Chapter 5.05
UTILITY TAX

Sections:

5.05.010  Purpose.

5.05.020  Exercise of revenue license power.

5.05.030  Administrative provisions.

5.05.040  Registration/license requirements.

5.05.050  Business registration/license certificates.

5.05.060  Fee.

5.05.070  Failure to obtain current business license—Penalty.

5.05.080  Nontransferable—Term.

5.05.090  Separate licenses and certificates required—When.

5.05.100  Numbering.

5.05.110  Change of location.

5.05.120  Imposition of the tax—Tax levied.

5.05.130  Severability.

5.05.010 Purpose.

The provisions of this chapter shall be deemed an exercise of the power of the city, as provided in Chapter 35A.11 RCW, to license and/or tax for revenue, the privilege of engaging in utility business in the city. For the purpose of this chapter, the terms “license” and “tax” shall be synonymous. (Ord. 3556 § 1, 2004)

5.05.020 Exercise of revenue license power.

The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. (Ord. 3556 § 1, 2004)

5.05.030 Administrative provisions.

The administrative provisions contained in Chapter 5.02 shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 3556 § 1, 2004)

5.05.040 Registration/license requirements.

No person shall engage in any business for which a registration certificate is required, whether subject to this chapter or subject to taxation and/or regulation under another provision of this code, without being registered in compliance with the provisions of KMC 5.03.040 through 5.03.110. (Ord. 3556 § 1, 2004)

5.05.050 Business registration/license certificates.

Every person who is subject to the provisions of this chapter shall on or before the twenty-fifth day of January of each calendar year or before engaging in any business or performing any act for which a license fee is required, apply for and obtain from the city clerk a registration certificate for each calendar year or portion thereof. (Ord. 3556 § 1, 2004)

5.05.060 Fee.

The fee for such registration certificate and business license shall be the sum of twenty-five dollars for each calendar year or any part thereof, which fee shall be in addition to all other license fees or taxes as required by the provisions of this chapter. The fee shall be paid before any registration certificate and license is issued. (Ord. 3556 § 1, 2004)

5.05.070 Failure to obtain current business license—Penalty.

Every person subject to the provisions of this section on January 1st, of any year, who fails to apply for and obtain a certificate of registration on or before the thirty-first day of January, as required by this section, and every person who shall fail to apply and obtain a certificate of registration within thirty days after the date he commences to be engaged in business within the city, shall, in addition to all other fees and sanctions provided for in this section, pay a penalty of twenty-five dollars before such certificate of registration shall issue. (Ord. 3556 § 1, 2004)

5.05.080 Nontransferable—Term.

The registration certificate and license shall be personal and nontransferable, and shall be valid until the end of the year for which issued or as long as the certificate holder shall continue in business and pay the license fee required to the city under the provisions of this chapter, whichever event terminates first. (Ord. 3556 § 1, 2004)

5.05.090 Separate licenses and certificates required—When.

In case business is transacted at two or more separate places by one certificate holder, a separate registration certificate for each place at which business is transacted with the public shall be required, but for such additional certificates and licenses no fee shall be required. (Ord. 3556 § 1, 2004)

5.05.100 Numbering.

Each certificate shall be numbered and shall show the name, residence and place and character of business of the certificate holder, and such other information as the director shall deem necessary, and shall be posted in a conspicuous place at the place of business of the certificate holder for which it is issued. (Ord. 3556 § 1, 2004)

5.05.110 Change of location.

Where a place of business of the certificate holder is changed, the certificate holder must return to the director the existing certificate and a new certificate will be issued for the new place of business free of charge. (Ord. 3556 § 1, 2004)

5.05.120 Imposition of the tax—Tax levied.

Upon every person engaging within the city in any one or more of the businesses hereinafter mentioned, as to such person the license fee shall be equal to the gross operating revenue of the business multiplied by the rate set forth after the business, as follows:

A. The business of selling and furnishing natural gas: six percent of the total gross revenue.

B. The business of selling or furnishing or distributing electricity within the city, exclusive of the revenue derived from the sale of electricity for the purpose of resale: six percent of the total gross revenue.

C. Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenues derived from 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.

1. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone services or coin telephone services, or providing telephonic, video, data or similar communications or transmission for hire via a local telephone network, toll line or channel, cable, microwave or similar communications or transmission system.

The term shall also include the ownership, operation, maintenance or commercial use of an antenna by a wireless communications service provider as defined in Section 17.88.020J of this code.

It includes cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” does not include the providing of competitive telephone service, or the providing of cable television service.

2. “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, directory advertising and lease of telephone street directories, or service, other than toll service, related to that equipment or apparatus such as repair or maintenance service if the equipment 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.

D. The business of selling and furnishing coaxial cable and fiber optic cable subscriber systems for television and other signal distribution: six percent of the total gross revenue. For the purpose of this subsection, “gross revenue” and “total gross revenue” shall be defined as the terms are defined in the current franchise agreement for such services, it being authorized by Ordinance No. 99-3444.

E. The business of selling or furnishing water for hire, eighteen percent of the total gross revenue.

F. The business of selling or furnishing sanitary sewer service, eighteen percent of the total gross revenue.

G. The business of selling or furnishing garbage or refuse service, eighteen percent of the total gross revenue. (Ord. 3645 § 2, 2007; Ord. 3556 § 1, 2004)

5.05.130 Severability.

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. (Ord. 3556 § 1, 2004)