HomeMy WebLinkAbout2927ORDINANCE NO.
AN ORDINANCE of the City of Kent,
Washington, relating to the taxation of
utilities and natural gas, adding a new Chapter
3.50 to the Kent City Code.
WHEREAS, due to a change in the federal regulations
governing the sale of brokered natural gas, cities have lost
significant revenues from the utility tax on natural gas; and
WHEREAS, the Washington State Legislature passed
Substitute House Bill No. 1574, Chapter 384 of the 1989 Regular
Session Laws, with the intent to adjust the utility and use tax
authority of cities to maintain this revenue source for the
municipalities and to provide equality of taxation between
intrastate and interstate transactions; and
WHEREAS, the provisions of Substitute House Bill No.
1574, Chapter 384 of the 1989 Regular Session Laws, added a new
section to Chapter 82.14 of the RCWs to allow the governing body
of any city to by ordinance fix and impose upon every person a us
tax for the privilege of using natural gas or manufactured gas in
the city as a consumer; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Chapter 3.50 is added to the Kent City Code
as follows:
3.50.010. NATURAL OR MANUFACTURED GAS LINE USE TAX
IMPOSED. There is hereby levied and there shall be collected
every person in this City a use tax for the privilege of using
natural gas or manufactured gas within the City as a consumer,
effective July 1, 1990.
3.50.020. RATE. The tax shall be imposed in an amount
equal to the value of the article used by the taxpayer multiplied`
by the rate in effect for the tax on the natural gas businesses
under RCW 35.21.870 within the City of Kent (Kent City Code
3.04.040(1)(8)). The "value of the article used" does not include
any amounts that are paid for the hire or use of a natural gas F
I
business in transporting the gas subject to tax under this
subsection if those amounts are subject to tax under RCW 35.21.8701.
3.50.030. EXEMPTIONS. The tax imposed under this
section shall not apply to the use of natural or manufactured gas
if the person who sold the gas to the consumer has paid a tax
under RCW 35.21.870 with respect to the gas for which exemption i
sought under this subsection.
3.50.040. CREDITS. There shall be a credit against the
tax levied under this section in an amount equal to any tax paid
by:
1. The person who sold the gas to the consumer when
that tax is a gross receipts tax similar to that imposed pursuant
to RCW 35.21.870 by another state with respect to the gas for
which a credit is sought under this subsection; or
2. The person consuming the gas upon which a use tax
similar to the tax imposed by this section was paid to another
state with respect to the gas for which a credit is sought under
this subsection.
3.50.050. ADMINISTRATION AND COLLECTION. The use tax
hereby imposed shall be paid by the consumer. The administration
and collection of the tax hereby imposed shall be pursuant to RCW
82.14.050.
3.50.060. CONTRACT EXECUTION. The Mayor is authorized
to execute a contract with the Department of Revenue of the State
of Washington for the administration and collection of the tax
imposed by this section; provided, that the City Attorney shall
first approve the form and content of such contract.
- 2 -
i
Section 2. Effective Date. This ordinance shall take
effect and be in force thirty (30) days from the time of its final'
passage as provided by law.
DKELLEHER, MAYOR
ATTEST:
MARIE J �,CI�TY`LERK�
APPROVED`AS TO FORM:
DRISCOLL, CITY ATTORNEY
PASSED the day of
APPROVED the -day of
PUBLISHED the day of
, 1990.
, 1990.
, 1990.
I hereby certify that this is a true copy of Ordinance
No. , passed by the City Council of the City of Kent,
Washington, and approved by the Mayor of the City of Kent as hereo
indicated.
8520-300
—�.( SEAL)
MARIE J N EN, CITY CLERK
- 3 -