Chapter 5.08
UTILITY OCCUPATION TAX
Sections:
5.08.010 City’s license power.
5.08.040 Utility occupational tax – Amounts.
5.08.050 Exceptions and deductions.
5.08.060 Quarterly tax periods.
5.08.070 Additional to franchise payments.
5.08.080 Taxpayer to keep records.
5.08.090 Returns confidential.
5.08.100 Investigation of returns.
5.08.110 Overpayment – Underpayment.
5.08.010 City’s license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue purposes. (Ord. 196 § 1, 1954)
5.08.020 Definitions.
In construing the provisions of this chapter save under otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
(1) “Gross income” means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged whether received or not) by reason of the investment of capital in the business engaged in, including royalties, fees or other emoluments, however designated, derived wholly within the city (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 shares of stock and the like), and without any deductions on account 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;
(2) “Person” or “persons” means person or persons of either sex, firms, copartnerships, corporations, public utility districts, municipal corporations and other associations of natural persons whether acting by themselves or by servants, agents or employees;
(3) “Taxpayer” means any person liable to the license fee or tax imposed by this chapter. (Ord. 196 § 2, 1954)
5.08.030 Required.
No person shall engage in or carry on any business, occupation, pursuit or privilege for which a license fee or tax is imposed by this chapter without first having obtained, and being the holder of a valid and subsisting license so to do, to be known as an “occupation license.”
Any taxpayer who engages in, or carries on, any business subject to tax hereunder without first obtaining his “occupation license” so to do, shall be guilty of a violation of this chapter for each day during which the business is so engaged in or carried on, and any taxpayer who fails or refuses to pay the license fee or tax, or any part thereof, on or before the due date shall be deemed to be operating without a license. (Ord. 196 § 3, 1954)
5.08.040 Utility occupational tax – Amounts.
Beginning June 1, 1989, there are levied and shall be collected by the city clerk bimonthly license fees or occupation taxes from the person on account of the business activities and in the amounts to be determined by the rates against gross income, as follows:
(1) Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenues, excluding revenues from interstate toll, derived from the operation of such businesses within the city. Gross operating revenues for this purpose shall not include charges which are passed on to the subscribers by a 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, cellular telephone service, 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, nor providing of cable television service or other broadcast services by radio or television stations.
“Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, directory advertising and lease of telephone street directories or service, other than toll service, related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which may 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.
(2) Upon every person engaged in or carrying on the business of selling or furnishing electric light and power, or either, there shall be levied a tax equal to six percent of the total gross income from such business in the city.
(3) Upon every person engaged in or carrying on a business of selling or furnishing water for industrial, business, residential or other purposes there shall be levied a fee or tax equal to 10 percent of the total gross income from such business in the city.
(4) Upon every person engaged in or carrying on the business of selling or furnishing gas for industrial, business, residential or other purposes there shall be levied a fee or tax equal to six percent of the total gross income from such business in the city; provided, however, that in determining his gross income such person may exclude from his gross income any and all income received by him from the sale of gas to manufacturers at industrial rates, and any and all income received from the sale of merchandise in the retail trade.
(5) Upon every person engaged in or carrying on the business of selling or furnishing sewer service for industrial, business, residential or other purposes there shall be levied a fee or tax equal to the tax rate set forth below at Figure 1. Thereafter, the tax rate shall be 10 percent of the total gross income from such business in the city.
|
|
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|---|---|---|---|---|---|---|
|
Sewer Utility Tax % |
10.00% |
9.23% |
9.20% |
9.07% |
8.93% |
8.81% |
(6) Upon every person engaged in or carrying on the business of commercial garbage collection and transfer there shall be levied a fee or tax equal to 10 percent of the gross income received from such business in the city.
(7) Upon every person engaged in or carrying on the business of selling or furnishing cable television service there shall be levied a tax equal to six percent of the total gross income from such business in the city.
