CHAPTER 11
UTILITY TAX1
SECTION:
5-11-1: Exercise Of Revenue License Power
5-11-2: General Administrative Provisions Apply
5-11-5: Cellular Telephone Service Allocation And Administration
5-11-7: Utility Tax Relief; Qualifications
5-11-8: Claim Filing Procedures
5-11-9: Consumer Price Index Changes
5-11-10: Rebate For Initial Year
5-11-1 EXERCISE OF REVENUE LICENSE POWER:
The provisions of this chapter shall be deemed to be an exercise of the power of the City to license and tax for revenue. (Ord. 5944, 11-18-19)
5-11-2 GENERAL ADMINISTRATIVE PROVISIONS APPLY:
The provisions of chapter 5-26 RMC, the Tax Administrative Code, shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 5944, 11-18-19)
5-11-3 DEFINITIONS:
A. CABLE BUSINESS: Every person in the business of constructing, operating and maintaining a coaxial cable subscriber system for television, radio, and other audio-visual electrical signal distribution within Renton City limits.
B. CELLULAR TELEPHONE BUSINESS: Every person providing Cellular Telephone Service.
C. CELLULAR TELEPHONE SERVICE: The providing of Mobile Telecommunications Service or Mobile Wireless Service.
D. COMPETITIVE TELEPHONE SERVICE: 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 Title 80 RCW and for which a separate charge is made.
E. GAS BUSINESS: Every person selling, furnishing, distributing, or producing gaseous gas for commercial or domestic use or purpose within Renton City limits.
F. GROSS INCOME: The value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses.
G. LIGHT OR POWER BUSINESS: Every person in the business of selling, furnishing, or distributing electricity for light and power within Renton City limits.
H. MOBILE TELECOMMUNICATIONS SERVICE: Commercial mobile radio service, as defined in section 20.3, Title 47 C.F.R. as in effect on June 1, 1999.
I. MOBILE WIRELESS SERVICE: A telecommunications service that is transmitted, conveyed, or routed regardless of the technology used, whereby the origination and/or termination points of the transmission, conveyance, or routing are not fixed, including, by way of example only, telecommunications services that are provided by a commercial mobile radio service provider.
J. NETWORK TELEPHONE SERVICE: 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 the provision of transmission to and from the site of an internet provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. “Network telephone service” does not include the providing of competitive telephone service, the providing of cable television service, or the providing of broadcast services by radio or television stations, nor the provision of internet access as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the internet service provider.
K. SEWERAGE BUSINESS: Every person engaging in or carrying on the business of selling, furnishing, or distributing sanitary sewer services for commercial or domestic use or purpose within Renton City limits.
L. SOLID WASTE BUSINESS: Every person who, within Renton City limits, receives solid waste or recyclable materials for transfer, storage, or disposal, including but not limited to all collection services, public or private solid waste disposal sites, transfer stations, and similar operations. “Solid waste” means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction waste, abandoned vehicles or parts thereof, and recyclable materials. “Recyclable materials” means those solid wastes that are separated for recycling or reuse, such as papers, metals, and glass.
M. STORM AND SURFACE WATER BUSINESS: Every person engaging in or carrying on the business of selling, furnishing, or distributing storm and surface water drainage services for commercial or domestic use or purpose within Renton City limits.
N. TELECOMMUNICATIONS SERVICES: The electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. “Telecommunications service” includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over internet protocol services or is classified by the federal communications commission as enhanced or value added. “Telecommunications service” does not include those activities expressly excluded from the definition in RCW 82.04.065(27).
O. TELEPHONE BUSINESS: Every person providing of network telephone service, telecommunications services, cooperative or farmer line telephone companies or associations operating an exchange within Renton City limits.
P. WATER DISTRIBUTION BUSINESS: Every person engaged in the business of selling, furnishing, or distributing water services for commercial or domestic use or purpose within Renton City limits. (Ord. 5944, 11-18-19)
5-11-4 UTILITY TAX:
In addition to the license fees provided elsewhere in this Title, there is hereby levied upon and shall be collected from the person(s) engaged in certain business activities and occupations described in this Section, taxes in the amounts to be determined by the application of the rates herein stated against gross income using the following rates:
A. The Telephone Business tax rate shall be six percent (6%).
B. The Cellular Telephone Business tax rate shall be six percent (6%).
C. The Gas Business tax rate shall be six percent (6%).
D. The Light or Power Business tax rate shall be six percent (6%).
E. The Cable Business tax rate shall be six percent (6%).
F. The Sewerage Business tax rate shall be six percent (6%).
G. The Solid Waste Business tax rate shall be six and eight-tenths percent (6.8%). Pursuant to RCW 36.58.080, nothing in this Section is intended nor shall it be construed to impose any tax or excise on any County-owned solid waste facility.
