Chapter 3.40
UTILITIES TAX

Sections:

3.40.010    Tax imposed.

3.40.020    Definitions.

3.40.030    Allocation of income – Cellular telephone service.

3.40.040    Service address.

3.40.050    Presumption.

3.40.060    Roaming phones.

3.40.070    Tax payment.

3.40.080    Tax deductions and computation.

3.40.090    Record keeping.

3.40.010 Tax imposed.

From and after January 2006, there is levied a tax on every person engaged in or carrying on any telephone business (including cellular telephone service) within the town of Skykomish a fee or tax equal to six percent of the total gross revenue from such business in the town of Skykomish. Tax liability imposed under this section shall not apply to that portion of gross revenue derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale. (Ord. 368, 2005)

3.40.020 Definitions.

“Telephone business” means the business of providing access to 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, 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 an exchange. Telephone business also includes cellular telephone service. Telephone business does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio and television stations.

“Competitive telephone service” means 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 regulations as telephone companies under RCW Title 80 and for which a separate charge is made.

“Cellular telephone service” means a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications which is not subject to regulation by the Washington State Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communication services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service. Cellular telephone service is included within the definition of “telephone business” for the purposes of this chapter. (Ord. 368, 2005)

3.40.030 Allocation of income – Cellular telephone service.

For the purpose of this chapter, mobile telecommunications services are deemed to have occurred at the customer’s place of primary use, regardless of where the mobile telecommunications services originate, terminate, or pass through, consistent with the Mobile Telecommunications Sourcing Act, P.L. 106-252, 4 USC Sections 116 through 126. The definitions in RCW 82.04.065 apply to this section. RCW 82.04.065(13) defines “place of primary use” as follows:

“Place of primary use” means the street address representative of where the customer’s use of the mobile telecommunications service primarily occurs, which must be:

(a) The residential street address or primary business street address of the customer; and

(b) Within the licensed service area of the home service provider.

(Ord. 368, 2005)

3.40.040 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. (Ord. 368, 2005)

3.40.050 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. (Ord. 368, 2005)

3.40.060 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. (Ord. 368, 2005)

3.40.070 Tax payment.

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:

(1) First quarter: January, February, March;

(2) Second quarter: April, May, June;

(3) Third quarter: July, August, September;

(4) Fourth quarter: October, November, December.

The first payment made under this section shall be made by April 30, 2006, for the three-month period ending March 31, 2006. On or before said due date the taxpayer shall file with the town clerk a written return, upon such form and setting forth such information as the clerk shall reasonably require, together with the payment of the amount of the tax. (Ord. 368, 2005)

3.40.080 Tax deductions and computation.

In computing said tax there shall be deducted from said gross operating revenue amounts derived from transactions in interstate or foreign commerce or from any business which the town is prohibited from taxing under the Constitution of the United States and the state of Washington. (Ord. 368, 2005)

3.40.090 Record keeping.

Each taxpayer shall keep records reflecting the amount of his or her said gross operating revenues and such records shall be open at all reasonable times to the inspection of the town clerk, or his or her duly authorized subordinates, for verification of said tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 368, 2005)