Chapter 4.28
Gross Revenue Tax
Sections:
4.28.020 Tax levied on certain businesses.
4.28.040 Exceptions and deductions.
4.28.050 Penalty for failure to pay.
4.28.060 Authority to enter into agreements.
4.28.070 License fee or tax payable in monthly installments.
4.28.080 Clerk-controller's duties.
4.28.010 Definitions.
In construing the provisions of this chapter, save when otherwise plainly declared or clearly apparent from the context of the term as used in a particular provision, the terms hereinafter defined shall have the meanings established:
(a) "Person" or "persons" means persons of either sex, firms, copartnerships, corporations, joint ventures, limited liability companies, or other associations of natural persons whether acting by themselves or by servants, agents or employees.
(b) "City clerk" or "clerk" means the individual serving as the clerk-controller of the city.
(c) The following definitions shall apply in relation to telephone service, provided that, in the event that any subsequent enactment of the legislature amends any of the definitions set forth below, that amendment shall be deemed to be adopted by reference:
(1) "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made.
(2) "Network telephone service" means the providing by any person of access to a telephone network, telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" includes the provision of transmission to and from the site of an Internet provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" does not include the providing of competitive telephone service, the providing of cable television service, the providing of broadcast services by radio or television stations, nor the provision of internet service as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the internet service provider.
(3) "Telephone service" means competitive telephone service or network telephone service, or both, as defined in subsections (1) and (2) of this section.
(4) "Telephone business" means the business of providing network telephone service, as defined in subsection (2) of this section. It includes cooperative or farmer line telephone companies or associations operating an exchange.
(5) "Charges for mobile telecommunications services" means any charge for, or associated with, the provision of commercial mobile radio service, as defined in Section 20.3, Title 47 C.F.R. as in effect on June 1,
1999, or any charge for, or associated with, a service provided as an adjunct to a commercial mobile radio service, regardless of whether individual transmissions originate or terminate within the licensed service area of the mobile telecommunications service provider.
(6) "Customer" means: (A) The person or entity that contracts with the home service provider for mobile telecommunications services; or (B) the end user of the mobile telecommunications service, if the end user of mobile telecommunications services is not the contracting party, but this subsection (6)(B) applies only for the purpose of determining the place of primary use. The term does not include the seller of mobile telecommunications service, or a serving carrier under an arrangement to serve the customer outside the home service provider's licensed service area.
(7) "Designated data base provider" means a person, entity, agency, or association representing all the political subdivisions of the state that is:
(A) Responsible for providing an electronic data base prescribed in 4 U.S.C. Sec. 119(a) if the state has not provided an electronic data base; and
(B) Approved by municipal and county associations of the state whose responsibility it would otherwise be to provide a data base prescribed by 4 U.S.C. Secs. 116 through 126.
(8) "Enhanced zip code" means a United States postal zip code of nine or more digits.
(9) "Home service provider" means the facilities-based carrier or reseller with whom the customer contracts for the provision of mobile telecommunications services.
(10) "Licensed service area" means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.
(11) "Mobile telecommunications service" means commercial mobile radio service, as defined in Section 20.3, Title 47 C.F.R. as in effect on June 1, 1999.
(12) "Mobile telecommunications service provider" means a home service provider or a serving carrier.
(13) "Place of primary use" means the street address representative of where the customer's use of the mobile telecommunications service primarily occurs, which must be:
(A) The residential street address or the primary business street address of the customer; and
(B) Within the licensed service area of the home service provider.
(14) "Prepaid telephone calling service" means the right to purchase exclusively telecommunications services that must be paid for in advance, that enables the origination of calls using an access number, authorization code, or both, whether manually or electronically dialed, if the remaining amount of units of service that have been prepaid is known by the provider of the prepaid service on a continuous basis.
(15) "Reseller" means a provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service. "Reseller" does not include a serving carrier with whom a home service provider arranges for the services to its customers outside the home service provider's licensed service area.
(16) "Serving carrier" means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider's or reseller's licensed service area.
(d) "Taxing jurisdiction" means the city to the extent it has the authority to impose a tax, charge, or fee upon the services covered under the definitions set forth within this section.
(e) "Utility" means any entity, whether public or private, which is in the business of operating and/or provides to customers within the corporate limits stormwater, solid waste pick up and disposal, sewerage, water service, telephone service, selling or furnishing natural or manufactured gas for domestic or industrial consumption, cable vision, or light and power.
(f) "Cable system" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term does not include (1) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control, or management, unless such facility or facilities uses any public right-of-way; (3) a facility of a common carrier which is subject, in whole or in part, to the provisions of Section 4.28.020 of this chapter, except that such facility shall be considered a cable system (other than for purposes of 47 U.S.C. Sec. 541(c)) to the extent such facility is used in the transmission of video programming directly to subscribers; or (4) any facilities of any electric utility used solely for operating its electric utility system. (Ord. 1473 §1, 2004: Ord. 1461 §§1, 2, 2003: Ord. 1177 §1, 1982: Ord. 849 §1, 1964).