H. The Cable Business tax rate shall be six percent (6%).
I. The Water Distribution Business tax rate shall be six and eight-tenths percent (6.8%).
J. The Storm and Surface Water Business tax rate shall be six and eight-tenths percent (6.8%). (Ord. 5944, 11-18-19; Ord. 5993, 11-16-2020)
5-11-5 CELLULAR TELEPHONE SERVICE ALLOCATION AND ADMINISTRATION:
A. Allocation of Income, Cellular Telephone Service:
1. Service Address: Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies.
2. Presumption: There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.
3. Roaming Phones: When the service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call.
4. Dispute Resolution: If there is a dispute between or among the City and another city or cities as to the service address of a customer who is receiving cellular telephone services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the City and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). Once taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes, penalties, or interest on the disputed revenues so long as it promptly changes its billing records for future revenues to comport with the settlement facilitated by AWC.
B. Authority of Administrator: The Finance Administrator is authorized to represent the City in negotiations with other cities for the proper allocation of taxes due under Subsection 5-11-5.A.1.
C. Rate Change: No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than sixty (60) days following the enactment of the ordinance establishing the change. The Finance Administrator shall send to each cellular telephone service company, at the address on its license, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment.
In computing said tax the person(s) may deduct in computing gross income the actual amount of credit losses and uncollectibles sustained by the person(s), and amounts derived from transactions in interstate and foreign commerce which the City is prohibited from taxing under the laws and Constitution of the United States. (Ord. 5944, 11-18-19; Ord. 5993, 11-16-2020)
5-11-6 UTILITY TAX RELIEF:
There is granted to persons who meet the qualifications and requirements of RMC 5-11-7 relief from the utility tax of the City as follows:
A. For all billings paid directly or indirectly by the person during a calendar year for service charges to any organization which paid the utility tax of the City, the City is authorized to pay to such person a “reimbursement” in a maximum amount determined in accordance with RMC 5-11-9; provided, that the total amount of all reimbursements paid pursuant to this subsection shall not exceed the total dollar amount established through the budget process.
B. The amount of maximum relief for a calendar year is $110.00 and shall be adjusted for each subsequent year in accordance with RMC 5-11-9, prorated for each month of residency in the City. (Ord. 5944, 11-18-19)
5-11-7 UTILITY TAX RELIEF; QUALIFICATIONS:
To qualify for the relief set forth in RMC 5-11-6.A, a person must be requesting reimbursement of City utility taxes and must meet the criteria in RMC 8-4-31.C, and have been a resident of the dwelling unit within the City at all times during any period for which a reimbursement is requested, and have contributed to the payment of City utility charges from his or her income or resources. (Ord. 5944, 11-18-19)
5-11-8 CLAIM FILING PROCEDURES:
A. All claims for relief under RMC 5-11-6 must be filed with the City or its agent no later than the date established by the Finance Administrator for the calendar year for which a “reimbursement” is requested.
B. The Administrator shall adopt rules and procedures for the filing of reimbursement claims and for the administration of RMC 5-11-6. (Ord. 5944, 11-18-19)
5-11-9 CONSUMER PRICE INDEX CHANGES:
The amount of relief established under RMC 5-11-6.B shall be administratively adjusted on January 1st of each year by the Finance Administrator to reflect changes in the cost of living, as defined by the United States Bureau of Labor Statistics. The amount of maximum relief shall be communicated by the City to potentially eligible citizens. (Ord. 5944, 11-18-19)
5-11-10 REBATE FOR INITIAL YEAR:
The rebate amount for the initial year shall provide for a full rebate for the calendar year. (Ord. 5944, 11-18-19)
Prior legislation: Ords. 3773, 12-19-83; 4303, 12-17-90; Ord. 4309, 4-1-91; 4457, 6-27-94; 4503, 4-3-95; 4825, 12-20-99; 4873, 11-20-00; 4972, 6-17-02; 5212, 6-19-06; 5367, 4-7-08; 5547, 8-9-10; 5582, 11-22-10; 5654, 2-13-12; 5681, 12-3-12 and 5698, 12-2-13.