Chapter 3.52
UTILITY TAX
Sections:
3.52.030 Penalty for late payment.
3.52.045 Allocation of income – Cellular telephone service.
3.52.010 Definitions.
In construing the provisions of this chapter, except when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Gross revenue” means the value proceeding or accruing from the sale of tangible property or service, and receipts by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages or other evidences of indebtedness or stock and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses.
B. “Person” or “persons” means individuals, firms, partnerships, corporations and other associations of natural persons whether acting by themselves or by servants, agents or employees.
C. “Telephone business” means the providing by any person of access to a telephone network, 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 telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. It also 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. Telephone business 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, nor 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.
D. “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 who are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.
E. “Cellular telephone service” means a two-way voice and data telephone/telecommunications system based in whole or substantially in 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. The definition of 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 that accomplishes a purpose similar to cellular mobile service. (Ord. 908-06 §§ 1, 2; Ord. 754-00)
3.52.020 Imposition.
A. The following taxes shall be levied:
1. Telephone. There shall be levied upon every person, firm or corporation engaged in or carrying on a telephone business, a tax equal to six percent of the total gross revenue derived from such business in the city of Sultan, excepting amounts derived from transactions in interstate or foreign commerce.
2. Electricity. There shall be levied upon every person, firm or corporation engaged in or carrying on the business of selling or furnishing electric light and/or power within the city of Sultan, a tax equal to six percent of the total gross revenue derived from such business in the city of Sultan, exclusive of revenue derived from the sale of electricity for the purposes of resale.
3. Natural Gas. There shall be levied upon every person, firm or corporation engaged in or carrying on the business of selling or furnishing natural gas within the city of Sultan, a tax equal to six percent of the gross revenue derived from sales and service of such gases to ultimate users served by the city of Sultan.
4. Sewer. There shall be levied upon the city of Sultan a tax equal to six percent of the gross revenue derived from each customer’s monthly service charge for sewer service within or without the city but provided by the city of Sultan.
5. Water. There shall be levied upon the city of Sultan a tax equal to six percent of the gross revenue derived from each customer’s monthly service charge for water service within or without the city but provided by the city of Sultan.
6. Garbage. There shall be levied upon the city of Sultan a tax equal to six percent of the gross revenue derived from each customer’s monthly service charge for garbage collection service within or without the city but provided by the city of Sultan.
7. Cable Television Service. There shall be levied upon every person, firm or corporation engaged in or carrying on cable television service a tax equal to six percent of the total gross revenue derived from such business in the city of Sultan, excepting amounts derived from transactions in interstate or foreign commerce, if any.
B. The tax shall be due and payable in monthly installments and remittance shall be made on or before the last working day of the following month. (Ord. 927-06 § 1; Ord. 908-06 § 3; Ord. 754-00)
3.52.030 Penalty for late payment.
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;
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. 754-00)
3.52.040 Overpayment.
Any money paid to the city through error, or otherwise not in payment of the tax imposed by this chapter, or in excess of such tax shall, upon discovery, be credited against any tax due or to become due from such taxpayer hereunder. If such taxpayer has ceased doing business in the city, any such overpayment shall be refunded to the taxpayer. (Ord. 754-00)
3.52.045 Allocation of income – Cellular telephone service.
A. 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.
B. 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.
C. 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.
D. Dispute Resolution. If there is a dispute between or among the city and one or more other 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 the 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 on the disputed revenues so long as it changes its billing records for future revenues to comport with the settlement facilitated by AWC. (Ord. 908-06 § 4)
3.52.050 Effective date.
All taxes provided for in this chapter shall be effective and applicable on the effective date of the ordinance codified in this chapter. The effective date shall be March 1, 2001. (Ord. 754-00)