Chapter 5.12
UTILITY OCCUPATION LICENSES
Sections:
5.12.010 Exercise of revenue license power.
5.12.035 Quarterly installments – Due date.
5.12.060 Applications and returns not public – Inspection authorized when.
5.12.100 Right of entry for inspection.
5.12.125 Annexation – Copies of ordinance provided.
5.12.126 Referendum procedure.
5.12.150 Tax relief qualification – Low-income senior citizen or low-income disabled citizen.
5.12.160 Reimbursement filing procedures.
5.12.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed as exercise of the power of the city to license for revenue. (Ord. 1874, 2019; Ord. 459 § 1, 1947).
5.12.020 Definitions.
In constructing this chapter, except when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Competitive telephone service” means the providing by any person of telephone equipment, apparatus, or service, other than toll service, which 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.
B. “Gross income” means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged which are collected) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments however designated, derived wholly within the city (excluding receipts or proceeds from the use or sale of personal property constituting plant or equipment not sold in the ordinary course of trade or any interest therein, and proceeds and receipts from the sale of notes, bonds, mortgages or other evidences of indebtedness, or shares of stock and the like) and without any deductions on account of the property sold, the cost of materials used, labor costs, interest paid or any expense whatsoever, and without any deduction on account of losses.
C. “Person” or “persons” means person or persons of either sex, firms, copartnerships, corporations and other associations of natural persons, whether acting by themselves or by servants, agents or employees.
D. “Taxpayer” means any person liable to the license fee or tax imposed by this chapter.
E. “Tax year” or “taxable year” means the calendar year commencing on January 1st and ending on the last day of December, or, in place thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk-treasurer to use the same as his tax period.
F. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or providing telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. Telephone business does not include the providing of competitive telephone service, nor the providing of cable television service.
G. “Telecommunication business,” for the sole purpose of this chapter, means the business of providing access to a wireless phone or pager service.
H. “Cable television service” means the one-way transmission of video programming and associated non-video signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming.
I. “Cellular telephone service” means two-way voice and data telephone/telecommunication system based in whole or substantially in part on wireless radio communication and which is currently not subject to regulation by the Washington Utilities and Transportation Commission. Cellular telephone service includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communication services such as specialized mobile radio, personal communication services, and any other evolving wireless radio communication technology which accomplishes the same purpose as cellular mobile service.
J. “Gas distribution business” means the business of operating a plant or system for the production or distribution for hire or sale of gas, whether manufactured or natural.
K. “Light and power business” means the business of operating a plant or system for the generation, or distribution of electrical energy for hire or sale and/or for the wheeling of electricity for others.
L. “Non-cable television service” means the one-way transmission of video programming and associated non-video signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming delivered through a technology other than cable.
M. “Water service” means water delivered to residential, industrial, manufacturing, or other business customers by the public utility district of Skagit County within the city limits of Burlington.
N. “Sewer service” means sewer customers whose waste is treated by the city of Burlington regardless of the physical location of the residence or business.
O. “Storm drainage service” means all residence or business who are assessed a fee to cover the cost of operating and maintaining the storm system within the city of Burlington. (Ord. 1890 § 1, 2020; Ord. 1874, 2019; Ord. 1423 § 1, 2000; Ord. 991 § 1, 1981; Ord. 459 § 2, 1947).
5.12.030 Required.
A. After the first day of January, 1948, no person shall engage in or carry on any business, occupation, pursuit or privilege for which a license fee or tax is imposed by this chapter without first having obtained, and being the holder of a valid and subsisting license to do so, to be known as an “occupation license.”
B. Any taxpayer who engages in, or carries on, any business subject to tax under this chapter without first obtaining his occupation license to do so is guilty of a violation of this chapter for each day during which the business is so engaged in or carried on, and any taxpayer who fails or refuses to pay the license fee or tax, or any part thereof, on or before the due date shall be deemed to be operating without a license. (Ord. 1874, 2019; Ord. 459 § 3, 1947).
