HomeMy WebLinkAbout3274Ordinance No. 3274
(Amending or Repealing Ordinances)
CFN=104 - Finance
CFN=186 - Budget
CFN=110 - Water/Sewer/Garbage Rates & Policies
Passed 1/2/1996
Amending Utility Tax on Telephone, Gas, Electric, Garbage, Water, Sewer &
Drainage Utilities, changing the utility tax rates and dedicating a portion of
the tax revenue for street Improvements (Ord. 3314 inadvertently amended
Ord. 3274)
(Amending Secs. 3.18.010;3.18.020;3.18.030;3.18.040;3.18.050;3.18.060;
3.18.070;3.18.080;3.18.090)
Amending Ords. 2390,2514
Amended by Ords 3456;3489;3594;3645
{Ord. 3489 Readopted, re-enacted, ratified and confirmed by
Ord. 3533}
Amended by Ord. 4020;4061 (Sec. 3.18.020)
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
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ORDINANCE NO. 3
AN ORDINANCE of the City Council of the
City of Kent, Washington amending Chapter
3.18 of the Kent City Code entitled "Utility
Tax on Telephone, Gas, Electric, Garbage,
Water, Sewer and Drainage Utilities, changing
the utility tax rates and dedicating a
portion of the tax revenue for street
improvements.
WHEREAS, on or about April 7, 1992, the City Council, /
pursuant to Chapter 82.80 RCW, established a street utility for
the City of Kent; and
WHEREAS, as a result of a court challenge to the City
of Seattle's street utility in the case of Covell vs. City of
Seattle, No. 61178-5, the City Council repealed the City of
Kent's street utility; and
WHEREAS, in order to maintain the same funding levels
for street improvements in the City of Kent, the City Council
believes it is in the City's best interest to increase the City's
utility tax rate as a substitute funding source to be dedicated
to street improvements; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3.18 of the Kent City Code is
hereby amended as follows:
Utility Tax
CHAPTER 3.18. UTILITY TAX ON TELEPHONE, GAS, ELECTRIC,
GARBAGE, WATER, SEWER AND DRAINAGE UTILITIES
Sec. 3.18.010. Definitions.
The following words, terms and phrases, when used in
this chapter, shall have the meanings ascribed to them in this
section, except where the context clearly indicates a different
meaning:
Competitive telephone service means the providing by
any person of telecommunications equipment or apparatus, or
service related to that equipment or apparatus such as repair or
maintenance service, if the equipment or apparatus is of 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.
Network telephone service means the providing by any
person of access to a local telephone network, local telephone
switching service, toll service, coin telephone services,
telephonic, video, data, or similar communication, or
transmission for hire via a local telephone network, toll line or
channel, cable, microwave, or similar communication or
transmission system. ''Network telephone service— includes
interstate service, including toll service, originating from or
received on telecommunications equipment or apparatus in this
state if the charge for the service is billed to a person in this
state. ''Network telephone service— does not include the
providing of competitive telephone service, the providing of
cable television service, or the providing of broadcast services
by radio or television stations.
Telephone business means the business of providing
network telephone service, as defined above in this section. It
includes cooperative or farmer line telephone companies or
associations operating an exchange. Telephone business shall
include one hundred (100) percent of the total service fees from
calls originating and/or billed to subscribers within the city.
Telephone service means competitive telephone service
or network telephone service, as defined in the definitions of
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''network telephone service'' and ''competitive telephone
service'' set out in this section.
Sec. 3.18.020. Certain utilities subject to tax.
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 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 one-half (3
1/2) percent of the total gross operating
revenues, including revenues from intrastate
toll, derived from the operation of such
business within the city. In addition, there
shall also be assessed an interim tax of 0.3
percent effective until 11.59 p m on
December 31, 1996 which revenue from said
interim tax shall be dedicated to youth teen
� ograms, plus an interim tax of 1.0 percent
effective until !1:59 p.m. on April 7, 2002,
or until the effective date of any new
Legislation adopted by the Washington State
Legislature during the 1996 Legislative
Session authorizing cities to implement
street utilities, whichever is sooner, which
revenue from said interim tax shall be
dedicated to street improvement programs.
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.
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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 one-half (3 1/2)
percent of the total gross income from such
business in the city during the tax year for
which the license is required. In addition,
there shall also be assessed an interim tax
of 0.3 percent effective until 11:59 p.m. on
December 31 1996 which revenue from said
interim tax shall be dedicated to youth teen
programs, plus an interim tax of 1.0 percent
effective until 11:59 p.m. on April 7, 2002
or until the effective date of any new
legislation adopted by the Washington State
Legislature during the 1996 Legislative
Session authorizing cities to implement
street utilities, whichever is sooner, which
revenue from said interim tax shall be
dedicated to street improvement programs.
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 one-half (3
1/2) percent of the total gross income from
such business in the city during the tax year
for which a license is required. In
addition, there shall also be assessed an
interim tax of 0.3 percent effective until
11:59 p.m. on December 31, 1996 which revenue
from said interim tax shall be dedicated to
youth teen programs, plus an interim tax of
1.0 percent effective until 11:59 p.m. on
April 7, 2002 or until the effective date of
any new legislation adopted by the Washington
State Legislature during the 1996 Legislative
Session authorizing cities to implement
street utilities, whichever is sooner, which
revenue from said interim tax shall be
dedicated to street improvement programs.
