Chapter 3.20
UTILITY TAXES
Sections:
3.20.010 Power of the city to tax.
3.20.035 Allocation of income—Cellular telephone service.
3.20.050 Exemptions and deductions.
3.20.060 Taxpayer to keep records—Inspection by city treasurer.
3.20.080 Credit for franchise fees.
3.20.090 Annexations—Ordinances provided.
3.20.100 Additional regulations.
3.20.110 Failure to pay tax—Penalty.
3.20.120 Administrative appeal.
3.20.130 Compliance required—False statements unlawful.
3.20.140 Tax additional to other fees.
3.20.150 Unpaid fee deemed debt to city.
3.20.160 City payment of tax—Exception.
3.20.010 Power of the city to tax.
The provisions of this chapter shall be deemed to be an exercise of the power of the city of Rainier to license for revenue. (Ord. 640 § 1 (part), 2015: Ord. 281 § 1, 1990)
3.20.015 Definitions.
In construing the provisions of this chapter, save when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Cable service” means: (1) the one-way transmission to subscribers of (a) video programming, or (b) other programming service; and (2) subscriber interaction, if any, which is required for the selection of such video programming or other programming service.
B. “Cable system” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment, that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term does not include: (1) a facility that serves only to retransmit the television signals of one or more television broadcast stations; or (2) any facilities of any electric utility used solely for operating its electric utility system.
C. “Cellular telephone service” is a voice or data telephone/telecommunications system based in whole or substantial part on wireless radio communications, whether or not the communications are subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. 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 the same purpose as cellular mobile service.
D. “Gross income” means the value proceeding or accruing from the performance of the particular public service or transportation business involved, 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, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses.
E. “Telecommunications service” or “telephone business” means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. It includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice over Internet protocol services or is classified by the Federal Communications Commission as enhanced or value added. “Telecommunication services” or “telephone business” also includes ancillary services that are associated with or incidental to the provision of telecommunication services including, but not limited to, conference bridging, detailed telecommunications billing, directory assistance, vertical service, or voice mail services as defined in RCW 82.04.065.
“Telecommunication services” or “telephone business” also includes those activities previously used to define telephone business such as the providing by any person of access to a local telephone network, local telephone network switching service, toll service, cellular or mobile telephone service, coin telephone services, pager service or the providing of 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. The term includes the provision of cooperative or farmer line telephone services or associations operating exchanges. The term also includes the provision of transmission to and from the site of an Internet provider via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. “Telecommunication service” or “telephone business” does not include the providing of competitive telephone service, data processing, providing of cable television service, or other providing of broadcast services by radio or television stations.
F. “Voluntary payment” means a payment made to the city of Rainier without written protest setting forth the reasons the payment is made in protest. (Ord. 640 § 2 (part), 2015)
3.20.020 Occupation license.
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 3.20.030 without first having obtained, and being the holder of, a license to do so, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the city treasurer for such license upon forms the treasurer prescribes, giving information reasonably necessary to enable the treasurer’s office to administer and enforce this chapter. Upon acceptance of an application by the treasurer, he shall issue a license to the applicant. The occupation license is personal and nontransferable and is valid as long as the licensee shall continue in business and complies with this chapter.
No person may engage in any business or activity in the city for which a tax is imposed by this chapter without first obtaining and maintaining a valid business license and such other licenses as may be required in accord with Title 5. (Ord. 640 § 1 (part), 2015: Ord. 281 § 2, 1990)
3.20.030 Taxes levied.
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 city of Rainier the following tax for the privilege of doing such business as hereinafter defined:
A. Upon everyone engaged in or carrying on a telecommunications service or telephone business, a fee or tax equal to five percent of the total gross income from such business provided to customers within the city. The tax liability imposed under this section shall not apply for that portion of gross income derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for telecommunication service or telephone business that is purchased for the purpose of resale. (Such charges, except for interstate service, shall be taxed under Chapter 5.05.) The total gross income shall also include all charges by the provider of cellular or cellular mobile telephone services provided to its customers in any taxing jurisdiction (intrastate or interstate), which are billed to a “place of primary use” located in Rainier by or for the home service provider, irrespective of whether the services are provided by the home service provider.
B. Upon every person, firm or corporation engaged in or carrying on the business of selling or furnishing natural gas or gas for hire, there shall be levied a tax equal to six percent of the total gross income from such business in the city of Rainier.
