HomeMy WebLinkAbout3280 Amending Port Townsend Municipal Code Chapter 5.84 Utility Business Tax Ordinance 3280
Page I of 2
ORDINANCE NO. 3280
AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON,
AMENDING PORT TOWNSEND MUNICIPAL CODE CHAPTER 5.84 UTILITY
BUSINESS TAX
RECITALS:
The City Council of Port Townsend finds as follows;
1. The City of Port Townsend is currently negotiating a water supply contract with
the Port Townsend Paper Company.
2. The draft agreement contemplates an administrative fee that reimburse the City's
general fund for the contract's administrative costs and substitutes for the
business utility tax.
3. This ordinance allows for an exemption from the utility business tax for water
supply contracts that include an administrative fee.
NOW, THEREFORE,the City Council of the City of Port Townsends hereby ordains as
follows:
Section 1. Chapter 5.84 Utility Business Tax of the Port Townsend Municipal Code is amended
as indicated in Exhibit A.
Section 2. Severability. If any sentence, clause or phrase of this ordinance should be held to be
invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause or phrase or work of this ordinance.
Section 3. Effective Date. This ordinance shall take effect and be in force five days after the date
of its publication in the manner provided by law. Publication of this ordinance shall be by
summary thereof consisting of the title.
Ordinance 3280
Page 2 of 2
ADOPTED by the City Council of the City of Port Townsend, Washington, at a special
business meeting thereof, held this 13"' day of December 2021.
l �;,,, �
Michelle Sandoval
Mayor
Attest: Approved as to Form:
m .. . --- _.... . -
.. ...
Joanna Sanders, MMC Hek r1c+ 11w1....
City Clerk City Attorney
Ordinance 3280 Exhibit A
Page 1 of 3
EXHIBIT A
CHAPTER 5.84
Utility Business Tax
5.84.010 Authority
5.84.020 License required
5.84.030 Tax imposed
5.84.010 Authority.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to
license for revenue.
5.84.020 License required.
After January 1, 1982, no person, firm or corporation shall engage in or carry on any business,
occupation, act or privilege for which a tax is imposed by PTMC 5.84,030 without first having
obtained, and being the holder of, a license so to do, to be known as an occupation license. Each
such person, firm or corporation shall promptly apply to the city clerk-treasurer for such license
upon such forms as the clerk-treasurer shall prescribe, giving such information as the clerk-
treasurer shall deem reasonably necessary to enable the clerk-treasurer's office to administer and
enforce this chapter; and, upon acceptance of such application by the clerk-treasurer, the clerk-
treasurer thereupon shall issue the license to the applicant. The occupation license shall be
personal and nontransferable and shall be valid as long as the licensee shall continue in said
business and shall comply with this chapter.
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 defined in this section:
A. Upon any telephone business there shall be levied a tax equal to six percent of the total gross
operating 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.
Ordinance 3280 Exhibit A
Page 2 of 3
"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 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 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 such 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 10 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. Contracted
raw water sale revenue to Olympic Gravity Water System ctistoxners may be excluded froin the
city's gtilit tgr i(. tl e eon trwr�royides as l asonable:adrniia:istiative Cee per Chapter 1118 of the
Port Townsend Municipal Code.
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 10 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.
Ordinance 3280 Exhibit A
Page 3 of 3
G. Effective January 1, 2019, through December 31, 2023, there is levied a fee or tax equal to 22
percent on the gross revenues of the following utilities:
1. The city's storm and surface water utility established under Chapter 13.31 PTMC;
2. The city's water system established as provided in Chapters 13.11 through 13.17 PTMC
(the "water code"); and
3. The city's sewer system established as provided in Chapters 13.21 through 13.24 PTMC
(the "sewer code").
Effective January 1, 2024, the fee or tax shall revert to 20 percent.
Funds shall be allocated as follows:
a. Revenues from first 10 percent and from the temporary two percent: general fund
services;
b. Revenues from second 10 percent (amount collected in excess of the first 10
percent): 85 percent to street fund and 15 percent to public safety.
The capital surcharge component of the water, sewer, and storm and surface water rates is
excluded from the city's utility tax.
Contracted raw water sale revenLie to Olympic Gra\14 Water System custonielm�.a� � r jLe
k
excluded from the city's utility tax if the contract provides a reasonable administrative fee per
�"Li.jpL f.the Port 1'owrasend MLiiiic%a41tl_Code.
H. Effective January 1, 2019, through December 31, 2023, there is levied upon, and there shall
be collected from, the city's solid waste or garbage utility a fee or tax equal to 22 percent of the
gross revenues of such utility established pursuant to Ordinance No. 1366 for the purposes as
provided in Chapter 6.04 PTMC. Effective January 1, 2024, the fee or tax shall revert to 20
percent. The tax shall appear and be separately itemized on the monthly bill of each retail
customer of the solid waste or garbage utility. Funds shall be allocated as follows:
1. Revenues from first 10 percent and the temporary two percent: general fund services;
2. Revenue from second 10 percent (amount collected in excess of the first 10 percent): 85
percent to street fund and 15 percent to public safety