Chapter 5.04
BUSINESS TAXES – UTILITIES

Sections:

5.04.010    Occupation license required.

5.04.020    Tax levies.

5.04.030    Computing gross income.

5.04.040    Payable when.

5.04.050    Records.

5.04.060    Penalty for delinquent payment.

5.04.070    Excessive payment.

5.04.080    Exceptions to gross income estimation.

5.04.090    Violation – Penalty.

5.04.010 Occupation license required.

On and after February 1, 1959, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by TMC 5.04.020 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 clerk-treasurer for such license upon such forms as the clerk-treasurer shall prepare and provide, giving such information as the clerk-treasurer shall deem reasonably necessary to enable said clerk-treasurer’s office to administer and enforce the ordinance codified in this chapter; and upon acceptance of such application by the clerk-treasurer, said clerk-treasurer 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 continues in such business and complies with this chapter. (Ord. 116 § 2, 1958).

5.04.020 Tax levies.

From and after January 1, 1983, the 13 percent tax as provided in this chapter shall be in full force and effect; provided, however, that on all other businesses, the billing for which is made on or after January 1, 1983, there is levied upon, and there shall be collected from every person, firm or corporation engaged in carrying on the following businesses for hire or sale of a commodity or a service within or partly within the corporate limits of the city the tax for the privilege of so doing business as hereinafter defined:

A. Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenue from the operation of such businesses within the city of Tonasket. 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 section.

“Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone services, coin telephone services, 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 cooperative or farmer line telephone companies or associations operating exchanges. “Telephone business” does not include the providing of competitive telephone service, or providing of cable television service, or other providing of broadcast services by radio or television.

“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 or apparatus is of a type which may be provided by persons not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.

B. There is levied a tax on the business of selling water or for the service of water by the city, such tax being for the privilege of being allowed to carry on said business, such tax to be equal to 10 percent of the total gross revenue from the sale of water; provided, however, that there shall be no tax levied on installation charges for water service or hook-up charges for water service for the city hydrant rental.

C. There is levied a tax on the business of the operation and sale of services for sewer utilities within the city, said tax being for the privilege of being allowed to carry on said business in the city, such tax to be equal to 10 percent of the total gross income from such business in the city; provided, however, that no tax shall be levied on connection charges or any charges in relation to connection to said sewer system.

D. There is levied a tax on the sale, delivery or distribution of electricity and electrical energy and for the privilege of carrying on said business, such tax to be equal to six percent of the total gross sale of electricity from business and residence services in the city; provided, however, that there shall not be any tax levied for installation charges of electrical units. This tax shall take effect January 1, 1987, so as to be in compliance with the requirements of RCW Title 82 as amended by the Laws of 1982, reducing such tax to a maximum rate of six percent.

E. There is hereby levied a tax upon every person, firm or corporation engaged in or carrying on the business of solid waste collection within the city of Tonasket a tax equal to six percent on the total gross income from such business in the city. (Ord. 777 § 1, 2016; Ord. 624 § 1, 2005; Ord. 389 §§ 1, 2, 1986; Ord. 379 §§ 1, 2, 1985; Ord. 368 §§ 1, 2, 1984; Ord. 360 § 1, 1984; Ord. 344 §§ 1, 2, 1982; Ord. 329 §§ 1, 2, 1981; Ord. 274 § 1, 1980; Ord. 128, 1961; Ord. 116 § 3, 1958).

5.04.030 Computing gross income.

In computing the tax as set forth in TMC 5.04.020, such tax shall be computed and payable on a monthly basis from said gross revenue as defined in TMC 5.04.020 for such period of time; provided further, that amounts derived from interstate transactions or foreign commerce or from business which the city is prohibited from taxing under the constitutions of the United States or of the state shall not be utilized in computing gross income. (Ord. 116 § 4, 1958).

5.04.040 Payable when.

The tax imposed by this chapter shall be due and payable on the tenth day of each month, and the first payment made under this chapter shall be made on the tenth day of March, 1959, for the period of time preceding that date which the ordinance codified in this chapter is in effect. On or before said due date the taxpayers shall file with the city clerk-treasurer a written return, upon such form and setting forth such information as the clerk-treasurer shall reasonably require, together with the payment of the amount of tax; provided, however, that if reason be shown that it would be to the convenience of the taxpayer to file returns on a different schedule than monthly then said taxpayer may apply to the city council for permission to file its returns on a different schedule. (Ord. 116 § 5, 1958).

5.04.050 Records.

Each taxpayer who must pay a tax under this chapter shall keep records reflecting the amount of his said gross operation revenues, and such records shall be open at all reasonable times to the city clerk-treasurer, or the clerk-treasurer’s duly authorized agent, for verification of said tax returns for the fixing of the tax of a taxpayer who fails to make such returns. (Ord. 116 § 6, 1958).

5.04.060 Penalty for delinquent payment.

If any person, firm or corporation subject to this chapter fails 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 10 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 and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 116 § 7, 1958).

5.04.070 Excessive payment.

Any money paid to the city through error or otherwise in excess of such tax as should have been paid shall, upon the request of the taxpayer, be credited against any taxes due or becoming due from said taxpayer under this chapter, or upon the taxpayer’s ceasing to do business in the city, shall be refunded to the taxpayer. (Ord. 116 § 8, 1958).

5.04.080 Exceptions to gross income estimation.

It is further ordered that in arriving at gross income the taxpayer shall not be compelled to consider any value accruing from the sale of real property or from the sale of notes, bonds, mortgages or other evidence of indebtedness or stocks or like commodities. (Ord. 116 § 12, 1958).

5.04.090 Violation – Penalty.

Any person, firm or corporation subject to this chapter who fails or refuses to apply for an occupation license or to make said tax returns or to pay said tax when due, or who makes any false statements or representations in or in connection with any such application for an occupation license, or such tax returns, or otherwise violates or refuses or fails to comply with this chapter, shall be found to have committed a civil infraction and shall be assessed a monetary penalty as provided in TMC 1.08.010 as amended. (Ord. 350 § 9, 1983; Ord. 116 § 9, 1958).