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HomeMy WebLinkAboutRes 1509 - Natural or Manufactured Gas Use Tax Collection Agreement ti Q 0, y tP 1908 Tu kw ila C ity o Washington Resolution No. 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE FINANCE DIRECTOR OF THE CITY OF TUKWILA TO EXECUTE THE ATTACHED AGREEMENT WITH THE STATE OF WASHINGTON DEPARTMENT OF REVENUE FOR THE PURPOSES OF ADMINISTERING AND COLLECTING ANY REVENUES UNDER TUKWILA MUNICIPAL CODE CHAPTER 3.62 ENTITLED "NATURAL OR MANUFACTURED GAS USE TAX" AS REQUIRED BY RCW 82.14.050. WHEREAS, the City of Tukwila is imposing a "Natural or Manufactured Gas Use Tax 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, and WHEREAS, RCW 82.14.050 requires that prior to the effective date of an ordinance imposing a sales and use tax, the City contract with the State of Washington Department of Revenue for the administration and collection of the tax; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Finance Director of the City of Tukwila, Washington, is herewith authorized to execute the Agreement between the State of Washington Department of Revenue and the City of Tukwila, regarding administration and collection of the local natural gas use tax, applied to bulk purchases of gas (brokered), which are allowed to be purchased by certain businesses in the State of Washington, the Agreement is attached hereto, entitled Exhibit A, and made a part as though set forth in full herein. Section 2. The Finance Director is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. PASSED BY THE CITY COUNC JI, OF THk5 Y OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2002. ATTEST/ AUTHENTICATED Richard Simpson, Council President J ne ttantu, CMC, City Clerk APPROVED AS TO FORM. Filed with the City Clerk: Passed by the City Council. fs /a Z Resolution Number- Y By Oi`fiee of t City Attorney Natural or Manufactured Gas Use Tax AGREEMENT BETWEEN THE STATE OF WASHINGTON, DEPARTMENT OF REVENUE AND THE CITY OF TUKWILA REGARDING THE ADMINISTRATION AND COLLECTION OF LOCAL NATURAL GAS USE TAX WITNESSETH. EXHIBIT A THIS AGREEMENT is made, November 18, 2002, by and between the State of Washington Department of Revenue, hereinafter referred to as "the Department," and the City of Tukwila, hereinafter referred to as "the City," WHEREAS, the Legislature of the State of Washington has, by Chapter 384, Laws of 1989, authorized cities to impose a local natural gas use tax, and WHEREAS, it is provided in Section 2 of said act by reference to RCW 82.14 050, that any city imposing a local natural gas use tax by ordinance shall, prior to the effective date thereof, contract with the Department for the administration and collection of said tax, and WHEREAS, the City has by ordinance, a copy of which is attached hereto, elected to impose a natural gas use tax commencing on February 1, 2003, NOW THEREFORE, to effectuate Section 2 of the aforementioned act, the parties hereto agree as follows 1 The Department shall exclusively perform all functions incident to the administration and collection of the taxes imposed by the said ordinance, other than criminal prosecutions. 2. The Department shall retain from the taxes so collected the amount of 2% thereof as expense of administration and collection. Said amount shall be subject to review during October of each year 3 The remainder of said taxes so collected shall be deposited by the Department in the local sales and use tax account under the custody of the State Treasurer 4. In carrying out its administration and collection duties hereunder, the Department shall, insofar as the same are applicable, apply the administrative provisions contained in chapters 82.02 and 82.32 RCW, and the Department's rules and regulations promulgated pursuant to RCW 82.32.300, as the same exist or may hereafter be amended. The Department shall adopt additional rules and regulations, in accordance with the State Administrative Procedure Act, to facilitate the administration and collection of the local taxes, as it may deem necessary or desirable 5 The Department shall perform its duties hereunder so that, as far as possible, the local natural gas use tax adopted by the City shall be administered and collected in a manner which is as consistent and uniform as possible with the state natural gas use tax, and facilitates the imposition of the local natural gas use tax upon individual taxable events simultaneously with the imposition of the state natural gas use tax. 6 The City shall have the right from time to time to examine the records of the Department as they concern taxpayers subject to the aforementioned ordinance 7 The allocation of local natural gas use tax collections among the various cities and counties will be sent by the Department to the State Treasurer within 60 days after the close of the first quarter for which the tax is imposed and thereafter on a quarterly basis. 8 All refunds and credits for local natural gas use tax made by the Department shall be charged to the City 9 The Department shall require redistribution to the affected cities of any tax, penalty and interest distributed to a city other than the city entitled thereto Such redistribution shall not be made as to amounts originally distributed earlier than three quarterly periods prior to the quarterly period in which the Department obtains knowledge of the improper distribution. 10 This agreement shall take effect on February 1, 2003, and shall thereafter be automatically renewed on December 31 of each year unless one of the parties gives written notice of termination on or before November 1 of each such year IN WITNESS WHEREOF the parties hereto have affixed their signature November 18, 2002. DEPARTMENT OF REVENUE STATE OF WASHINGTON By Director CITY OF TUKWILA By Steven M. Mullet, Mayor QlZay\ beeAac1''e --Q-, rcirrQ'' Socrat pcuy, )/./cu 14611 Abuw-e, (Ws Goa_ Wyucebtr all Ate, Li