Chapter 3.48
TELEPHONE BUSINESS AND OCCUPATION TAX*

Sections:

3.48.010    Exercise of revenue license power.

3.48.018    Administrative provisions.

3.48.020    Definitions.

3.48.040    Tax imposed.

3.48.060    Allowable deductions.

3.48.090    Information to be provided upon annexation.

*    For statutory provisions authorizing a license tax on businesses and occupations in cities of the second class, see RCW 35.23.440(9). Prior ordinance history: Prior code § § 4.12.010—4.12.180 and 4.12.200.

3.48.010 Exercise of revenue license power.

The provisions of this chapter shall be deemed to be an exercise of the power of the city of Shelton to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. (Ord. 1628-0904 § 1 (part): Ord. 1059 § 1, 1981)

3.48.018 Administrative provisions.

The administrative provisions contained in Chapter 3.10 shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 1628-0904 § 1 (part))

3.48.020 Definitions.

A.    “Telephone business” means the business of providing access to a 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.

B.    “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 RCW Title 80 and for which a separate charge is made.

C.    “Cellular telephone service” means a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications which is not subject to regulations by the Washington State Utilities and Trade 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 services. “Cellular telephone service” is included within the definition of “telephone business” for the purposes of this chapter. (Ord. 1628-0904 § 1 (part): Ord. 1059 § 3 (part), 1981)

3.48.040 Tax imposed.

From and after January 1, 1982, there is 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 Shelton the tax for the privilege of so doing business as defined in Section 3.48.020:

A.    Upon any telephone business, including cellular telephone service, there shall be levied a tax equal to six percent of the total gross operating revenues, derived from the operation of such businesses within the city of Shelton. 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. (Ord. 1628-0904 § 1 (part): Ord. 1174 § 1, 1985; Ord. 1059 § 3 (part), 1981)

3.48.060 Allowable deductions.

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 city is prohibited from taxing under the Constitutions of the United States or the state of Washington. (Ord. 1628-0904 § 1 (part): Ord. 1059 § 5, 1981)

3.48.090 Information to be provided upon annexation.

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. 1628-0904 § 1 (part): Ord. 1059 § 9, 1981)