Chapter 3.06
Utility Tax
Sections:
3.06.030 Business license required.
3.06.040 Quarterly payment of tax.
3.06.050 Allocation of income--Cellular telephone service.
3.06.080 Sale or transfer of business.
3.06.090 Over or under payment of tax.
3.06.100 Appeals to Hearings Examiner.
3.06.130 False or fraudulent returns.
3.06.140 Utility tax and the business and occupation tax.
3.06.150 Violation--Penalties.
3.06.010 Rate of tax.
There is levied upon, and shall be collected from, every person, firm or corporation a tax for the act or privilege of engaging within the City of DuPont in any one or more of the public utility businesses defined in DMC 3.06.020. The tax, which shall be known as a “utility tax,” shall be applied to the total gross income received from the operation of such businesses within the corporate limits of the City of DuPont. The utility tax shall be equal to 12 percent of the total gross income received from the operations of those engaged in the business of providing water distribution services, 10 percent of the total gross income received from the operations of those engaged in stormwater and surface water services, and eight percent of the total gross income received from the operations of those engaged in the business of providing garbage and solid waste collection. The utility tax shall be equal to six percent of the total gross income received from the operations of those engaged in the business of providing light and power services, natural gas services, sewer services, telephone service, and cellular telephone services. (Ord. 08-867 § 13; Ord. 10-891 § 1; Ord. 10-906 § 1; Ord. 12-945 § 1).
3.06.020 Definitions.
In construing the provisions of this chapter, except when otherwise declared or clearly apparent from the context, the following shall be applied:
(a) “Cellular telephone service” is a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of “cellular mobile service” includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service.
(b) “Competitive telephone service” means the providing by any person or corporation of telephone equipment or apparatus or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which may 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. Transmission of communication through cellular telephone is classified as “telephone business” under subsection (c) of this section rather than “competitive telephone service.”
(c) “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone service, coin telephone services, telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, 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, the providing of cable television service nor the providing of broadcast services by radio or television stations.
(d) “Garbage and solid waste collection and disposal service” means the business of operating a system for the collection and/or disposal of garbage and solid waste or disposal of garbage and solid waste or refuse.
(e) “Natural gas distribution service” means the business of operating a plant or system for the production or distribution for hire or sale of gas, whether manufactured or natural.
(f) “Light and power business” means the business of operating a plant or system for the generation, production, or distribution of electrical energy for hire or sale.
(g) “Storm and surface water business” means the furnishing of services in the management and control of stormwater and surface water and the construction or furnishing of stormwater facilities.
(h) “Water distribution business” means the business of operating a plant or system for the distribution of water for hire or sale.
(i) “Gross income” means the value proceeding or accruing from the performance of the particular public utility service involved within the City, including operations incidental thereto, but without any deduction on account of the cost of the commodity furnished or sold, the cost of materials used, labor costs, interest, discounts, delivery costs, taxes, or any other expense whatsoever, paid or accrued and without any deduction on account of losses; provided, that “gross revenue of a light and power business” means those amounts or value accruing to a taxpayer from the last distribution of electrical energy which is a taxable event within this state; and, provided further, that “gross revenue of a cellular telephone service” shall mean gross subscriber revenues.
(j) “Person,” “firm,” or “corporation,” herein used interchangeably, means any individual, firm, partnership, corporation, trust, association, governmental unit, or municipal corporation.
(k) “Public utility service” means any garbage and solid waste collection and disposal business, natural gas business, light and power business, sewerage business, telephone business, water distribution business, cellular telephone business, or stormwater and surface water business as define in this section operated by any person, private or public.
(l) “Reporting quarterly” shall mean a three-month period beginning the first day of the following months: January, April, July, and October.
(m) “Sewerage business” means the collection, transportation and/or treatment of sanitary sewage. (Ord. 08-867 § 13).
3.06.030 Business license required.
(a) No person shall engage in or carry on any business, occupation, pursuit or privilege for which a tax is imposed by this chapter without first having obtained, and being the holder of, a valid and subsisting license so do to, to be known as a “business license,” hereinafter referred to as “license,” issued under the provisions of this chapter as hereinafter provided, and without paying the license fee imposed by this chapter. Such license shall expire at the end of the calendar year in which it was issued and a new license shall be required for each calendar year.
(b) Applications for such licenses shall be made to and issued by the Finance Department upon prescribed forms and giving such information as is deemed reasonably necessary to enable the Finance Department to administer and enforce this chapter. The fee for a license shall be the amount imposed by Chapter 2.04 DMC. (Ord. 08-867 § 13).
3.06.040 Quarterly payment of tax.
The taxes imposed hereunder shall be due and payable to the City in quarterly installments and remittance therefor shall be made on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrued, that is, on October 31st, January 31st, April 30th, and July 31st of each year. The remittance shall be made as hereinafter provided and shall be accompanied by a return on a form to be provided and prescribed by the Mayor or his designee. The taxpayer shall be required to swear or affirm in writing on the return that the information therein given is full and true and that the taxpayer knows it to be so. If payment is made by draft or check, the tax shall not be deemed paid unless the check or draft is honored in the usual course of business; nor shall the acceptance of any such by the City be an acquaintance or discharge of the tax unless the amount of the payment is in the full and actual amount due.
The Mayor or his designee is authorized, but not required, to mail to taxpayers forms for returns, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from making returns when and as due hereunder. (Ord. 08-867 § 13).
