operate to extend any time limit set by the provisions of this chapter. Notice shall be deemed given to the taxpayer on the fourth calendar day after the day of placement of the notice in the mail, so for example, if a notice is placed in the mail on Monday, it shall be deemed given as of the Friday of the same week. (Ord. 2362 § 1, 2001).
3.64.150 Appeals to court.
Any taxpayer, except one who has failed to file a written administrative appeal as provided for in this chapter, feeling aggrieved by the amount of the tax found owing, may appeal to the superior court of the state of Washington in and for Snohomish County within the time limitation provided by RCW Title 4. In the appeal, the taxpayer shall set forth the amount of the tax imposed which the taxpayer concedes is correct and the amount of the tax the taxpayer asserts should be reduced, abated or refunded. The notice of appeal shall be served upon the city as if original process, except that no summons shall be necessary.
The trial in the superior court on appeal shall be de novo and without the necessity of any pleadings other than the notice of appeal. The burden of proof shall rest upon the taxpayer to prove that the tax assessed, due or paid is incorrect, either in whole or in part, and to establish the correct amount of the tax assessed, due or paid. In such appeal, the taxpayer shall be the plaintiff and the city shall be the defendant. All procedures, including any further appeal, shall be in accordance with the Superior Court Civil Rules and the Rules of Appellate Procedure. (Ord. 2362 § 1, 2001).
3.64.160 Severability.
If any section, subsection, sentence, clause, phrase or word of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause, phrase or word of this chapter. (Ord. 2362 § 1, 2001).
3.64.170 Taxpayer record keeping, inspection and audit of taxpayer records, subpoena power, and agreements.
Each taxpayer shall keep records for up to six years reflecting the amount of his or her gross operating revenues on services within the city. Such records shall be open at all reasonable times for inspection and audit by the finance director or his or her duly authorized designee for verification of tax returns or for the filing of the tax of a taxpayer who fails to make a return as required by law. If taxpayer does not make records available for inspection or audit at reasonable times, or to facilitate inspection and audit, the finance director is hereby authorized to issue a subpoena to secure access to and inspection of the records, to recover records, or to secure testimony, and to take such actions necessary to enforce such subpoena, including commencement of an action in court. The finance director is also authorized to enter into an agreement with a taxpayer as necessary to secure inspection and audit, provided such agreement shall be consistent with all requirements of federal and state law, including the Public Records Act of the state of Washington and all laws of the state of Washington concerning the archiving of public documents. (Ord. 2718 § 1, 2007; Ord. 2533 § 1, 2004).
3.64.180 Penalty for delinquent payment.
If any person, firm or corporation subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax, and any tax due under this chapter which is 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. 2533 § 2, 2004).
3.64.190 Interest charge for delinquent taxes and penalties.
If any taxpayer fails, neglects or refuses to make its return as and when required herein, the designated official 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 be the tax and be immediately due and payable, together with penalty and interest. Delinquent taxes, including any penalty and interest, are subject to an interest charge of 12 percent per year on any unpaid balance from the date the tax became due as provided in MMC 3.64.020, 3.64.030, and 3.64.040 until paid. (Ord. 2533 § 3, 2004).