Chapter 1.59
UTILITY TAX
Sections:
1.59.020 Exercise of power to license for revenue.
1.59.070 Quarterly installments – Due date.
1.59.080 Delinquency penalty – Collection.
1.59.100 Recordkeeping – Inspection.
1.59.110 Administration – Rules.
1.59.120 Annexation – Copies of ordinance provided.
1.59.140 Referendum procedure.
1.59.150 Water, sanitation and sewer department gross receipts utility tax.
1.59.010 Purpose.
An ordinance of the city of Ritzville to impose a utility tax. (Ord. 904 § 1, 1994).
1.59.020 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. 904 § 2, 1994).
1.59.030 Definitions.
In construing the provisions of this chapter, except when otherwise declared or clearly apparent from the context, the following definitions shall be applied:
“Business” means and includes all activities engaged in with the object of gain, benefit or advantage to the taxpayer or to another person or class, directly or indirectly.
“City” means the city of Ritzville.
“Clerk/treasurer” means the clerk/treasurer of the city of Ritzville.
“Gross income” means the value proceeding or accruing by reason of the transaction of the business engaged in and without deduction on account of the cost of the 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, except as otherwise provided for in this chapter. Gross income does not include charges which are passed on to subscribers or customers by a taxpayer pursuant to tariffs required by regulatory order to compensate for the cost to the taxpayer of the tax imposed by this chapter.
“Person,” “firm” or “corporation” used interchangeably in this chapter means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, and includes the United States, the state of Washington, any political subdivision thereof, including the city, provided a valid tax may be levied upon or collected therefrom under the provisions of this chapter.
“Quarterly period” means a three-month period beginning the first day of the following months: January, April, July and October.
“Taxpayer” means and includes any person, firm or corporation liable to the utility tax imposed by this chapter.
“Tax year” or “taxable year” means either the calendar year or the taxpayer’s fiscal year when permission is obtained from the clerk/treasurer to use a fiscal year in lieu of a calendar year.
“Value proceeding or accruing” means the consideration, whether money, credits, rights or other property expressed in terms of money, actually received or accrued. The terms shall be applied, in each case, on a cash-receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. (Ord. 904 § 3, 1994).
1.59.050 Imposed – 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 telephone business, a tax equal to six percent of the total gross operating income, including income from intrastate toll derived from the operation of such businesses within the city. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone services, 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. The term includes cooperative or farmer line telephone companies or associations operating exchanges. “Telephone business” does not include the providing of competitive telephone service, or providing of cable television service, or other providing of broadcast services by radio or television stations.
B. Upon every person, firm or corporation engaged in or carrying on a business of sale, delivery or distribution of electricity and electrical energy, a tax equal to six percent of the total gross income derived from the sales of such electricity to ultimate users in the city; provided, that there shall not be any such tax levied upon installation charges for electrical units.
C. Upon every person, firm or corporation engaged in or carrying on the business of sale, delivery, distribution or furnishing of natural gas for domestic, business or industrial consumption, a tax equal to six percent of the total gross income derived from such sales to ultimate users in the city; provided, that there shall not be any such tax levied upon installation charges for gas energy units. (Ord. 904 § 5, 1994).
1.59.060 Deductions.
In computing the tax levied under this chapter, there shall be deducted from the gross income the following items:
A. Income 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 of Washington.
B. The amount of credit losses and uncollectibles actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (Ord. 904 § 6, 1994).
1.59.070 Quarterly installments – Due date.
The tax imposed by this chapter shall be due and payable in quarterly installments. Remittance shall be made on or before the thirtieth day of the month next succeeding the end of the quarterly period for which the tax accrued, that is, on January 30th, April 30th, July 30th and October 30th of each year. The remittance shall be made to the clerk/treasurer and accompanied by a return on a form to be provided and prescribed by the clerk/treasurer. On the return, the taxpayer shall be required to swear or affirm that the information therein given is full and true and that the taxpayer knows the same to be so. (Ord. 904 § 7, 1994).
