Chapter 5.21
USE TAX UPON THE USE OF BROKERED NATURAL GAS

Sections:

5.21.010    Purpose.

5.21.020    Tax imposed.

5.21.030    Rate.

5.21.040    Exemptions.

5.21.050    Credit.

5.21.060    Payment.

5.21.070    Administration and collection.

5.21.080    When payable – Tax returns.

5.21.090    Taxpayer to keep records.

5.21.100    Failure to pay – Penalty.

5.21.110    Excess to be refunded.

5.21.120    Violation – Penalty.

5.21.130    Records inspection.

5.21.010 Purpose.

The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. [Ord. 791B, 2005.]

5.21.020 Tax imposed.

From and after the first day of January, 2006, there is hereby levied, and there shall be collected, a use tax for the privilege of using natural gas or manufactured gas in the city of Chehalis as a consumer. [Ord. 791B, 2005.]

5.21.030 Rate.

The brokered gas use tax is fixed and imposed in an amount equal to the value of the article used by the consumer multiplied by the rate of six percent; provided, that at such time as the annual (calendar year) tax imposed upon a consumer equals $10,000, thereafter the tax shall be an amount equal to the value of the article used by the consumer multiplied by the rate of one percent for the remainder of the year; and further provided, the maximum annual brokered gas use tax for an individual customer shall not exceed $75,000.

The “value of the article used” shall have the meaning set forth in RCW 82.12.010(1) and does not include any amounts that are paid for the hire or use of a gas distribution utility business subject to tax under this chapter if those amounts are subject to tax under CMC 5.18.020 or RCW 35.21.870. [Ord. 791B, 2005.]

5.21.040 Exemptions.

The tax imposed under this chapter shall not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under CMC 5.18.020 or RCW 35.21.870, with respect to the gas for which exemption is sought under this section. [Ord. 791B, 2005.]

5.21.050 Credit.

There shall be a credit against the tax levied under this chapter in an amount equal to any tax paid by:

A. The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to CMC 5.18.020 by another state with respect to the gas for which a credit is sought under this section; or

B. The person consuming the gas upon which a use tax similar to the tax imposed by this chapter has paid to another state with respect to the gas for which a credit is sought under this section. [Ord. 791B, 2005.]

5.21.060 Payment.

The use tax imposed shall be paid by the consumer. [Ord. 791B, 2005.]

5.21.070 Administration and collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050. [Ord. 791B, 2005.]

5.21.080 When payable – Tax returns.

The use tax imposed under this chapter shall be due and payable in bimonthly installments and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the bimonthly period in which such tax accrued. The taxpayer, on or before said due date, shall make out a return on such forms and set forth such information as the finance manager may require, showing the amount of tax for which the taxpayer is liable, and shall sign and transmit said return to the director, together with the remittance for the amount of the tax. [Ord. 831B, 2007; Ord. 791B, 2005.]

5.21.090 Taxpayer to keep records.

Each taxpayer shall keep records reflecting the amount of said gross operating revenues, and such records shall be open at all reasonable times to the inspection of the finance manager for verification of said tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. [Ord. 831B, 2007; Ord. 791B, 2005.]

5.21.100 Failure to pay – Penalty.

If any person, firm, or corporation subject to this chapter shall fail to pay the use tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax, and any tax due under this chapter and 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. 791B, 2005.]

5.21.110 Excess to be refunded.

Any money paid to the city through error or otherwise not in payment of the use tax imposed by this chapter or in excess of such tax shall, upon request of the taxpayer, be credited against any tax due or to become due from such taxpayer hereunder or, upon the taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. [Ord. 791B, 2005.]

5.21.120 Violation – Penalty.

Any said person, firm, or corporation subject to this chapter who shall fail or refuse to make said tax returns or to pay said use tax when due, or who shall make any false statement or representation in or in connection with any such tax return, or shall otherwise violate or refuse or fail to comply with this chapter, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not to exceed $1,000, or by imprisonment in the Lewis County jail for a term not to exceed 90 days, or by both. [Ord. 791B, 2005.]

5.21.130 Records inspection.

The city of Chehalis consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue, pursuant to RCW 82.32.330. [Ord. 791B, 2005.]