Chapter 3.40
UTILITIES TAX
Sections:
3.40.010 Exercise of revenue license power.
3.40.030 Occupation license required.
3.40.050 Occupations subject to tax amount.
3.40.060 Exceptions and deductions.
3.40.070 Application or return for license.
3.40.080 Monthly and quarterly payment of tax.
3.40.090 When tax based on current year—Commencement of business during tax year.
3.40.100 Monthly payments—License prerequisite.
3.40.110 Sale or transfer of business.
3.40.120 Taxpayer to keep books and records—Returns confidential.
3.40.130 Clerk to investigate returns.
3.40.140 Overpayment or underpayment of tax.
3.40.150 Remedy for nonpayment of tax.
3.40.160 Appeals to the town council.
3.40.180 Licenses—Posting—Unlawful uses of.
3.40.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the town to license for revenue. (Ord. 116 § 1, 1969)
3.40.020 Definitions.
In construing the provisions of this chapter, save when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
“Competitive telephone service” means the 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 regulations as telephone companies under Title 80 RCW and for which a separate charge is made.
“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 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 evidence of indebtedness or stocks and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor cost, interest or discount paid, or any expenses whatsoever, and without deduction on account of losses.
“Gross operating revenues” for purposes of determining the tax due under this chapter shall not include charges which were 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.
“Person or persons” means persons of either sex, firms, copartnerships, corporations, public utility districts, municipal corporations or departments thereof, public or private utilities, water companies or districts, and other associations, whether acting by themselves or by servants, agents or employees.
“Taxpayer” means any person liable to the license fee or tax imposed by this chapter.
“Tax year or taxable year” means the year commencing January 1st and ending on the last day of December of said year, or, in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the town clerk to use the same as the tax period.
“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 or similar communications or transmission system. It shall include cooperative or other line telephone companies or associations operating an exchange. It shall not include the providing of competitive telephone service as that term is defined in this section or the providing of cable television service.
“Town clerk” or “clerk” means the individual serving as the clerk-treasurer of the town. (Ord. 271 § 1, 1982; Ord. 116 § 2, 1969)
3.40.030 Occupation license required.
A. After the first day of June, 1969, 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 having first obtained, and being the holder of, valid and subsisting license so to do, to be known as an occupation license.
B. Any person engaging in, or carrying on, more than one such business, occupation, pursuit or privilege shall pay the license tax so imposed upon each of the same.
C. Any taxpayer who engages in, or carries on, any business subject to tax hereunder without having his occupation license so to do, shall be guilty of a violation of this chapter for each day during which 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 operating without having his license so to do. (Ord. 116 § 3, 1969)
3.40.040 License tax year.
A. All occupation licenses shall be for the tax year for which issued and shall expire at the end of such tax year.
B. Such occupation license and the fee or tax therefor imposed shall be for the year commencing January 1st and ending on the last day of December of said year; provided, however, that if the taxpayer in transacting his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the assent of the town clerk, obtain his license for the period of his current fiscal year which shall be deemed his tax year, and pay the fee or tax computed upon his gross income made during his fiscal year (next preceding his tax year) covering his accounting period as shown by the method of keeping the books of the business. (Ord. 116 § 4, 1969)
3.40.050 Occupations subject to tax amount.
There are levied upon, and shall be collected from, the persons on account of the business activities annual license fees or occupation taxes in the amounts to be determined by the application of the rates against gross income as follows:
A. Upon every person engaged in or carrying on the business of selling or furnishing electrical lights and power, natural or manufactured gas, if distributed by pipelines, a fee or tax equal to six percent of the total gross income from such business in the town during his fiscal year next preceding the tax year for which the license is required;
B. Upon every person engaged in or carrying on a telephone business, a tax equal to six percent of the total gross operating revenue, as that term is defined herein, including the revenues from intrastate tolls, rendered subscribers within the town limits;
C. Upon every person engaged in the business of constructing, operating and maintaining a coaxial cable subscribed system for television, radio and other audio-visual electrical signal distribution throughout the town, a fee or tax equal to six percent per annum of the total gross income from such business in the town during his fiscal year next preceding the tax year for which the license is required; provided, however, that there shall not be included in the gross income on which computation is made any sums received by said persons for any installations or connection work; and further provided, that the minimum fee or tax shall not be less than two hundred dollars ($200.00) per tax year;
D. Upon every person engaged in or carrying on the business of selling or supplying domestic water, a fee or tax equal to fifteen (15) percent of the total gross income from such business in the town during the fiscal year next preceding the tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than two hundred dollars ($200.00) per year;
E. Upon every person engaged in carrying on the business or activity in the town of collecting garbage and garbage disposal service, and/or the operation and sale of services for sewer utilities, including the sewer department of the town, all said departments to be construed as separate persons for taxable purposes, the following tax:
1. For collecting garbage and garbage disposal service, a tax equal to seven percent of the total gross income on said business in the town.
