Chapter 3.16
PUBLIC UTILITY TAX
Sections:
3.16.010 Exercise of taxing power.
3.16.030 Utilities subject to tax--Amounts.
3.16.040 Exceptions and deductions.
3.16.050 Timing of required payment.
3.16.060 Books and records--Inspection and confidentiality.
3.16.070 Investigation of returns.
3.16.080 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 first 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 82.16.010). 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), or of yard waste handling (as defined by Section 10.12.020), 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), 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.
F. Water, Sewer, and Stormwater Systems. Upon every person, firm, corporation, or other entity, including the Town of Woodway, engaged in or carrying on the business of operating a utility system for the sale, transmission, furnishing, distribution, or collection of water, sewage, or stormwater, 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. The tax rate imposed by this section shall commence on January 1, 2021. (Ord. 20-619 § 1, 2020; Ord. 09-517 § 1 (part), 2009: 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 82.16.010, 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. 09-517 § 1 (part), 2009: 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 Books and records--Inspection and confidentiality.
A. It is the duty of each taxpayer to keep for five years and enter in a proper book or set of books or records an account which shall accurately reflect the amount of its gross income, which account shall be open to inspection by the Clerk or his or her designee at a reasonable time, and from which the Clerk or his or her designee may verify returns made by the taxpayer.
B. To the extent permitted by Chapter 42.56 RCW and other applicable statutes, returns made to the 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 Clerk, or his or her designee, and the members of the Town Council. (Ord. 09-517 § 1 (part), 2009)
3.16.070 Investigation of returns.
If any taxpayer fails to make its return, or if the Clerk wishes to verify the correctness of the statements made in the return of any taxpayer, the Clerk or his or her designee may: (A) enter the premises of such taxpayer at any reasonable time for the purpose of inspecting and auditing the taxpayer’s books or records to ascertain the amount of the fee or tax or to determine the correctness of such statements; (B) examine any person under oath administered by the clerk, or his or her designee, touching the matters inquired into; (C) request the taxpayer to produce all books and records necessary to ascertain the amount of the fee or tax or to determine the correctness of such statements; (D) fix a time and place for an investigation of the correctness of the return, and issue an administrative subpoena to the taxpayer, or any other person, to attend such investigation and testify, under oath administered by the Clerk, or his or her agent, in regard to the matters inquired into and may, by subpoena, require him or her, or any person, to bring with him or her such books, records, and papers as may be necessary. In the event that any such audit reveals an underpayment of ten percent or more, the taxpayer shall, in addition to any other penalties established by law, be responsible for all of the costs associated with the audit, including but not limited to staff time and overhead, accounting fees, professional service fees, and attorneys’ fees. (Ord. 09-517 § 1 (part), 2009)
3.16.080 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. (Ord. 09-517 § 1 (part), 2009: Ord. 98-340 § 6. Formerly 3.16.060)