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Chapter 3.30
UTILITY OCCUPATION TAXSections:
3.30.010 Definitions.
3.30.020 Occupations subject to tax.
3.30.025 Fee proceeds.
3.30.030 Tax to be paid quarterly.
3.30.040 Credits on tax.
3.30.050 Record required.
3.30.060 Failure to make timely payments of tax.
3.30.070 Tax paid in error.
3.30.080 Administrative rules.
3.30.090 Locations of income—Cellular telephone services.
3.30.100 Severability.
3.30.010 Definitions.
For the purposes of this chapter, unless otherwise required by the context, the following definitions will be applied:
(a) “City” means the city of Connell, Washington.
(b) “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 are of a type which may be provided by persons 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” rather than “competitive telephone service.”
(c) “Gross operating revenue” 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 of sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences 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 costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses.
(d) “Person” or “persons” means individuals of either sex, firms, copartnerships, corporations, and other associations of natural persons, whether acting by themselves or by servants, agents or employees, and shall include the water and sewer department of the city.
(e) “Taxpayer” means any person liable for the license fee or tax imposed by this chapter.
(f) “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone service, coin telephone service, telephonic, video, data, or similar communications, or transmissions for hire via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. It further indicates cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” does not include the providing of cable television service, or the providing of broadcast services by radio or television stations.
(g) “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.
(h) “Pager service” means service provided by means of an electronic device which has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission.
(i) “Tax year” or “taxable year” means the year commencing January 1st and ending December 31st of the same year, or in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk/treasurer to use the same as the tax period. (Ord. 765 § 1, 2003: Ord. 641 § 1, 1994: Ord. 558 § 1 (part), 1989).
3.30.020 Occupations subject to tax.
(a) Electrical Utility. There is levied upon and shall be collected from every person or business selling or distributing electricity and electrical energy, a tax equal to five percent of the gross income derived from sale of such electricity to the ultimate users within the city; provided, however, that there shall not be any tax levied or collected for the installation charges of electrical service units.
(b) Gas Systems. There is levied upon and shall be collected from every person, firm, company or corporation which operates within the city; works, plants, or other facilities for the distribution and sale of manufactured or natural gas, a tax equal to five percent of the gross income derived from the sale of such gas to the ultimate consumers within the city; provided, however, that there shall not be levied or collected any tax for the installation charges for gas services.
(c) Gas Line Use Tax. There is levied upon and shall be collected from every person, firm, company or corporation in the city, a use tax for the privilege of using natural gas or manufactured gas within the city as a consumer.
(1) The tax payer shall be imposed at the rate of five percent of the value of the article used by the taxpayer within the city. The “value of the article used” does not include any amounts that are paid for the hire or use of a natural gas business in transporting the gas subject under this subsection, if those amounts are subject to tax under subsection (b) of this section;
(2) The tax imposed under this section shall not apply to use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under subsection (b) of this section, with respect to the gas for which exemption is sought under this subsection;
(3) There shall be a credit against this tax levied under this subsection in an amount equal to any tax paid by:
(A) The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to RCW 35.21.870 by another state with respect to the gas for which a credit is sought under this subsection, or
(B) The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another state with respect to the gas for which a credit is sought under this subsection;
(4) The use tax herein imposed shall be paid by the consumer. The administration and collection of the tax hereby imposed shall be pursuant to RCW 82.14.050;
(5) The mayor is authorized to execute a contract with the Department of Revenue of the state of Washington for the administration and collection of the tax imposed by this section.
(d) Cable TV. There is levied upon and shall be collected from every person or business engaged in or carrying on the business of transmitting television signals by cable, a tax equal to five percent of the gross income derived from such business, and the sale of the service to the ultimate user within the city; provided, however, that there shall not be any tax levied or collected for the installation charge for the cable television service.
(e) Water System. There is levied upon and shall be collected from every person or business selling domestic water via a public water supply and distribution system, a tax equal to five percent of the gross operating revenues from such sales within the limits of the city.
(f) Sewer System. There is levied upon and shall be collected from every person or business selling sanitary sewer services via a collection grid, a tax equal to five percent of the gross operating revenues from such sales within the limits of the city.
(g) Sanitation Service. There is levied upon and shall be collected from every person or business engaged in or carrying on the business of collecting, handling or processing garbage and refuse, a tax equal to five percent of the gross income derived from the sale of such services with the city.
