Chapter 3.16
UTILITIES TAX*
Sections:
3.16.020 Use and accountability of tax proceeds.
3.16.040 Occupations subject to tax – Amount.
3.16.060 Exceptions and deductions.
3.16.070 Quarterly installments.
3.16.090 Failure to make returns or to pay the tax in full.
3.16.100 Penalty for delinquent payment.
3.16.120 Noncompliance – Penalty.
3.16.140 Clerk/treasurer to make rules.
*Prior legislation: Ord. 600.
3.16.010 Utility tax.
The tax provided for in this chapter shall be known as the utility tax, and is levied upon the privilege of conducting an electric energy, natural or manufactured gas, telephone, cable television, garbage collecting or water or sewer business within the town of Yarrow Point effective January 1, 2011. (Ord. 619 § 1, 2010)
3.16.020 Use and accountability of tax proceeds.
All revenue collected pursuant to this chapter shall be deposited into the general fund, and shall be used for the funding of town services or capital requirements as the council shall direct through its annual budget process. (Ord. 619 § 2, 2010)
3.16.030 Definitions.
As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings.
A. “Cable television services” means the transmission or video programming and associated nonvideo signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming.
B. “Cellular telephone service” means any two-way voice and data telephone or similar communications system based in whole or in substantial part on wireless radio communications, including cellular mobile service, and which is not subject to regulation by the Washington State Utilities and Transportation Commission. “Cellular mobile service” includes other wireless radio communications services including specialized mobile radio, personal communications services, and any other evolving wireless radio communications technology that accomplishes a purpose substantially similar to cellular mobile service. Cellular phone service is included within the definition of “telephone business” for the purposes of this chapter.
C. “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, directory advertising and lease of telephone street directories, or 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. Transmission of communication through cellular telephones is classified as “telephone business” rather than “competitive telephone service.”
D. “Clerk/treasurer” means the clerk/treasurer of the town of Yarrow Point, Washington, or his or her designee.
E. “Gross income” means the value proceeding or accruing from the performance of the particular business involved, including gross proceeds of sales, compensation for the rendition of services, and receipts (including all sums earned or charged, whether received or not) by reason of investment in the business engaged in (excluding rentals, 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), all without any deduction on account of the cost of property sold, the cost of materials used, labor costs, taxes, interest or discount paid, delivery costs or any expenses whatsoever, and without any deduction on account of losses.
F. “Pager service” means service 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. “Pager service” is included within the definition of “telephone business” for the purposes of this chapter.
G. “Person” means any person, firm, corporation, association, or entity of any type engaged in a business subject to taxation under this chapter.
H. “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or providing telephonic, video, data, pager 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 an exchange. “Telephone business” does not include the providing of competitive telephone service or cable television service, or other providing of broadcast services by radio or television stations. (Ord. 619 § 3, 2010)
3.16.040 Occupations subject to tax – Amount.
There is levied upon, and shall be collected from a person because of certain business activities engaged in or carried on in the town of Yarrow Point, taxes in the amount to be determined by the application of rates given against gross income as follows:
A. Upon a person engaged in or carrying on the business of selling, furnishing, or transmitting electric energy, a tax equal to six percent of the total gross income from such business in the town of Yarrow Point during the period for which the tax is due;
B. Upon a person engaged in or carrying on the business of selling, delivering, furnishing, or transmitting gas, whether natural or manufactured, a tax equal to six percent of the total gross income from such business in the town of Yarrow Point during the period for which the tax is due;
C. Upon a person engaged in or carrying on any telephone business a tax equal to six percent of the total gross income, including income from intrastate long distance toll service, from such business in the town of Yarrow Point during the period for which the tax is due;
D. Upon a person engaged in or carrying on the business of selling, furnishing or transmitting cable television service, a tax equal to six percent of the total gross income from such business in the town of Yarrow Point during the period for which the tax is due;
E. Upon a person engaged in or carrying on the business of selling, furnishing or transmitting water, a tax equal to six percent of the total gross income from such business in the town of Yarrow Point during the period for which the tax is due;
F. Upon a person engaged in or carrying on the business of furnishing sanitary sewer service, a tax equal to six percent of the total gross income from such business in the town of Yarrow Point during the period for which the tax is due;
G. Upon a person engaged in or carrying on any garbage collection business a tax equal to six percent of the total gross income from such business in the town of Yarrow Point during the period for which the tax is due. (Ord. 619 § 4, 2010)
3.16.050 Tax year.
The tax year for purposes of this utility tax shall commence on January 1st, and end on December 31st, each year. (Ord. 619 § 5, 2010)
3.16.060 Exceptions and deductions.
There is excepted and deducted from the total gross income upon which the tax is computed:
A. That part of the total gross income derived from business which the town is prohibited from taxing under the Constitution or the laws of the United States and the constitution or laws of the state of Washington.
