Chapter 5.84
UTILITY SERVICES TAX

Sections:

5.84.010    Definitions.

5.84.020    Exercise of power to license for revenue.

5.84.030    Occupation license required.

5.84.040    Term of license.

5.84.050    Occupations subject to tax--Amount.

5.84.060    Interstate, foreign and governmental commerce exempt.

5.84.070    Annual application for license.

5.84.080    Tax due quarterly.

5.84.090    Effective date of rate change.

5.84.110    Tax due upon transfer.

5.84.115    Use tax on the privilege of using natural gas or manufactured gas as a consumer.

5.84.120    Records--Inspection--Information confidential.

5.84.130    Investigation of records--Examination under oath.

5.84.140    Overpayment and underpayment.

5.84.150    Delinquent payments--Collection.

5.84.160    Appeal from tax determination.

5.84.170    Power to promulgate regulations.

5.84.180    Failure to apply or pay, evasion, false testimony unlawful.

5.84.190    Violations -- Misdemeanor -- Gross Misdemeanor -- Civil Infraction.

5.84.010 - Definitions

In construing the provisions of this chapter, save when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:

A.    "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 the 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 account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses; provided, that gross income for this purpose shall not include charges which are passed on to the subscribers by a utility company to compensate same for the cost to the company of the tax imposed by this chapter.

A deduction from gross income shall be allowed to cellular telephone service companies who keep their books on an accrual basis for credit losses, including losses to fraud, other than fraud by employees or agents of the telephone service company.

B.    "Person" or "persons" means persons of either sex, firms, copartnerships, corporations, and other associations of natural persons, whether acting by themselves or by servants, agents or employees.

C.    "Taxpayer" means any person liable to the license fee or tax imposed by this chapter.

D.    "Tax year" or "taxable year" means the year commencing January 1st, and ending on the thirty-first day of December of the same year, or in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk-treasurer to use the same as the tax period.

E.    "Telephone business" means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone service, 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. It further indicates cooperative or farmer line telephone companies or associations operating an exchange. "Telephone business" does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio or television stations.

F.    "Cellular telephone service" means a two-way voice and 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 communications 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.

G.    "Network telephone service" means the providing by any person of access to a local telephone network, local 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 local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state. "Network telephone service" does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio or television stations.

H.    "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 RCW Title 80 and for which a separate charge is made.

(Ord. 5566 §1, 1995; Ord. 2258 §2, 1935).

5.84.020 - Exercise of power to license for revenue

The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue.

(Ord. 2258 §1, 1935).

5.84.030 - Occupation license required

A.    After the first day of November, 1935, 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 the holder of, a valid and subsisting license to do so to be known as an occupation license; provided, that the city of Olympia is exempt from this license requirement if it engages in any occupation covered by this chapter.

B.    Any person engaging in, or carrying on, more than one such business, occupation, pursuit or privilege, shall pay the license tax so imposed upon each of the same.

C.    Any taxpayer who engages in, or carries on, any business subject to tax under this chapter, without having his occupation license to do so, shall be guilty of a violation of this chapter for each day during which the business is so engaged in or carried on, and any taxpayer who fails or refuses to pay the license fee or tax or any part thereof on or before the due date shall be deemed to be operating without having his license to do so.

(Ord. 4736 §1, 1986; Ord. 2258 §3, 1935).

5.84.040 - Term of license

All occupation licenses are for the tax year for which issued and shall expire at the end of such tax year.

Such occupation license and the fee or tax therefor hereby imposed shall be for the year commencing January 1st, and ending on the thirty-first day of December of the same year; provided, however, that if the taxpayer in transacting his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the assent of the city clerk-treasurer, obtain his license for the period of his current fiscal year which shall be deemed his tax year, and pay the fee or tax computed upon his gross income made during the fiscal year (next preceding his tax year) covering his accounting period as shown by the method of keeping the books of the business.

(Ord. 2258 §4, 1935).

