Chapter 3.30 UTILITY TAXES

Chapter 3.30
UTILITY TAXES

Sections:

3.30.030 Certain utilities subject to tax.

3.30.010 Administrative provisions.

The administrative provisions contained in Chapter 3.10 of this code shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 1961-1220 § 2, 2021)

3.30.020 Definitions.

The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

A. “Cable television business” means any person or group of persons who provides cable service over a cable system and directly or through one or more affiliates owns a significant interest in such cable system, or who otherwise controls or is responsible for, through any arrangement, the management and operation of such a cable system. The term “cable service” means the one-way transmission to subscribers of video programming or other programming service, and subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service.

B. “Cellular telephone service” means any two-way voice and/or data telephone or similar communications system based in whole or in substantial part on wireless radio communications, including cellular mobile service, and which is not subject to regulation by the Washington State Utilities and Transportation Commission. “Cellular telephone service” includes other wireless radio communications services including, without limitation, specialized mobile radio, paging services, personal communications, and any other evolving wireless radio communications technology that accomplishes a purpose substantially similar to cellular telephone service. Cellular telephone service is included within the definition of “telephone business” for the purposes of this chapter.

C. “Competitive telephone service” means the providing by any person, firm, or corporation 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 RCW Title 80 and for which a separate charge is made.

D. “Gross income” means the value proceeding or accruing from the performance of the particular business involved, including operations incidental thereto, but without any deduction on account of the cost of the commodity furnished or 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.

E. “Network telephone service” means the providing by any person, firm, or corporation 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 interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. “Network telephone service” includes the provision of transmission to and from the site of an internet provider via a local 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, the providing of broadcast services by radio or television stations, or the provision of internet service as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the internet service provider.

F. “Solid waste” means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, infectious, hazardous, or toxic wastes, demolition and construction wastes, abandoned vehicles or parts thereof, and recyclable or reusable materials collected, in whole or in part, for recycling or salvage.

G. “Solid waste collection service” means receiving solid waste for transfer, storage, processing, treatment, or disposal including, but not limited to, all residential and commercial collection services, public or private solid waste disposal sites, transfer stations, and similar operations. “Solid waste collection service” includes the activities of transferring, processing, treating, storing, or disposing of the solid waste collected.

H. “Telephone business” means the business of providing network telephone service and cellular telephone service as those terms are defined in this section and includes cooperative or farmer line telephone companies or associations operating an exchange. “Competitive telephone service” shall not be considered “telephone business.” “Telephone business” shall include one hundred percent of the business and total gross income derived from calls originating and/or billed to subscribers within the city. (Ord. 1961-1220 § 2, 2021)

3.30.030 Certain utilities subject to tax.

A. In addition to the other business and license fees required by the ordinances of the city, the city levies upon all persons, firms, or corporations (including the city) engaged in certain business activities a utility tax to be collected as follows:

1. Upon every person, firm, or corporation engaging in or carrying on any telephone business within the city, an annual tax equal to six percent of the total gross income derived from the operation of such business within the city.

2. Upon every person, firm, or corporation engaging in or carrying on a business of selling, or distributing gas, whether manufactured or natural, for commercial or domestic use or purposes, a fee or tax equal to six percent of the total gross income from such business in the city.

3. Upon every public utility district engaged in or carrying on the business of selling or distributing electricity for light and power, a fee or tax equal to six percent of the total gross income from such business in the city, exclusive of the revenues derived from the sale of electricity for the purpose of resale.

4. Upon every person, partnership, association, firm, or corporation engaged in or carrying on the business of providing cable television services, a tax equal to six percent of the total gross income from that business in the city. The tax shall be in addition to any franchise fees imposed by contract.

5. Upon every person, firm, or corporation engaging in or carrying on a business providing solid waste collection services, a tax equal to forty-one and nine tenths percent of the total gross income from such business in the city. The tax shall be in addition to any franchise fees imposed by contract.

6. Upon the city’s water utility, a tax equal to eleven and sixty-three one-hundredths percent of the total gross income in the city.

7. Upon every utility (including the city) engaging in or carrying on the business of selling, furnishing, or distributing sewer services, a tax equal to five percent of the total gross income from that business in the city during the tax year.

8. Upon every utility (including the city) engaging in or carrying on the business of selling, furnishing, or distributing drainage services, a tax equal to five percent of the total gross income from such business in the city during the tax year.

B. Unless otherwise directed by the city council in its budget process, the total tax revenues collected under this chapter will be allocated to the general fund.

C. In computing the tax provided in subsection A of this section, the taxpayer may deduct from total gross income the following items:

1. The actual amount of credit losses and uncollectible receivables sustained by the taxpayer.

2. Amounts the city is prohibited from taxing under the laws and Constitution of the United States or the state of Washington. (Ord. 1961-1220 § 2, 2021)

3.30.040 Utility tax, when due.

The utility tax imposed by this chapter shall be due and payable in monthly installments and remittance thereof shall be made on or before the twentieth day of the following month in which the tax accrued. If applicable, on or before said due date, the taxpayer shall file with the finance department a return upon a form to be prescribed and provided by the finance department, which return shall contain a statement by the taxpayer, stating that the amount of tax for which it is liable for the preceding monthly period, the information therein given, and the amount of tax liability therein reported are full and true. This statement shall be signed by the taxpayer or its authorized agent. Taxpayers expected to owe less than one thousand dollars per month may submit taxes on a quarterly basis; taxes shall be due on the last day of the month following the end of the quarter in which the tax accrued. “Quarterly period” for the purpose of this chapter shall mean each three-month period of the calendar year, commencing on January 1st. (Ord. 1961-1220 § 2, 2021)