Chapter 3.12
UTILITY BUSINESS AND OCCUPATION TAX
Sections:
3.12.100 Rules and regulations adoption.
3.12.010 Authority.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. (Ord. 616 § 1, 1981)
3.12.020 License required.
After January 1, 1982, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by NMC 3.12.030 without first having obtained, and being the holder of, a license so to do, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the city clerk/treasurer for such license upon such forms as the clerk/treasurer shall prescribe, giving such information as the clerk/treasurer shall deem reasonably necessary to enable the clerk/treasurer’s office to administer and enforce this chapter; and, upon acceptance of the application by the clerk/treasurer, the clerk/treasurer shall thereupon issue the license to the applicant. The occupational license shall be personal and nontransferable and shall be valid as long as the licensee continues in the business and complies with this chapter. (Ord. 616 § 2, 1981)
3.12.030 Levied.
There is hereby levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city of Newport a tax, to be known as a “utility tax” for the privilege of so doing business as herein defined, to wit:
A. Upon any telephone business there shall be levied a tax equal to the percentage set forth in the city’s current fee schedule, of the total gross operating revenues, including revenues from intrastate toll, derived from the operation of such business with the city of Newport. Gross operating revenues for this purpose shall not include 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 business of the tax imposed by this section nor shall gross operating revenues include that portion of network telephone service which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale, or charges for mobile telecommunications services provided to customers whose place of primary use is not within the city.
1. “Telephone business” as used in this chapter means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone service, or providing telephone video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, or similar communication or transmission system. It includes cooperative or farmer-line telephone companies or associations operating an exchange. “Telephone business” does not include the providing of competitive telephone service as defined below.
2. “Competitive telephone service” as used in this chapter means the providing by any person, firm or corporation of telephone equipment, apparatus, or service, other than toll service, which is of a type which can be provided by persons, firms or corporations that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.
B. There is hereby levied a tax on the sale, delivery or distribution of electricity and electrical energy and for the privilege of carrying on said business, such tax to be equal to the percentage set forth in the city’s current fee schedule, of the total gross operating revenues derived from sales of such electricity to ultimate users within the city of Newport; provided, however, that there shall not be any tax levied for the installation charges of electrical units.
C. There is hereby levied a tax on the sale of natural, manufactured or mixed gas for residential, commercial or industrial consumption and for the privilege of carrying on said business, such tax to be equal to the percentage set forth in the city’s current fee schedule, of the gross operating revenues from such sales of natural, manufactured or mixed gas within the limits of the city of Newport.
D. Upon the sale, delivery, distribution or furnishing of water for domestic, business or industrial consumption, effective January 1, 2011, a tax equal to the percentage set forth in the city’s current fee schedule, of the total gross income from such sales, of which four percent is for fire protection costs; provided, that there shall not be a tax levied upon installation charges for individual consumer water service lines and meters.
E. Upon the furnishing of sanitary sewerage collection and disposal services for discharge by domestic, business or industrial customers, a tax equal to the percentage set forth in the city’s current fee schedule, of the total gross income from such business; provided, that there shall not be any tax levied upon installation charges for individual customer sewer laterals and connections.
F. Upon every person, firm or corporation engaged in or carrying on the business of solid waste collection, hauling and disposal, a tax equal to the percentage set forth in the city’s current fee schedule, of the total gross income from such business in the city. (Ord. 2009 § 1(18), 2014; Ord. 1065 § 1, 2010; Ord. 1050 § 1, 2008; Ord. 1023 § 2, 2005; Ord. 964 § 1, 2002; Ord. 616 § 3, 1981)
3.12.040 Payment dates.
A. The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrued. The quarterly periods are fixed as follows:
1. First quarter, January, February and March;
2. Second quarter, April, May and June;
3. Third quarter, July, August and September; and
4. Fourth quarter, October, November and December.
B. The first payment due under this chapter shall be made by April 30, 1982, for the three-month period ending March 31, 1982. On or before the due date the taxpayer shall file with the city clerk/treasurer a written return, upon such form and setting forth such information as the clerk/treasurer shall reasonably require, together with the payment of the amount of the tax. (Ord. 616 § 4, 1981)
3.12.050 Deductions.
In computing the tax there shall be deducted from the gross operating revenues the following items:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. 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 United States or the state of Washington; and
C. Amounts derived by the taxpayer from the city. (Ord. 616 § 5, 1981)
3.12.060 Recordkeeping.
Each taxpayer shall keep records reflecting the amount of his or its gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk/treasurer, or his or her duly authorized subordinates, for verification of the tax returns or for the fixing of the tax of a taxpayer who fails to make such returns. (Ord. 616 § 6, 1981)
3.12.070 Delinquency penalty.
If any person, firm or corporation subject to this chapter fails to pay any tax required by this chapter within the time prescribed as the due date thereof, there shall be added to the tax a penalty of 10 percent of the amount of the tax, and any tax due under the terms of this chapter and unpaid, and all penalties thereon, shall constitute a debt due the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 616 § 7, 1981)
3.12.080 Overpayments.
Any money paid to the city through error or otherwise not in payment of the tax imposed by this chapter or in excess of the tax shall, upon request of the taxpayer, be credited against any tax due or to become due from the taxpayer under this chapter or, upon the taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. (Ord. 616 § 8, 1981)
3.12.090 Annexed territory.
Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the city. (Ord. 616 § 9, 1981)
3.12.100 Rules and regulations adoption.
The city clerk/treasurer is authorized to adopt, publish and enforce, from time to time, such rules and regulations for the proper administration of this chapter as shall be necessary, and it shall be a violation of this chapter to violate or to fail to comply with any such rule or regulation lawfully promulgated under this chapter. (Ord. 616 § 11, 1981)