Chapter 5.08
BUSINESS AND OCCUPATION TAX
Sections:
5.08.020 Occupation license required –Application.
5.08.030 Telephone and electric tax.
5.08.070 Disposition of excess tax paid.
5.08.080 Those in annexations to be informed.
5.08.090 Rules and regulations for administration.
5.08.010 Purpose.
The provisions of this chapter shall be deemed to be an exercise of the power of the town to license for revenue. (Ord. 200 § 1, 1982).
5.08.020 Occupation license required – Application.
After January 1, 1983, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by Section 5.08.030 without first having obtained, and being the holder of, a license so to do, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the town clerk for such license upon such forms as the clerk shall prescribe, giving such information as the clerk shall deem reasonably necessary to enable the clerk’s office to administer and enforce this chapter; and, upon acceptance of such application by the clerk, the clerk shall thereupon issue such license to the applicant. Such occupation license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in the business and shall comply with this chapter. (Ord. 200 § 2, 1982).
5.08.030 Telephone and electric tax.
From and after January 1, 1983, there is hereby levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the town the tax for the privilege of so doing business as hereinafter defined:
(A) Upon any telephone business there shall be levied a tax equal to 6% of the total gross operating revenues, excluding revenues from intrastate toll, derived from the operation of such businesses within the town. Gross operating revenues for this purpose shall not include charges which are passed on to the subscribers by a telephone company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter.
“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.
“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 Title 80 RCW and for which a separate charge is made.
(B) There is hereby levied a tax on the sale, delivery or distribution of electricity and electrical energy and for the privilege of carrying on the business, such tax to be equal to 6% of the total gross operating revenue derived from sales of such electricity to ultimate users within the town; provided, however, that there shall not be any tax levied for the installation charges of electrical units. (Ord. 200 § 3, 1982).
5.08.040 Payment due when.
The tax imposed by this chapter shall be due and payable in quarterly installments, and remittance shall be made on or before the 30th day of the month next succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:
First quarter: January, February, March
Second quarter: April, May, June
Third quarter: July, August, September
Fourth quarter: October, November, December
The first payment made hereunder shall be made by April 30, 1983, for the three-month period ending March 31, 1983. On or before said due date the taxpayer shall file with the town clerk a written return, upon such form and setting forth such information as the clerk shall reasonably require, together with the payment of the amount of the tax. (Ord. 200 § 4, 1982).
5.08.050 Computation.
In computing the tax there shall be deducted from the gross operating revenues the following items:
(A) The amount of credit losses and uncollectibles actually sustained by the taxpayer;
(B) Amounts derived from transactions in interstate or foreign commerce or from any business which the town is prohibited from taxing under the Constitutions of the United States or the State of Washington;
(C) Amounts derived by the taxpayer from the town. (Ord. 200 § 5, 1982).
5.08.060 Records.
Each taxpayer shall keep records reflecting the amount of his gross operating revenues, and such records shall be open at all reasonable times to the inspection of the town clerk, or his duly authorized subordinates, for verification of the tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 200 § 6, 1982).
5.08.070 Disposition of excess tax paid.
Any money paid to the town through error or otherwise not in payment of the tax imposed hereby 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, under the taxpayer’s ceasing to do business in the Town, be refunded to the taxpayer. (Ord. 200 § 8, 1982).
5.08.080 Those in annexations to be informed.
Whenever the boundaries of the town are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the town. (Ord. 200 § 9, 1982).
5.08.090 Rules and regulations for administration.
The town clerk is hereby authorized to adopt, publish and enforce, from time to time, such rules and regulations for the proper administration of this chapter as shall be necessary, and it shall be a violation of this chapter to violate or to fail to comply with any such rule or regulation lawfully promulgated hereunder. (Ord. 200 § 11, 1982).
5.08.100 Violation – Penalty.
If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter within thirty (30) days after the due date thereof, there shall be added to such tax a penalty of twelve percent (12%) 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 town and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 200 § 7, 1982).