Chapter 3.96
CABLE TELEVISION SERVICE UTILITY TAX
Sections:
3.96.040 Installments – Due date.
3.96.050 Delinquency penalty – Collection.
3.96.070 Recordkeeping – Inspection.
3.96.080 Administration – Rules.
3.96.090 Annexation – Copies of ordinance provided.
3.96.010 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.
“Cable television” means a system providing service pursuant to a franchise issued by the city of Westport under the Cable Communications Policy Act of 1984 as amended (Public Law No. 980549, 47 U.S.C. 521 (Supp.) or any system that employs antennas, microwave, wires, wave-guides, cables, coaxial cables or other conductors, equipment or facilities designed construed or used for the purpose of:
(1) Collecting and amplifying local and distant broadcast television signals and distributing and transmitting them;
(2) Transmitting original cablecast programming not received through television broadcast signals; or
(3) Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; provided, however, that “cable television service” shall not include entities that are subject to charges as “Commercial TV Stations” under 47 U.S.C. Section 148.
“City” means the city of Westport.
“Clerk-treasurer” means the clerk-treasurer of the city of Westport.
“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.
“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. 1325, 2004)
3.96.020 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) Cable Television. Upon every person engaged in or carrying on the business of transmitting television signals by means of a cable distribution system, commonly known as cable television, a tax equal to three percent of the total gross revenues derived from such business in the city. (Ord. 1325, 2004)
3.96.030 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. 1325, 2004)
3.96.040 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. 1325, 2004)
3.96.050 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. 1325, 2004)
3.96.060 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. 1325, 2004)
3.96.070 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. 1325, 2004)
3.96.080 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. 1325, 2004)
3.96.090 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. 1325, 2004)
3.96.100 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. 1325, 2004)