Chapter 4.32
UTILITY TAX
Sections:
4.32.020 Use and accountability of tax proceeds.
4.32.040 Occupations subject to tax – Amount.
4.32.060 Exceptions and deductions.
4.32.070 Monthly installments.
4.32.090 Failure to make returns or to pay the tax in full.
4.32.100 Penalty for delinquent payment.
4.32.120 Noncompliance – Penalty.
4.32.140 Finance director to make rules.
4.32.150 Referendum procedure.
4.32.010 Utility tax.
The tax provided for in this chapter shall be known as the “utility tax,” and is levied upon the privilege of conducting an electric energy or natural or manufactured gas business within the city of East Wenatchee effective February 1, 2009, and a garbage, sewer and water business within the city of East Wenatchee effective April 1, 2024. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.020 Use and accountability of tax proceeds.
The finance director shall deposit all revenues collected pursuant to this chapter into the general fund. The city shall use these revenues to fund city services or capital requirements as the city council shall direct through its annual budget process. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.030 Definitions.
As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings.
A. “Finance director” means the finance director of the city of East Wenatchee, Washington, or his or her designee.
B. “Gross income” means the value proceeding or accruing from the performance of the particular business involved, including gross proceeds of sales, compensation for the rendition of services, and receipts (including all sums earned or charged, whether received or not) by reason of investment in the business engaged in (excluding rentals, 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 evidences of indebtedness, or stocks and the like), all without any deduction on account of the cost of property sold, the cost of materials used, labor costs, taxes, interest or discount paid, delivery costs or any expenses whatsoever, and without any deduction on account of losses.
C. “Person” or “persons” means individuals, firms, partnerships, copartnerships, corporations, limited liability companies, public utility districts, municipal corporations or departments thereof, public or private utilities, water companies or districts, and other associations, whether acting by themselves or by servants, agents or employees. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.040 Occupations subject to tax – Amount.
There is levied upon and shall be collected from a person because of certain business activities engaged in or carried on in the city of East Wenatchee, taxes in the amount to be determined by the application of rates given against gross income as follows:
A. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting electric energy, a tax equal to six percent of the total gross income from such business in the city during the period for which the tax is due;
B. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting gas, whether natural or manufactured, a tax equal to six percent of the total gross income from such business in the city during the period for which the tax is due;
C. Upon a person engaged in or carrying on the business of selling or supplying domestic water, a tax equal to 10 percent of the total gross income from such business in the city during the period for which the tax is due;
D. Upon a person engaged in or carrying on the business of collecting and disposing of garbage, a tax equal to 10 percent of the total gross income from such business in the city during the period for which the tax is due; and
E. Upon a person engaged in or carrying on the business of selling or supplying sewer service, a tax equal to 10 percent of the total gross income from such business in the city during the period for which the tax is due. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.050 Tax year.
For purposes of this utility tax, the tax year shall commence February 1, 2009, and end December 31, 2009. Thereafter, the tax year shall commence on January 1st and end on December 31st of each year. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.060 Exceptions and deductions.
There is excepted and deducted from the total gross income upon which the tax is computed:
A. That part of the total gross income derived from business which the city is prohibited from taxing under the Constitution or laws of the United States and the Constitution or laws of the state of Washington.
B. Adjustments made to a billing or customer account in order to reverse a billing or charge that was not properly a debt of the customer.
C. Cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
D. Uncollectible debts written off the taxpayer’s books during the tax year. If subsequently collected, the income shall be reported for the period in which collected. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.070 Monthly installments.
The tax imposed by EWMC 4.32.040 shall be due and payable in monthly installments. Remittance shall be made on or before the last day of the month following the end of the monthly period in which the tax is accrued. Annual or quarterly returns for smaller entities may be allowed upon written approval from the finance director. On or before said due date, the taxpayer shall file with the finance director a written return upon such form and setting forth such information as the finance director shall reasonably require relating to the accurate computation and collection of this tax, together with the payment of the amount. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.080 Taxpayer’s records.