(8) Upon every person engaged in or carrying on the business of selling or furnishing stormwater service for industrial, business, residential or other purposes there shall be levied a tax equal to six percent of the total gross income from such business in the city. All proceeds collected from this tax shall be deposited into the stormwater utility fund. (Ord. 1898 § 1 (Exh. A), 2019; Ord. 1856 § 2 (Exh. A), 2018; Ord. 1749 § 1 (Exh. A), 2013; Ord. 1677 § 1 (Exh. A), 2010; Ord. 1528 § 1, 2005; Ord. 1498 § 1, 2004; Ord. 1128 § 1 (Exh. A), 1994; Ord. 947, 1989; Ord. 945 §§ 1, 2, 1989; Ord. 852 §§ 1 – 6, 1986; Ord. 834 §§ 1 – 6, 1984; Ord. 819 §§ 1 – 6, 1983; Ord. 801 §§ 1 – 6, 1982; Ord. 788 §§ 1 – 6, 1981; Ord. 777 § 1, 1981; Ord. 568 § 1, 1976; Ord. 385 § 1, 1968; Ord. 361 § 1, 1967; Ord. 212 § 1, 1956; Ord. 196 § 4, 1954)
5.08.050 Exceptions and deductions.
There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed so much thereof as is derived from the transactions in interstate or foreign commerce, or from business done or services furnished to the United States, this state, political subdivisions of this state, and this city.
Nothing in this chapter shall be construed as requiring a license or the payment of a license fee, or the doing of any act which would constitute an unlawful burden or interference in the violation of the Constitution or laws of the United States or which would not be consistent with the constitution or laws of this state. (Ord. 196 § 5, 1954)
5.08.060 Quarterly tax periods.
The license fee or tax imposed by this chapter shall be due and payable in quarterly installments and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the quarterly period in which the tax accrued. On or before the fifteenth day of such month, each person subject to this chapter shall make a return upon a form to be supplied by the city setting forth such information as may be required by the city council and showing the amount of license fee or tax which the taxpayer is liable for the preceding quarterly period, and shall sign and transmit the same to the city clerk together with a remittance for the amount then due and owing. (Ord. 212 § 2, 1956; Ord. 196 § 6, 1954)
5.08.070 Additional to franchise payments.
The license fee or tax levied by this chapter shall be in addition to any and all payments made pursuant to franchises granted by the city. (Ord. 196 § 7, 1954)
5.08.080 Taxpayer to keep records.
Each taxpayer shall keep books or records, reflecting the amount of his gross income, and such books or records shall be open to the inspection of the city clerk, or his agents, for verification of the taxpayer’s return or application or for the purpose of determining the tax due. (Ord. 196 § 8, 1954)
5.08.090 Returns confidential.
The application or returns made to the city clerk, pursuant to this chapter, shall not be made public nor shall they be subject to inspection by any person except the city manager, city attorney, city clerk or his agents, and members of the city council. (Ord. 1873 § 1 (Exh. A), 2019; Ord. 196 § 9, 1954)
5.08.100 Investigation of returns.
If any taxpayer fails to apply for license or make his return, or if the city clerk is dissatisfied with any return, the officer, or agent, may enter the premises of such taxpayers at any reasonable time to inspect his books and records, and may examine any person under oath administered by him, or his agent, touching the matters inquired into, or the officer, or agent, may fix a time for the investigation of the correctness of the return, and may issue a subpoena to the taxpayer, or any person, to attend upon such investigation and there testify under oath administered by such officer or agent, in regard to the matters inquired into, and may by subpoena require him, or any person, to bring with him such books, records, and papers as may be necessary for the investigation. (Ord. 196 § 10, 1954)
5.08.110 Overpayment – Underpayment.
If the city clerk, upon investigation or upon checking returns, finds the fee or tax, or any of them paid to him is more than the amount required of the taxpayer, he shall refund the amount overpaid by a warrant upon the general fund. If the city clerk finds the fee or tax is less than required, he shall send a statement to the taxpayer showing the balance due and such taxpayer paying less than the required amount shall within 10 days pay the balance due. (Ord. 196 § 11, 1954)
5.08.120 Violations.
It is unlawful for any person required to have an occupation license as herein provided to fail or refuse to make application for such occupational license, or to neglect or refuse to pay the license fee or tax when due, or for any person to make any false or fraudulent application or return, or any false statement or representation in, or in connection with, any such application or return, or in any manner to fail to comply with the provisions hereof, or in any manner to hinder or delay the city, or any of its officials in carrying out the provisions of this chapter. (Ord. 196 § 12, 1954)