5.84.050 - Occupations subject to tax –Amount

From and after the effective date of the ordinance codified in this section, there is levied upon, and shall be collected from, the persons on account of the business activities, license fees in the amounts to be determined by the application of the rates against gross income, as follows:

A.    Upon every person engaged in or carrying on a telephone business, or a combined telephone and telegraph business, including revenues from intrastate toll, derived from the operation of such business within the city, a fee or tax equal to nine (9) percent of the total gross income from such business in the city during his/her tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

B.    Upon every person engaged in or carrying on a telegraph business, a fee or tax equal to nine (9) percent of the total gross income from such business in the city during the tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

C.    Upon every person engaged in or carrying on the business of selling or furnishing gas for hire, a fee or tax equal to nine (9) percent of the gross income from such business in the city during his/her tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

D.    Upon every person engaged in or carrying on the business of selling or furnishing electric light and power a fee or tax equal to nine (9) percent of the total gross income from such business in the city during his/her tax year for the license is required; provided, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

E.    Upon every person conducting or engaged in the business of supplying steam heat or power to the public for hire, a fee or tax equal to one (1) percent of the total gross income from such business in the city during his/her tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

F.    Upon every person conducting or engaged in the business of transporting passengers for hire on a regular route, a fee or tax equal to one (1) percent of the total gross income from such business in the city during the tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

G.    Upon every person conducting or engaged in the business of selling or furnishing water, collecting or processing sewage, collecting or disposing of solid waste, handling or disposing of storm water runoff, a fee or tax equal to six (6) percent of the total gross income from such business in the city during the tax year for which the license is required; provided, that the tax on City of Olympia owned utilities engaged in the business of collecting or processing sewage, collecting or disposing of solid waste, handling or disposing of stormwater runoff, or furnishing water shall be as set forth below, based on the total gross income from such enterprise in the city during the tax year; provided further, however, that the minimum fee or tax shall not be less than one hundred (100) dollars per tax year.

Enterprise

Current Rate

Effective January 15, 2010

Effective December 1, 2010

1. Sewer

7%

10%

2. Solid Waste

7%

10%

3. Stormwater

7%

10%

4. Water

7%

12%

This section shall not apply to:

1.    Gross revenue of wholesale utility providers, that is, those which obtain utility services from the city for customers located in the service area of the provider and which own the distribution system and provide maintenance, collection, meter reading, and/or other services associated with the wholesale provision of utility services;

2.    Businesses operated primarily for the purpose of recycling of solid waste.

(Ord. 6682 §1, 2009; Ord. 6314 §1, 2004; Ord. 5753 §1, 1997; Ord. 5645 §1, 1996; Ord. 5471 §1, 1994; Ord. 5448 §1, 1994; Ord. 5345 §1, 1992; Ord. 4736 §2, 1986; Ord. 4358 §2, 1982; Ord. 4332 §2, 1982; Ord. 3121 §1, 1959).

5.84.060 - Interstate, foreign and governmental commerce exempt

A.    There shall be excepted and deducted from the total gross income upon which a license fee or tax is computed so much thereof as is derived from the transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state, or the city as excise taxes levied or imposed upon the sale or distribution of property or services.

B.    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.

C.    Any person subject to the payment of a license fee or tax under the provisions of any ordinance of the city, other than this, on account of engaging in any activity for which he is liable to tax under this chapter, or any person required to pay fees, or render services, to the city, by virtue of any ordinance granting a franchise to such person, may deduct the amount of such fee, tax, or the value of such services, from the amount of fee or tax imposed by this chapter on account of such activity, but such person shall nevertheless, in the manner provided for under this chapter, apply for and procure an occupation license.

(Ord. 2258 §6, 1935).

5.84.070 - Annual application for license

A.    On or before the first day of November, 1935, and thereafter on or before the first day of each tax year, every taxpayer shall apply to the city clerk-treasurer for an occupation license upon blanks or forms of return to be prepared and provided by him requesting such information required, and shall sign the same, and by affidavit at the foot thereof shall swear or affirm that the information therein given is full and true and that he knows the same to be so.

B.    If the applicant is a partnership, the application or return must be made by one of the partners; if a foreign corporation, copartnership or nonresident individual, by the resident agent or local manager of the corporation, copartnership or individual.

(Ord. 4358 §3, 1982; Ord. 2258 §7, 1935).

