Loading...
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~