Chapter 5.08
TELEPHONE BUSINESS AND OCCUPATION TAX
Sections:
5.08.020 Application and issuance of license.
5.08.070 Failure to pay utility tax – Penalty.
5.08.100 Excavations on streets.
5.08.110 Restoration of streets.
5.08.130 Rearrangement of aerial cables.
5.08.140 Street improvements – Moving telephone apparatus.
5.08.150 Noncompliance – Penalty.
5.08.160 Power of clerk to make rules and regulations.
5.08.010 Power 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. 1769 § 1, 1999).
5.08.020 Application and issuance of license.
No person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by POMC 5.08.030 without first having obtained, and being the holder of, a license as established in Chapter 5.12 POMC. Each such person, firm or corporation shall promptly apply to the city finance director for such license upon such forms as the finance director shall prescribe. (Ord. 017-23 § 4 (Exh. A); Ord. 1769 § 2, 1999).
5.08.030 Levy of tax.
There is levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the following business 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 hereinafter defined:
Upon any telephone business there shall be levied a utility tax equal to six percent of the total gross operating revenues, including revenues from intrastate toll, derived from the operation of such business within the city. Gross operating revenues shall not include charges which are passed on to 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. (Ord. 1769 § 3, 1999).
5.08.035 Definitions.
The words and phrases used in this chapter, unless the context otherwise indicates, shall have the following meanings:
(1) “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, coin telephone services, telephonic, video, data, pagers, 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.
(2) “Telephone business” does not include the providing of competitive telephone service, nor the providing of cable television service, or other providing of broadcast services by radio or television stations.
(3) “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, directory advertising and lease of telephone street directories, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which may be provided by persons not subject to regulation as telephone companies under RCW Title 80, and which a separate charge is made. Transmission of communication through cellular telephones is classified as “telephone business” rather than “competitive telephone service.”
(4) “Cellular telephone service” is a two-way voice and data telephone/telecommunications system based in whole or substantial 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. 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 the same purpose as cellular mobile service. Cellular telephone service is included within the definition of “telephone business” for the purposes of this chapter.
(5) “Pager service” 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. (Ord. 1769 § 4, 1999).
5.08.040 Deductions.
In computing the utility tax there shall be deducted from the gross operating revenues the following items:
(1) The amount of credit losses and uncollectibles actually sustained by the taxpayer;
(2) 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;
(3) Amounts derived by the taxpayer from the city. (Ord. 1769 § 5, 1999).
5.08.050 Payment periods.
The utility tax imposed by this chapter shall be due and payable in monthly installments and remittance shall be made on or before the thirtieth day of the month next succeeding each month in which the tax accrued. On or before the due date, the taxpayer shall file with the city finance director a written return, upon such form and setting forth such information as the finance director shall reasonably require, together with the payment of the amount of utility tax. (Ord. 017-23 § 4 (Exh. A); Ord. 1769 § 6, 1999).
5.08.060 Records kept.
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 finance director, or their duly authorized subordinates, for verification of the utility tax returns or for the fixing of the utility tax of a taxpayer who fails to make such returns. (Ord. 017-23 §§ 1, 4; Ord. 1769 § 7, 1999).
5.08.070 Failure to pay utility tax – Penalty.
If any person, firm or corporation subject to this chapter fails to pay any utility tax required by this chapter within 30 days after the due date thereof, there shall be added to such utility tax a penalty of 10 percent of the amount of such utility tax and interest charged at the rate of 18 percent in addition to the penalty. Any utility tax due under this chapter and unpaid, and all penalties and interest 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. 1769 § 8, 1999).
5.08.080 Credits to taxpayer.
Any money paid to the city through error or otherwise not in payment of the utility tax imposed hereby or in excess of such utility tax shall, upon request of the taxpayer, be credited against any utility tax due or to become due from the 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 utility tax collected more than three years from the date of the demand. The city may not demand utility tax more than three years after the utility tax is accrued. (Ord. 1769 § 9, 1999).
