HomeMy WebLinkAboutOrd 2258 - Water Sewer and Surface Water Utility TaxesCity of'Tukwila
Washington
Cover page to Ordinance 2258
The full text of the ordinance follows this cover page.
AN ORDINANCE OF Tl.'W CIT YCOUNCIL OF 77HF, CT11 Y SIF `r1;KwTLA,
WASHING"I'ON', ESTABLISHING NEW REGULATIONS, TO BE CODIFIED
AT TUMVILA MUNICIPA1, CODE CHAPTER 3.54, REGARDING WATER,
1 r
SEWER AND SLAR FAC
E WA']"Eunary ry 17.�" E�S,� PROVIDING FOR
SEVERABuxry; AND ESTABLISHING AN EFFECTIVE DATE,.,
Ordinance 2258 was amended or repealed by the
following ordinances.
REPEALED
Sedtion(s)'Amend6d 'Amended by Ord # Section(s) Repealed Repealed by Ord#
1 (part) 2298
3 2463,2669
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Veil!
1R 1908
C ity of u la
Washington
Ordinance No. 2258
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, ESTABLISHING NEW REGULATIONS, TO BE CODIFIED
AT TUKWILA MUNICIPAL CODE CHAPTER 3.54, REGARDING WATER,
SEWER AND SURFACE WATER UTILITY TAXES; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council has determined the Financial Planning Model
demonstrates there is projected to be a deficit balance in the General Government Funds
by 2011; and
WHEREAS, the City has availed itself of all appropriate revenue sources currently
authorized and has reduced expenditures by 3% in the General Fund; and
WHEREAS, the basic City service levels could suffer a reduction without a new
source of revenue; and
WHEREAS, implementation of a tax on the City's water, sewer and surface water
utilities measured by gross earnings is expected to generate additional revenue to help
maintain current levels of City services; and
WHEREAS, the City Council desires to accelerate the collection of the utility tax
imposed herein; and
WHEREAS, the City Council has determined the public interest is best served by the
implementation of a tax on the City's water, sewer and surface water utilities;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regulations Established. Tukwila Municipal Code Chapter 3.54, "City
Utility Tax,'' is hereby established to read as follows:
CHAPTER 3.54
CITY UTILITY TAX
Sections:
3.54.010 City Utility Tax
3.54.020 Definitions
3.54.030 Tax Rate
3.54.040 Tax Year
3.54.050 Exceptions and Deductions
3.54.060 Finance Director to Make Rules
3.54.010 City Utility Tax
There is hereby imposed a tax to be levied on and after December 31, 2008, against
and upon the gross earnings of the water, sewer and surface water utility funds and on
all water, sewer and surface water utilities at the rates set forth in this chapter. The tax
shall, however, be subordinate to any payments required to be made by any of said
utility funds from said gross earnings into any fund or funds heretofore or hereafter
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created for the payment of and interest on revenue bonds of the City heretofore or
hereafter issued.
3.54.020 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.
1. "Finance Director" means the Finance Director of the City of Tukwila,
Washington, or his or her designee.
2. "Gross earnings" means the consideration, whether money, credits, rights or
property expressed in terms of money, proceeding or accruing by reason of the
transaction of business and includes gross proceeds of sales, compensation for rendition
of services, gains realized from interest, rents, royalties, fees, commissions, dividends
and other emoluments, however designated, all without any deduction on account of
cost of property sold, materials used, labor, interest, losses, discount and any other
expense whatsoever.
3. "Sewer service" means any connection to the City sewer system and shall be
further defined by customer class.
4. "Surface water service" means any connection to the City surface water or storm
drainage system and shall be further defined by customer class.
5. "Water service" means any connection to the City water system and shall be
further defined by customer class.
3.54.030 Tax Rate
There is levied upon water, sewer and surface water utilities, taxes in the amount to
be determined by the application of rates given against gross earnings as follows:
1. Upon the City water, sewer and surface water funds, a tax equal to 15% of the
total gross revenue from such business from all customers in the City during the period
for which the tax is due. Such tax shall be effective from December 31, 2008 through
April 30, 2010.
2. Upon the City water, sewer and surface water funds, a tax equal to 10% of the
total gross revenue from such business from all customers in the City during the period
for which the tax is due. Such tax shall be effective from May 1, 2010 through
December 31, 2012.
3.54.040 Tax Year
The tax year for purposes of this water, sewer and surface water utility tax shall
commence December 31, 2008 and thereafter shall commence on January 1 and end on
December 31 each year.
3.54.050 Exceptions and Deductions
In computing the gross earnings tax due under the provisions of this chapter, there
shall be deducted from the measure of the tax the following items:
1. Uncollected accounts, if the books of the utility are on an accrual basis as
distinguished from a cash basis.
2. Amounts received through contemplated or actual condemnation proceedings or
in account of any federal, state or local public works project.
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3. Amounts received as compensation or reimbursement for damages to or
protection of any property of the utility.
4. Contributions for or in aid of construction.
5. Amounts collected as sales tax.
6. Amounts received from surcharge to water rates charged outside City limits
users for system improvements necessary to meet City standards.
3.54.060 Finance Director to Make Rules
The Finance Director 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.
Section 2. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance shall be published in the official
newspaper of the City, shall take effect and be in full force five days after the date of
publication, and shall be retroactively applied to taxes payable beginning December 31,
2008.
PASSED BY THE CITY COUNCIL OHE CITY OF TUKWIIA, WASHINGTON,
at a Regular Meeting thereof this 1 day of /CTa r 2009.
ATTEST/
UTHENTICATED:
JI�Iaggerton,
Christy O'Flal rty, CMC, City Clec
APPROVED AS TO FORM BY:
O �Attorney
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lied with the City Clerk: 10 -1 1-0
Passed by the City Council: 10 r /9-d
Published: 1
Effective Date: l 1 `d- J- 9 e 1
Ordinance Number: c;+- 5 W
�j PUBLISHED IN ITS ENTIRETY 10/22/2009
Due to a problem at the Seattle Times, the ordinance was published
10/23/09 and becomes effective 10/28/09
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