HomeMy WebLinkAbout2334 Utility Business TaxORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 5.84 OF THE PORT TOWNSEND
MUNICIPAL CODE RELATING TO THE UTILITY BUSINESS TAX BY
AMENDING SECTION 5.84.030 TO INCREASE THE AMOUNT OF SAID
TAX ON THE SALE, DELIVERY OR DISTRIBUTION OF ELECTRICITY
OR ELECTRICAL ENERGY FROM THE CURRENT FOUR PERCENT TO THE
STATUTORILY AUTHORIZED AMOUNT OF SIX PERCENT AND BY
AMENDING SECTION 5.84.050 TO CREATE ADDITIONAL DEDUCTIONS
FROM THE UTILITY BUSINESS TAX FOR TAXES PAID TO THE
UNITED STATES, THE STATE OF WASHINGTON AND FOR LICENSE
FEES OR TAXES PAID TO THE CITY UNDER OTHER LAWS AND
ORDINANCES.
WHEREAS, the City of Port Townsend currently imposes a utility
business tax of four percent on the total gross operating revenues
of electrical utility businesses within the City of Port Townsend,
and
WHEREAS, the City has statutory authority to impose a business
utility tax in an amount up to six percent of the total gross
operating revenues of electrical utility businesses within the
City, and
WHEREAS, the City Council of the City of Port Townsend deems
it necessary and appropriate to impose the electrical utility
business tax at the higher rate allowed under current State law,
Now Therefore,
THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND DOES ORDAIN AS
FOLLOWS:
Section 1. Section 5.84.030 of the Port Townsend Municipal Code is
amended to read as follows:
5.84.030 Tax imposed. From and after January 1, 1982, there
is levied upon, and there shall be collected from, every person,
firm or corporation engaged in carrying on the following business
for hire or for sale of a commodity or a privilege of so doing
business as hereinafter defined:
A. Upon any telephone business there shall be levied a tax
equal to 6.00 percent of the total gross operating revenues,
excluding revenues from intrastate toll, derived from the operation
of such business within the city. Gross operating revenues for
this purpose shall not include charges which are passed on to the
subscribers by a telephone company pursuant to tariffs required by
regulatory order to compensate for the cost to the company of the
tax imposed by this chapter.
"Telephone business" means the business ofproviding access to
a local telephone network, local telephone network switching
service, toll service, or coin telephone services, or providing
telephonic, video, data, or similar communication or transmission
system. It includes cooperative or farmer line telephone companies
or associations operating an exchange; "Telephone business" does
not include the providing of competitive telephone service, nor the
providing of cable television service.
"Competitive telephone service" means the providing by any
person of telephone equipment, apparatus, or service, other than
toll service, which is a type which can be provided by persons that
are not subject to regulation as telephone companies under RCW
Title 80 and for which a separate charge is made.
B. There is levied a tax on the sale, delivery or
distribution of electricity and electrical energy and for the
privilege of carrying on said business, such tax to be equal to
four six percent of the total gross operating revenue derived from
sales of such electricity to ultimate uses within the city;
provided however, that there shall not be any tax levied for the
installation charges of electrical units.
C. There is levied a tax on the sale of natural, manufactured
or mixed gas for residential, commercial or industrial consumption
and for the privilege of carrying on said business, such tax to be
equal to four percent of gross operating revenues from such sale of
natural, manufactured or mixed gas within the limits of the city.
D. There is levied on every person engaged in or carrying on
the business of selling or furnishing water, a fee or tax equal to
seven percent of the total gross income from such business in the
city during the fiscal year next preceding the tax year for which
the license is required.
E. There is levied on every person engaged in or carrying on
the business of selling or furnishing sewage disposal, a fee or tax
equal to seven percent of the total gross income from such business
in the city during the fiscal year next preceding the tax year for
which the license is required.
F. For the purposes of defining "sewage disposal" as used in
subsection E of this section, the term shall not apply to those
persons or firms engaged in the pumping of septic tanks, cesspools
or holding tanks, and the hauling of materials thus pumped.
G. There is levied a fee or tax equal to seven percent on the
gross revenues of the storm and surface water utility established
under Chapters 13.16 and 13.20 of the Port Townsend Municipal
Code.
Section 2. Section 5.84.050 of the Port Townsend Municipal Code is
hereby amended to read as follows:
5.84.050 Deductions. In computing the tax there shall be
deducted from said gross operating revenues the following items:
A. The amount of credit losses and uncollectibles actually
sustained by the taxpayer;
B. Amounts derived from transactions in interstate or foreign
commerce or from any business which the city is prohibited from
taxing under the Constitutions of the United States or the state of
Washington;
C. Amounts derived by the taxpayer from the City.
D, Any amount paid to the United States, the State of
Washington. the city or to any political subdivision of the State,
as excise taxes levied or imposed upon the sale or distribution of
property or services.
E. Any person or entity subject to the payment of a license
fee or tax under any other ordinance of the City on account of
enqaging ~n any activity for which the person or entity is liable
to tax hereunder may deduct the amount of such fee or tax from the
amount of fee or tax imposed by this ordinance.
Section 3. This ordinance shall become effective sixty days after
its passage and publication.
Read for the
City Council of the City of Port T~
meeting thereof,
Attest:
David A. Grove, Clerk
first, second anted tim~s and passed by the
~ City ~f Port T~nse~, W~h~ngton, at a regular
held this 4th.
;~h~ M:Cl~ ~' ~'se, Mayor
ed as to form:
/Treasure~