Chapter 5.20
UTILITY OCCUPATION TAX
Sections:
5.20.010 Exercise of power to license for revenue.
5.20.030 Occupation license required.
5.20.040 Occupation subject to tax – Gas system – Amount.
5.20.050 Occupations subject to tax – Telecommunications companies – Amount.
5.20.055 Allocation of income – Cellular telephone service.
5.20.060 Occupation subject to tax – Water systems – Amount.
5.20.070 Occupation subject to tax – Sewer system – Amount.
5.20.075 Occupation subject to tax – Stormwater system – Account.
5.20.080 Occupation subject to tax – Refuse removal – Amount.
5.20.090 Occupation subject to tax – Television cable – Amount.
5.20.100 Occupation subject to tax – Electrical utilities – Amount.
5.20.105 Occupation subject to tax – Ambulance utility – Amount.
5.20.110 City of Richland subject to tax.
5.20.130 Application or return for license.
5.20.150 Books and records to be kept – Returns confidential.
5.20.160 Violations – Penalties.
5.20.180 Ordinances repealed – Savings clause.
5.20.010 Exercise of power to license for revenue.
The provisions of this chapter shall be deemed an exercise of the power of the city of Richland to license for revenue. [Ord. 117 § 1.01; Ord. 50-04 § 1.01].
5.20.020 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:
“City” means the city of Richland, Washington.
“Finance director” means the finance director of the city of Richland.
“Gross electric revenues” means the amount received from the sale of electric energy, which also includes any regularly recurring charge billed to consumers as a condition of receiving electric energy.
“Gross income” means the value proceeding or accruing from the sale of tangible property or of service, 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 stocks and the like and excluding receipts or proceeds from federal, state or local grants, or contributions in aid of construction), and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses.
“Person” or “persons” means persons of either sex, firms, co-partnerships, corporations and other associations of natural persons, whether acting by themselves or by servants, agents or employees.
“Tax year” or “taxable year” means the year commencing January 1st and ending December 31st of the same year, or in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the finance director to use the same as the tax period.
“Taxpayer” means any person liable for the license fee or tax imposed by this chapter. [Ord. 117 § 1.02; Ord. 64-82 § 1.01; Ord. 5-95; Ord. 50-04 § 1.01; Ord. 37-16 § 1; Ord. 2022-29 § 15].
5.20.030 Occupation license required.
No person shall engage in or carry on any business or occupation for which a license fee or tax is imposed by this chapter without having first obtained, and being the holder of, a valid and subsisting license so to do, to be known as an “occupation license.”
Any taxpayer who engages in, or carries on, any business or occupation for which a license fee or tax is imposed by this chapter without having his occupation license so to do, shall be guilty of a violation of this chapter for each day during which the business is so engaged in or carried on, and any taxpayer who fails or refuses to pay the license fee or tax or any part thereof on or before the due date shall be deemed to be operating without having his license so to do. [Ord. 117 § 1.03; Ord. 50-04 § 1.01].
5.20.040 Occupation subject to tax – Gas system – Amount.
There is levied and there shall be collected from every person, firm, company or corporation which operates in the city works, plants or facilities for the distribution and sale of manufactured or natural gas, a tax in the amount, effective November 1, 1996, of eight and one-half percent; provided, however, that a fee or tax of one percent shall apply to that portion of gross income derived from a single customer in excess of $35,000 per month. Suppliers claiming the reduced rate for volume sales to single users shall submit such reports indicating such sales as required by the finance director. [Ord. 117 § 1.04; Ord. 399 § 1.01; Ord. 83-74; Ord. 32-82; Ord. 3-84; Ord. 25-90; Ord. 5-95; Ord. 35-96; Ord. 50-04 § 1.01; Ord. 2022-29 § 16].
5.20.050 Occupations subject to tax – Telecommunications companies – Amount.
There is hereby levied upon, and shall be collected from, every person, firm, company or corporation engaged in or carrying on a telecommunications business within, or partially within, the city of Richland, a tax for the privilege of doing so equal, effective November 1, 1996, to eight and one-half percent of the total gross income from such business including income from 100 percent of the intrastate toll billed to business and residence subscribers located within the city’s corporate limits, as they now exist or may hereafter be extended; provided, that in computing such tax there shall be excluded from said gross income any amount derived from transactions or interstate or foreign commerce, and from any business which the city is prohibited from taxing under the Constitution of the United States or the Constitution and laws of the state of Washington; that portion of the 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; charges by a taxpayer engaging in a telephone business to a telecommunications company, as defined in RCW 80.04.010, for telephone service that the purchaser buys for the purpose of resale; adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was not properly a debt of a customer.