2. In the operation of services for sewer utilities, a tax equal to fifteen (15) percent of the total gross income for such business in the town. (Ord. 517 §§ 1, 2, 2000; Ord. 514 §§ 1, 2, 2000; Ord. 325 § 1, 1987; Ord. 271 § 2, 1982; Ord. 253 § 1, 1981: Ord. 240 § 1, 1980: Ord. 116 § 5, 1969)
3.40.060 Exceptions and deductions.
A. 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 transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state of Washington, or the town, as excise taxes levied or imposed upon the sale or distribution of property or service.
B. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed all bad debts for services incurred, rendered or charged for during the tax year, or for a preceding tax year, if the charge off is made in the current tax year. Debts shall be deemed bad or uncollectable when the same have been written off the books of the taxpayer. In the event debts are subsequently collected, said income shall be reported in the return for the tax year in which said debts are collected and at the rate prevailing in the tax year when collected.
C. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed all cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
D. Nothing in this chapter shall be construed as requiring a license or the payment of a license fee or tax or the doing of any act, which would constitute an unlawful burden or interference in violation of the Constitution or laws of the United States or which would not be consistent with the constitution or laws of the state of Washington.
E. Any person subject to the payment of a license fee or tax, under the provisions of any ordinance of the town, other than this on account of engaging in any activity for which he is liable to tax hereunder, may deduct the amount of such fee or tax from the amount of fee or tax imposed by this chapter on account of such activity, but such person shall nevertheless, in the manner herein provided for, apply for and procure an occupation license. (Ord. 116 § 7, 1969)
3.40.070 Application or return for license.
A. On or before the first day of June, 1969, and thereafter on or before the first day of each preceding tax year, every taxpayer shall apply to the town clerk for an occupation license upon blanks or forms of returns to be prepared and provided by him or her requesting such information as may be necessary to enable him or her to arrive at the lawful amount of the fee or tax. The taxpayer shall, in a legible manner, write in such blank or form of return, the information required and shall sign the same and by affidavit at the foot thereof shall swear or affirm that the information therein given is full and true and that he knows the same to be so.
B. Every such application or return shall be accompanied by a remittance by bank draft, certified check, cashier’s check or money order, payable to the town treasurer or in cash, in the amount of the tax or fee or installment thereof required by the provisions thereof.
C. If the applicant be a partnership, the application or return must be made by one of the partners; if a corporation, by one of the officers thereof; if a foreign corporation, copartnership or nonresident individual, by the resident agent or local manager of said corporation, copartnership or individual. (Ord. 116 § 8, 1969)
3.40.080 Monthly and quarterly payment of tax.
Where the amount of the license fee or tax is based upon gross income, the taxpayer may pay his fee or tax in equal monthly installments during the life of his license, each such installment to be paid on or before the tenth day of the month. In all other cases the tax-payer shall pay his fee or tax in equal installments during the life of his license, each installment to be paid on or before the first day of March, the first day of June, the first day of September and the first day of December, respectively. (Ord. 116 § 9, 1969)
3.40.090 When tax based on current year—Commencement of business during tax year.
A. Where a business, occupation or pursuit subject to tax upon gross income has not been carried on for the full calendar or fiscal year next preceding the tax year for which license fee or tax shall be paid monthly in installments during the life of the license on or before the tenth day of the month, payment shall be based upon the gross income for the month next preceding that in which payment is due. In such cases the taxpayer shall make monthly returns similar to the annual returns provided for herein on or before the tenth day of the month under oath or affirmation covering the business of the previous month.
B. In all other cases where a person commences during any tax year to engage in any business, occupation, pursuit or privilege, he shall be entitled to a license for the remainder of such tax year for the required fee apportioned in ratio of the remainder to a full tax year. (Ord. 116 § 10, 1969)
3.40.100 Monthly payments—License prerequisite.
In any case where the taxpayer pays his license fee or tax monthly he shall nevertheless first procure his occupation license in the manner herein required before commencing or continuing in business, and shall pay the minimum fee or tax therefor, which shall be credited against future installments. (Ord. 116 § 11, 1969)
3.40.110 Sale or transfer of business.
Upon the sale or transfer during any tax year of a business on account of which a fee or tax is required, the purchaser or transferee shall, if the fee or tax has not been paid in full for the year, be responsible for that portion of said year during which he carries on such business. (Ord. 116 § 12, 1969)
3.40.120 Taxpayer to keep books and records—Returns confidential.
A. It shall be the duty of each taxpayer taxed upon his gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his gross income, which account shall always be open to the inspection of the town clerk, and/or his or her duly authorized agent, and from which said officer or his agent may verify the return made by the taxpayer.
