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ORDINANCE NO. 3 / 7_�__
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending Chapter
3.18 relating to utility taxes on telephone,
gas, electric, garbage, water, sewer and
drainage utilities by adding a new section
providing for an interim utility tax increase
to expand youth and teen programs, and to
dedicate funds for such program expansion,
and further to amend the 1994 Budget to
reflect the increased revenue and
expenditures.
WHEREAS, the City Council, during its June 21, 1994
meeting, authorized expansion of youth and teen programming
within neighborhoods and apartments on East Hill, West Hill and
the Valley; and
WHEREAS, in order to fund this expansion of youth and
teen programs, the Council, at said meeting, authorized that the
City's utility taxes be increased by three -tenths of one percent
(0.3%), and that the revenues be dedicated to fund youth and teen
programs and separately accounted for in the City's budget; and
WHEREAS, the Council further authorized that the 1994
budget be adjusted to reflect the proposed increased revenues and
expenditures as a result of the increase in utility taxes; and
WHEREAS, this utility tax increase is to sunset on
December 31, 1996 unless reauthorized and continued by the City
Council; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I. Kent City Code Chapter 3.18 entitled
"Utility Tax on Telephone, Gas, Electric, Garbage, Water, Sewer
and Drainage Utilities" is hereby amended by adding a new
Section, 3.18.025, to read as follows:
Sec. 3.18.025. Certain utilities subject to interim tax.
Until December 31, 1996, the provisions of this section, and
not Section 3.18.020, shall be in full force and effect as
follows:
A. In addition to the other business and license fees
required by the ordinances of the city, there is hereby levied
upon all persons (including the city) engaged in certain business
activities a utilities tax to be assessed and collected as
follows:
1. Upon every person engaging in or carrying on any
telephone business within the city, an annual tax equal to three
and eight -tenths (3.8) percent of the total gross operating
revenues, including revenues from intrastate toll, derived from
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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.
2. Upon every person engaging in or carrying on a
business of selling, furnishing, distributing, or producing
gaseous gas for commercial or domestic use or purposes, a fee or
tax equal to three and eight -tenths (3.8) percent of the total
gross income from such business in the city during the tax year
for which the license is required.
3. Upon every person engaged in or carrying on the
business of selling, furnishing, or distributing electricity for
light and power, a fee or tax equal to three and eight -tenths
(3.8) percent of the total gross income from such business in the
city during the tax year for which a license is required.
4. Upon every person engaging in or carrying on a
business providing garbage service, a tax equal to six and eight -
tenths (6.8) percent of the total gross income from such business
in the city during the tax year for which the license is
required.
S. Upon every person (including the city) engaging in
or carrying on the business of selling, furnishing or
distributing water, sewer or drainage services, a tax equal to
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three and eight -tenths (3.8) percent of the total gross income
from such business in the city during the tax year.
B. In computing the tax provided in subsection A., the
taxpayer may deduct from gross income, the following items:
1. The actual amount of credit losses and
uncollectables sustained by the taxpayer.
2. Amounts derived from the transactions in
interstate and foreign commerce which the city is prohibited from
taxing under the laws and constitution of the United States.
C. The provisions of this subsection, consisting of an
interim tax rate, shall be and remain in effect, in lieu of the
provisions of subsection 3.18.020 above, until 11:59 p.m.,
December 31, 1996, after which time this subsection shall have no
force or effect and the provisions of Section 3.18.020 shall be
in full force and effect.
D. All references in this chapter and the City code or any
City ordinance to Section 3.18.020 shall mean Section 3.18.025
until the provisions of Section 3.18.025 sunset on December 31,
1996 as provided herein.
SECTION 2. City Administration is hereby authorized to
establish a separate fund or account for the increased revenues
as a result of the three -tenths of one percent (0.3%) increase in
tax established by this ordinance to be used solely for the
purpose of expanding youth and teen programs as directed by the
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City Council at its June 21, 1994 meeting. These increased
revenues shall be dedicated to fund youth and teen programs and
be separately accounted for in the City's budget and further the
1994 budget shall be adjusted to reflect the proposed increased
revenue and expenditures.
SECTION 3. Severability. If any section, 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 of this ordinance.
SECTION 4. Effective Date. This ordinance shall take
effect and be in force thirty (30) days from and after its
passage, approval and publication as provided by law.
ATTEST:
BRENDA JACOBER, CIITY CLERK
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!APPROVED AS TO FORM:
ROAR A. LUBOVICH, CITY AT. EY
PASSED day of 1994.
APPROVED day of 1994.
r_.
• _, . , .� , ,,
PUBLISHED day of a 1994.
I hereby certify that this is a true copy of Ordinance
No. -30V , passed by the City Council of the City of Kent,
Washington, and approved by the Mayor of the City of Kent as
hereon indicated.
utiltax.ord
(SEAL)
BRENDA JACO136, ,CITY CLERK
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