For the purposes of this chapter, the following terms shall have the meaning ascribed herein:
A. “Telecommunications business” means the business of providing telecommunications service.
B. “Telecommunications service” means the transmission for rent, sale or lease, or in exchange for other value received, of information in electronic or optical form, including, but not limited to, voice, video or data, whether or not the transmission medium is owned by the provider itself. Telecommunications service includes telephone service but does not include cable service or over-the-air broadcasts to the public at large from facilities licensed by the Federal Communications Commission or any successor thereto.
C. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone services or coin telephone services, or providing telephonic, video, data, or similar communications or transmission for hire, via a local telephone network, toll line or channel, cable, microwave or similar communications or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. “Telephone business” 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 communications or transmission system. “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, nor the provision of Internet service as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the Internet service provider.
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, other than toll service, related to that equipment or apparatus such as repair or maintenance service if the equipment 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. “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 services” 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. [Ord. 117 § 1.05; Ord. 399 § 1.01; Ord. 82-74 § 1.01; Ord. 38-75 § 1.01; Ord. 73-81 § 1.01; Ord. 32-82 § 1.02; Ord. 25-90; Ord. 22-92; Ord. 5-95; Ord. 35-96; Ord. 6-98; Ord. 50-04 § 1.01].
5.20.055 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.
B. Presumption. There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.
C. Roaming Phones. When the 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 main cellular switching office that switched the call.
D. Dispute Resolution. If there is a dispute between or among the city 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 mediation and/or arbitration under the Rules of the American Arbitration Association. 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 further revenues to comport with the settlement facilitated by the mediation or arbitration process. [Ord. 5-95; Ord. 6-98; Ord. 50-04 § 1.01].
5.20.060 Occupation subject to tax – Water systems – Amount.
There is levied upon and shall be collected from every person, including the city, engaged in or carrying on the business of selling or furnishing water for hire, a tax equal to 12.263 percent of the total gross income from such business during the tax year for which the license is required. [Ord. 117 § 1.06; Ord. 367; Ord. 399; Ord. 590; Ord. 64-82 § 1.02; Ord. 65-83; Ord. 44-84; Ord. 33-85; Ord. 33-86; Ord. 25-90; Ord. 35-96; Ord. 50-04 § 1.01; Ord. 09-12 § 1].
5.20.070 Occupation subject to tax – Sewer system – Amount.
There is levied upon the city in respect of the conduct, maintenance, and operation of its municipal sewerage system, a tax equal, effective November 1, 1996, to 10.5 percent of the total gross income from the sewerage charges provided for and collected under city ordinance. [Ord. 117 § 1.07; Ord. 367 § 1.01; Ord. 399 § 1.01; Ord. 590 § 1.02; Ord. 17-82 § 1.01; Ord. 25-90; Ord. 35-96; Ord. 50-04 § 1.01].
5.20.075 Occupation subject to tax – Stormwater system – Account.
There is levied upon the city in respect of the conduct, maintenance and operation of its municipal stormwater system, a tax equal to eight and one-half percent of the total gross income from the stormwater charges provided for and collected under city ordinance. [Ord. 10-98; Ord. 50-04 § 1.01].
5.20.080 Occupation subject to tax – Refuse removal – Amount.
There is levied upon and shall be collected from every person, including the city, engaged in or carrying on the business of removing garbage or trash for hire, a fee or tax equal, effective November 1, 1996, to 10.5 percent of the total gross income from such business during the tax year for which the license is required. [Ord. 117 § 1.08; Ord. 80-74 § 1.01; Ord. 101-79 § 1.01; Ord. 25-90; Ord. 35-96; Ord. 50-04 § 1.01].
5.20.090 Occupation subject to tax – Television cable – Amount.
There is hereby levied upon and shall be collected from every person engaged in or carrying on the business of transmitting television by cable service or cable system, a tax equal, effective November 1, 1996, to seven and one-half percent of the total gross income from such business during the tax year for which the license is required.
