Chapter 5.04UTILITY OCCUPATION TAX

Sections:

5.04.010
Authority.
5.04.020
Definitions.
5.04.030
License – Required.
5.04.040
Levied.
5.04.050
Taxes due and payable.
5.04.060
Losses.
5.04.070
Records.
5.04.080
Debt.
5.04.090
Refunds.
5.04.100
Penalty for violation.
5.04.110
Annexations.
5.04.120
Administration.
5.04.010Authority.

The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue.

(Ord. 775 § 1, 1981)

5.04.020Definitions.

A. “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 regulation as telephone companies under Title 80 RCW and for which a separate charge is made.

B. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll services 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. 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.

C. “Gross operating revenues” means the value proceeding or accruing from the sale of tangible personal property and/or for services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued.

(Ord. 1359 § 1, 2011; Ord. 812 § 1 (part), 1984)

5.04.030License – Required.

From and after January l, 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 Section 5.04.040 without first having obtained, and being the holder of a license so to do, to be known as an occupation license. Each said person, firm or corporation shall promptly apply to the city clerk for such license upon such forms as the clerk shall prescribe, giving such information as the clerk shall deem reasonably necessary to enable the clerk’s office to administer and enforce this chapter and, upon acceptance of such application by the clerk, the clerk shall thereupon issue the license to the applicant. The occupation license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in said business and shall comply with this chapter.

(Ord. 775 § 2, 1981)

5.04.040Levied.

From and after May 6, 1984, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in the following business for hire or for sale of a commodity or service within, or partly within, the corporate limits of the city, a tax for the privilege of so doing business as defined in this chapter:

A. 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 the 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, nor shall gross operating revenue include any amount paid by the city.

B. Upon every person or firm engaged in or carrying on the business of selling or furnishing electric light and power, there shall be levied a tax equal to six percent of the total gross operating revenues. The total gross operating revenues shall not include any revenues received by the firm from the city.

C. Upon every person or firm engaged in or carrying on the business of selling or furnishing natural gas, there shall be levied a tax equal to six percent of the total gross operating revenues. The total gross operating revenues shall not include any revenues received by the firm from the city.

(Ord. 1359 § 2, 2011; Ord. 872 § 1, 1987: Ord. 812 § 1 (part), 1984)

5.04.050Taxes due and payable.

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 under this chapter 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. 775 § 4, 1981)

5.04.060Losses.

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. Amounts derived from transactions in interstate or foreign commerce or from any business in which the city is prohibited from taxing under the Constitutions of the United States or the state;

C. Amounts derived by the taxpayer from the city.

(Ord. 775 § 5, 1981)

5.04.070Records.

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 taxpayer who fails to make such returns.

(Ord. 775 § 6, 1981)

5.04.080Debt.

If any person, firm or corporation subject to this chapter fails to pay any tax required by this chapter within thirty days after the due date thereof, there shall be added to such tax a penalty of twenty 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, and may be sued on as in other civil actions for debt, which remedy shall be in addition to all other remedies.

(Ord. 775 § 7, 1981)

5.04.090Refunds.

Any money paid to the city through error or otherwise not in payment of the tax imposed by this chapter 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 ceasing to do business in the city, be refunded to the taxpayer.

(Ord. 775 § 8, 1981)

5.04.100Penalty for violation.

Any person subject to this chapter who fails or refuses to apply for an occupational license under this chapter or to make the tax returns required or to pay the tax quarterly when due, or who makes any false statement or representation in or in connection with any return or application for license, or who otherwise violates or refuses to comply with this chapter shall, upon conviction thereof be punished by a fine of not to exceed five hundred dollars.

(Ord. 775 § 9, 1981)

5.04.110Annexations.

Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided with copies of all annexation ordinances by the city.

(Ord. 775 § 10, 1981)

5.04.120Administration.

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 is necessary, and it is a violation of this chapter to violate or to fail to comply with any such rule or regulation lawfully promulgated under this chapter.