Chapter 3.16
PUBLIC UTILITY TAX
Sections:
3.16.010 Exercise of taxing power.
3.16.020 Definitions.
3.16.030 Utilities subject to tax--Amounts.
3.16.040 Exceptions and deductions.
3.16.050 Timing of required payment.
3.16.060 Penalty for violations.
3.16.010 Exercise of taxing power.
The provisions of this chapter shall be deemed an exercise of the power of the town of Woodway to tax certain business activities pursuant to the laws of the state of Washington. (Ord. 98-340 § 1)
3.16.020 Definitions.
In construing the provisions of this chapter, the following definitions shall be applied:
"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 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, cost of materials used, labor costs, interest or discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued, and without any deduction on account of losses; provided, however, that "gross income" shall not include moneys collected for reimbursement of the utility tax authorized under this chapter.
"Tax year" means the year commencing January 1st and ending on the last day of December of the same year or, if approved in advance by the Town Clerk, the taxpayer’s fiscal year. (Ord. 05-455 § 1, 2005: Ord. 98-340 § 2)
3.16.030 Utilities subject to tax--Amounts.
There is levied and there shall be collected from every person, firm, corporation or other entity a tax for the act or privilege of engaging in business activities within the town of Woodway, in the amount to be determined by the application of the rates set out below against gross income, as follows:
A. Electrical Energy or Power. Upon every person, firm, corporation or other entity engaged in or carrying on the business of selling or furnishing electrical energy or power, there shall be a tax equal to six percent of the gross income derived from such business within the corporate limits of the town during the tax year; provided, however, that there shall be no tax from revenues derived from the sale of electricity for purposes of resale.
B. Natural or Manufactured Gas and Service. Upon every person, firm, corporation or other entity engaged in or carrying on the business of transmitting, distributing, selling or furnishing natural and/or manufactured gas, there shall be a tax equal to six percent of the gross income derived from such business within the corporate limits of the town during the tax year. No tax rate change may take effect before the expiration of sixty days following the enactment of the ordinance establishing the change, as provided in RCW 35.21.865.
C. Telephone Business (as defined by RCW 82.04.065). There shall be a tax equal to six percent of the gross subscribers’ exchange monthly service charges billed to business and residence customers located within the corporate limits of the town, together with six percent of gross income derived from intrastate toll service provided to business and residential customers located within the corporate limits of the town during the tax year.
D. Solid Waste and Yard Waste. Upon every person, firm, corporation or other entity engaged in or carrying on the business of solid waste handling (as defined by Section 10.10.010 of this code), or of yard waste handling (as defined by Section 10.12.020 of this code), there shall be a tax of six percent of the gross income derived from such business within the corporate limits of the town during the tax year.
E. Cable Facilities and Cable Services. Upon every person, firm, corporation, or other entity engaged in or carrying on the business of cable facilities or cable services (as defined by Section 4.04.010 of this code), there shall be a tax of six percent of the gross income derived from such business within the corporate limits of the town during the tax year. (Ord. 05-455 § 2, 2005: Ord. 98-354 § 1; Ord. 98-347 § 1; Ord. 98-340 § 3)
3.16.040 Exceptions and deductions.
A. Interstate or Foreign Commerce. There shall be excepted and deducted from the gross income upon which the tax is computed, so much thereof as is derived from the 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 to the United States, the state of Washington or the town of Woodway as excise taxes levied or imposed upon the sale or distribution of property or service.
B. Telephone Business. There shall be excepted and deducted from the gross income upon which the tax is computed, so much thereof as is derived from network telephone service, as defined in RCW 82.04.065, which represents 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, or charges for network telephone service that is purchased for the purpose of resale. (Ord. 98-340 § 4)
3.16.050 Timing of required payment.
The tax levied in this chapter shall be paid bimonthly upon the twentieth day of the month next succeeding the bimonthly period in which the service is rendered and sold in the town of Woodway. (Ord. 98-340 § 5)
3.16.060 Penalty for violations.
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 subject to the penalty provided for in Section 1.12.010 of this code. (Ord. 98-340 § 6)