For the purposes of this chapter, the following terms shall have the meaning ascribed herein:
“Cable service” means:
A. The one-way transmission to subscribers of:
1. Video programming; or
2. Other programming service; and
B. Subscriber interaction, if any, which is required for the selection of such video programming or other programming service.
“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:
A. A facility that serves only to retransmit the television signals of one or more television broadcast stations; or
B. Any facilities of any electric utility used solely for operating its electric utility system. [Ord. 117 § 1.09; Ord. 401 § 1.01; Ord. 25-90; Ord. 51-94; Ord. 35-96; Ord. 50-04 § 1.01].
5.20.100 Occupation subject to tax – Electrical utilities – Amount.
There is hereby levied upon and shall be collected from everyone, including the city, engaged in or carrying on the business of selling or furnishing electric power, a fee or tax equal, effective November 1, 1996, to eight and one-half percent of the gross electric revenues of the business during the tax year for which the license is required. [Ord. 117 § 1.10; Ord. 15-89; Ord. 25-90; Ord. 35-96; Ord. 50-04 § 1.01].
5.20.105 Occupation subject to tax – Ambulance utility – Amount.
There is hereby levied upon and shall be collected from the city, engaged in the business of furnishing ambulance services, a fee or tax equal to one percent of the gross income of the utility during the tax year for which a license is required, to be effective September 1, 2006. [Ord. 50-04 § 1.01; Ord. 18-08; Ord. 37-16 § 2].
5.20.110 City of Richland subject to tax.
RMC 5.20.060, 5.20.070, 5.20.080 and 5.20.100 shall, so far as permitted by law, apply to the city, except that the city shall not as a taxpayer be required to comply with the other provisions of this chapter. The tax imposed upon the city’s electrical utility shall be applicable to the business of the utility both within and without the city. [Ord. 117 § 1.11; Ord. 50-04 § 1.01].
5.20.130 Application or return for license.
On or before the first day of each tax year every taxpayer shall apply to the director of finance for an occupation license upon blanks or forms of return to be prepared and provided by him. [Ord. 117 § 1.13; Ord. 50-04 § 1.01].
5.20.140 Payment of tax.
The amount of the license fee shall be paid in monthly installments computed on the total gross income received by the taxpayer in the preceding month. The installment shall be paid on or before the twenty-fifth day of each month. [Ord. 117 § 1.14; Ord. 50-04 § 1.01].
5.20.150 Books and records to be kept – Returns confidential.
It shall be the duty of each taxpayer taxed upon his gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his gross income, which account shall always be open to the inspection of the director of finance, or his duly authorized agent, and from which the officer or his agent may verify the return made by the taxpayer.
The applications, statements or returns made to the director of finance, pursuant to this chapter, shall not be made public, nor shall they be subject to the inspection of any person except the city manager, the city attorney, the director of finance, or his authorized agent, and members of the city council. [Ord. 117 § 1.15; Ord. 50-04 § 1.01].
5.20.160 Violations – Penalties.
Any person who has violated any provision of this chapter shall have committed a civil infraction subject to a civil penalty as set forth in RMC 10.02.050(E).
Provided, if the same violator has been found to have committed an infraction violation for the same or similar conduct two separate times, with the violations occurring at the same location and involving the same or similar sections of the Richland Municipal Code or other similar codes, the third or subsequent violation shall constitute a misdemeanor, punishable as provided in RMC 1.30.010 for criminal offenses. [Ord. 117 § 1.17; Ord. 17-84; Ord. 50-04 § 1.01; Ord. 06-10 § 1.06].
5.20.170 Severability.
The invalidity of any chapter, section, subsection, provision, clause, or portion thereof, or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of this chapter or the validity of its application to other persons or circumstances. [Ord. 117 § 1.16; Ord. 50-04 § 1.01].
5.20.180 Ordinances repealed – Savings clause.
Ordinance No. 63 relating to telephone companies, passed July 6, 1959, and Ordinance No. 87 relating to public utilities, passed October 12, 1959, both of which are temporary ordinances, are hereby repealed; provided, that any occupation license issued under either of these ordinances in effect on the effective date of the ordinance codified in this chapter shall remain in full force and effect for the remainder of the tax year for which such license was issued and; provided, that the tax or fee levied and to be collected under this chapter or under Ordinance Nos. 63 and 87 are paid in full. [Ord. 117 § 1.18; Ord. 50-04 § 1.01].