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4. Upon every person engaging in or carrying on
a business providing garbage service, a tax
equal to six and one-half (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. In addition, there
shall also be assessed an interim tax of 0.3
percent effective until 11:59 p.m. on
December 31, 1996 which revenue from said
interim tax shall be dedicated to youth teen
programs, plus an interim tax of 1.0 percent
effective until 11:59 p.m. on April 7, 2002
or until the effective date of any new
legislation adopted by the Washington State
Legislature during the 1996 Legislative
Session authorizing cities to implement
street utilities, whichever is sooner, which
revenue from said interim tax shall be
dedicated to street improvement programs.
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
three and one-half (3 1/2) percent of the
total gross income from such business in the
city during the tax year. In addition, there
shall also be assessed an interim tax of 0.3
percent effective until 11:59 p.m. on
December 31. 1996 which revenue from said
interim tax shall be dedicated to youth teen
programs, plus an interim tax of 1.0 percent
effective until 11:59 p.m. on April 7, 2002
or until the effective date of any new
legislation adopted by the Washington State
Legislature during the 1996 Legislative
Session authorizing cities to implement
street utilities, whichever is sooner. which
revenue from said interim tax shall be
dedicated to street improvement programs.
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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
uncollectibles 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.
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Sec. 3.18.030. Utility tax, when due.
The utility tax imposed by section 3.18.020 of this chapter
shall be due and payable in monthly installments and remittance
thereof shall be made on or before the last day of the following
month in which the tax accrued. On or before said due date, the
taxpayer shall file with the finance department a return upon a
form to be prescribed and provided by the finance department,
which return shall contain a statement by the taxpayer, stating
the amount of tax for which he is liable for the preceding
monthly period, that the information therein given and the amount
of tax liability therein reported are full and true and that the
taxpayer knows the same to be true; which statement shall be
signed by the taxpayer or authorized agent. Taxpayers expected to
owe less than one thousand dollars ($1,000.00) per month may
submit taxes on a quarterly basis, taxes shall be due on the last
day of the month following the end of the quarter in which the
tax accrued. Quarterly period for the purpose of this chapter
shall mean each three-month period of the calendar year.
Sec. 3.18.040. Taxpayer's records.
Each taxpayer shall keep records reflecting the amount of
his gross operating revenues on services within the city, and
such records shall be open at all reasonable times to the
inspection of the finance director or his duly authorized
subordinates for verification of said tax returns or for the
filing of a tax of a taxpayer who fails to make such a return.
Sec. 3.18.050. Failure to make returns or to pay taxes in full.
If any taxpayer fails, neglects or refuses to make his
return as when required herein, the finance director is
authorized to determine the amount of tax payable, and by mail to
notify such taxpayer of the amount so determined. The amount so
fixed shall thereupon be the tax and be immediately due and
payable, together with penalty and interest. Delinquent taxes,
including any penalty, are subject to an interest charge of
twelve (12) percent per year (or one (1) percent a month) on any
unpaid balance from the date the tax payment became due, as
provided in section 3.18.030, until paid.
Sec. 3.18.060. Overpayment of tax.
Any money paid to the city through error, or otherwise not
in payment of the tax imposed by this chapter, or in excess of
such tax, shall, upon request of the taxpayer, be credited
against any tax due or to become due from such taxpayer
hereunder, or, upon the taxpayer ceasing to do business in the
city, be refunded to the taxpayer.
Sec. 3.18.070. Appeal to hearing examiner.
Any taxpayer aggrieved by the amount of tax, interest, or
penalties determined by the finance director to be due under the
provisions of this chapter may appeal such determinations to the
city hearing examiner in accordance with, and subject to, the
provisions set forth in Kent City Code Chapter 2.32. Taxpayers
shall be required to remit the amounts determined to be due under
this chapter prior to filing an appeal.
Sec. 3.18.080. False returns.
It is unlawful for any person subject to this chapter to
fail or refuse to pay the tax when due, or for nay person to make
any false or fraudulent application or return or any false
statement or representation in, or in connection with such
return, or to aid or abet another in any attempt to evade payment
of the tax, or any part thereof, or to testify falsely upon any
investigation of the correctness of a return upon the hearing of
an appeal or in any manner hinder or delay the city or any of its
officers in carrying out the provisions of this chapter.
Sec. 3.18.090. Noncompliance; civil penalty.
Any person, firm or corporation subject to this chapter, who
refuses to make tax returns or to pay tax when due, or who makes
a false statement or representation in or in connection with a
utility tax return, or who otherwise violates or refuses to
comply with this chapter, is subject to a cumulative penalty in
the amount of seventy-five dollars ($75.00) per day for each
violation. All penalties thereon shall constitute a debt to the
city and may be collected by court proceedings, which remedy
shall be in addition to all other remedies.
Section 2. Limitations on Tax Rate Changes. The provisions
of this ordinance shall be subject to the tax rate change
requirements of RCW 35.21.865 for electricity, telephone and
natural gas utilities.
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 five (5) days from and after its
publication as provided by law.
ATTEST:
BRENDA JACOBER, C Y CLERK
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APPROVED AS TO FORM:
<OGIW A. LUBOVICH, CITY ATTO
PASSED cl- day of 1996.
APPROVED day of v v 1996.
PUBLISHED day o --«y 1996.
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
hereon indicated.
unlityt.ord
A- 4 (SEAL)
BRENDA JACO R,lCITY CLERK
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