Chapter 5.06
UTILITY TAX
Sections:
5.06.010 Exercise of revenue license power.
5.06.020 Business license required.
5.06.030 Administrative provisions.
5.06.050 Persons subject to tax – Amount.
5.06.080 Solid waste collection.
5.06.110 Wireless telephone and pager services.
5.06.120 Water and sewer services.
5.06.160 Underpayment of tax, interest, and penalty.
5.06.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city of Snoqualmie to license and/or tax for revenue the privilege of engaging in businesses in the city of Snoqualmie. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.020 Business license required.
No person shall engage in or carry on any business occupation, pursuit, or privilege for which a tax is imposed by this chapter without having first obtained, and being a holder of, a valid business license pursuant to SMC 5.04.015, regardless of whether any employees are physically present within the city. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.030 Administrative provisions.
The administrative provisions contained in Chapter 5.08 SMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.040 Definitions.
In construing the provisions of this chapter, unless otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Gross income” means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of 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 without any deduction on the account of the cost of the property sold, the cost of materials used, labor cost, interest or discount paid, taxes, or any expense whatsoever, and without any deduction on account of losses.
B. “Taxpayer” means any person liable for the license fee or tax imposed by this chapter. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.050 Persons subject to tax – Amount.
There is hereby levied upon and there shall be collected from every taxpayer engaging in or carrying on a cable, electricity, solid waste collection, natural gas, telephone, wireless telephone business or water and sewage service, a fee or tax equal to the percentage identified in each individual section of this chapter on the total gross income from such business activity conducted within the city of Snoqualmie, as indicated by billing and/or charges to Snoqualmie customers. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.060 Cable.
A. “Cable business” means the activity of transmitting television signals by means of a satellite or cable distribution system.
B. The rate of tax imposed by this chapter on a cable business shall equal six percent of the gross income from such business derived from cable service provided to customers residing within the city of Snoqualmie. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.070 Electricity.
A. “Electricity business” means the business of producing, transmitting, distributing, or selling electricity.
B. The rate of tax imposed by this chapter on businesses engaged in the electricity business shall equal six percent of the total gross income from such business derived from electricity provided to customers residing within the city of Snoqualmie. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.080 Solid waste collection.
A. “Solid waste collection services” means receiving solid waste for transfer, processing, treatment, storage, or disposal including, but not limited to, all collection services, public or private dumps, transfer stations, and similar operations.
B. “Solid waste” means garbage, trash, rubbish, or other materials discarded as worthless or not economically viable for further use, infectious, hazardous, or toxic wastes, and recyclable or reusable materials collected, in whole or in part, for recycling or salvage.
C. The rate of tax imposed by this section on businesses engaged in the business of solid waste collection service shall equal nine percent of the total gross income from such business conducted within the city of Snoqualmie. (Ord. 1135 § 1, 2014; Ord. 1076 § 1, 2011; Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.090 Natural gas.
A. “Natural gas” means the business of transmitting, distributing, and selling natural gas.
B. The rate of tax imposed by this chapter on businesses engaged in the natural gas business shall equal six percent of the total gross income from such business conducted within the city of Snoqualmie. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.100 Telephone business.
A. “Telephone business” means the provision of network telephone services, as defined in this section. It includes cooperatives or farmer line telephone companies or associations. Telephone business shall include 100 percent of the toll service fees from calls originating and/or billed to subscribers within the city of Snoqualmie.
B. “Network telephone services” means the provision by any person of access to a telephone network, telephone network switching service, toll service, or provision of telephonic, video, data, or similar communication or transmission for hire, via a telephone network, toll line, or channel, cable, microwave, or similar communication or transmission system. “Network telephone service” includes the provision of transmitting to and from the site of an Internet service provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmitting system. It also encompasses 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. Network telephone service does not include a provision of competitive telephone service, or the provision of cable television service, or the provision 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.
C. “Competitive telephone services” means the provision by any person of telecommunications equipment or apparatus, such as a repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons who are not subject to regulation as telephone companies under RCW Title 80, and for which a separate charge is made.