C. Upon every person, firm, or corporation engaged in or carrying on the business of selling or furnishing electric light and power there shall be levied a tax equal to six percent of the total gross income from such business in the city of Rainier.
D. Upon every person, firm, or corporation, including but not limited to the water, garbage and sewer departments or utilities of the city of Rainier, engaged in or carrying on the business of selling or furnishing water or garbage disposal or sewer service within or partly within the city of Rainier, there shall be levied a tax equal to six percent of the total gross income from such business within the city of Rainier. In the case of each of the city departments, utilities or services listed in this subsection, the tax shall be levied upon the total gross income of the business both within and outside the city limits of the city.
E. Upon every person, firm or corporation, engaged in or carrying on the business of constructing, operating and maintaining a cable system or selling cable service in the city: five percent. (Ord. 640 § 1 (part), 2015: Ord. 525 § 2, 2005: Ord. 281 § 3, 1990)
3.20.035 Allocation of income—Cellular telephone service.
A. In determining the total gross income from telephone business in the city there shall be included all gross income from cellular telephone service (including roaming charges incurred by Rainier customers outside this state) provided to customers whose “place of primary use” is in the city, regardless of the location of the facilities used to provide the service. The customer’s “place of primary use” is, with respect to each telephone: (1) the customer’s address; or (2) the customer’s place of residence if the telephone is for personal use, and in both cases must be located within the licensed service area of the home service provider. Roaming charges and cellular telephone charges to customer whose principal service address is outside Rainier will not be taxable even though those mobile services are provided within Rainier.
B. There is a rebuttable presumption that the “place of primary use” address shown on the cellular telephone service company’s records is accurate. If the cellular telephone service company knows or should have known that a customer’s place of primary use address for a telephone is within the city then the gross revenue from cellular telephone service provided to that customer with respect to that telephone is to be included in the company’s gross income. (Ord. 640 § 2 (part), 2015)
3.20.040 Payment of tax.
A. The tax imposed by this chapter shall be due and payable in quarterly installments and remittance shall be made on or before the thirtieth day of the month succeeding the end of the quarterly period in which the tax accrued. Such quarterly periods are as follows:
1. First quarter—January, February, March; due April 30th;
2. Second quarter—April, May, June; due July 30th;
3. Third quarter—July, August, September; due October 30th;
4. Fourth quarter—October, November, December; due January 30th.
B. On or before said due date the taxpayer shall file with the city treasurer a written return, upon such form and setting forth information as the treasurer shall reasonably require, together with the amount of the tax. (Ord. 640 § 1 (part), 2015: Ord. 525 § 3, 2005: Ord. 281 § 4, 1990)
3.20.050 Exemptions and deductions.
A. There shall be excepted and deducted from the total gross income upon which the tax is computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents.
B. There shall be excepted and deducted from the total gross income upon which the tax is computed all bad debts and credit losses actually sustained by the taxpayer for services incurred, rendered or charged for during the tax year. Debts shall be deemed bad and uncollectible when the same have been written off the books of the taxpayer. In the event debts are subsequently collected, said income shall be reported in the return for the month in which the debts are collected and at the rate prevailing in the tax year when collected.
C. There shall be excepted and deducted from the total gross income upon which the tax is computed all cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
D. There shall be exempted and deducted from the total gross income upon which the taxes computed for the engaging in or carrying on of the business of selling or furnishing electric light or power all gross income based upon agricultural irrigation of five acres or more by a single utility customer.
E. Nothing in this chapter shall be construed as requiring a license, or the payment of a tax, or the doing of any act, which would constitute an unlawful burden or interference in violation of the Constitution or laws of the United States or which would not be consistent with the Constitution or laws of the state. (Ord. 640 § 1 (part), 2015: Ord. 281 § 5, 1990)
3.20.060 Taxpayer to keep records—Inspection by city treasurer.
The tax payable hereunder shall at the time of the return being required to be filed hereunder be paid to the city treasurer by bank draft, certified check, cashier’s check, personal check or money order or in cash. If payment is made by draft or check, the tax or fee shall not be deemed paid until the check or draft is honored in the usual course of business; nor shall the acceptance of any sum by the treasurer be an acquittance or discharge of the tax or fee due unless the amount of payment is in full, and the actual amount due.