5.12.035 Quarterly installments – Due date.
The tax imposed by this chapter shall be due and payable in quarterly installments. Remittance shall be made on or before the thirtieth day of the month of the next succeeding end of the quarterly period for which the tax accrues, that is on January 30th, April 30th, July 30th, and October 30th of each year. The remittance shall be made to the clerk/treasurer/finance director and accompanied by a return on a form to be provided and prescribed by the clerk/treasurer/finance director. On the return, the taxpayer shall be required to swear or affirm that the information therein given is full and true and that the taxpayer knows the same to be so. (Ord. 1874, 2019; Ord. 1243 § 2, 1993).
5.12.040 Application.
A. On or before February 15th of each tax year, and commencing on or before February 15, 1948, every taxpayer identified in BMC 5.12.070 shall apply to the city clerk-treasurer for an occupation license, upon blanks or forms to be prepared and provided by him requesting such information as may be necessary to enable him to arrive at the lawful amount of the fee or tax. The taxpayer shall fill in such form giving the information required and shall sign the same by affidavit swearing or affirming that the information therein given is full and true and that he knows the same to be so.
B. Every such application or return shall be accompanied by a bank draft, certified check or United States money order, payable to the city clerk-treasurer, or by cash, in the amount of the tax or fee required by the provisions of this chapter. (Ord. 1874, 2019; Ord. 459 § 7, 1947).
5.12.050 Expiration.
A. All occupation licenses shall be for the tax year for which issued and shall expire at the end of such tax year.
B. Such occupation license, and the fee or tax therefor, imposed by this chapter, shall be for the year commencing on the first day of January and ending on the last day of December of each year; provided, however, that if the taxpayer in carrying on his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the consent of the city clerk-treasurer, obtain his license for the period of his current fiscal year, which shall be deemed his tax year, and pay the fee or tax computed upon his gross income made during his fiscal year next proceeding his tax year covering his accounting period as shown by his method of keeping the books of the business. (Ord. 1874, 2019; Ord. 459 § 4, 1947).
5.12.060 Applications and returns not public – Inspection authorized when.
The applications or returns made to the city clerk-treasurer, pursuant to this chapter, shall not be made public, nor shall they be subject to the inspection of any person except the mayor, city attorney, clerk-treasurer, or his agent and members of the city council. (Ord. 1874, 2019; Ord. 459 § 10, 1947).
5.12.070 Fee schedule.
There is hereby levied and shall be collected by the city of Burlington annual license fees or occupation taxes from the person on account of the business activities and in the amounts to be determined by the rates against gross income, as follows:
A. Upon every person engaged in or carrying on a telephone business, or cellular telephone business, or competitive telephone services, or telecommunication business a fee or tax equal to six percent per annum of the total gross income from local service in the city of Burlington. Such gross income shall include the revenue from intrastate toll service. Gross income shall, for the purpose of taxation under this section, not include charges which are passed on to the subscribers pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter.
B. Upon every person engaged in or carrying on the business of selling or furnishing electric light and power, or either, a fee or tax equal to six percent per annum of the total gross income from such business in the city of Burlington; provided, however, that in determining gross income such person may exclude from gross income any and all income received from the sale of electric light and power, or either, to manufacturers at industrial rates, and any and all income derived from the sale of merchandise in the retail trade.
C. This tax is suspended until December 31, 2023. Upon every person engaged in or carrying on the business of selling or furnishing water for industrial, business, residential, or other use, a fee or tax equal to two percent of the total gross income from such business in the city of Burlington.
D. Upon every person engaged in or carrying on the business of selling or furnishing heat to consumers, furnished in a central heating plant or elsewhere, a fee or tax equal to three percent of the total gross income from such business in the city of Burlington.
E. Upon every person engaged in or carrying on the business of selling or furnishing natural or bottled gas, or either, a fee or tax equal to six percent per annum of the total gross income from such business in the city of Burlington.