D. The rate of tax imposed by this chapter on businesses engaged in the telephone business shall equal six percent of the total gross income from such businesses conducted within the city of Snoqualmie.
E. Competitive telephone service, as hereinabove defined, shall be taxed as a retail sale under Chapter 5.04 SMC.
F. Internet service providers (“ISPs”) shall not be deemed to be a “telephone business.” (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.110 Wireless telephone and pager services.
A. “Wireless telephone service” is a two-way voice or 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 communication 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.
B. “Pager services” means services 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.
C. “Allocation of income by service address” means 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 a tax applies.
D. 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.
E. The rate of tax imposed by this chapter on businesses engaged in a wireless telephone or pager service business shall equal six percent of the total gross income from such business. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.120 Water and sewer services.
A. “Water and sewer services” means the selling or furnishing of water and the furnishing of sewage services to customers in the city of Snoqualmie. Water service includes Class A reclaimed water service. Sewer service includes both sanitary and storm sewer services.
B. The rate of tax imposed by this section on businesses engaged in the business of the selling or furnishing of water and the furnishing of sewer services shall equal nine percent of the total gross income from such business conducted within the city of Snoqualmie. (Ord. 1135 § 1, 2014; Ord. 1076 § 2, 2011; Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.130 Method of payment.
The fee or tax imposed by this chapter shall be due and payable in reporting periods as set forth in Chapter 5.08 SMC. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.140 Deductions.
A. There may be deducted from the total gross income, upon which the fee or tax is computed, revenues derived from business which the city is prohibited from taxing under the constitutions or laws of the state of Washington or the United States or any ordinance of the city.
B. There may be deducted from the total gross income upon which the fee or tax is computed the amount of state excise taxes imposed directly upon persons using the utility services and collected in trust for payment to the state by the utility company.
C. Telephone businesses and wireless telephone and pager service businesses may deduct:
1. 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.
2. Charges by a taxpayer engaging in a telephone business to a telecommunications company, as in RCW 80.04.010, for telephone service, which the purchaser buys for the purpose of resale.
3. 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.
4. Wireless companies that keep their regular books of account on an accrual basis for credit losses actually sustained by a taxpayer.
D. Any deduction to which a taxpayer may be entitled that is not taken at the time of filing of the tax return and payment of the tax shall be deemed waived. (Ord. 1076 § 3, 2011; Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.150 Severability.
If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.160 Underpayment of tax, interest, and penalty.
A. If upon examination of any returns, or from other information obtained by the finance officer, it appears that a tax or penalty less than that properly due has been paid, the finance officer shall assess the additional amount found to be due and shall add thereto interest on the tax only. The finance officer shall notify the person by mail of the additional amount, which shall become due and shall be paid within 30 days from the date of the notice, or within such time as the finance officer may provide in writing.
B. For the purpose of this chapter the rate of interest that may be charged shall be one percent per month of all taxes and fees due.
C. The finance officer shall not assess, or collect an assessment for, additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were due, except that the finance officer may issue an assessment:
1. Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing 10 years prior to the close of the calendar year in which the person was contacted in writing by the finance officer;
2. Against a person that has committed fraud or who misrepresented a material fact; or
3. Against a person that has executed a written waiver of such limitations.
D. Penalties will be assessed at the rate identified in SMC 5.08.110. (Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).
5.06.170 Overpayment of tax.
A. If, upon receipt of an application for refund for any tax paid under protest, the finance officer determines that the amount of tax penalty or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer’s account or shall be refunded to the taxpayer. No refund or credit shall be made for taxes, penalties, or interest paid more than one year prior to the beginning of the calendar year in which the refund application is made or examination of records is completed. No refund or credit shall be made for tax paid without concurrent protest.
B. Refunds shall be made by means of voucher approved by the finance officer and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide.
C. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or cost paid by any person shall be paid in the same manner as provided in subsection B of this section upon the filing with the finance officer of a certified copy of the order or judgment of the court.
D. For refunds or credits of amounts paid or the recovery allowed to a taxpayer, the city shall pay no interest. (Ord. 1076 § 4, 2011; Ord. 982 § 2, 2005; Ord. 964 § 2, 2004).