Chapter 3.12
UTILITY PRIVILEGE TAX
Sections:
3.12.050 Franchise expiration.
3.12.060 Report of gross earnings.
3.12.070 Payment, penalty and interest.
3.12.010 Franchise required.
(1) All persons, firms, copartnerships, associations, corporations, districts, or people’s utility districts operating a utility as herein defined within the corporate limits of the city of St. Helens shall obtain a franchise regulating use of city streets and rights-of-way.
(2) Any utility desiring to operate within the corporate limits of the city shall apply to the city council for a franchise to do so.
(3) If any utility operates unregulated upon streets and rights-of-way within the corporate limits of the city without a franchise, the city council may take action to refuse to allow such utility the use of city streets and rights-of-way. (Ord. 2480 § 1, 1985)
3.12.020 Definitions.
(1) Gross Revenue. “Gross revenue” as used in this chapter shall be deemed to include any revenue earned within the city from the sale of utility services after adjustment for the net write-off of uncollectible accounts computed on the average annual rate for the entire utility, excluding sales of utility services by the utility to any other utility when the utility purchasing such utility services is not the ultimate consumer. Gross revenues do not include proceeds from the sale of bonds, mortgages, or other evidence of indebtedness, securities, or stocks and do not include revenue paid directly by the United States of America or its agencies.
(2) Utility. As used in this chapter, the term “utility” includes the business of supplying electrical energy, gas, communications, and other services through or associated with telephone or telegraph by means of facilities utilizing and/or occupying rights-of-way, public grounds, or public places within the corporate limits of the city, whether or not the business owns the facilities.
(3) Rights-of-Way. As used in this chapter, the term “rights-of-way” includes the present and future streets, viaducts, elevated roadways, alleys, public highways and avenues in the city, including the subsurface and air space over or under these areas and including rights-of-way held in fee, or by virtue of an easement or dedication. (Ord. 3237 § 1, 2019; Ord. 2480 § 2, 1985)
3.12.030 Privilege tax.
Any utility, using and/or occupying and continuing to use and/or occupy the whole or any part of the rights-of-way, public grounds, or public places within the corporate limits of the city without a franchise, shall pay a privilege tax for the use and occupancy of the whole or any part of the rights-of-way, public grounds, or public places within the corporate limits of the city. The privilege tax shall be in an amount set by resolution of the city council. The privilege tax shall be computed, as applicable, as of the later of: (1) April 1, 2019; (2) the commencement of activities subject to this section; or (3) upon the expiration of any franchise under which such utility might formerly have operated and shall be due and payable as hereinafter provided so long as the utility continues to operate within the city and to use and/or occupy the whole or any part of the rights-of-way, public grounds, or public places without a franchise. Except as set out in SHMC 3.12.040, when a franchise tax herein required and the franchise become effective, then the privilege tax shall cease to apply from the effective date of the franchise. But the franchise holder shall pay the proportionate earned amount of the privilege tax for the period. The privilege tax shall in such cases become immediately due and payable. In the event that any such utility shall operate under a permit granted by the city council and accepted in writing by it, there shall be no tax applicable under this section. (Ord. 3237 § 2, 2019; Ord. 2603, 1990; Ord. 2480 § 3, 1985)
3.12.040 Deductions.
Notwithstanding any other provision of this chapter, an entity that is subject to the privilege tax may enter into a franchise agreement with the city. Any payments made under the franchise agreement will be a deduction from the obligation under the privilege tax. Such payment becomes an offset of and a valid deduction of that amount owed under this chapter. (Ord. 2603, 1990; Ord. 2480 § 4, 1985)
3.12.050 Franchise expiration.
The privilege tax herein required shall immediately apply and continue to apply to all utilities using and/or occupying and continuing to use and/or occupy the whole or any part of the streets, avenues, lanes, alleys, public highways, public grounds, or public places within the corporate limits where the utility’s franchise to so operate expires and no new franchise shall have been granted and become in full force and effect. (Ord. 2480 § 5, 1985)
3.12.060 Report of gross earnings.
Each utility subject to the privilege tax provided for in SHMC 3.12.030 shall file with the city recorder a statement verified under oath of the utility’s gross revenues earned within the boundary of the city for each three-month period. Quarterly reports shall be filed on or before July 15th, October 15th, January 15th, and April 15th of each year, and as long as the utility operates without a franchise. In the event a franchise is granted to any utility that is subject to the privilege tax herein required and the franchise becomes effective, then a report shall be filed within 10 days after the franchise becomes effective showing the gross revenues earned for the proportionate period of the quarter in which the franchise is granted. (Ord. 3047 § 1, 2007; Ord. 2480 § 6, 1985)
3.12.070 Payment, penalty and interest.
The city may agree to any reasonable method of payment. However, if there is no agreement, then the following shall apply. Payments shall be made quarterly on or before July 20th, October 20th, January 20th, and April 20th of each year. In the event the utility fails to pay the privilege tax within the times fixed, the city recorder shall notify the city attorney of such fact, and the city attorney is authorized to and shall institute and action in the circuit court of the state of Oregon for the privilege tax due the city. Interest shall be charged and collected on any taxes not paid when due, at the rate of one percent per month or fraction of a month until paid. (Ord. 3047 § 2, 2007; Ord. 2603, 1990; Ord. 2480 § 7, 1985)
3.12.080 Retroactivity.
(1) It is the express intent of the city council that this chapter apply retroactively to any utility that begins its operations creating gross revenues prior to the effective date of the ordinance codified in this chapter to accomplish uniformity of taxation among utilities in the city. The privilege tax shall apply to any utility operating without a franchise from the commencement of utility service within the city.
(2) If a court of competent jurisdiction rules that the five percent privilege tax portion of SHMC 3.12.030 cannot be applied at a rate higher than an existing electric utility franchise rate, then the privilege tax rate shall be three and one-half percent. (Ord. 2480 § 9, 1985)