Chapter 3.17
UTILITY TAX
Sections:
3.17.020 Occupation license required.
3.17.080 Overpayment credit or refund.
3.17.090 Delinquency penalty and collection.
3.17.100 Changes to city boundaries by annexation.
3.17.110 Rules and regulations.
3.17.010 Scope and intent.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. [Ord. 743 §3, 2001].
3.17.020 Occupation license required.
After the effective date of the ordinance codified in this chapter no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by PMC 3.17.040 without first having obtained, and being the holder of, a license to do so. Such license shall 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. Upon acceptance of such application by the clerk-treasurer, the clerk-treasurer shall issue an occupation license to the applicant. The occupation license shall be personal and nontransferable, and shall comply with this chapter. [Ord. 743 §4, 2001].
3.17.030 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 services, 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 stock or the like), and without any deduction on account 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.
B. “Person or persons” mean all persons, firms, partnerships, corporations and other associations of natural persons, whether acting by themselves or by servants, agents or employees.
C. “Taxpayer” means any person liable for the license fee and occupation tax imposed by this chapter.
D. “Tax year” or “taxable year” means the year commencing January 1st and ending on the last 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. [Ord. 743 §5, 2001].
3.17.040 Imposition – Amount.
There is levied and there shall be collected from every person, firm or corporation engaged in the business activities hereinafter set forth, for the act or privilege of engaging in such activities within the city, a tax to be known as a “utility tax” in the amounts to be determined by the application of the rates herein stated against gross income, as follows:
A. Upon every person, firm or corporation engaged in or carrying on a business of sale, delivery or distribution of electricity and electrical energy and/or natural gas, a tax equal to six percent of the total gross income derived from the sales of such electricity or natural gas to ultimate users in the city; provided, that there shall not be any such tax levied upon installation charges for electrical or natural gas units.
B. Upon every person, firm or corporation engaged in or carrying on a telephone business, a tax equal to six percent of the total gross operating income, including income from intrastate tolls derived from the operation of such businesses within the city.
The statutory definitions of “telephone business” and “competitive telephone service,” as set forth in RCW 82.04.065 and as hereafter amended, are adopted for purposes of this chapter.
“Telephone business” does not include the providing of competitive telephone service, nor the providing of cable television service.
“Telephone business” does include the providing of cellular telephone service.
C. Upon every person, firm or corporation engaged in or carrying on a business of delivery or distribution of cable television picture or signals, a tax equal to seven percent of the total gross operating income derived from the operation of such businesses within the city.
D. Upon every person, firm or corporation engaged in or carrying on the business of solid waste collection, hauling and disposal, a tax equal to seven percent of the total gross income from such business in the city.
E. Upon the sale, delivery, distribution or furnishing of water for domestic, business and industrial consumption, a tax equal to six percent of the total gross income from such sales.
F. Upon the furnishing of sanitary sewerage collection and disposal services to domestic, business and industrial customers, a tax equal to six percent of the total gross income from such services. [Ord. 863 §§1, 2, 2009; Ord. 743 §6, 2001].
3.17.050 Payment.
A. The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the thirtieth day 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-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. 743 §7, 2001].
3.17.060 Deductions.
In computing the tax, there may be deducted from the gross operating revenues the following items:
A. The amount of credit losses and uncollectible accounts actually sustained by the taxpayer.
B. Amounts from a business which the city is prohibited from taxing under the constitution of this state or the Constitution or laws of the United States.
C. Adjustments made to billing or to a customer 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. [Ord. 743 §8, 2001].
3.17.070 Record keeping.
Each taxpayer shall keep records reflecting the amount of the taxpayer’s gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk-treasurer or his/her duly authorized subordinates, for verification of the tax returns or for fixing of the tax of a taxpayer who shall fail to make such returns. [Ord. 743 §9, 2001].
3.17.080 Overpayment credit or refund.
Any money paid to the city through error or otherwise not in payment of the tax imposed hereby 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 hereunder or, upon the taxpayer ceasing to do business in the city, be refunded to the taxpayer. [Ord. 743 §10, 2001].
3.17.090 Delinquency penalty and collection.
A. If payment of any fee or tax due under this chapter is not received by the clerk-treasurer on or before the day it becomes due, there shall be added a penalty in interest as follows:
1. One to 40 days delinquency, 10 percent, with a minimum penalty of $5.00;
2. Forty-one to 70 days delinquency, 15 percent with a minimum penalty of $10.00; and
3. Seventy-one or more days delinquency, 20 percent with a minimum penalty of $15.00.
B. 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. 743 §11, 2001].
3.17.100 Changes to city boundaries by annexation.
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. 743 §12, 2001].
3.17.110 Rules and regulations.
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 hereunder. [Ord. 743 §13, 2001].