B. The applications, statements or returns made to the town clerk pursuant to this chapter, shall not be made public, nor shall they be subject to the inspection of any person except the mayor, the town attorney, the town clerk, or his authorized agent, and members of the town council. (Ord. 116 § 13, 1969)
3.40.130 Clerk to investigate returns.
If any taxpayer fails to apply for license or make his return, or if the town clerk is dissatisfied as to the correctness of the statement made in the application or return of any taxpayer, such officer, or his authorized agent, may enter the premises of the taxpayer at any reasonable time for the purpose of inspecting his books or records of account to ascertain the amount of fee or tax or to determine the correctness of the statements, as the case may be, and may examine any person under oath administered by such officer, or his agent, touching the matters inquired into, or such officer, or his authorized agent, may fix a time and place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer or any other person, to attend upon such investigation and there testify under oath administered by such officer, or his 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. (Ord. 116 § 14, 1969)
3.40.140 Overpayment or underpayment of tax.
If the town clerk upon investigation or upon checking returns finds that the fee or tax paid on any of them is more than the amount required of the taxpayer, he shall refund the amount paid by a warrant upon the general fund. If the town clerk finds that the fee or tax paid is less than required, he shall send a statement to the taxpayer showing the balance due, who shall within three days pay the amount shown thereon. (Ord. 116 § 15, 1969)
3.40.150 Remedy for nonpayment of tax.
If any taxpayer fails to apply for a license, or make his return, or to pay the fee or tax therefor, or any part thereof within three days after the same shall have become due, the town clerk shall ascertain the amount of the fee or tax or installment thereof due and shall notify such taxpayer thereof, who shall be liable therefor in any suit or action by the town for the collection thereof. The town clerk shall also notify the town attorney in writing of the name of such delinquent taxpayer and the amount due from him and said officer shall, with the assistance of the town clerk, collect the same by any appropriate means or by suit or action in the name of the town. (Ord. 116 § 16, 1969)
3.40.160 Appeals to the town council.
A. Any taxpayer aggrieved by the amount of the fee or tax found by the town clerk to be required under the provisions of this chapter may appeal to the town council from such finding by filing a written notice of appeal with the town clerk within five days from the time such taxpayer was given notice of such amount. The town clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall not be more than ten (10) days after the filing of the notice of appeal, and he shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence in his own behalf. The town council shall thereupon ascertain the correct amount of the fee or tax by resolution and the town clerk shall immediately notify the appellant thereof, which amount together with cost of the appeal, if appellant is unsuccessful therein, must be paid within three days after such notice is given.
B. The mayor of the town may, by subpoena, require the attendance thereat of any person, and may also require him to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the mayor as to any matter required of him pertinent to the appeal, and it is unlawful for him to fail or refuse so to do. (Ord. 116 § 17, 1969)
3.40.170 Clerk to make rules.
The town clerk shall have the power, subject to the approval of the town council, and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations, not inconsistent with this chapter or with law for the purpose of carrying out the provisions thereof, and it is unlawful to violate or fail to comply with, any such rule or regulation. (Ord. 116 § 18, 1969)
3.40.180 Licenses—Posting—Unlawful uses of.
A. All licenses issued pursuant to the provisions of this chapter shall be kept posted by the licensee in a conspicuous place in his principal place of business in the town.
B. No person to whom a license has been issued, pursuant to this chapter, shall suffer or allow a separate licensee to operate under or display his license, nor shall such other person operate under or display such license. (Ord. 116 § 19, 1969)
3.40.190 False returns.
It is unlawful for any person liable to tax hereunder to fail or refuse to make application or return for a license or to pay the fee or tax or installment thereof when due, or for any person to make any false or fraudulent application or return, any false statement or representation in or in connection with, any such application or return, or to aid or abet another in any attempt to evade payment of the fee or tax, or any part thereof, or for any person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon any investigation of the correctness of a return, or upon the hearing of any appeal, or in any manner to hinder or delay the town or any of its officers in carrying out the provisions of this chapter. (Ord. 116 § 20, 1969)
3.40.200 Violation—Penalty.
Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the town clerk pursuant thereto, shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine in any sum not to exceed one hundred dollars ($100.00) or by imprisonment in the town jail for a term not to exceed thirty (30) days or by both such fine and imprisonment. Each and every day that the violation of this chapter shall be continued is a separate offense and punishable as herein provided. (Ord. 116 § 22, 1969)