4.28.020 Tax levied on certain businesses.
There is levied and there shall be collected from the following persons doing business within the city a tax in the amount to be determined by the application of the rates against gross revenue as follows:
(1) Upon every person engaged in providing a telephone service, as defined in Section 4.28.010, a tax determined as follows, such tax calculation to be subject to the provisions of and such restrictions as may from time to time be set forth in RCW 35A.82.060:
(A) As to all telephone service other than mobile telecommunications service, a tax equal to six percent of the total gross proceeds of sales calculated in the manner required by Section 3 of Chapter 67, Laws of 2002, to be codified in Chapter 82.04 RCW, as now existing or hereafter amended or succeeded;
(B) As to all mobile telecommunications service, a tax equal to six percent of the total gross proceeds of sales calculated in the manner required by Section 4 of Chapter 67, Laws of 2002, to be codified in Chapter 82.04 RCW, as now existing or hereafter amended or succeeded. For the purposes of this chapter, mobile telecommunications services are deemed to have occurred at the location established pursuant to Section 5 of Chapter 67, Laws of 2002, to be codified in Chapter 82.08 RCW, as that section may be hereafter amended or succeeded, it being the intent to be consistent with the Mobile Telecommunications Sourcing Act, P.L. 106-252, 4 U.S.C. Secs. 116 through 126;
(2) Upon every person engaged in or carrying on the business of selling or furnishing natural or manufactured gas for domestic or industrial consumption, a tax equal to six percent of the total gross revenue derived from such business in the city;
(3) Upon every person engaged in or carrying on the business of selling or furnishing electric lights and power, or electrical energy, a tax equal to six percent of the total gross revenue derived from such business in the city;
(4) Upon every person engaged in or carrying on a television cable business, a tax equal to six percent of the total gross revenue derived from such business in the city;
(5) A public utility engaged in the furnishing of water or sanitary sewer service to the city and its inhabitants, commercial and business enterprises, or other outlets of its services is taxed eight and one-half percent of its gross income derived within the city, which shall be paid by such utility into the treasury of the city each and every month;
(6) A utility engaged in the furnishing of service of solid waste pick-up and disposal to the city and its inhabitants, commercial and business enterprises, or other outlets of its services is taxed six percent of its gross income derived within the city, which shall be paid by such utility into the treasury of the city each and every month commencing on the first day of February, 2010, as to services rendered after that date. (Ord. 1598 §1, 2016: Ord. 1538 §1, 2009: Ord. 1522 §1, 2008: Ord. 1473 §2, 2004: Ord. 1468-B §1,2003: Ord. 1461 §3, 2003: Ord. 1232 §1, 1985: Ord. 1177 §2, 1982: Ord. 942 §1, 1972: Ord. 849 §2, 1964).
4.28.030 Payment of tax. Repealed.
(Ord. 1461 §7, 2003: Ord. 849 §3, 1964).
4.28.040 Exceptions and deductions.
There shall be excepted and deducted from the total gross income upon which the tax is computed and before the computation of the tax so much as is derived from business done for the government of the United States, its officers and agents, and any amount paid by the taxpayer to the United States, the state of Washington, or the city, as excise taxes levied or imposed upon the sale or distribution of property or services.
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 United States, or which would not be consistent with the Constitution or laws of the state of Washington.
Any person subject to the payment of a license fee or tax under the provisions of any ordinance of the city, other than as required in this chapter, on account of engaging in any activity for which he is liable to tax, may deduct the amount of the fee or tax imposed by this chapter on account of such activity except when the tax herein imposed is paid by the customer. (Ord. 849 §4, 1964).
4.28.050 Penalty for failure to pay.
Any person or firm failing to make a return or pay the tax as herein provided shall pay a penalty of twenty-five percent of the tax in addition to the tax and interest on the delinquent payments of ten percent per annum. And in case of failure of the person or firm to pay the tax, the city attorney shall proceed to collect the tax, penalty and interest. (Ord. 1177 §3, 1982: Ord. 849 §5, 1964).
4.28.060 Authority to enter into agreements.
In enacting Sections 4.28.010 and 4.28.020 of this chapter, it is the intention of the city to fully exercise the authority granted to it by RCW 35A.82.060 and Chapter 67, Laws of 2002, including but not limited, to Sections 11 through 15 inclusive. In so doing, the city may enter into such agreements with the state, other municipal corporations, or the government of the United States of America as may facilitate such exercise. (Ord. 1461 §4, 2003).
4.28.070 License fee or tax payable in monthly installments.
The license fee or tax imposed by this chapter shall be due and payable in monthly installments, and remittance therefor shall be made to the office of the clerk-controller on or before the fifteenth day of the month next succeeding the end of the monthly period in which the tax accrued. Effective January 1, 2003, businesses with tax due of less than five hundred dollars ($500.00) per month, as indicated by billings or charges to city customers, may pay the license fee or tax imposed by this chapter in quarterly installments and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the quarterly period in which the tax accrued; that is, on October 25th, January 25th, March 25th, and July 25th of each year. "Quarterly period" shall mean a three-month period beginning the first day of the following months: January, April, July, and October. (Ord. 1461 §5, 2003).
4.28.080 Clerk-controller's duties.
A. The clerk-controller shall have the authority to develop and issue such rules and regulations as may be necessary to administer the provisions of this chapter. Any such rule or regulation shall be submitted in writing to the council no less than thirty calendar days prior to its anticipated effective date. If during that period the council either rejects or suspends the effective date, the rule or regulation shall not go into effect until approval by the council. In the event of no action by the council, the regulation shall go into effect upon the date set by the clerk-controller; provided that, the clerk-controller may propose and the council may authorize an effective date earlier than the thirty days otherwise required.
B. Such rules and regulations issued by the clerk-controller as go into effect shall be kept on file in the office of the clerk-controller or at such other location within the city's offices as the clerk-controller may authorize. They shall be available to the public upon request. (Ord. 1461 §6, 2003).