F. Upon every person engaged in or carrying on a telecommunication business, a fee or tax equal to six percent per annum of the total gross income from local service revenues in the city of Burlington. Gross income shall, for the purpose of taxation under this section, not include charges which are passed on to the subscribers by a telecommunication company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter. See BMC 5.12.020(G) for definition of “telecommunication business” for the sole purpose of this chapter.
G. Upon every person engaged in or carrying on a cable television or non-cable television service, a fee or tax equal to six percent per annum of the total gross income from local service in the city of Burlington. Gross income shall, for the purpose of taxation under this section, not include charges which are passed on to the subscribers pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter.
H. Upon every person engaged in or carrying on a wastewater treatment service, a fee or tax equal to zero percent per annum of the total gross income from local service in the city of Burlington.
I. Upon every person charged for stormwater management within the city, a fee or tax equal to zero percent per annum of the total gross income from local service in the city of Burlington. (Ord. 1929 § 1, 2022; Ord. 1918 § 1, 2021; Ord. 1898 § 1, 2020; Ord. 1890 § 2, 2020; Ord. 1884 § 1, 2019; Ord. 1874, 2019; Ord. 1864 § 1, 2018; Ord. 1847 § 1, 2017; Ord. 1834 § 1, 2016; Ord. 1826 § 1, 2015; Ord. 1807 § 1, 2014; Ord. 1772 § 1, 2012; Ord. 1446 § 1, 2000; Ord. 1423 § 2, 2000; Ord. 1411 § 1, 1999; Ord. 1243 § 1, 1993; Ord. 991 § 2, 1981; Ord. 657 § 1, 1965; Ord. 571 § 1, 1959; Ord. 459 § 5, 1947).
5.12.080 Deductions.
There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the United States and the state, or their officers or agents, and any amount or amounts paid by the taxpayer to the United States, the state, the city, or to any political subdivision of said state, as excise taxes levied or imposed upon the sale or distribution of property or services, or as an occupation tax. (Ord. 1874, 2019; Ord. 459 § 6, 1947).
5.12.090 Recordkeeping.
Each taxpayer shall keep books or records reflecting the amount of his gross income, and such books or records shall at reasonable times be open to the inspection of the city clerk-treasurer, or agent, for verification of the taxpayer’s return or application. (Ord. 1874, 2019; Ord. 459 § 9, 1947).
5.12.100 Right of entry for inspection.
If any taxpayer fails to apply for a license or make his return, or if the city clerk-treasurer is dissatisfied with any return, said officer, or agent, may enter the premises of such taxpayer at any reasonable time to inspect his books and records and may examine any person under oath administered by him, or his agent, touching the matters inquired into, or said officer, or agent, may fix a time for the investigation of the correctness of the return, and may issue a subpoena to the taxpayer; or any person, to attend upon such investigation and there testify under oath administered by such officer or agent in regard to the matters inquired into, and may by subpoena require him, or any person, to bring with him such books, records, and papers as may be necessary for the investigation. (Ord. 1874, 2019; Ord. 459 § 11, 1947).
5.12.110 Overpayment of tax.
Any taxpayer who has overpaid taxes due the city under this chapter may submit a petition for a refund in accordance with chapter 3.68 BMC. (Ord. 1874, 2019; Ord. 1762 § 4, 2012; Ord. 459 § 12, 1947).
5.12.120 Liability.
If any taxpayer fails to apply for a license, or make his return, or to pay the fee or tax therefor, or any part thereof, within three days after the same becomes due, the city clerk-treasurer shall ascertain the amount of the fee or tax and shall notify such taxpayer thereof, who shall be liable therefor in any suit or action by the city for the collection thereof. (Ord. 1874, 2019; Ord. 459 § 13, 1947).
5.12.125 Annexation – Copies of ordinance provided.
Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of the annexation ordinance by the city. (Ord. 1874, 2019; Ord. 1243 § 3, 1993).