3.06.050 Allocation of income--Cellular telephone service.
(a) The tax levied herein shall apply to subscriber revenues from customers whose principal service address is within the City of DuPont, Washington, for that telephone service from telephones without a fixed location.
(b) It shall be presumed that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.
(c) When the service is provided while a subscriber is outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of call, or to the location of the mail cellular switching office that switched the call.
(d) If there is a dispute between or among the City of DuPont and another city or cities as to the service address of a customer who is receiving cellular telephone services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the City and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). Once taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes, penalties, or interest on the disputed revenues so long as it promptly changes its billing records for future revenues to comport with the settlement facilitated by AWC. (Ord. 08-867 § 13).
3.06.060 Records.
Each taxpayer shall keep records which accurately reflect the amount of gross operating revenues received from business done in the City of DuPont, and such records shall be open at all reasonable times to the inspection of the Finance Director, or his/her duly authorized subordinates, for verification of the tax returns or for the fixing of the tax or a taxpayer who shall fail to make such returns. Such records shall not, by virtue of the requirements of this action, be deemed public records for purpose of disclosure other than to the duly authorized agents of the City for the purposes set forth herein. (Ord. 08-867 § 13).
3.06.070 Failure to pay.
For each payment due, if such payment is not made by the due date thereof, there shall be added penalty and interest as follows:
(a) One to 30 days late, there shall be a penalty of 10 percent added to the amount of tax due with a minimum penalty of $5.00.
(b) Thirty-one to 60 days late, there shall be a penalty of 20 percent added to the amount of tax due with a minimum penalty of $10.00.
(c) Sixty-one or more days late, there shall be a penalty of 30 percent added to the amount of tax due with a minimum penalty of $15.00.
In addition to the above penalty, the City of DuPont shall charge the taxpayer interest on all taxes due at the rate of one percent per month or portion thereof that said amounts are past due.
Any tax due 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. 08-867 § 13).
3.06.080 Sale or transfer of business.
Upon the sale or transfer during any quarterly period of business on account of which a tax is hereby required, the purchaser or transferee shall, if the tax has not been paid in full for said quarterly period, be responsible for the payment of the tax for that portion of the quarterly period during which he carries on such business. (Ord. 08-867 § 13).
3.06.090 Over or under payment of tax.
In the event that any taxpayer makes an overpayment, and within two years of the date of such overpayment makes application for a refund or credit, and it is determined by the Finance Director that the tax has been paid in excess of that properly due, the excess amount paid within such period of two years shall be credited to the taxpayer’s account or, upon the taxpayer’s ceasing to do business in the City, shall be refunded to the taxpayer. (Ord. 08-867 § 13).
3.06.100 Appeals to Hearings Examiner.
Any taxpayer aggrieved by the amount of the fee or tax found by the Mayor to be required under the provisions of this chapter may, upon full payment of the amount assessed, appeal from such finding by filing a written notice of appeal with the City Clerk within 14 days from the date such taxpayer was notified in writing of such amount. The Clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal before the Hearings Examiner, which time shall be not more than 60 days after the filing of the notice of appeal, and shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing before the Hearings Examiner, the taxpayer shall be entitled to be heard and to introduce evidence in his or her own behalf. The Hearings Examiner shall render a decision, together with findings of fact and conclusions of law, based upon the evidence presented at the time of the hearing and all material on file in the case. The Hearings Examiner’s decisions shall indicate the correct amount of the fee or tax owing. The Hearings Examiner’s decision shall be final. The appellant or the City of DuPont may appeal the decision of the Hearings Examiner to the Superior Court of Washington in and for Pierce County within 30 days after the date of the Hearings Examiner’s decision. The Hearings Examiner may, by subpoena, require the attendance of any person, and may also require him/her to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the Hearings Examiner as to any matter required of him/her pertinent to the appeal, and it shall be unlawful for him/her to fail or refuse to do so. (Ord. 08-867 § 13).
3.06.110 Mayor to make rules.
The Mayor shall have the power and it shall be his/her duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 08-867 § 13).
3.06.120 Mailing of notices.
Any notice required by this chapter to be mailed to any taxpayer shall be sent by ordinary mail, addressed to the address of the taxpayer as shown by the records of the Mayor’s designee or, if no such address is shown, to such address as the Mayor or his designee is able to ascertain by reasonable effort. Failure of the taxpayer to receive such mailed notice shall not release the taxpayer from any tax or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 08-867 § 13).
3.06.130 False or fraudulent returns.
It shall be unlawful for any person liable to tax hereunder to fail or refuse to make the returns as and when required, or to pay the tax when due, or for any person to make any false or fraudulent return or any false statement or representation in, or in connection with, any such return, or to aid or abet another in any attempt to evade payment of the tax, or any part thereof, or for any person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon any investigation of the correctness of a return, or upon the hearing of any appeal, or in any manner to hinder or delay the City or any of its officers in carrying out the provisions of this chapter. (Ord. 08-867 § 13).
3.06.140 Utility tax and the business and occupation tax.
Any taxpayer who is subject to and pays the tax hereunder shall not be subject to any business and occupation tax with the City of DuPont. (Ord. 08-867 § 13).
3.06.150 Violation--Penalties.
It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this chapter. Any person violating any provision of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished as per State law or City ordinance, including a fine in any sum not to exceed $300.00, or by imprisonment in jail for a term not exceeding 90 days, or by both such fine and imprisonment. (Ord. 08-867 § 13).