Chapter 5.06
OCCUPATION TAX ON UTILITY ACTIVITY
Sections:
5.06.010 Exercise of revenue license power.
5.06.020 Registration/business license required.
5.06.040 Persons subject to tax – Amount.
5.06.070 Solid waste collection.
5.06.100 Wireless telephone and pager services.
5.06.110 Water and sewer services.
5.06.140 Underpayment of tax, interest, and penalty.
5.06.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city of North Bend to license and/or tax for revenue the privilege of engaging in businesses in the city of North Bend. (Ord. 1209 § 1 (part), 2003).
5.06.020 Registration/business license required.
No person shall engage in or carry on any business occupation, pursuit, or privilege for which a license fee or tax is imposed by this chapter without having first obtained, and being a holder of, a valid registration/business license as provided under NBMC 5.04.015. (Ord. 1498 § 1 (Exh. A (part)), 2013: Ord. 1209 § 1 (part), 2003).
5.06.030 Definitions.
In construing the provisions of this chapter, unless otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
“Gross income” means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of investment of capital in the business engaged in, including rentals, royalties, fees, or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like), and without any deduction on the account of the cost of the property sold, the cost of materials used, labor cost, interest or discount paid, taxes, or any expense whatsoever, and without any deduction on account of losses.
“Taxpayer” means any person liable for the license fee or tax imposed by this chapter. (Ord. 1209 § 1 (part), 2003).
5.06.040 Persons subject to tax – Amount.
There is hereby levied upon and there shall be collected from every taxpayer engaging in or carrying on a cable, electricity, solid waste collection, natural gas, telephone, wireless telephone business or water and sewage service, a fee or tax equal to the percentage identified in each individual section of this chapter on the total gross income from such business activity conducted within the city of North Bend, as indicated by billing and/or charges to North Bend customers. If the taxable proceeds from a utility business are less than $150.00 per quarter, there shall be no tax due from the taxpayer. If the taxable proceeds from a utility business are less than $5,000 per year, the taxpayer may elect to pay the tax on an annual basis. (Ord. 1209 § 1 (part), 2003).
5.06.050 Cable.
“Cable business” means the activity of transmitting television signals by means of a satellite or cable distribution system.
The rate of tax imposed by this chapter on businesses providing cable service, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the gross income from the cable business derived from cable service provided to customers residing within the city of North Bend as outlined in the franchise agreement between the city of North Bend and the television cable provider. (Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.060 Electricity.
“Electricity business” means the business of producing, transmitting, distributing, or selling electricity.
The rate of tax imposed by this chapter on businesses engaged in electricity business, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the total gross income from such business conducted within the city of North Bend. (Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.070 Solid waste collection.
“Solid waste collection services” means receiving solid waste for transfer, processing, treatment, storage, or disposal including, but not limited to, all collection services, public or private dumps, transfer stations, and similar operations.
“Solid waste” means garbage, trash, rubbish, or other materials discarded as worthless or not economically viable for further use, infectious, hazardous, or toxic wastes, and recyclable or reusable materials collected, in whole or part, for recycling or salvage.
The rate of tax imposed by this chapter on businesses engaged in the business of solid waste collection service, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the total gross income from such business conducted within the city of North Bend. (Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.080 Natural gas.
“Natural gas” means the business of transmitting, distributing, and selling natural gas.
The rate of tax imposed by this chapter on businesses engaged in the natural gas business, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the total gross income from such business conducted within the city of North Bend. (Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.090 Telephone business.
“Competitive telephone services” means the provision by any person of telecommunications equipment or apparatus, such as a repair or maintenance service, if the equipment or apparatus is of a type, which can be provided by persons who are not subject to regulation as telephone companies under RCW Title 80, and for which a separate charge is made.
“Network telephone services” means the provision by any person of access to a telephone network, telephone network switching service, toll service, or provision 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 transmitting to and from the site of an Internet service provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmitting system. It also encompasses interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. Network telephone service does not include a provision of competitive telephone service, or the provision of cable television service, or the provision 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.
“Telephone business” means the provision of network telephone services, as defined in this section. It includes cooperatives or farmer line telephone companies or associations. Telephone business shall include 100 percent of the toll service fees from calls originating and/or billed to subscribers within the city of North Bend.
The rate of tax imposed by this chapter on businesses engaged in the telephone business, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the total gross income from such business conducted within the city of North Bend.
Competitive telephone service as hereinabove defined shall be taxed as a retail sale under Chapter 5.04 NBMC.
Internet access providers (“ISP”) shall not be deemed to be a “telephone business.” (Ord. 1498 § 1 (Exh. A (part)), 2013: Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.100 Wireless telephone and pager services.
“Wireless telephone services” is a two-way voice or data telephone/telecommunications system based in whole, or substantially in part, on wireless radio communications, and which is not subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communication services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology, which accomplishes a purpose similar to cellular mobile service.
“Pager services” means service provided by means of an electronic device, which has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission.
“Allocation of income by service address” means payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customers principal service address during the period for which a tax applies.
There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.
The rate of tax imposed by this chapter on businesses engaged in a wireless telephone or pager service business, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the total gross income from such business. (Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.110 Water and sewer services.
“Water and sewer services” means the selling or furnishing of water and the furnishing of sewage services to customers in the city of North Bend.
The rate of tax imposed by this chapter on businesses engaged in water and sewer services, as established by the taxes, rates and fees schedule adopted by ordinance, shall be levied against the total gross income from such business conducted within the city of North Bend. (Ord. 1237 § 3 (part), 2005: Ord. 1209 § 1 (part), 2003).