5.08.090 Wiring regulations.
The license shall authorize and allow the licensee to commence or to continue the maintenance and operation of its telephone and telegraph business in the city. The licensee’s cables and other appliances and conductors may be strung on poles or other fixtures above ground, or at the option of the licensee may be laid underground in pipes or conduits or otherwise protected, and such other apparatus may be used as may be necessary or proper to operate and maintain the same. Whenever such wires, cables and other appliances and conductors are laid underground in pipes or conduits or otherwise protected, the licensee shall furnish to the city one duct in its main underground system excluding pipe or other conduit dips connecting one pole with another, or two pairs of wire in underground cable, free of charge to the city, to be used for low-tension police and fire alarm purposes, the licensee having the option as to whether two pairs of wires shall be given or a duct in the underground system; provided, however, that the city shall, in its use and maintenance of such fixtures, wires or ducts, comply with the reasonable plans and rules of the licensee so that there may be a minimum of danger of contact between its fixtures, wires or ducts and the fixtures, wires, cables or ducts of the licensee. The wires of the city shall not be unduly exposed to foreign electrical current in excess of 5,000 volts. In case of a rearrangement of the plant, the city will, at its own expense, care for its own fixtures, wires and construction. The licensee shall have no liability whatsoever, either to the city or to any person, for any damage or claim of any kind arising out of the construction, maintenance, operation, removal or presence of the equipment herein described and to be used by the city solely in maintaining the efficiency of its fire alarm system and police force. (Ord. 1769 § 10, 1999).
5.08.100 Excavations on streets.
It shall be lawful under the license for the licensee to make all needful excavations in any of the streets, alleys, avenues, thoroughfares, public highways and public grounds and places in the city for the purpose of placing, erecting, laying, maintaining, operating, repairing, removing or replacing poles, conduits or other supports or conductors for wires and cables. The work performed under the license shall be done in compliance with the rules, regulations, ordinances or orders which may be adopted from time to time by the city. (Ord. 1769 § 11, 1999).
5.08.110 Restoration of streets.
Whenever a licensee disturbs any of the streets, alleys, avenues, thoroughfares, public highways or public grounds for the purposes set forth in POMC 5.08.100, the licensee shall restore the same to good order and condition as soon as possible without unnecessary delay. Upon failure to do so, the city shall have the right to fix a time which shall be reasonable within which such repairs and restoration of streets shall be completed, and upon failure of such repairs being made by the licensee, the city shall cause such repairs to be made at the expense of the licensee. The licensee shall save the city harmless from any and all damages or claims arising out of, or in any way connected with, such excavations or disturbance of the streets, alleys, avenues, thoroughfares, public highways or public grounds, or the maintenance of the licensee’s appliances and fixtures thereon, thereunder or thereover. (Ord. 1769 § 12, 1999).
5.08.120 Tree trimming.
Where tree trimming is necessary in public streets or places for the proper operation of the lines and conductors of the licensee, such trimming shall be done by competent employees of the licensee upon application for the granting of a permit by the superintendent of public works or such other official as the city council may designate. (Ord. 1769 § 13, 1999).
5.08.130 Rearrangement of aerial cables.
Whenever it becomes necessary to temporarily rearrange, remove, lower or raise the aerial cables or wires or other apparatus of the licensee to permit the passage of any building, machinery or other object, the licensee will perform such rearrangement on seven days’ notice to its manager at Bremerton from the person or persons desiring to move the building, machinery or other objects. The notice shall bear the approval of the superintendent of public works or such other official as the city council may designate; shall detail the route of movement of the building, machinery or other objects; shall provide that the costs incurred by the licensee in making such rearrangements of its aerial plant will be borne by the person or persons giving notice; and shall further provide that the person or persons giving notice will indemnify and save the licensee harmless from any and all damages or claims of whatsoever kind or nature caused directly or indirectly from such temporary rearrangement of the licensee’s aerial plant. (Ord. 1769 § 14, 1999).
5.08.140 Street improvements – Moving telephone apparatus.
Nothing in this chapter shall be construed in any way to prevent the proper authorities of the city from sewering, grading, planking, rocking, paving, repairing, altering or improving any of the streets, alleys, avenues, thoroughfares, public highways or places within the city in or upon which the poles, wires or other conductors of the licensee shall be placed. If it becomes necessary that the poles, wires, cables or other apparatus of the licensee shall be moved in order for the city to carry out such work or improvements, the licensee shall move its poles, wires, cables and other apparatus at its own expense within a reasonable time after notice of such proposed work or improvements is given to the licensee by the city. (Ord. 1769 § 15, 1999).
5.08.150 Noncompliance – Penalty.
Any person, firm or corporation subject to this chapter who fails or refuses to apply for an occupational license or to make the utility tax return or to pay the utility tax when due, or who makes any false statement or representation in or in connection with any application for an occupational license or such utility tax return, or otherwise violates or refuses or fails to comply with this chapter, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not to exceed $500.00. Each day’s offense shall be deemed a separate violation. (Ord. 1769 § 16, 1999).
5.08.160 Power of clerk to make rules and regulations.
The city clerk 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. 1769 § 17, 1999).
5.08.170 Validity.
The invalidity or unconstitutionality of any provision or section of this chapter shall not render any other provision or section of this chapter invalid or unconstitutional. (Ord. 1769 § 18, 1999).