HomeMy WebLinkAboutOrd 1998 - Utility Tax
Cover page to Ordinance 1998
The full text of the ordinance follows this cover page.
Ordinance 1998 was amended or repealed by the following
ordinances.
AMENDED REPEALED
Section(s) Amended Amended by Ord # Section(s) Repealed Repealed by Ord #
3, 4, 6 2730 5, 8, 9, 10, 11, 12, 13, 14 2730
City of Tukwila
Washington
Ordinance No. ` 7 ? g
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A UTILITY TAX
TO PROVIDE REVENUE FOR CITY SERVICES AND CAPITAL
REQUIREMENTS; ESTABLISHING A SPECIAL
REFERENDUM PROCEDURE; SETTING PENALTIES FOR
NON-COMPLIANCE; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council has determined that the Financial Planning Model
demonstrated that there will be a deficit balance in the General Government Funds by 2005;
and
WHEREAS, the City has availed itself of all appropriate revenue sources currently
authorized, and has reduced expenditures by 5% in the Financial Planning Model; and
WHEREAS, the basic City service levels would be greatly reduced without a new
source of revenue; and
WHEREAS, the City Council has determined that the public interest is best served
by the implementation of a utility tax; and
WHEREAS, the City Council will review the rate changes scheduled for 2005 and
2007 to determine if they are necessary before they are implemented;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Utility Tax. The tax provided for in this ordinance shall be known as the
"utility tax," and is levied upon the privilege of conducting an electric energy, natural or
manufactured gas, telephone, or cable television business within the City of Tukwila
effective February 1, 2003.
Section 2. Use and Accountability of Tax Proceeds. All revenues collected
pursuant to this ordinance shall be deposited into the General Fund, and shall be used for
the funding of City services or capital requirements as the Council shall direct through its
annual budget process.
Section 3. Definitions.
As used in this ordinance, unless the context or subject matter clearly requires
otherwise, the words or phrases defined in this section shall have the indicated meanings.
1. "Cable television services" means the transmission of video programming
and associated non -video signals to subscribers together with subscriber interaction, if any,
which is provided in connection with video programming.
2. "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
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wireless radio communications technology that accomplishes a purpose substantially
similar to cellular mobile service. Cellular telephone service is included within the
definition of "telephone business" for the purposes of this ordinance.
3. "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 Title 80
RCW, and for which a separate charge is made. Transmission of communication
through cellular telephones is classified as "telephone business" rather than
"competitive telephone service."
4. "Finance Director" means the Finance Director of the City of Tukwila,
Washington, or his or her designee.
5. "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.
6. "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 ordinance.
7. "Person" means any person, firm, corporation, association, or entity of any
type engaged in a business subject to taxation under this ordinance.
8. "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.
Section 4. 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 City of Tukwila, taxes in the amount to be determined by the application of rates given
against gross income as follows:
1. Upon a person engaged in or carrying on the business of selling, furnishing,
or transmitting electric energy, a tax equal to 4% for the calendar years 2003 and 2004; 5%
for the calendar years 2005 and 2006; and 6% for the calendar years 2007 and beyond, of the
total gross income from such business in the City during the period for which the tax is
due;
2. Upon a person engaged in or carrying on the business of selling, furnishing,
or transmitting gas, whether natural or manufactured, a tax equal to 4% for the calendar
years 2003 and 2004; 5% for the calendar years 2005 and 2006; and 6% for the calendar years
2007 and beyond, of the total gross income from such business in the City during the period
for which the tax is due;
Utility tax-2
3. Upon a person engaged in or carrying on any telephone business a tax equal
to 4% for the calendar years 2003 and 2004; 5% for the calendar years 2005 and 2006; and
6% for the calendar years 2007 and beyond, of the total gross income, including income
from intrastate long distance toll service, from such business in the City during the period
for which the tax is due;
4. Upon a person engaged in or carrying on the business of selling, furnishing
or transmitting cable television service, a tax equal to 4% for the calendar years 2003 and
2004; 5% for the calendar years 2005 and 2006; and 6% for the calendar years 2007 and
beyond, of the total gross income from such business in the City during the period for
which the tax is due.
5. In addition to the automatic annual review of the Financial Planning Model,
the City Council will review the need for scheduled rate changes for 2005 and again for
2007.
Section 5. Tax Year. The tax year for purposes of this utility tax shall commence
February 1, 2003 and end December 31, 2003, and thereafter shall commence on January 1,
and end on December 31st each year.
Section 6. Exceptions and Deductions. There is excepted and deducted from the
total gross income upon which the tax is computed:
1. That part of the total gross income derived from business which the City is
prohibited from taxing under the constitution or laws of the United States and the
constitution or laws of the State of Washington.
2. 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.
3. 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.
4. Cash discounts allowed and actually granted to customers of the taxpayer
during the tax year.
5. 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.
Section 7. Monthly Installments. The tax imposed by Section 4 of this ordinance
shall be due and payable in monthly installments, and remittance therefore shall be made
on or before the last day of the month following the end of the monthly period in which the
tax is accrued. Annual returns for smaller entities may be allowed upon written approval
from the Finance Director. On or before said due date, the taxpayer shall file with the
Finance Director a written return upon such form and setting forth such information as the
Finance Director shall reasonably require relating to the accurate computation and
collection of this tax, together with the payment of the amount.
