HomeMy WebLinkAboutOrd 2000 - Natural and Manufactured Gas Use Tax ss
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Ordinance No.C'
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A USE TAX ON
NATURAL OR MANUFACTURED GAS 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
demonstrates 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, 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 use tax on natural or manufactured gas; and
WHEREAS, this is a use (sales) tax on bulk gas purchases (brokered), allowed to be
purchased by certain businesses in the State of Washington;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Purpose. The purpose. of this ordinance is to impose a use tax on natural or
manufactured gas.
Section 2. A new Tukwila Municipal Code, Chapter 3.62, entitled "Natural or
Manufactured Gas Use Tax," is hereby created to read as follows:
3.62.010 Use Tax Imposed. There is imposed a use tax for the purposes authorized by
Chapter 82, RCW and as specifically authorized by RCW 82.14.230, for the privilege of using
natural gas or manufactured gas in the City as a consumer. The use tax is applied to bulk
purchases of gas (brokered), which are allowed to be purchased by certain businesses in the
State of Washington. The use tax shall be imposed and collected from those consumers from
whom the State use tax is collected pursuant to Chapter 82.14 RCW.
3.62.020 Rate of Use Tax Imposed.
A. The tax shall be imposed in an amount equal to the value of the article used by
the taxpayer multiplied by the rate in effect for the tax on the natural gas businesses imposed
in Tukwila under RCW 35.21.870 and Tukwila Municipal Code Section 3.62. The "value of the
article used" does not include any amounts that are paid for the hire or use of a natural gas
business in transporting the gas subject to tax under this chapter, if those amounts are subject
to tax under RCW 82.14.230, if those amounts are subject to tax under RCW 35.21.870, and
Tukwila Municipal Code Section 3.62.
B. The tax imposed under this section shall not apply to the use of natural or
manufactured gas if the person who sold the gas to the consumer has paid a tax under RCW
35.21.870, with respect to the gas for which exemption is sought under RCW 82.14.230.
Natural or Manufactured Gas tax -1
C. There shall be a credit against the tax levied under this section in an amount
equal to any tax paid by:
1. The person who sold the gas to the consumer when that tax is a gross
receipts tax similar to that imposed pursuant to RCW 35.21.870 by another state, with respect
to the gas for which a credit is sought under RCW 82.14.230; or
2. The person consuming the gas upon which a use tax similar to the tax
imposed by RCW 82.14.230 was paid to another state, with respect to the gas for which a credit
is sought under RCW 82.14.230.
3.62.030 Administration and Collection of Tax. The administration and collection of
the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050.
The tax imposed shall be paid by the consumer.
3.62.040 Consent to Inspection of Records. The City consents to the inspection of such
records as are necessary to qualify the City for inspection of records of the Department of
Revenue, pursuant to RCW 82.32.330.
3.62.050 Authorizing Execution of Contract for Administration. The Finance Director
is authorized to enter into a contract with the Department of Revenue for the administration of
this tax.
3.62.060 Penalties. Any seller who fails or refuses to collect the tax as required with
the intent to violate the provisions of this Chapter or to gain some advantage or benefit, either
direct or indirect, and any buyer who refuses to pay any tax due under this Chapter shall be
guilty of a misdemeanor, and upon conviction thereof shall be fined no more than five
hundred dollars or imprisoned for not more than six months, or be punished by both such fine
and imprisonment.
Section 3. 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 4. Authority. The Finance Director is hereby authorized to implement
such administrative procedures as may be necessary to carry out the directives of this
legislation.
Section 5. Effective Date. This ordinance shall take effect and be in full force after its
passage, approval, and five days after its publication in the official newspaper of the City as
provided by law, but no earlier than February 1, 2003, and the date on which the contract
between the City and the State of Washington Department of Revenue for the collection and
administration of the tax is effective, and be effective in accordance with the guidelines
established by the State of Washington Department of Revenue.
PASSED BY THE CITY COUNCIL OF THE cm 9F TUKWILA WASHINGTON,
at a Regular Meeting thereof this /f day of e 2002.
ATTEST/ AUTHENTICATED:
/f a to E. Cantu, CMC, City Clerk
t A PPROVED AS TO FORM BY:
Of o`f the ity Attorney
Natural or Manufactured Gas tax -2
d -el4t4 ry i,
Steven M. Mullet, Mayor
Filed with the City Clerk: /1
Passed by the City Council: /1-1 f --el
Published: 6 <2
Effective Date: ,g Of 61 3
Ordinance Number: .t 00
CITY OF TUKWILA
SUMMARY OF ORDINANCE NO. 2000
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A USE TAX ON
NATURAL OR MANUFACTURED GAS 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.2000, imposing a use tax for the privilege of using natural gas or
manufactured gas in the City as a consumer. The use tax is applied to bulk
purchased of gas (brokered), which are allowed to be purchased by certain
businesses in Washington State. The use tax shall be imposed and collected
from those consumers from whom the State use tax is collected pursuant to
Chapter 82.14 RCW.
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