Chapter 5.32
UTILITY BUSINESS*
Sections:
5.32.020 Occupation license – Required when – Application – Issuance.
5.32.050 Tax – Payment schedule.
5.32.060 Allocation of income – Cellular telephone service.
5.32.090 Tax – Credit or refund for overpayment.
5.32.100 Annexation notification.
5.32.110 Failure to comply – Fraud.
5.32.120 Constitutionality and severability.
5.32.130 Regulation promulgation.
*Prior legislation: Ords. 789, 885, 1034, 1205, 1434, and 1549.
5.32.010 Exercise of power.
The provisions of this chapter shall be deemed to be an exercise of the power of the city. (Ord. 1583 § 1, 2003).
5.32.020 Occupation license – Required when – Application – Issuance.
No person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by MMC 5.32.040 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 Milton city license officer for such license upon such forms as the city license officer shall prescribe, giving such information as the city license officer shall deem reasonably necessary to enable the city license officer’s office to administer and enforce this chapter, and, upon acceptance of such application by the city license officer, the city license officer 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. 2018 § 9, 2021; Ord. 1583 § 1, 2003).
5.32.030 Definitions.
In construing the provisions of this chapter, except when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Cable television service” means the business of delivery or distribution of cable television picture or signal.
B. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, telephonic, video, data, pagers, or similar communication or transmission for hire, via a local telephone network, toll line or channel, or similar communication or transmission system, and as more fully defined in RCW 82.04.065. 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, nor the providing of broadcast services by radio or television stations.
C. “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.
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 services, if the equipment or apparatus 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. 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 sale of tangible property or services, and receipts (including all sums earned or charged, whether received or not) by reason of the investment of capital in the business engaged in, including rentals, royalties fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stock or the like) and without any deduction on account of the property sold, the cost of materials used, labor costs, interest or discount paid or any expenses whatsoever, without any deduction on account of losses. (Ord. 2020 § 1, 2021; Ord. 1583 § 1, 2003).
5.32.040 Tax – Imposed.
There are levied upon and shall be collected from persons on account of the business activities annual license fees and occupation taxes, in the amounts to be determined by the application of the rates against gross income, as follows:
A. Upon every person, firm or corporation engaged in or carrying on the following business for hire or for sale of a commodity or a service within or partly within the city limits, a tax for the privilege of so doing business as defined in MMC 5.32.030. Upon any telephone business, there shall be levied a license fee and occupation tax equal to six percent of the total gross income including revenues from intrastate toll, derived from the operation of such businesses within the city. 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.
B. Upon every person, firm or corporation engaged in carrying on the business of selling or furnishing natural gas, a license fee and occupation tax equal to six percent of the total gross income from such business in the city, due hereunder pursuant to MMC 5.32.050; provided, that there shall not be any tax levied for installation charges.
C. Upon every person, firm or corporation engaged in or carrying on the business of a cellular telephone service, a fee or tax equal to six percent of the total gross income derived from conducting such business within the city of Milton, as indicated by billings and/or charges to Milton customers, due hereunder pursuant to MMC 5.32.050; provided, that there shall not be any tax levied for installation charges.
D. As an owner and operator of utilities, there is levied on the city of Milton a tax on its sale, delivery or distribution of electricity, water, and storm water utilities, and for the privilege of carrying on said business, such tax to be equal to the following percentages of the total gross revenue derived from the sale of such electricity, water, and storm water to ultimate users; provided, however, that there shall not be any tax levied for the installation charges of said utilities.
1. Electricity: six percent;
2. Water: nine percent;
3. Storm water: nine percent.
E. There is levied a tax on the collection of solid waste and recycling and the privilege of carrying on said businesses, such tax to be equal to six percent of the total gross income from such business within the city.
F. There is levied on sewer utility providers a tax on the collection, processing and disposal of sewage, and for the privilege of carrying on said business, such tax to be equal to the six percent of the total gross revenue derived from the sale of such utility service to ultimate users within the city; provided, however, that there shall not be any tax levied for the installation charges of said utility. (Ord. 1824 §§ 1, 2, 2013; Ord. 1806 § 1, 2012; Ord. 1631 § 1, 2004; Ord. 1583 § 1, 2003).
5.32.050 Tax – Payment schedule.
A. Monthly Installments. The taxes imposed by MMC 5.32.040 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. Annual returns for smaller entities may be allowed upon written approval from the finance director. On or before said due date, the taxpayer shall file with the finance director a written return upon such form and setting forth such information as the finance director shall reasonably require relating to the accurate computation and collection of this tax, together with the payment of the amount. (Ord. 1631 § 1, 2004; Ord. 1583 § 1, 2003).
5.32.060 Allocation of income – Cellular telephone service.
A. Service Address. Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies, regardless of the location of the facilities used to provide the service. The customer’s “principal service address” is, with respect to each telephone (1) the customer’s plant, store, office, or other facility where the telephone is normally assigned for use in conjunction with the customer’s business activity; or (2) the customer’s place of residence if the telephone is for personal use.
B. Presumption. There is a presumption that the service address shown on the telephone service company’s records is current and accurate, unless the taxpayer has knowledge to the contrary and conveys such knowledge to the city and the telephone service company.
C. Roaming Phones. When service is provided while a subscriber is roaming 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 the call, or to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call.
D. Dispute Resolution. If there is a dispute between or among the city of Milton 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. 1583 § 1, 2003).
5.32.070 Records required.
Each taxpayer shall keep records reflecting the amount of gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk, 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. (Ord. 1583 § 1, 2003).
5.32.080 Tax – Late penalty.
If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 12 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 of Milton, Washington, and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 1583 § 1, 2003).
5.32.090 Tax – Credit or refund for overpayment.
If, upon application by a taxpayer for a refund, it is determined by the city license officer that within two years immediately preceding the receipt of said application for refund a 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. 2020 § 2, 2021; Ord. 1583 § 1, 2003).
5.32.100 Annexation notification.
Whenever the boundaries of the city of Milton, Washington, are extended by annexation, all persons, firms or corporations subject to this chapter will be provided copies of all annexation ordinances by the first of the succeeding year. (Ord. 1583 § 1, 2003).
5.32.110 Failure to comply – Fraud.
It shall be unlawful for any person liable to tax hereunder to fail or refuse to make application or return for a license or to pay the fee or tax or installment thereof 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 to aid or abet another in any attempt to evade payment of the fee or 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 in any manner to hinder or delay the city or any of its officers in carrying out the provisions of this chapter. (Ord. 1583 § 1, 2003).
5.32.120 Constitutionality and severability.
The invalidity or unconstitutionality of any provision or section of this chapter shall not render any other provision or section of this chapter invalid or unconstitutional. (Ord. 1583 § 1, 2003).
5.32.130 Regulation promulgation.
The city clerk is 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 under this section. (Ord. 1583 § 1, 2003).