Chapter 3.64
TELEPHONE EXCISE TAX
Sections:
3.64.030 Allocation of income – Cellular telephone service.
3.64.050 Installments – Due date.
3.64.060 Delinquency penalty – Collection.
3.64.080 Recordkeeping – Inspection.
3.64.090 Administration – Rules.
3.64.100 Annexation – Copies of ordinance provided.
Prior legislation: Ords. 347, 350 and 973.
3.64.010 Definitions.
In construing the provisions of this chapter, except when otherwise declared or clearly apparent from the context, the following definitions shall be applied:
“Business” means and includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly.
“Cellular telephone service” means a two-way voice and/or 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 communications 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.
“City” means the city of Westport.
“Clerk-treasurer” means the clerk-treasurer of the city of Westport.
“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 regulation as telephone companies under RCW Title 80 and for which a separate charge is made.
“Gross income” means the value proceeding or accruing by reason of the transaction of the business engaged in and without deduction on labor costs, interest, discount, delivery costs, taxes or any other expense whatsoever paid or accrued and without any deduction on account of losses, except as otherwise provided for in this chapter. Gross income does not include charges which are passed on to subscribers or customers by the taxpayer pursuant to tariffs required by regulatory order to compensate for the cost to the taxpayer of the tax imposed by this chapter.
“Person,” “firm” or “corporation,” used interchangeably in this chapter, means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business, trust, corporation, association, society, or any group of individuals acting as a unity, whether mutual, cooperative, fraternal, nonprofit or otherwise, and includes the United States, the state of Washington and any political subdivision thereof, including the city, provided a valid tax may be levied upon or collected therefrom under the provisions of this chapter.
“Quarterly period” means a three-month period beginning the first day of the following months: January, April, July and October.
“Tax year” or “taxable year” means either the calendar year or the taxpayer’s fiscal year when permission is obtained from the clerk-treasurer to use a fiscal year in lieu of a calendar year.
“Taxpayer” means and includes any person, firm or corporation liable to the utility 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 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.
“Value proceeding or accruing” means the consideration, whether money, credits, rights or other property expressed in terms of money, actually received or accrued. The terms shall be applied, in each case, on a cash-receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. (Ord. 1312 § l, 2003)
3.64.020 Imposed – Amount.
There is levied and there shall be collected from every person, firm or corporation engaged in the business activities hereinafter set forth, for the act or privilege of engaging in such activities within the city, a tax to be known as a “utility tax” in the amounts to be determined by the application of the rates herein stated against gross income as follows:
(1) Upon every person, firm or corporation engaged in or carrying on any telephone business, a tax equal to six percent of the total gross operating income, including income from intrastate toll derived from the operation of such businesses in the city during the period for which the tax is due.
(2) Upon every person, firm or corporation engaged in or carrying on a telegraph business, a tax equal to six percent of the total gross income from such business in the city. (Ord. 1312 § 2, 2003)
3.64.030 Allocation of income – Cellular telephone service.
For the purpose of this chapter, mobile telecommunications services are deemed to have occurred at the location established pursuant to Section 5, Chapter 67, Laws of 2002, to be codified in Chapter 82.08 RCW, as that section may be hereafter amended or succeeded, it being the intent to be consistent with the Mobile Telecommunications Sourcing Act, P.L. 106-252, 4 U.S.C. Sections 116 through 126. (Ord. 1312 § 3, 2003)
3.64.040 Deductions.
In computing the tax levied under this chapter, there shall be deducted from the gross income the following items:
(1) Income derived from transactions in interstate or foreign commerce or from any business which the city is prohibited from taxing under the Constitutions of the United States or the State of Washington.
(2) The amount of credit losses and uncollectibles actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (Ord. 1312 § 4, 2003)
3.64.050 Installments – Due date.
The tax imposed by this chapter shall be due and payable in monthly installments. Remittance shall be made on or before the thirtieth day of the month next succeeding the end of the monthly period for which the tax accrued. The remittance shall be made to the clerk-treasurer and accompanied by a return on a form to be provided and prescribed by the clerk-treasurer. On a return the taxpayer shall be required to swear or affirm that the information therein given is full and true and that the taxpayer knows the same to be so. (Ord. 1312 § 5, 2003)
3.64.060 Delinquency penalty – Collection.
(1) 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:
(A) One to 40 days’ delinquency, 10 percent with a minimum penalty of $5.00;
(B) Forty-one to 70 days’ delinquency, 15 percent with a minimum penalty of $10.00; and
(C) Seventy-one or more days’ delinquency, 20 percent with a minimum penalty of $15.00.
(2) 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. 1312 § 6, 2003)
3.64.070 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 taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. (Ord. 1312 § 7, 2003)
3.64.080 Recordkeeping – Inspection.
It shall be the duty of every person, firm or corporation required to obtain a business license by this chapter to keep and preserve for a period of five years such books and records as will accurately reflect the amount of gross income from which can be determined the amounts of any fee or tax for which there may be liability under the provisions of this chapter. The term “books and records,” as used in this section, includes the taxpayer’s copies of federal excise tax returns, state of Washington excise tax returns and copies of excise tax audits made by the United States or state of Washington, and furnished to such person, firm or corporation, if any. The taxpayer’s books and records shall be opened for examinations as all reasonable times by the clerk-treasurer or a duly authorized representative. (Ord. 1312 § 8, 2003)
3.64.090 Administration – Rules.
The clerk-treasurer is 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. (Ord. 1312 § 9, 2003)
3.64.100 Annexation – Copies of ordinance provided.
Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of the annexation ordinance by the city. (Ord. 1312 § 10, 2003)
3.64.110 Violation – Penalty.
Any person, firm or corporation subject to this chapter who fails or refuses to apply for a business license or to make such tax return or to pay such tax when due, or who makes any false statement or representation in or in connection with any such application for a business license or such tax return, or who otherwise violates or refuses or fails to comply with the provisions of this chapter, or with any rule or regulations promulgated hereunder, is guilty of a misdemeanor. (Ord. 1312 § 11, 2003)