Chapter 3.15
UTILITY TAX
Sections:
3.15.010 Use and accountability of tax proceeds.
3.15.040 Occupations subject to tax – Amount.
3.15.060 Exceptions and deductions.
3.15.070 Monthly installments.
3.15.090 Failure to make returns or to pay the tax in full.
3.15.100 Penalty for delinquent payment.
3.15.120 Noncompliance – Penalty.
3.15.130 Appeal to Hearing Examiner.
3.15.140 City Manager to make rules.
3.15.010 Use and accountability of tax proceeds.
All revenues collected pursuant to this chapter shall be deposited into the general fund, and shall be used for the funding of general City services or capital facilities as the Council shall direct through its annual budget* process. (Ord. O-97-13 § 1).
*Code reviser’s note: The City now has a biennial budget, as established by Ord. O-16-596. See Chapter 3.01 MVMC.
3.15.020 Utility tax.
The tax provided for in this chapter shall be known as the “utility tax,” and is levied upon the privilege of conducting an electrical energy, natural gas, steam energy, telephone, cellular telephone, or cable television business within the City of Maple Valley. (Ord. O-13-544 § 1; Ord. O-97-13 § 2).
3.15.030 Definitions.
A. Use of Words and Phrases. As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings.
B. “Cellular telephone service” means any two-way voice and data telephone or similar communications system based in whole or in substantial part on wireless radio communications, including cellular mobile service, and which is not subject to regulation by the Washington State Utilities and Transportation Commission. Cellular mobile service includes other wireless radio communications services including specialized mobile radio, personal communications services, and other wireless radio communications technology evolving after the effective date of the ordinance codified in this chapter that accomplishes a purpose substantially similar to cellular mobile service. Cellular telephone service is included within the definition of “telephone business” for the purposes of this chapter.
C. “City Manager” means the City Manager of the City of Maple Valley, Washington, or his or her designee.
D. “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, directory advertising and lease of telephone street directories, 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 not subject to regulation as telephone companies under RCW Title 80, and for which a separate charge is made. Transmission of communication through cellular telephones is classified as “telephone business” rather than “competitive telephone service.”
E. “Gross income” means the value proceeding or accruing from the performance of the particular business involved, excluding receipts or proceeds from the use or sale of tangible property and real property or any interest therein, proceeds from the sale of notes, bonds, mortgages or other evidence of indebtedness, or stock and the like, receipts from operations incidental to the performance of the particular business involved, and with a deduction on the amount of credit loss and uncollectibles actually sustained.
F. “Pager service” means service provided by means of an electronic device which has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission.
G. “Person” means any person, firm, corporation, association, or entity of any type engaged in a business subject to taxation under this chapter.
H. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, coin telephone services, telephonic, video, data, pagers or similar communication, or transmission for hire, via a local telephone network, toll line or channel, cable microwave, or similar communication or transmission system. The term includes cooperative or farmer line telephone companies or associations operating exchanges. “Telephone business” does not include the providing of competitive telephone service, or providing of cable television service or other providing of broadcast services by radio or television stations.
I. “Cable television services” means the transmission of video programming and associated nonvideo signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming. (Ord. O-13-544 § 2; Ord. O-00-135 § 1; Ord. O-97-13 § 3).
3.15.040 Occupations subject to tax – Amount.
There is levied upon and shall be collected from a person, because of certain business activities engaged in or carried on in the City, taxes in the amount to be determined by the application of rates given against gross income as follows:
A. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting electric energy, a tax equal to six percent of the total gross income from such business in the City during the period for which the tax is due;
B. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting natural gas, a tax equal to six percent of the total gross income from such business in the City during the period for which the tax is due;
C. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting telephone service, a tax equal to six percent of the total gross income from such business in the City during the period for which the tax is due; and
D. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting cellular telephone service, a tax equal to six percent of the total gross income from such business in the City during the period for which the tax is due.
