HomeMy WebLinkAbout2758Ordinance No. 2758
(Amending or Repealing Ordinances)
CFN=110 — Water/Sewer/Garbage Rates & Policies
CFN=186 - Budget
Passed 12/1/1987
Utility Fees & Rates
Amended by Ords. 2514;3456;3489,3594;3645 (Sec. 3.18.020
{formerly Sec. 3.04.040})
Amended by Ord. 4061 (Sec. 3.18.010;3.18.030)
The date ["Beginning July 1, 1998"] has led to confusion. This date will be deleted from
cover sheets of ordinance/resolution revision pages This cover sheet will be deleted on
electronic pages only, no other deletions or changes have been made to the document —
6/21 /2012
ORDINANCE X j'
AN ORDINANCE relating to utility fees or
taxes; amending Chapter 3.04 of the Kent City
Code to add Section 3.04.040(1)(d) garbage
utility tax as set by Ordinance 2690; to add
drainage utility as a utility as approved in
Ordinance 2553; to clarify calculation of
gross income for utility tax calculation; to
increase utility tax on non -City owned
utilities of electricity, telephone, and
gaseous gas from 2-1/2% to 3.5%; to increase
utility tax on City owned utilities water,
sewer and drainage from 2.0% to 3.5%.
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Chapter 3.04 of the Kent City Code is amended;
as follows:
"3.04.040. CERTAIN UTILITIES SUBJECT TO TAX.
(1) In addition to the other business and license fees
required by the ordinances of the City of Kent, there is hereby
levied upon all persons (including the City of Kent) engaged in
certain business activities +(a -n -oceugatAo-n)+ a utilities tax to j
be collected as follows:
(a) Upon every person engaging in or carrying on
any telephone business within the City, an
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annual 4 (+et- ter+)- tax equal to -aft&-
�ne-ltal-f-}- three and one-half percent of the
total gross operating revenues, including
revenues from intra -state toll, derived from
the operation of such business within the City
of Kent. 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.
(i) "Telephone business" means the business of
i 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 for hire, via local telephone
network, toll time or channel 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 telephone service.
(ii) "Competitive Telephone Service" means the
providing by any person of telephone
equipment, apparatus, or service other than,
toll service, which is of a type which can
be provided by persons who are not subject
to regulation as telephone companies under
Title 80 RCw and for which a separate
charge is made.
(b) Upon every person engaging in or carrying on a
i
business of selling, furnishing, distributing,
or producing gaseous gas for commercial or
domestic use or purposes, a tax
equal to 4 ( ewe• and- one—I?ei-f+* three and
one-half percent of the total gross income from!
such business in the City during the tax year
for which the license is required.
(c) Upon every person engaged in or carrying on the
business of selling, furnishing, or
i
distributing electricity for light and power, a
f (fee- (!YrJ )- tax equal t o o (*wca- a-rrd—o rte —h rrl f- )+
three and one-half percent of the total gross
income from such business in the City during
the tax year for which a license is required.
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{
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(d) Upon every person engaging in or carrying ona
business providing garbage service, a tax equal;
to 6-1/2 percent of the total gross income from
such business in the City during the tax year
for which the license is required.
I
(((d)))(e) Upon every person (including the City of Kent)
engaging in or carrying on the business of
selling, furnishing or distributing water,
(jar.]3,a4qe7- a c } sewer or drainage services, a
free. o -r tax equal to +(C-wo--artd-enz-*a+f+)-
three and one-half percent of the total gross
income from such business in the City during
the tax year.
(2) In computing said tax as hereinbefore provided, the
taxpayer may deduct +(gin -eoi*p&ti-ng)-)- from gross income, the
following items:
(a) The actual amount of credit losses and
uncollectables sustained by the taxpayer;
(b) Amounts derived from the transactions in
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interstate and foreign commerce which the City i
is prohibited from taxing under the Laws and
i
Constitution of the United States; and
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(c) The amount of the utility tax collected from
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the utility customer. For illustrative
purposes this would be calculated as follows
for a service of $1,500 to collect 2.5 percent
utility tax of $37.50: $1,537.50 less utility
tax collected of $37.50 equals $1,500 utility
taxable income $1,500_x .025 = $37.50 utility
tax to be paid to City.
3.04.080. UTILITY TAX WHEN DUE. The utility tax imposed
by this Chapter shall be due and payable to the Finance Department
in quarterly installments and remittance thereof shall be made on
or before the last day of the month next succeeding the end of the,
quarterly period in which the tax accrued. Quarterly period for
the purpose of this Chapter shall mean each three (3) month period
of the calendar year. The taxpayer on or before said last day of
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said month shall also transmit to the Finance Department a return
upon a form to be prescribed and provided by the -E (-Cltr-k�-Finance]
if Department, which return shall contain a statement by the
;;taxpayer, stating the amount of tax for which he is liable for the:
preceding quarterly period under and computed according to the
provisions of this Chapter, that the information therein given and,
the amount of tax liability therein reported are full and true and
that he knows the same to be so; which statement shall be signed
by the taxpayer or authorized agent.
Section 2. This ordinance shall take effect and be in
force five (5) days from and after its passage, approval and
;publication as provided by law.
DAN KELLEHER, MAYOR
,ATTEST:
MARIE JE SE , CIT CLERK
APPROVED AS TO FORM:
C
ANDRA DRISCOLL, CITY ATTOR
PASSED the % day of`:C , 1987.
APPROVED the day of , 1987.
PUBLISHED the day of ;;_; , 1987.
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I hereby certify that this is a true copy of Ordinance
No. v2%passed by the City Council of the City of Kent,
Washington, and approved by the Mayor of the City of Kent as hereoti
indicated.
(SEAL)
�MAREJ N �CIY ERK
5370-180
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