Each taxpayer shall keep records reflecting the amount of the taxpayer’s gross income on sales and services within the city, and such records shall be open at all reasonable times for the inspection of the finance director, or his or her designee, to verify information provided on any utility tax return, or to determine whether such return is required to be filed. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.090 Failure to make returns or to pay the tax in full.
If a taxpayer fails, neglects, or refuses to make his return as and when required by this chapter, the finance director is authorized to determine the amount of the tax payable under provisions of EWMC 4.32.040, and to notify such taxpayer of the amount so determined. The amount so fixed shall be the tax and shall be immediately due and payable, together with penalty and interest. Delinquent taxes, including any penalties, are subject to an interest charge of 12 percent per year on the unpaid balance from the date any such taxes became due as provided in EWMC 4.32.070. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.100 Penalty for delinquent payment.
If a person subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax. Any tax due under this chapter that is unpaid and all penalties thereon shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.110 Overpayment of tax.
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 discovery, be credited against any tax due or to become due from such taxpayer hereunder; provided, however, that overpayments extending beyond one year prior to notification of the city shall not be refunded. If such taxpayer has ceased doing business in the city, any such overpayment shall be refunded to the taxpayer. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.120 Noncompliance – Penalty.
A. No person subject to this chapter shall fail or refuse to file tax returns or to pay tax when due, nor shall any person make a false statement or representation in, or in connection with, any such tax return, or otherwise violate or refuse to comply with this chapter or with any rule promulgated pursuant to EWMC 4.32.140.
B. In addition to the interest and delinquent filing penalties set forth above, the city council declares that failure to comply with this chapter is a civil infraction, subject to a fine of up to $250.00 for each day that a violation continues. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.130 Appeal.
A taxpayer aggrieved by the amount of the tax, penalties, interest, or civil infraction fine determined to be due by the finance director or his designee, under the provisions of this chapter, may appeal such determination to the mayor or his or her designee. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.140 Finance director to make rules.
The finance director shall have the power to adopt and enforce rules and regulations consistent with this chapter or with the law for the purposes of carrying out the provisions thereof. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008)
4.32.150 Referendum procedure.
The provisions of this chapter are subject to the referendum procedure as follows:
A. A referendum petition seeking to repeal this chapter must be filed with the city clerk within seven days of the passage by the city council of the ordinance codified in this section or publication thereof, whichever is later. The city clerk is designated as the person to receive any such petition.
B. Within 10 days, the city clerk shall confer with the petitioner concerning the form and style of the petition, issue an identification number for the petition and cause to be written a ballot title for the measure.
C. The ballot title shall be posed as a question so that an affirmative answer to the question and an affirmative vote on the measure results in the tax being imposed and a negative answer to the question and a negative vote on the measure results in the tax not being imposed. The petitioner shall be notified of the identification number and ballot title within this 10-day period.
D. After notification of the identification number and ballot title the petitioner shall have 30 days in which to secure on petition forms the signatures of not less than 15 percent of the registered voters of the city, as of the last city general election, and to file the signed petitions with the city clerk.
E. Each petition form shall contain the ballot title and the full text of the referendum. The city clerk shall verify the sufficiency of the signatures on the petitions. If sufficient valid signatures are properly submitted, the city clerk shall cause the referendum measure to be submitted to the city voters at the next election within the city or at a special election as provided pursuant to RCW 35.17.260(2). (Ord. 23-18 § 5 (Exh. A), 2023)
4.32.160 Severability.
Should any section, paragraph, sentence, clause or phrase of this chapter, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this chapter be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this chapter or its application to other persons or circumstances. (Ord. 23-18 § 5 (Exh. A), 2023; Ord. 22-17 § 5 (Exh. A), 2022; Ord. 08-13 § 1, 2008. Formerly 4.32.150)