E. Upon a person engaged in or carrying on the business of selling, furnishing or transmitting cable television service, a tax equal to six percent for calendar year 2016 and beyond of the total gross income from such business in the City during the period for which the tax is due. Three percent of the six percent tax, however, shall cease to have effect after December 31, 2023. The remaining three percent tax shall remain in effect after December 31, 2023. (Ord. O-15-582 § 1; Ord. O-13-544 § 3; Ord. O-10-422 § 1; Ord. O-09-403 § 1; Ord. O-97-13 § 4).
3.15.050 Tax year.
The tax year for purposes of this utility tax shall commence September 1, 1997 and shall end December 31, 1997, and thereafter shall commence January 1st and shall end on December 31st of each subsequent year. (Ord. O-97-13 § 5).
3.15.060 Exceptions and deductions.
There is excepted and deducted from the total gross income upon which the tax is computed so much of the total gross income as is derived from business which the City is prohibited from taxing under the Constitution or laws of the United States and the Constitution or laws of the State of Washington. (Ord. O-97-13 § 6).
3.15.070 Monthly installments.
The tax imposed by MVMC 3.15.040 shall be due and payable in monthly installments, and remittance therefor shall be made on or before the last day of the month following the end of the monthly period in which the tax is accrued. On or before said due date, the taxpayer shall file with the City Manager a written return upon such form and setting forth such information as the City Manager shall reasonably require relating to the accurate computation and collection of this tax, together with the payment of the amount. (Ord. O-97-13 § 7).
3.15.080 Taxpayer’s records.
Each taxpayer shall keep records reflecting the amount of the taxpayer’s gross income on sales and services within the City, and such records shall be open at all reasonable times for the inspection of the City Manager or his designee to verify information provided on any utility tax return, or to determine whether such return is required to be filed. (Ord. O-97-13 § 8).
3.15.090 Failure to make returns or to pay the tax in full.
If a taxpayer fails, neglects, or refuses to make his return as and when required in this chapter, the City Manager is authorized to determine the amount of the tax payable under provisions of MVMC 3.15.040, and to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon be the tax and be immediately due and payable, together with penalty and interest. Delinquent taxes, including any penalties, are subject to an interest charge of 12 percent per year on the unpaid balance from the date any such taxes became due as provided in MVMC 3.15.070. (Ord. O-97-13 § 9).
3.15.100 Penalty for delinquent payment.
If a person subject to this tax fails to pay any tax required by this chapter within 15 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 that is 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. O-97-13 § 10).
3.15.110 Overpayment of tax.
Money paid to the City through error, or otherwise not in payment of the tax imposed by this chapter, or in excess of such tax, shall, upon discovery, be credited against any tax due or to become due from such taxpayer hereunder; provided however, that overpayments extending beyond one year prior to notification of the City shall not be refunded. If such taxpayer has ceased doing business in the City, any such overpayment shall be refunded to the taxpayer. (Ord. O-97-13 § 11).
3.15.120 Noncompliance – Penalty.
A. No person subject to this chapter shall fail or refuse to file tax returns or to pay tax when due, nor shall any person make a false statement or representation in, or in connection with, any such tax return, or otherwise violate or refuse to comply with this chapter or with any rule promulgated pursuant to MVMC 3.15.140.
B. In addition to the interest and delinquent filing penalties set forth above, a willful violation of or failure to comply with this chapter is a civil infraction, subject to a fine of up to $250.00 for each day that a violation continues. (Ord. O-97-13 § 12).
3.15.130 Appeal to Hearing Examiner.
A taxpayer aggrieved by the amount of the tax, penalties, interest, or civil infraction fine determined to be due by the City Manager or his designee, under the provisions of this chapter, may appeal such determination to the Hearing Examiner in accordance with the applicable chapters of the Maple Valley Municipal Code, as now in effect or as may subsequently be amended. (Ord. O-97-13 § 13).
3.15.140 City Manager to make rules.
The City Manager shall have the power to adopt and enforce rules and regulations not inconsistent with this chapter or with the law for the purposes of carrying out the provisions thereof. (Ord. O-97-13 § 14).