5.06.120 Method of payment.
The fee or tax imposed by this chapter shall be due and payable in reporting periods as outlined in NBMC 5.05.040. (Ord. 1498 § 1 (Exh. A (part)), 2013: Ord. 1209 § 1 (part), 2003).
5.06.130 Deductions.
A. There may be deducted from the total gross income, upon which the fee or tax is computed, revenues derived from business which the city is prohibited from taxing under the Constitutions or laws of the state of Washington or the United States or any ordinance of the city.
B. There may be deducted from the total gross income upon which the fee or tax is computed the amount of state excise taxes imposed directly upon persons using the utility services and collected in trust for payment to the state by the utility company.
C. Activities identified in NBMC 5.06.090 and 5.06.100 may deduct:
1. That portion of the gross income derived from 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.
2. Charges by a taxpayer engaging in a telephone business to a telecommunications company, as in RCW 80.04.010, for telephone service, which the purchaser buys for the purpose of resale.
3. Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was not properly a debt of a customer.
4. Wireless companies that keep their regular books of account on an accrual basis, for credit losses actually sustained by a taxpayer.
D. The tax imposed in NBMC 5.06.050 on cable business shall be offset by any franchise fee paid by a cable business, but only to the extent authorized by the North Bend Municipal Code. (Ord. 1498 § 1 (Exh. A (part)), 2013: Ord. 1209 § 1 (part), 2003).
5.06.140 Underpayment of tax, interest, and penalty.
A. If upon examination of any returns, or from other information obtained by the finance director, it appears that a tax or penalty less than that properly due has been paid, the finance director shall assess the additional amount found to be due and shall add thereto interest on the tax only. The finance director shall notify the person by mail of the additional amount, which shall become due and shall be paid within 30 days from the date of the notice, or within such time as the finance director may provide in writing.
B. For the purpose of this chapter the rate of interest that may be charged shall be one percent per month of all taxes and fees due.
C. The finance director shall not assess, or collect an assessment for, additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were due, except that the finance director may issue an assessment:
1. Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing 10 years prior to the close of the calendar year in which the person was contacted in writing by the finance director;
2. Against a person that has committed fraud or who misrepresented a material fact; or
3. Against a person that has executed a written waiver of such limitations.
D. Penalties will be assessed at the rate identified in NBMC 5.05.110. (Ord. 1505 § 2 (part), 2013; Ord. 1498 § 1 (Exh. A (part)), 2013: Ord. 1426 § 4 (part), 2011; Ord. 1209 § 1 (part), 2003).
5.06.150 Overpayment of tax.
A. If, upon receipt of an application for refund, or during an audit or examination of the taxpayer’s records and tax returns, the finance director determines that the amount of tax penalty or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer’s account or shall be refunded to the taxpayer. Except as provided in subsection B of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than one year prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.
B. The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the finance director discovers that a refund or credit is due.
C. Refunds shall be made by means of voucher approved by the finance director and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide.
D. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or cost paid by any person shall be paid in the same manner as provided in subsection C of this section upon the filing with the finance director a certified copy of the order or judgment of the court.
E. For refunds or credits of amounts paid or the recovery allowed to a taxpayer, the city shall pay no interest. (Ord. 1505 § 2 (part), 2013; Ord. 1426 § 4 (part), 2011; Ord. 1209 § 1 (part), 2003).
5.06.160 Administrative provisions of Chapter 5.05 NBMC which apply to the provisions of this chapter in its entirety.
The following sections of Chapter 5.05 NBMC shall apply in their entirety to this chapter:
A. NBMC 5.05.020, Definitions.
B. NBMC 5.05.040, When due and payable – Reporting periods – Monthly or quarterly – Threshold provisions or relief from filing requirements – Computing time periods – Failure to file returns.
C. NBMC 5.05.050, Payment methods – Mailing returns or remittances – Time extension – Deposits – Recording – Payments – Payment must accompany return – NSF checks.
D. NBMC 5.05.060, Records to be preserved – Examination – Estoppel to question assessment. Any business selling or furnishing water or sewer services to customers in the city of North Bend shall provide monthly records of water usage data in form and content acceptable to the city.
E. NBMC 5.05.070, Accounting methods.
F. NBMC 5.05.110, Late payment – Disregard of written instructions – Evasion – Penalties.
G. NBMC 5.05.120, Cancellation of penalties.
H. NBMC 5.05.130, Taxpayer quitting business – Liability of successor.
I. NBMC 5.05.140, Administrative appeal.
J. NBMC 5.05.150, Judicial review of administrative appeal decision.
K. NBMC 5.05.160, Director to make rules.
L. NBMC 5.05.180, Mailing of notices.
M. NBMC 5.05.190, Tax declared additional.
N. NBMC 5.05.200, Public disclosure – Confidentiality – Information sharing.
O. NBMC 5.05.210, Tax constitutes debt.
P. NBMC 5.05.220, Unlawful actions – Violation – Penalties.
Q. NBMC 5.05.230, Suspension or revocation of business license.
R. NBMC 5.05.240, Closing agreement provisions.
S. NBMC 5.05.250, Charge-off of uncollectible taxes. (Ord. 1729 § 3, 2020; Ord. 1505 § 2 (part), 2013; Ord. 1498 § 1 (Exh. A (part)), 2013: Ord. 1426 § 4 (part), 2011; Ord. 1209 § 1 (part), 2003).