Section 8. Taxpayer's Records. Each taxpayer shall keep records reflecting the
amount of the taxpayer's gross income on sales and services within the City, and such
records shall be open at all reasonable times for the inspection of the Finance Director or his
designee to verify information provided on any utility tax return, or to determine whether
such return is required to be filed.
Section 9. Failure to Make Returns or to Pay the Tax in Full. If a taxpayer fails,
neglects, or refuses to make his return as and when required by this ordinance, the Finance
Director is authorized to determine the amount of the tax payable under provisions of
Section 4 of this ordinance, and to notify such taxpayer of the amount so determined. The
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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 Section 7 of this ordinance.
Section 10. Penalty for Delinquent Payment. If a person subject to this tax fails to
pay any tax required by this ordinance within fifteen days after the due date thereof, there
shall be added to such tax a penalty of ten percent of the amount of such tax. Any tax due
under this ordinance that is 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.
Section 11. Overpayment of Tax. Money paid to the City through error, or
otherwise not in payment of the tax imposed by this ordinance, 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 City shall not be refunded. If such taxpayer has ceased doing business in
the City, any such overpayment shall be refunded to the taxpayer.
Section 12. Noncompliance - Penalty.
A. No person subject to this ordinance shall fail or refuse 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
ordinance or with any rule promulgated pursuant to Section 14 herein.
B. In addition to the interest and delinquent filing penalties set forth above, a
willful violation of or failure to comply with this ordinance is a civil infraction, subject to a
fine of up to $250 for each day that a violation continues.
Section 13. Appeal. A taxpayer aggrieved by the amount of the tax, penalties,
interest, or civil infraction fine determined to be due by the Finance Director or his
designee, under the provisions of this ordinance, may appeal such determination to the
City of Tukwila's City Administrator or his or her designee.
Section 14. Finance Director to Make Rules. The Finance Director shall have the
power to adopt and enforce rules and regulations not inconsistent with this ordinance or
with the law for the purposes of carrying out the provisions thereof.
Section 15. Tax relief. The Finance Director will develop and propose to the
Council a utility tax relief program for the City's senior and disabled low-income residents.
Section 16. Referendum Procedure. The provisions of this ordinance are subject to
the referendum procedure as follows:
1. A referendum petition seeking to repeal this ordinance shall be filed with the
City Clerk, who shall be designated the person to receive petitions of all types, within seven
days of the passage by the City Council of this ordinance or publication thereof, whichever
is later.
2. Within ten days, the City Clerk shall confer with the petitioner concerning the
form and style of the petition, issue an identification number for the petition, and cause to
be written a ballot title for the measure.
3. The ballot title shall be posed as a question, so that an affirmative answer to
the question and an affirmative vote on the measure results in the tax or tax rate increase
being imposed, and a negative answer to the question and a negative vote on the measure
results in the tax or tax rate increase not being imposed. The petitioner shall be notified of
the identification number and ballot title within this ten-day period.
Utility tax-4
LiAS INGTON, at a Regular Meeting
, 2002. thereof this / 8
'c P�yYtolc.�hJ _ 1
ATTEST/AUTHENTICATED:
ne E. Cantu, CMC, City Clerk
APPROVED AS TO FORM BY:
4. After notification of the identification number and ballot title, the petitioner
shall have 30 days in which to secure on petition forms the signatures of not less than 15%
of the registered voters of the City and to file the signed petitions with the City Clerk.
5. Each petition form shall contain the ballot title and the full text of the measure
to be referred. The City Clerk shall verify the sufficiency of the signatures on the petitions.
If sufficient valid signatures are properly submitted, the City Clerk shall cause the
referendum measure to be submitted to the City voters at the next election within the city or
at a special election as provided pursuant to RCW 35.17.260(2).
Section 17. Severability. Should any section, paragraph, sentence, clause or phrase
of this ordinance, or its application to any person or circumstance, be declared
unconstitutional or otherwise invalid for any reason, or should any portion of this
ordinance be pre-empted by state or federal law or regulation, such decision or pre-
emption shall not affect the validity of the remaining portions of this ordinance or its
application to other persons or circumstances.
Section 18. Effective Date. This ordinance shall be published in the official
newspaper of the City, and shall take effect and be in full force five (5) days after the date of
publication.
PASSED BY THE CITY COUNCIL OF THE CITY Q. TUKWILA,
day of
Steven M. Mullet, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
/7-10 Z
it- g 7-0,-
/ 1- 7 -'
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CITY OF TUKWILA
SUMMARY OF ORDINANCE NO. 1998
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A UTILITY TAX
TO PROVIDE REVENUE FOR CITY SERVICES AND CAPITAL
REQUIREMENTS; ESTABLISHING A SPECIAL REFERENDUM
PROCEDURE; SETTING PENALTIES FOR NON-COMPLIANCE;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
On , November 18, 2002, the City Council of the City of Tukwila passed
Ordinance No.1998, which levies a utility tax upon the privilege of conducting
an electric energy, natural or manufactured gas, telephone, or cable television
business within the City of Tukwila effective February 1, 2003; providing for
severability; and establishing an effective date.
The full text of this ordinance will be mailed without charge to anyone
who submits a written request to the City Clerk of the City of Tukwila for a
copy of the text.
APPROVED by the City Council at its meeting of November 18, 2002.
E. Cantu, CMC, City Clerk
Published Seattle Times: November 22, 2002