5.84.080 - Tax due quarterly

A.    Tax imposed by this chapter shall be due and payable in quarterly installments, and remittance shall be made on or before the end of the month next succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:

1.    First quarter--January, February, March;

2.    Second quarter--April, May, June;

3.    Third quarter--July, August, September;

4.    Fourth quarter--October, November, December.

B.    On or before the due date, the taxpayer shall file with the city clerk a written return upon such form and setting forth such information as the clerk shall reasonably require to compute the tax, together with the payment of the amount of the tax.

(Ord. 4358 §4, 1982; Ord. 2258 §8, 1935).

5.84.090 - Effective date of rate change

No rate change under this chapter shall take effect before the expiration of 60 days following the enactment of the ordinance establishing the change.

(Ord. 5566 §2, 1995).

5.84.110 - Tax due upon transfer

Upon the sale or transfer during any tax year of a business on account of which a fee or tax is required by this chapter, the purchaser or transferee shall, if the fee or tax has not been paid in full for said year, be responsible for its payment for that portion of the year during which he carries on such business.

(Ord. 2258 §11, 1935).

5.84.115 - Use tax on the privilege of using natural gas or manufactured gas as a consumer

A.    As authorized by RCW 82.14.230, there is fixed and imposed on every person a use tax for the privilege of using natural gas or manufactured gas in the city as a consumer. The tax shall be in an amount equal to the value of the article used by the taxpayer multiplied by the rate of tax on the business of selling or furnishing gas for domestic, business or industrial consumption set forth in Section 5.84.050(C) of this chapter. The "value of the article used" shall have the meaning set forth in RCW 81.12.010(1), and does not include any amounts that are paid for the hire or use of a natural gas business in transporting the gas subject to tax under this section if those amounts are subject to tax under Section 5.84.050(C) of this chapter.

B.    The tax imposed under this section shall not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under Section 5.84.050(C) of this chapter with respect to the gas for which exemption is sought under this subsection.

C.    There shall be a credit against the tax levied under this section in an amount equal to any tax paid by:

1.    The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to Section 5.84.050(C) of this chapter by another state with respect to the gas for which a credit is sought under this subsection; or

2.    The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another state with respect to the gas for which a credit is sought under this subsection.

D.    The use tax hereby imposed shall be paid by the consumer. The administration and collection of the tax hereby imposed shall be by the Washington State Department of Revenue pursuant to RCW 82.14.050.

(Ord. 5150 §1, 1990).

5.84.120 - Records –Inspection –Information confidential

It shall be the duty of each taxpayer taxed upon his gross income to keep and enter in a proper book or set of books or records an amount which shall accurately reflect the amount of his gross income, which account shall always be open to the inspection of the city clerk-treasurer, or his duly authorized agent, and from which said officer or his agent may verify the return made by the taxpayer.

The applications, statements, or returns made to the city clerk-treasurer, pursuant to this chapter, shall not be made public, nor shall they be subject to the inspection of any person except the mayor, the city attorney, the city clerk-treasurer or his authorized agent, and members of the city commission.

(Ord. 2258 §12, 1935).

5.84.130 - Investigation of records –Examination under oath

If any taxpayer fails to apply for license or make return, or if the city clerk-treasurer is dissatisfied as to the correctness of the statements made in the application or return of any taxpayer, said officer, or his authorized agent, may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his books or records of account to ascertain the amount of the fee or tax or determine the correctness of such statements, as the case may be, and may examine any person under oath administered by said officer, or his agent, touching the matters inquired into, or said officer or his authorized agent may fix a time and place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer, or any other person, to attend upon such investigation and there testify, under oath administered by said officer, or his agent, in regard to the matters inquired into, and may, by subpoena, require him, or any person, to bring with him such books, records and papers as may be necessary.

(Ord. 2258 §13, 1935).

5.84.140 - Overpayment and underpayment

If the city clerk-treasurer, upon investigation or upon checking returns, finds that the fee or tax paid on any of them is more than the amount required of the taxpayer, he shall refund the amount overpaid by a warrant upon the general fund. If the city clerk-treasurer finds that the fee or tax paid is less than required, he shall send a statement to the taxpayer, showing the balance due, who shall within three days pay the amount shown thereon.

(Ord. 2258 §14, 1935).

