Chapter 3.84
TELEPHONE BUSINESS
Sections:
3.84.010 Defined.
3.84.020 Competitive telephone service defined.
3.84.030 License – Required.
3.84.040 Tax – Imposed.
3.84.050 Tax – Payment schedule.
3.84.060 Tax – Deductions.
3.84.063 Allocation of income – Cellular telephone service.
3.84.065 Authority of administrator.
3.84.067 Rate change.
3.84.070 Records required.
3.84.080 Tax – Late penalty.
3.84.090 Credit and refund.
3.84.100 Annexation notification.
3.84.110 Constitutionality.
3.84.120 Regulation promulgation.
3.84.130 Applicable provisions.
3.84.010 Defined.
A. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone 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 communication or transmission system, and as more fully defined in RCW 82.04.065. It includes cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” does not include the providing of competitive telephone service, nor the providing of cable television service, nor the providing of broadcast services by radio or television stations.
B. “Cellular telephone service” is 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 which accomplishes a purpose similar to cellular mobile service. (Ord. 5673 § 2, 2002; Ord. 4722 § 1, 1994; Ord. 3679 § 4, 1981. Formerly 5.82.010.)
3.84.020 Competitive telephone service defined.
“Competitive telephone service” means the providing by any person of telecommunications equipment, apparatus, or service related to that equipment or apparatus, such as repair or maintenance services, 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. Transmission of communication through cellular telephones is classified as “telephone business” in ACC 3.84.010 rather than “competitive telephone service.” (Ord. 5673 § 2, 2002; Ord. 4722 § 2, 1994; Ord. 4594 § 2, 1992; Ord. 3679 § 4, 1981. Formerly 5.82.020.)
3.84.030 License – Required.
On and after January 1, 1982, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by ACC 3.84.040 without first having obtained, and being the holder of, a license so to do, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the Auburn business license clerk, as designated by the mayor, for such license upon such forms as the business license clerk shall prescribe, giving such information as the business license clerk shall deem reasonably necessary to enable the business license clerk’s office to administer and enforce this chapter, and, upon acceptance of such application by the business license clerk, the business license clerk shall thereupon issue such license to the applicant. Such occupation license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in the business and shall comply with this chapter. (Ord. 5897 § 1, 2005; Ord. 5673 § 2, 2002; Ord. 3679 § 3, 1981. Formerly 5.82.030.)
3.84.040 Tax – Imposed.
On and after July 1, 2008, there is levied upon and there shall be collected from every person, firm or corporation engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city, a tax for the privilege of so doing business as defined in ACC 3.84.010. Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenues, including revenues from intrastate tolls derived from the operation of such business 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. The increase in tax revenue generated by the additional one percent tax levied pursuant to Ordinance No. 6170 shall be relegated for use by the city in support of its arterial street system. It is provided, however, that if the state of Washington provides a long-term sustainable funding source to the city of Auburn arterial street fund in an amount sufficient to off-set the amount of the increases in utility tax rates of this chapter and the long-term funding source is sufficient to maintain the city of Auburn’s arterial street system’s pavement condition index (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable future, the telephone utility tax rate shall automatically revert to five percent of the total gross operating revenues on telephone businesses, including revenues from intrastate tolls derived from the operation of such business within the city. (Ord. 6170 § 3, 2008; Ord. 5797 § 1, 2003; Ord. 5673 § 2, 2002; Ord. 4185 § 2, 1986. Formerly 5.82.040.)
3.84.050 Tax – Payment schedule.
The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the thirtieth day of the month next succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:
First quarter – January, February, March
Second quarter – April, May, June
Third quarter – July, August, September
Fourth quarter – October, November, December
The first payment made hereunder shall be made by April 30, 1982, for the three-month period ending March 31, 1982. On or before the due date the taxpayer shall file with the city clerk a written return, upon such form and setting forth such information as the clerk shall reasonably require, together with the payment of the amount of the tax. (Ord. 5673 § 2, 2002; Ord. 3679 § 5, 1981. Formerly 5.82.050.)
