Chapter 5.04
UTILITY TAX
Sections:
5.04.010 Exercise of revenue-licensing powers.
5.04.020 Occupation license required.
5.04.040 Telephone businesses.
5.04.050 Coaxial cable systems.
5.04.110 Deductions from revenues.
5.04.130 Late payment penalty.
5.04.150 Extension to annexed areas.
5.04.160 Rules and regulations.
5.04.010 Exercise of revenue-licensing powers.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. (Ord. 600 § 1, 1981)
5.04.020 Occupation 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 OMC 5.04.030 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 prescribes, giving such information as the clerk-treasurer deems reasonably necessary to enable the clerk-treasurer’s office to administer and enforce this chapter; and, upon acceptance of such application by the clerk-treasurer, the clerk-treasurer shall thereupon issue such license to the applicant. Such occupation 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. 600 § 2, 1981)
5.04.030 Tax imposed.
From and after January 1, 1986, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the businesses described through OMC 5.04.090 for hire, or for sale of a commodity or a service within or partly within the corporate limits of the city, the tax for the privilege of so doing business as defined in this chapter. (Ord. 659 § 1, 1985; Ord. 608 § 1, 1982; Ord. 600 § 3, 1981)
5.04.040 Telephone businesses.
A. Upon any telephone business there shall be levied a tax equal to six percent for the calendar year of 1990, and each year thereafter, upon the total gross revenues from intrastate toll derived from the operation of such business within the city. “Gross operating revenues,” for the purpose of this chapter, 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 company of the tax imposed by this chapter.
B. As used in this section:
1. “Competitive telephone service” means the providing by any person of telephone equipment, apparatus or service, other than toll 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.
2. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone services, coin telephone services, telephonic, video, data or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. The term includes cooperative or farmer-line telephone companies or associations operating exchanges. “Telephone business” does not include the provision of competitive telephone service, provision of cable television service, or provision of other broadcast services by radio or television. (Ord. 1090 § 1, 2008; Ord. 659 § 1, 1985; Ord. 608 § 1, 1982; Ord. 600 § 3(a), 1981)
5.04.050 Coaxial cable systems.
There is levied a tax on the business of operating and maintaining a coaxial cable transcriber system for television, radio and other audio-visual electrical signal distribution in the city, for the privilege of doing such business, such tax to be equal to 10 percent of the total gross income from such business in the city; provided, however, that there shall not be included in the gross income on which such computation is made any sums received by the persons for any installation or connection work. (Ord. 600 § 3(b), 1981)
5.04.060 Electricity sales.
There is levied a tax on the sale, delivery or distribution of electricity and electrical energy, and for the privilege of carrying on that business, a tax to be equal to six percent of the total gross operating revenue derived from sales of such electricity to ultimate users within the city in 1990, and each year thereafter; provided, however, that there shall not be any tax levied for the installation charges of electrical units. (Ord. 1090 § 1, 2008; Ord. 659 § 1, 1985; Ord. 608 § 1, 1982; Ord. 600 § 3(c), 1981)
5.04.070 Water sales.
There is levied a tax on the business of selling water or for the service of water by the city, such tax being for the privilege of being allowed to carry on that business, such tax to be equal to 9.091 percent of the total gross revenues from the sale of water; provided, however, that there shall be no tax levied on installation charges for water service or hookup charges for water services. (Ord. 1020 § 1, 2005; Ord. 600 § 3(d), 1981)
5.04.080 Sewer utilities.
There is levied a tax on the business of operation and sale of services for sewer utilities by the city, the tax being for the privilege of being allowed to carry on that business, such tax to be equal to 9.091 percent of the total gross income from such business; provided, however, that no tax shall be levied on connection charges or any charges in relation to connection to the sewer system. (Ord. 1020 § 1, 2005; Ord. 600 § 3(e), 1981)
5.04.090 Garbage disposal.
There is levied a tax on the business of collection of garbage and garbage disposal service in the city, the tax being for the privilege of carrying on that business in this city, such tax to be equal to 9.091 percent of the gross income from the business. (Ord. 1020 § 1, 2005; Ord. 600 § 3(f), 1981)
5.04.100 Monthly payment.
The tax imposed by this chapter shall be due and payable on a monthly basis from the gross revenue as defined in this chapter and remittance shall be made on or before the thirtieth day of the month next succeeding the end of the monthly period in which the tax accrued. The first payment made under the ordinance codified in this chapter shall be made by February 29, 1982, for the period ending January 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 reasonably requires, together with the payment of the amount of the tax; provided, however, that if reason is shown that it would be to the convenience of the taxpayer to file returns on a different schedule than monthly, then the taxpayer may apply in writing to the city council for permission to file returns other than on a monthly basis. Then the city council may provide a different schedule of filing returns by such taxpayer. (Ord. 600 § 4, 1981)
5.04.110 Deductions from revenues.
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 Constitution of the United States or the Constitution of the state;
C. Amounts derived by the taxpayer from the city. (Ord. 600 § 5, 1981)
5.04.120 Records of taxpayer.
Each taxpayer shall keep records reflecting the amount of his gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk-treasurer, or his 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. 600 § 6, 1981)
5.04.130 Late payment penalty.
If any person, firm or corporation subject to this chapter fails to pay any tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 20 percent of the amount of such tax, and any tax due under this chapter and 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. 600 § 7, 1981)
5.04.140 Credits and refunds.
Any money paid to the city through error or otherwise not in payment of the tax imposed by this chapter or in excess of such tax shall, upon request of the taxpayer, be credited against any tax due or to become due from such taxpayer under this chapter or, upon the taxpayer’s ceasing to do business in the city be refunded to the taxpayer. (Ord. 600 § 8, 1981)
5.04.150 Extension to annexed areas.
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 of the city. (Ord. 600 § 8, 1981)
5.04.160 Rules and regulations.
The city council is authorized to adopt, publish and enforce, from time to time, such rules and regulations for the proper administration of this chapter as are necessary, and it is a violation of this chapter to violate or fail to comply with any such rule or regulation lawfully promulgated under this chapter. (Ord. 600 § 10, 1981)