Chapter 3.10
BUSINESS AND OCCUPATION TAX
Sections:
3.10.045 Rates and measure of tax enumerated.
3.10.080 Nonpayment – Penalty.
3.10.100 Extension by annexation.
3.10.010 Purpose.
The provisions of this chapter shall be deemed to be an exercise of the power of the city of South Bend to license for revenue. (Ord. 1177 § 1, 1992).
3.10.020 License required.
A. After January 1, 1982, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by SBMC 3.10.030 without first having obtained, and being the holder of, a license so to do, to be known as a business license. Each such person, firm or corporation shall promptly apply to the city clerk-treasurer for such license upon such information as the city clerk-treasurer shall deem reasonably necessary to enable said clerk-treasurer’s office to administer and enforce this chapter; and, upon acceptance of such application by the city clerk-treasurer, said clerk-treasurer shall thereupon issue such license to the applicant. Such business license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in said business and shall comply with this chapter.
B. The city shall deny any application for a business license upon written finding that:
1. The granting would be detrimental to public peace, health, or welfare; or
2. That such application for a business license is not in compliance with any applicable city regulation, the general laws of the state of Washington, or any applicable provision of federal law; or
3. If the license was procured by fraud or by false or misleading representation of fact in the application or in any report required to be filed with the city clerk. (Ord. 1454, 2012; Ord. 1177 § 2, 1992).
3.10.030 Imposed.
From and after January 1, 1982, there is hereby 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, to wit:
A. Upon any telephone business there shall be levied a tax which shall be set by ordinance, equal to a percentage of the total gross operating revenues, including revenues from interstate toll, derived from the operation of such businesses within the city of South Bend, Washington. Gross operating revenues for this purpose shall not include charges which are passed on to the subscribers by telephone company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone network services, or providing telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” does not include the providing of competitive telephone service, nor the providing of cable television service. “Competitive telephone service” means providing by any person of telephone equipment, apparatus, or service, other than toll service, which 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.
B. There is hereby levied a tax on the sale, service delivery or distribution of electricity and electrical energy for the privilege of carrying on said business, such tax, which will be set by ordinance, equal to a percentage of the total gross operating revenues derived from sales and service of such electricity to ultimate users within the city of South Bend, Washington.
C. There is hereby levied a tax on the sale and service of cable television operating a cable television sales and service in the city of South Bend, Washington. Such tax, which shall be set by ordinance, equal to a percentage of the total gross operating revenue derived from sales and service of such television cable to ultimate users served by the city of South Bend, Washington.
D. There is hereby levied a tax on the sales and service of each water distributor in the city of South Bend, Washington. Such tax, which shall be set by ordinance, equal to a percentage of the total gross operating revenue derived from the sales and service of such water utilities to ultimate users served by the city of South Bend, Washington.
E. There is hereby levied a tax on the sales and service of each sewer service provided by the city of South Bend, Washington. Such tax, which shall be set by ordinance, equal to a percentage of the total gross operating revenue derived from the sales and service of such sewer service to ultimate users served by the city of South Bend, Washington.
F. There is hereby levied a tax on the sales and service of each garbage customer serviced by the city of South Bend, Washington. Such tax, which shall be set by ordinance, equal to a percentage of the total gross operating revenue derived from the sales and service of such garbage service to ultimate users served by the city of South Bend, Washington.
G. There is hereby levied a tax on the sale and service of cellular telephone service in the city of South Bend, Washington. Such tax will be set by ordinance, equal to a percentage of the total gross operating revenue derived from the sales and service of such cellular telephone services to ultimate users served by the city of South Bend, Washington.
“Cellular telephone service” is defined as a two-way voice and data telephone/telecommunication 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.
H. There is hereby levied a tax on the sale and service of pager service in the city of South Bend, Washington. Such tax will be set by ordinance, equal to a percentage of the total gross operating revenue derived from the sales and service of such pager services to ultimate users served by the city of South Bend, Washington.
“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. 1299, 2003; Ord. 1179, 1992; Ord. 1177 § 3, 1992).
3.10.040 Rates.
The following rates will be levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the following businesses for hire or for sale of a commodity or service within or partly within the corporate limits of the city of South Bend, Washington the tax for the privilege of so doing business. The rates will be effective 60 days after passage of the ordinance codified in this section (December 8, 2003).
|
Class of Utility |
Rates |
|---|---|
|
Telephone |
6% |
|
Electricity |
6% |
|
Cable television |
6% |
|
Water |
11% |
|
Sewer |
11% |
|
Garbage |
11% |
|
Cellular service |
6% |
|
Pager service |
6% |
(Ord. 1533, 2018; Ord. 1299, 2003; Ord. 1179, 1992; Ord. 1177 § 4, 1992).
3.10.045 Rates and measure of tax enumerated.
Upon any person engaging or carrying on the business of collecting and treating sewerage and water the tax with respect to such business shall be equal to 12 percent of the total gross revenue from business and residential services and/or sale in the city of South Bend. This tax shall be in effect from January 1, 2024, through December 31, 2025. (Ord. 1591, 2023; Ord. 1562, 2021; Ord. 1533, 2018).
3.10.050 Payment.
The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be due and payable on or before the fifteenth day of the next succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:
First quarter – January, February and March
Second quarter – April, May and June
Third quarter – July, August and September
Fourth quarter – October, November and December
The first payment of the year shall be due and made on or before April 15th for the three-month period ending March 31st. On or before said due date the taxpayer shall file with the city clerk-treasurer a written return, upon such form setting forth such information as the clerk-treasurer shall reasonably require, together with the payment due for the amount of tax. (Ord. 1177 § 5, 1992).
3.10.060 Computation.
In computing said tax there shall be deducted from said gross operating revenues the following term:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. Amounts derived from transactions in interstate or foreign commerce or from any business which the city is prohibited from taxing under the Constitution of the United States or the state of Washington;
C. Amounts derived by the taxpayer from the city of South Bend. (Ord. 1177 § 6, 1992).
3.10.070 Records.
Each taxpayer shall keep records reflecting the amount of his said gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk-treasurer, or his/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 return. (Ord. 1177 § 7, 1992).
3.10.080 Nonpayment – Penalty.
If any person, firm or corporation subject to this chapter shall fail to pay tax required by this chapter within 15 days after the end of the quarter thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax, 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 will be at the cost of the taxpayer, which remedies shall be in addition to all other remedies. (Ord. 1177 § 8, 1992).
3.10.090 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 the taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. (Ord. 1177 § 9, 1992).
3.10.100 Extension by annexation.
Whenever the boundaries of said city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the city of South Bend, Washington. (Ord. 1177 § 10, 1992).
3.10.110 Administration.
The city clerk-treasurer is hereby 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. 1177 § 12, 1992).
3.10.120 Amendment.
The tax rate set by this chapter may be changed from time to time by amending SBMC 3.10.040 by the city council of the city of South Bend, Washington. (Ord. 1177 § 13, 1992).