5.84.150 - Delinquent payments –Collection

If any taxpayer fails to apply for license, or make his return, or to pay the fee or tax therefor, or any part thereof, within three days after the same has become due, the city clerk-treasurer shall ascertain the amount of the fee or tax or installments thereof due, and shall notify such taxpayer thereof, who shall be liable therefor in any suit by the city of the collection thereof. The city clerk-treasurer shall also notify the city attorney in writing of the name of such delinquent taxpayer and the amount due from him, and said officer shall, with the assistance of the city clerk-treasurer, collect the same by any appropriate means or by suit or action in the name of the city.

(Ord. 2258 §15, 1935).

5.84.160 - Appeal from tax determination

Any taxpayer aggrieved by the amount of the fee or tax by the city clerk-treasurer to be required under the provisions of this chapter, may appeal to the city commission from such finding, by filing a written notice of appeal with the city clerk-treasurer within five days from the time such taxpayer was given notice of such amount. The clerk-treasurer shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall not be more than ten days after the filing of the notice of appeal, and he shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing, the taxpayer shall be entitled to be heard and to introduce evidence in his own behalf. The city commission shall thereupon ascertain the correct amount of the fee or tax by resolution, and the city clerk-treasurer shall immediately notify the appellant thereof, which amount, together with costs of the appeal, if appellant is unsuccessful therein, must be paid within three days after such notice is given.

The chairman of the city commission, or the chairman of any committee thereof before which the appeal is to be heard, may, by subpoena, require the attendance thereat of any person, and may also require him to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records, required, if any, and shall testify truthfully, under oath administered by the chairman in charge of the hearing on appeal, as to any matter required of him pertinent to the appeal, and it is unlawful for him to fail or refuse to do so.

(Ord. 2258 §16, 1935).

5.84.170 - Power to promulgate regulations

The city clerk-treasurer shall have the power, and it shall be his duty, from time to time, to adopt, publish, and enforce rules and regulations not inconsistent with this chapter or with law, for the purpose of carrying out the provisions thereof, and it is unlawful to violate or fail to comply with, any such rule or regulation.

(Ord. 2258 §17, 1935).

5.84.180 - Failure to apply or pay, evasion, false testimony unlawful

It is unlawful for any person liable to tax under this chapter to fail or refuse to make application or return for a license or to pay the fee or tax or installment thereof when due, or for any person to make any false or fraudulent application or return or any false statement or representation in, or in connection with, any such application or return, or to aid or abet another in any way or attempt to evade payment of the fee or tax, or any part thereof, or for any person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon any investigation of the correctness of a return, or upon the hearing of any appeal, or in any manner to hinder or delay the city or any of its officers in carrying out the provisions of this chapter.

(Ord. 2258 §18, 1935).

5.84.190 - Violations -- Misdemeanor -- Gross Misdemeanor -- Civil Infraction

A.    Any person, firm, or corporation who knowingly violates or fails to comply with any term or provision of this chapter shall be deemed to have committed a misdemeanor, and if found guilty, shall be subject to a fine not to exceed One Thousand Dollars ($1,000), and/or to imprisonment not to exceed ninety (90) days or to both such fine and imprisonment. Each day shall be a separate offense. In the event of a continuing violation or failure to comply, the second and subsequent days shall constitute a gross misdemeanor punishable by a fine not to exceed Five Thousand Dollars ($5,000) and/or imprisonment not to exceed three hundred and sixty-five (365) days or both such time and imprisonment. Continuing violation shall mean the same type of violation which is committed within a year of the initial violation.

B.    As an additional concurrent penalty, it shall be a civil infraction for a person, firm, or corporation to violate or fail to comply with any term or provision of this chapter. Each day shall be a separate infraction. A person, firm, or corporation found to have committed a civil infraction shall be assessed a monetary penalty as follows:

1.    First offense: Class 3 ($50), not including statutory assessments.

2.    Second offense arising out of the same facts as the first offense: Class 2 ($125), not including statutory assessments.

3.    Third offense arising out of the same facts as the first offense: Class 1 ($250), not including statutory assessments.

See also OMC Chapter 4.44, Uniform Code Enforcement.

(Ord. 6682 §1, 2010; Ord. 6081 §21, 2001; Ord. 2258 §20, 1935).