3.84.060 Tax – Deductions.
In computing the tax there shall be deducted from the gross operating revenues the following items:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. A deduction from gross income shall be allowed, only to cellular telephone service companies which keep their regular books of account on an accrual basis, for cash discounts and credit losses actually sustained by a taxpayer as a result of cellular telephone service business which shall be phased in as follows: 20 percent of the credit losses occurring in 1995; 40 percent of the credit losses occurring in 1996; 60 percent of the credit losses occurring in 1997; 80 percent of the credit losses occurring in 1998; and a complete deduction for the credit losses occurring in 1999 and thereafter;
C. Amounts derived from transactions in interstate or foreign commerce or from any business which the city of Auburn, Washington, is prohibited from taxing under the Constitutions of the United States or the state of Washington;
D. Amounts derived by the taxpayer from the city of Auburn, Washington;
E. That portion of the gross income derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting
fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services;
F. Charges by a taxpayer engaging in a telephone business to a telecommunications company, as defined in RCW 80.04.010, for telephone service that the purchaser buys for the purpose of resale. (Ord. 5673 § 2, 2002; Ord. 4722 § 3, 1994; Ord. 3679 § 6, 1981. Formerly 5.82.060.)
3.84.063 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 another city or 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 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, penalties, or interest on the disputed revenues so long as it promptly changes its billing records for future revenues to comport with the settlement facilitated by AWC. (Ord. 5673 § 2, 2002; Ord. 4722 § 4, 1994. Formerly 5.82.063.)
3.84.065 Authority of administrator.
The finance director is authorized to represent the city in negotiations with other cities for the proper allocation of taxes due under ACC 3.84.063. (Ord. 5673 § 2, 2002; Ord. 4722 § 5, 1994. Formerly 5.82.065.)
3.84.067 Rate change.
No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than 60 days following the enactment of the ordinance establishing the change. The finance director shall send to each cellular telephone service company, at the address on its license, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment. (Ord. 5673 § 2, 2002; Ord. 4722 § 6, 1994. Formerly 5.82.067.)
3.84.070 Records required.
Each taxpayer shall keep records reflecting the amount of his gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk, or her duly authorized subordinates, for verification of the tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 5673 § 2, 2002; Ord. 3679 § 7, 1981. Formerly 5.82.070.)
3.84.080 Tax – Late penalty.
If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 12 percent of the amount of such tax, and any tax due under this chapter and unpaid, and all penalties thereon, shall constitute a debt to the city of Auburn, Washington, and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 5673 § 2, 2002; Ord. 3679 § 8, 1981. Formerly 5.82.080.)
3.84.090 Credit and refund.
Any money paid to the city of Auburn, Washington, through error or otherwise not in payment of the tax imposed 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 under this chapter or, upon the taxpayer’s ceasing to do business in the city of Auburn, Washington, be refunded to the taxpayer. (Ord. 5673 § 2, 2002; Ord. 3679 § 9, 1981. Formerly 5.82.090.)
3.84.100 Annexation notification.
Whenever the boundaries of the city of Auburn, Washington, are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the first of the succeeding year. (Ord. 5673 § 2, 2002; Ord. 3679 § 10, 1981. Formerly 5.82.100.)
3.84.110 Constitutionality.
The invalidity or unconstitutionality of any provision or section of this chapter shall not render any other provision or section of this chapter invalid or unconstitutional. (Ord. 5673 § 2, 2002; Ord. 3679 § 11, 1981. Formerly 5.82.110.)
3.84.120 Regulation promulgation.
The city clerk 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, and it shall be a violation of this chapter to violate or to fail to comply with any such rule or regulation lawfully promulgated under this section. (Ord. 5673 § 2, 2002; Ord. 3679 § 12, 1981. Formerly 5.82.120.)
3.84.130 Applicable provisions.
The provisions of this chapter shall be subject to the provisions of ACC 3.88.060 through 3.88.100. (Ord. 5673 § 2, 2002; Ord. 3679 § 13, 1981. Formerly 5.82.130.)