(h) Telephone Business. Upon any telephone business there shall be levied a tax equal to five percent of the total gross operating revenues, including revenues from intrastate toll, derived from the operation of such business within the city.
(i) Cellular Telephone Service. There is hereby levied upon and there shall be collected from every person engaging in or carrying on the cellular telephone or pager service business a fee or tax equal to five percent of the total gross income from such business conducted within the city of Connell, as indicated by billings and/or charges to Connell customers. The effective date of the tax for both cellular telephone business and the pager service business shall be January 1, 2004. (Ord. 765 § 2, 2003; Ord. 641 § 2, 1994; Ord. 633 § 1, 1994; Ord. 603 § 1, 1992: Ord. 558 § 1 (part), 1989).
3.30.025 Fee proceeds.
(a) The tax collected by the city pursuant to Section 3.30.020(b), Gas Systems, Section 3.30.020(c), Gas Line Use Tax, and Section 3.30.020(d), Cable TV, shall be paid into the funds as follows: sixty percent of said sums shall be deposited to the street improvement reserve of the capital facilities fund; twenty percent of said sums shall be deposited to the parks and recreation improvement reserve of the capital facilities fund; and twenty percent of said sums shall be deposited to the general fund.
(b) The tax collected by the city pursuant to Section 3.30.020(e), Water System, shall be deposited into the water fund.
(c) The tax collected by the city pursuant to Section 3.30.020(f), Sewer System, shall be deposited into the sewer fund.
(d) The tax collected by the city pursuant to Section 3.30.020(g), Sanitation Service, shall be deposited into the sanitation fund.
(e) All remaining taxes collected by the city pursuant to Chapter 3.30 of the Municipal Code shall be paid into the current expense fund of the city. (Ord. 661 § 1, 1995; Ord. 633 § 1, 1994).
3.30.030 Tax to be paid quarterly.
(a) Except where the collection of the tax is provided for by written contract, the tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the 30th day of the month next succeeding the end of the quarterly period in which the tax accrued. Such quarterly accrual periods are as follows:
(1) First quarter: January, February and March;
(2) Second quarter: April, May and June;
(3) Third quarter: July, August and September; and
(4) Fourth quarter: October, November and December.
On or before said due dates, the taxpayer shall file with the city treasurer/finance officer a written return upon such form and setting forth such information as the city treasurer/finance officer shall reasonably require together with the payment of the amount of the tax. (Ord. 603 § 2, 1992: Ord. 558 § 1 (part), 1989).
3.30.040 Credits on tax.
In computing said tax there shall be deducted from gross income the following items:
(a) The amount of credit losses and uncollectibles actually sustained by the taxpayer from taxable events covered by this chapter; and
(b) The amounts 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. (Ord. 558 § 1 (part), 1989).
3.30.050 Record required.
Each taxpayer shall keep records reflecting the amount of the gross income as defined in Section 3.30.010, and such records shall be open at all reasonable times for inspection by the city clerk/treasurer or her/his duly authorized designate for verification of the tax returns or for the fixing of the tax upon the taxpayer who shall fail to make such returns on a timely basis. (Ord. 558 § 1 (part), 1989).
3.30.060 Failure to make timely payments of tax.
If any taxpayer, subject to this chapter shall fail to pay any tax or installment required by this chapter within thirty days after the due date thereof, there shall be added to such tax or installment due a penalty of ten percent of the amount of such tax or installment, plus one percent per month for each month the tax remains unpaid, and any tax due under this chapter and unpaid, and all penalties thereon, shall constitute a debt to the city and may be collected from the taxpayer by court proceedings, which remedy shall be in addition to all other remedies allowed by law. (Ord. 558 § 1 (part), 1989).
3.30.070 Tax paid in error.
Any money paid to the city 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 hereunder, or upon the taxpayer ceasing to do business, shall be refunded to the taxpayer. (Ord. 558 § 1 (part), 1989).
3.30.080 Administrative rules.
The mayor or his/her designate 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 such rule or regulation lawfully promulgated hereunder. (Ord. 558 § 1 (part), 1989).
3.30.090 Locations of income—Cellular telephone services.
(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. 765 § 3, 2003: Ord. 558 § 1 (part), 1989).
3.30.100 Severability.
The provisions of this chapter are declared to be separate and severable and the invalidity of any section, subsection, provision, clause or portion of this chapter or the invalidity of the application thereof to any person or circumstances, shall not affect the validity of the remainder of this chapter or of the validity of its application to other persons or circumstances. (Ord. 765 § 4, 2003).
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