5.12.126 Referendum procedure.
This chapter shall be subject to a referendum procedure. Any referendum petition to repeal this chapter or alter the rate of the tax authorized by this chapter shall be filed with the city clerk/finance director within seven days of passage of this chapter. The city clerk/ finance director, within 10 days, shall then confer with the petitioner concerning form and style of the petition, issue an identification number for the petition, and write a ballot title for the measure. The ballot title shall be posed as a question so that an affirmative answer to the question and an affirmative vote on the measure will result in the tax or tax rate increase being imposed and a negative answer to the question and a negative vote on the measure will result in the tax or tax rate increase not being imposed. The petitioner shall be notified of the identification number and ballot title within this 10-day period.
After notification, 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, and to file the signed petitions with the city clerk/finance director. Each petition form shall contain the ballot title and the full text of the measure to be referred. The city clerk/finance director shall verify the sufficiency of the signatures on the petitions. If sufficient valid signatures are properly submitted, the city clerk/finance director shall submit the referendum measure to the city voters at a general or special election held on one of the dates provided in RCW 29.13.010 as determined by the city council. This election shall not take place later than 120 days after the signed petition has been filed with the city clerk/finance director. (Ord. 1874, 2019; Ord. 1243 § 4, 1993).
5.12.130 Violation – Penalty.
A. It is unlawful for any person liable to tax or fee under this chapter to fail or refuse to make application or return for a license, or to neglect or refuse to pay the fee or tax when due, or for any person to make any false or fraudulent application or return, or any false statement or representation in, or in connection with, any such application or return, or in any manner to fail to comply with the provisions hereof, or in any manner to hinder or delay the city, or any of its officers in carrying out the provisions of this chapter.
B. Any person violating or failing to comply with any of the provisions of this chapter is guilty of a misdemeanor, and, upon conviction thereof, shall be punished according to the provisions of chapter 1.24 BMC. (Ord. 1874, 2019; Ord. 459 §§ 14, 16, 1947).
5.12.140 Utility tax relief.
There is granted to persons who meet the qualification and requirements of BMC 5.12.150 relief from the utility taxes of the city as follows:
A. For all billings paid directly by the person during a calendar year to any organization which paid the utility tax of the city, the city is authorized to pay such person a “reimbursement” in a maximum amount determined in accordance with subsection (B) of this section.
B. The amount of maximum household relief under subsection (A) of this section for a calendar year is $55.00. Such relief reimbursement amount shall be prorated for each month that the person qualifying for the relief was a customer of the utility within the city limits of Burlington. (Ord. 1890 § 3, 2020).
5.12.150 Tax relief qualification – Low-income senior citizen or low-income disabled citizen.
A. To qualify for the relief set forth in BMC 5.12.140, a person must be requesting reimbursement for the effect of the Burlington utility tax imposed for the previous calendar year and must:
1. Be over 65 years of age or have a disability as defined by RCW 84.36.381 or WAC 458-16A-130; and/or
2. Live in and have utility service in the incorporated city limits of Burlington; and/or
3. Have income during the calendar year immediately preceding the request for reimbursement from all sources not exceeding 50 percent of the median income level for such calendar year for the Seattle-Bellevue Housing and Urban Development (HUD) Fair Market Rent (FMR) Area per household as published by the Secretary of Housing and Urban Development or show satisfactory evidence of the prior year’s qualifying income and certify that income in the calendar year immediately preceding the reimbursement has not changed, if the annual update to the HUD FMR is not available. Income shall be that as defined by RCW 84.36.383, as it may be amended or replaced from time to time, plus all disability compensation. (Ord. 1890 § 4, 2020).
5.12.160 Reimbursement filing procedures.
A. All claims for reimbursement pursuant to this section must be filed with the city’s finance department no later than the date established by the finance director on forms specified by the finance department for this purpose for the calendar year for which a reimbursement is requested.
B. The finance director shall adopt rules and procedures for the filing of reimbursement claims and for the administration of the reimbursement program pursuant to this chapter. (Ord. 1890 § 5, 2020).