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HomeMy WebLinkAbout2645 Establishing a Solid Waste Utility B&O TaxOrdinance No. AN ORDINANCE OF THE CITY OF PORT TOWNSEND ADDING A NEW SUBSECTION TO SECTION 5.84.030, TAX IMPOSED, CHAPTER 5.84, UTILITY BUSINESS TAX, OF THE PORT TOWNSEND MUNICIPAL CODE, TO ESTABLISH A BUSINESS AND OCCUPATION TAX LEVIED ON THE CITY'S SOLID WASTE UTILITY AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, in accordance with the City's fundamental municipal function to protect the public health and safety of Port Townsend residents through the provision of sanitary services, the City of Port Townsend operates a municipal solid waste utility, established in 1959 by Ordinance No. 1366. Further, pursuant to Chapter 35.67 RCW, the City's solid waste utility is an inherent component of the City's waste management utility, defined as the City's "system of sewerage" by state law, including all power and authority to manage, regulate and control sewerage and solid waste collection and disposal; and WHEREAS, the City, through the City Council, is authorized to construct, acquire, and operate facilities for solid waste handling, and possesses jurisdiction and authority to manage the system, negotiate contracts with haulers, establish rates and levy taxes for solid waste collection services. Port Townsend operates its solid waste utility in accordance with Chapter 6.04 PTMC; and WHEREAS, Washington law, RCW 35.33.440(8) and RCW 35A.82.020, authorizes cities to impose and collect a "license tax" upon all occupations and trades, including municipal utilities operating within cities; and WHEREAS, the City conducted a cost of service study in 1997 which showed that, for several years, the City's solid waste rate structure had not adequately reflected the actual cost to customers for solid waste collection service, resulting in financial resources other than solid waste rates paying for a portion of the cost of the solid waste service. Within its discretion to regulate collection and set rates for the City's solid waste collection serdce and utility, by Ordinance 2620, codified at Chapter 6.04 PTMC, the City Council increased rates to City solid waste customers; and WHEREAS, the solid waste cost of service study included a recommendation to impose a municipal business and occupation (B&O) tax of six percent on the City solid waste utility which tax is charged to all City of Port Townsend solid waste retail customers; and WHEREAS, by Ordinance No. 2617, the City Council approved the 1998 Budget, reflecting recommendations made in the solid waste cost of service study, and implementing a recommended six percent business and occupation tax levied on the solid waste utility; and WltEREAS, by Ordinance 2620 the City Council approved a retail rate increase on City of Port Townsend solid waste retail customers incorporating the effects of the cost of service study, and anticipating imposition of the B&O tax charged on the solid waste utility, NOW, THEREFORE, the City Council of the City of Port Townsend does ordain as follows: SECTION 1. A new subsection H is added to Section 5.84.030, Tax imposed, of Chapter 5.84, Utility Business Tax, of Title 5 of the Port Townsend Municipal Code 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 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. "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 lax 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 2 Ord. 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. 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. G. There is levied a fee or tax equal to 10 percent on the gross revenues of the storm and surface water utility established under Chapters 13.16 and 13.20 PTMC. II. There is levied upon. and there shall be collected from; the City's solid waste or garbage utility a fee or tax equal to six _tmrcent of the gross revenues of such utility, established pursuant to Ordinance No. 1366 for the pu _rposes as provided in Chapter 6.04 PTMC. The tax of six percent shall a_Ls~.au' and be se~tmrately itemized on the monthly bill of each retail customer of said solid waste or garbage utility.. (Ord. ~ § 1, 1998; Ord. 2469 § 1, 1995; Ord. 2334 § 1, 1993; Ord. 2332 § 1, 1992; Ord. 2266 § 1, 1991; Ord. 2217 § 1, 1990; Ord. 2168 § 1, 1990; Ord. 2131-A § 1, 1988; Ord. 2090 § 1, 1987; Ord. 2048 § 1, 1986; Ord. 2018 § 1, 1985; Ord. 2004 § 1, 1984; Ord. 1970 § 1, 1983; Ord. 1965 § 1, 1983; Ord. 1931 § 1, 1982; Ord. 1903 § 3, 1981). SECTION 2. ~.~tt~ili~. If any clause, sentence, paragraph, section, or part of this Ordinance or its application to any person or circumstance is held to be invalid or unconstitutional by a court of competent jurisdiction, such order or judgment shall not affect the validity o constitutionality of the remainder of any part of this Ordinance. To this end, the provisions of each clause, sentence, paragraph, section, or part of this law are declared severable. SECTION 3. F.,ffl~i.Yg,_da~. Except as provided in RCW 35.21.706, this ordinance shall take effect and be in force five days after the date of its publication in the manner provided by law. Within seven days of passage of this Ordinance, a referendum petition may be fried with the City Clerk. Read for the first, sex:ond, and third times and passed by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 18th day of May, 1998. Attest: Pam Kolacy, Clty Clerk 05/12/98 Ord\{584030.doc} Ju~cCulloch, Mayor 4 Ord. c~b ~'