Chapter 3.16
UTILITY TAX
Sections:
3.16.030 City clerk/treasurer promulgation authority.
3.16.040 License required – Application – Issuance.
3.16.050 Telephone business tax levied.
3.16.060 Electric light and power business tax levied.
3.16.070 Cable television service business tax levied.
3.16.075 Solid waste/garbage collection and disposal service business tax levied.
3.16.100 Records – Inspection.
3.16.110 Late payment penalty.
3.16.120 Credits and refunds – Time limitation.
3.16.010 Rights of city.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. (Ord. 660 §1, 1987).
3.16.020 Definitions.
Unless otherwise stated in this chapter, “gross operating revenue” under this chapter shall include the income from sale of property or service without any deduction for costs, interests, discounts paid, or any expenses whatsoever, and without any deduction on the account of losses. (Ord. 660 §6, 1987).
3.16.030 City clerk/treasurer promulgation authority.
The city clerk/treasurer is authorized to adopt, publish and enforce, from to 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 fail to comply with any such rule or regulation lawfully promulgated. (Ord. 660 §14, 1987).
3.16.040 License required – Application – Issuance.
A. After January 1, 1988, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by this chapter, without first having obtained, and being made the holder of, a license so to do, to be known as a utility license.
B. Each person, firm or corporation required to have a license shall promptly apply to the city clerk/treasurer for such a license, upon such forms as the clerk/treasurer shall prescribe, giving such information as the clerk/treasurer shall deem reasonably necessary for the administration and enforcement of this chapter.
C. Upon his acceptance of such application the clerk/treasurer shall thereupon issue such license to the applicant. Such utility license shall be personal and nontransferable, and shall be valid as long as the licensee shall continue in said business, and shall continue to comply with the provisions of this chapter. (Ord. 805 §1, 2004; Ord. 660 §7, 1987).
3.16.050 Telephone business tax levied.
A. From and after March 1, 1999, there is levied upon, and there shall be collected from every person, firm or corporation engaged in carrying on a telephone business for hire or for sale or as a service within or partially within the corporate limits of the city, a utility tax. Such tax shall be levied at a rate equal to six percent of the total gross operating revenues, as defined in subsection (B) of this section, which are derived within the city.
B. For the purposes of this section, “gross operating revenues” shall not include charges passed on to its subscribers by a telephone company, pursuant to tariffs required by regulatory order, to compensate for the cost to the company for the tax imposed by this chapter. “Gross operating revenue” shall include any revenue received from all telephone business, including intrastate tolls derived for the operations of such business within the city.
C. For the purposes of this section, “telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service or coin telephone services, or providing telephonic, video, data or similar communication or transmission for hire, by a local telephone network, toll line or channel, cellular phone service, or similar communication or transmission system. Telephone business includes cooperative or farmer line telephone companies or associations operating an exchange. Telephone business does not include the providing of competitive telephone service, nor the providing of cable television service.
D. For the purposes of this section “competitive telephone service” means the providing by any person of telephone equipment, apparatus or services, 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. (Ord. 805 §1, 2004; Ord. 758 (part), 1999; 720 (part), 1995; Ord. 704, 1993; Ord. 662, 1988; Ord. 660 §3, 1987).
3.16.060 Electric light and power business tax levied.
From and after March 1, 1999, there is levied upon and there shall by collected from every person, firm or corporation engaged in or carrying on the business of selling or furnishing electrical light and power, within or partly within the corporate limits of the city, a utility tax. Such tax shall be levied at the rate of six percent of total gross operating revenue of such business derived within the city. This tax shall be in addition to any franchise fee for any electric utility presently bound by a franchise agreement with the city. (Ord. 805 §1, 2004; 758 (part), 1999; 720 (part), 1995; Ord. 704, 1993; Ord. 661, 1988; Ord. 660 §4, 1987).
3.16.070 Cable television service business tax levied.
Cable television service business tax levied. From and after March 1, 1999, there is levied upon, and shall be collected from every person, firm or corporation engaged in or carrying on cable television service business, for hire or sale within or partly within the corporate limits of the city, a utility tax. Such tax shall be levied at the rate of six percent of the total gross operating revenue of such business derived within the city. (Ord. 805 §1, 2004; 758 (part), 1999; 720 (part) 1995; Ord. 704, 1993; Ord. 660 §5, 1987).
3.16.075 Solid waste/garbage collection and disposal service business tax levied.
From and after March 1, 1999, there is levied upon, and shall be collected from every person, firm or corporation engaged in or carrying on solid waste/garbage collection service business, within or partly within the corporate limits of the city, a utility tax. Such tax shall be levied at the rate of six percent of the total gross operating revenue of such business derived within the city, exclusive of the state-imposed garbage or refuse collection tax. (Ord. 805 §1, 2004; 758 (part), 1999; 720 (part), 1995).
3.16.080 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:
First quarter:
January, February, March.
Second quarter:
April, May, June.
Third quarter:
July, August, September.
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. 720 (part), 1995; Ord. 660 §7, 1987).
3.16.090 Deductions.
In computing such tax, there shall be deducted from such gross operating revenues the following items:
A. The amount of credit losses and uncollectible 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;
C. Amounts derived by the taxpayer from the city. (Ord. 660 §8, 1987).
3.16.100 Records – Inspection.
Each taxpayer shall keep records reflecting the amount of his said 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 such tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 660 §9, 1987).
3.16.110 Late payment penalty.
If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter within thirty days after the due date thereof, there shall be added to such tax a penalty of eighteen 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. 660 §10, 1987).
3.16.120 Credits and refunds – Time limitation.
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’s ceasing to do business in the city be refunded to the taxpayer. No taxpayer may demand a refund of tax collected more than three years from the date of the demand. The city may not demand a tax more than three years after the tax is accrued. (Ord. 660 §11, 1987).
3.16.130 Violation – Penalty.
Any said person, firm or corporation subject to this chapter, who shall fail to apply for a license or to make such tax return or to pay such tax when due, or who shall make any false statement or representation in or in connection with any application for a license or such tax return, or shall otherwise violate or refuse or fail to comply with this chapter shall be guilty of a misdemeanor, subject to penalty as set forth in Chapter 1.12 PMC, as now exists or as may be hereafter amended. Each day’s offense shall be deemed a separate violation. (Ord. 805 §1, 2004; Ord. 660 §12, 1987).