1.59.080 Delinquency penalty – 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. 904 § 8, 1994).
1.59.090 Overpayment.
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 taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. (Ord. 904 § 9, 1994).
1.59.100 Recordkeeping – Inspection.
It shall be the duty of every person, firm or corporation required to obtain a business license by this chapter to keep and preserve for a period of five years such books and records as will accurately reflect the amount of gross income from which can be determined the amounts of any fee or tax for which there may be liability under the provisions of this chapter. The term “books and records” as used in this section, includes the taxpayer’s copies of federal excise tax returns, state of Washington excise tax returns and copies of excise tax audits made by the United States or state of Washington, and furnished to such person, firm or corporation, if any. The taxpayer’s books and records shall be opened for examination at all reasonable times by the clerk/treasurer or a duly authorized representative. (Ord. 904 § 10, 1994).
1.59.110 Administration – Rules.
The 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. (Ord. 904 § 11, 1994).
1.59.120 Annexation – Copies of ordinance provided.
Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of the annexation ordinance by the city. (Ord. 904 § 12, 1994).
1.59.130 Violation – Penalty.
Any person, firm or corporation subject to this chapter who fails or refuses to apply for business license or to make such tax return or to pay such tax when due, or who makes any false statement or representation in or in connection with any such application for a business license or such tax return, or who otherwise violates or refuses or fails to comply with the provisions of this chapter, or with any rule or regulation promulgated hereunder, shall be punishable in accordance with RCC 1.02.010, General penalty. (Ord. 1092 § 24, 2005; Ord. 904 § 13, 1994).
1.59.140 Referendum procedure.
A. This chapter shall be subject to a referendum procedure. Any referendum petition to repeal this chapter or alter the rate of the tax authorized by this chapter shall be filed with the city clerk/treasurer within seven days of passage and publication of the ordinance codified in this chapter. The city clerk/treasurer, within 10 days, shall then confer with the petitioner concerning form and style of the petition, issue an identification number for the petition, and write a ballot title for the measure. The ballot title shall be posed as a question so that an affirmative answer to the question and an affirmative vote on the measure will result in the tax or tax rate increase being imposed and a negative answer to the question and a negative vote on the measure will result in the tax or tax rate increase not being imposed. The petitioner shall be notified of the identification number and ballot title within this 10-day period.
B. After notification, the petitioner shall have 30 days in which to secure on petition forms the signatures of not less than 15 percent of the registered voters of the city, and to file the signed petitions with the city clerk/treasurer. Each petition form shall contain the ballot title and the full text of the measure to be referred. The city clerk/treasurer shall verify the sufficiency of the signatures on the petitions. If sufficient valid signatures are properly submitted, the city clerk/treasurer shall submit the referendum measure to the city voters at a general or special election held on one of the dates provided in RCW 29.13.010 as determined by the city council. This election shall not take place later than 120 days after the signed petition has been filed with the city clerk/treasurer. (Ord. 904 § 14, 1994).
1.59.150 Water, sanitation and sewer department gross receipts utility tax.
A. Purpose. An ordinance of the city of Ritzville codified in this section is to impose a utility tax.
B. Exercise of Power to License for Revenue. The provisions of this section shall be deemed an exercise of the power of the city to license for revenue.
C. Imposed 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 using the city water, sewer or garbage system, a tax to be known as a “utility tax” in the amounts to be determined by the application of the rates stated in this section against gross revenues, as follows:
1. Upon every person, firm or corporation utilizing the services of water from the city of Ritzville, a tax equal to 10 percent of the total gross revenues;
2. Upon every person, firm or corporation utilizing the services of sewer from the city of Ritzville, a tax equal to 10 percent of the total gross revenues;
3. Upon every person, firm or corporation utilizing the services of garbage from the city of Ritzville, a tax equal to 10 percent of the total gross revenues.
D. Overpayment. Any money paid to the general fund through error and in excess of such tax shall be credited against any tax due or to become due in the succeeding monthly period. The funds will be audited monthly for correctness by the clerk/treasurer. (Ord. 973 § 3, 1998; Ord. 954 §§ 1 – 5, 1998).