B. Income derived from that portion of network telephone service, as defined in RCW 82.04.065, which represents 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 network telephone service that is purchased for the purpose of resale.
C. Adjustments made to a billing or customer account in order to reverse a billing or charge that was not properly a debt of the customer.
D. Cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
E. Uncollectible debts written off the taxpayer’s books during the tax year. If subsequently collected, the income shall be reported for the period in which collected. (Ord. 619 § 6, 2010)
3.16.070 Quarterly installments.
The tax imposed by YPMC 3.16.040 shall be due and payable in quarterly installments, and remittance therefor shall be made on or before the last day of the month following the end of the quarterly period in which the tax is accrued. Annual returns for smaller entities may be allowed upon written approval from the clerk/treasurer. On or before said due date, the taxpayer shall file with the clerk/treasurer a written return upon such form and setting forth such information as the clerk/treasurer shall reasonably require relating to the accurate computation and collection of this tax, together with the payment of the amount. (Ord. 619 § 7, 2010)
3.16.080 Taxpayer’s records.
Each taxpayer shall keep records reflecting the amount of the taxpayer’s gross income on sales and services within the town, and such records shall be open at all reasonable times for the inspection of the clerk/treasurer or his or her designee to verify information provided on any utility tax return, or to determine whether such return is required to be filed. (Ord. 619 § 8, 2010)
3.16.090 Failure to make returns or to pay the tax in full.
If a taxpayer fails, neglects, or refuses to make his or her return as and when required by this chapter, the clerk/treasurer is authorized to determine the amount of the tax payable under provisions of YPMC 3.16.040, and to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon be the tax and be immediately due and payable, together with penalty and interest. Delinquent taxes, including any penalties, are subject to an interest charge of 12 percent per year on the unpaid balance from the date any such taxes became due as provided in YPMC 3.16.070. (Ord. 619 § 9, 2010)
3.16.100 Penalty for delinquent payment.
If a person subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax. Any tax due under this chapter that is unpaid and all penalties thereon shall constitute a debt to the town and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 619 § 10, 2010)
3.16.110 Overpayment of tax.
Money paid to the town through error, or otherwise not in payment of the tax imposed by this chapter, or in excess of such tax, shall, upon discovery, be credited against any tax due or to become due from such taxpayer hereunder; provided however, that overpayments extending beyond one year prior to notification of the town shall not be refunded. If such taxpayer has ceased doing business in the town, any such overpayment shall be refunded to the taxpayer. (Ord. 619 § 11, 2010)
3.16.120 Noncompliance – Penalty.
A. No person subject to this chapter shall fail to file tax returns or to pay tax when due, nor shall any person make a false statement or representation in, or in connection with, any such tax return, or otherwise violate or refuse to comply with this chapter or with any rule promulgated pursuant to YPMC 3.16.140.
B. In addition to the interest and delinquent filing penalties set forth above, a willful violation of or failure to comply with this chapter is a civil infraction, subject to a fine of up to $250.00 for each day that a violation continues. (Ord. 619 § 12, 2010)
3.16.130 Appeal.
A taxpayer aggrieved by the amount of the tax, penalties, interest, or civil infraction fine determined to be due by the clerk/treasurer or his or her designee, under the provisions of this chapter, may appeal such determination to the mayor of the town of Yarrow Point or his or her designee. (Ord. 619 § 13, 2010)
3.16.140 Clerk/treasurer to make rules.
The clerk/treasurer shall have the power to adopt and enforce rules and regulations not inconsistent with this chapter or with the law for the purposes of carrying out the provisions thereof. (Ord. 619 § 14, 2010)