It shall be the duty of every person liable for the payment of any fee or tax imposed by this chapter to keep and preserve for the period of five years such books and records as will accurately reflect the amount of his “gross income” as defined herein and from which can be determined the amount of any fee or tax for which he may be liable under the provisions of this chapter and all books as provided therein shall be open for examination at all reasonable times by the treasurer or his duly authorized agent. (Ord. 640 § 1 (part), 2015: Ord. 281 § 6, 1990)
3.20.070 Credit or refund.
Any money paid to the city through error or otherwise not in payment of the tax imposed 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, in the event the taxpayer ceases business in the city, such amount shall be refunded to the taxpayer.
Except as provided for herein, in all cases of the voluntary payment of any tax imposed by this chapter, resulting in an overpayment of the true amount due, whether or not the result of mistake of law, mistake of fact, inadvertence or error, such payments may be adjusted or corrected only within one year (three hundred sixty-five (365) days) of payment. The correction, adjustment or refund of all or any portion of such payment is barred one year (three hundred sixty-five (365) days) following payment to the city. (Ord. 640 § 1 (part), 2015: Ord. 281 § 8, 1990)
3.20.080 Credit for franchise fees.
As provided in RCW 35.21.860, no other tax, franchise fee, license fee or other fee or charge imposed by the city of Rainier for revenue purposes shall be applied to or collected from any light and power, telephone or gas distribution businesses, as defined in RCW 82.16.010 or 82.04.065; provided, however, that this section does not prohibit the imposition or collection of an administrative fee or fees including but not limited to the registration fee imposed by Ordinance No. 409 for the recovery of actual administrative expenses incurred by the city that are directly related to receiving applications and approving a permit, license and/or franchise, to inspecting plans and construction, or to the preparation of a detailed statement pursuant to Chapter 43.21C RCW. (Ord. 640 § 1 (part), 2015: Ord. 525 § 4, 2005: Ord. 414; Ord. 281 § 9, 1990)
3.20.090 Annexations—Ordinances provided.
Whenever the boundaries of the city are extended by annexation, all persons, firms and corporations subject to this chapter will be provided copies of all annexation ordinances by the end of the first month of annexation. (Ord. 640 § 1 (part), 2015: Ord. 281 § 11, 1990)
3.20.100 Additional regulations.
The city treasurer 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 hereunder. (Ord. 640 § 1 (part), 2015: Ord. 281 § 13, 1990)
3.20.110 Failure to pay tax—Penalty.
If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter, there shall be added to such tax a penalty of one percent per month on the unpaid balance 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. 640 § 1 (part), 2015: Ord. 281 § 7, 1990)
3.20.120 Administrative appeal.
Any person seeking correction, adjustment, refund or reimbursement for any payment of any tax imposed by this chapter shall, prior to any judicial action, present to the city treasurer a written protest stating the basis upon which such correction, adjustment or refund is requested. The city treasurer shall make a written determination on the protest within sixty (60) days of the date of its filing with the city clerk. All taxes must be remitted prior to the filing of an appeal.
The city treasurer’s decision is a final department head decision subject to review in accord with Chapter 2.52. A petition for appeal must be filed within ten (10) days in accord with Section 2.52.060. (Ord. 640 § 2 (part), 2015)
3.20.130 Compliance required—False statements unlawful.
It is unlawful for any person liable for a tax hereunder to fail or refuse to make the returns when required or to pay the fee or tax when due, or for any person to make any false or fraudulent application or return, or any false statement 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 an attempt to evade payment of the fee or tax, or any part thereof, or for any person to fail to appear 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. 640 § 2 (part), 2015)
3.20.140 Tax additional to other fees.
Except as provided in Section 3.20.080, the tax herein levied shall be additional to any license or tax imposed or levied under any law or any other ordinance of the city. (Ord. 640 § 2 (part), 2015)
3.20.150 Unpaid fee deemed debt to city.
Any tax due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings in the same manner as any other debt in like amount which remedy shall be in addition to all other existing remedies. (Ord. 640 § 2 (part), 2015)
3.20.160 City payment of tax—Exception.
Whenever the city, through any department or division, engages in any business activity which, if engaged in by any person, would under this chapter require the payment of a tax by such person, the city department or division engaging in such business activity shall, as to such business activity at the same time and in the same manner as persons are required hereunder, make returns and from the funds of such department or division pay the taxes imposed hereunder. Each of said departments or divisions of the city shall transfer or pass on to its consumers the tax herein provided. (Ord. 640 § 2 (part), 2015)