HomeMy WebLinkAbout3645Ordinance No. 3645
(Amending or Repealing Ordinances)
CFN=110 - Water, Sewer, Drainage Rates & Policies
Passed 6/3/2003
Utility Taxes - Ch. 3.18 Rate Adjustment
(amending Secs. 3.18.010-.090)
Amends Ords. 2390;2514;2758;3074;3091;3274;3314;3319;3321;
3370;3456;3489;3594
Amended by Ord. 4020 (Sec. 3.18.020)
Amended by Ord. 4061
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 NO.
36 V,5 -
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," by (1)
adjusting the telephone, gas, electric, water, sewer, and
drainage utility taxes set forth therein by one and two-tenths
(1 2) percent to a total utility tax of six (6) percent, (2)
modifying the existing penalty provisions, and (3) making
other revisions to further clarify the intent of the chapter
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
ORDAIN AS FOLLOWS
SECTION 1. — Amendment Chapter 3 18 of the Kent City Code,
"Utility Tax on Telephone, Gas, Electric, Garbage, Water, Sewer and
Utilities," is hereby amended to read as follows
CHAPTER 3.18
UTILITY TAX ON TELEPHONE, GAS, ELECTRIC, GARBAGESOLID
WASTE, WATER, SEWER AND DRAINAGE UTILITIES
Sec. 3.18.010. Definitions. The following words, terms and phrases, when
in this chapter, shall have the meanings ascribed to them in this section, except
the context clearly indicates a different meaning
Cellular telephone service means anv two-way voice and/or data telephone or
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regulation by the Washington State Utilities and Tra mportation Commission that
conflicts with or overrides this chapter Cellular telephone service includes other
wireless radio communications services including, without limitation, specialized
mobile radio, paging services, personal communications and data services, and any
other evolving wireless radio communications technology that accomplishes a pumose
substantially similar to cellular telephone service. Cellular telephone service is
included within the definition of "telephone business" for the pumoses of this chapter.
Competitive telephone service means the providing by any person, firm, or
corporation 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
Gross income means the value proceeding or accruing from the performance of
the particular public service business involved, including operations incidental thereto,
but without any deduction on account of the cost of the commodity furnished or sold,
the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any
other expense whatsoever paid or accrued and without any deduction on account of
losses In addition, when determiningtotal otal gross income from cellular telephone
service, "gross income" shall include all income from cellular telephone service
(including roaming charges incurred outside this state) provided to customers whose
"place of pnmary use" is in the city, regardless of the location of the facilities used to
provide the service The customer's place of prnnary use is with respect to each
telephone (a) the customer's address shown on the telephone service company's
records or (b) the customer's place of residence if the telephone is for personal use
and in both cases must be located within the licensed service area of the home service
provider Roaming charges and cellular telephone charges to customers whose place
of primary use is outside the city of Kent will not be taxable even though those
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cellular services are provided within the city of Kent There is a rebuttable
presumption that the address shown on the cellular telephone service company's
records is the place of primary use and is accurate If the cellular telephone service
company knows or should have known that a customer's place of primary use address
for a telephone is within the city, then the gross income from cellular telephone
service provided to that customer with respect to that telephone is to be included in the
company's gross income
Network telephone service means the providing by any person, firm, or
corporation of access to a local telephone network, local telephone network switching
service, toll service, or coin telephone services, or the providing of 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" includes the provision of transmission to and from the site of an internet
provider via a local telephone network, toll line or channel, cable, microwave or
similar communication or transmission system "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, or the provision of internet service as defined in RCW 82 04 297, including
Telephone business means the business of providing network telephone service
as those terms are defined aheue in this section and --R
includes cooperative or farmer line telephone companies or associations operating an
exchange "Competitive telephone service" shall not be considered "telephone
business " Telephone business shall include one hundred (100) percent of the business
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and total gross income derived tot es in calls originating and/or billed to
subscribers within the city
e e., defined thdin e e finit,ens of K.,ePye«L eephene s e» and ••e ettt,.
tle
Sec. 3.18.020. Certain utilities subject to tax.
In addition to the other business and license fees required by the ordinances of
the city, thele is hereby ley eA the city levies upon all persons, firms, or corporations
(including the city) engaged in certain business activities a utilities tax to be collected
as follows
Upon every person, firm, or corporation engaging in or carrying on any
telephone business within the city, an annual tax equal to 4ffee and one half (11 !,Q) six
of the total gross income , including revenues from
intrastate toll, derived from the operation of such business within the city This six 6
percent tax will be allocated as follows four and seven -tenths (4 7) percent to the
general fund, T-- addition, there shall also he e e sea , ax a three -tenths (0 3) percent
.,,h,,,h revenue a.em said t,.., sh„ 11 he ded-wate,l to youth/ -teen programs, and plus -a
(1 0) percent, wlaieh _ e ffRm- said- t -ax- sh..0 he .ledie,.te,t to street
Upon every person, firm, or corporation engaging in or carrying on a
of selling, wheeling, furnishing, distributing, or producing gaseous gas,
commercial or domestic use or purposes, a fee or
equal to dffee and one half +' 2) six 6 percent of the total gross income from
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such business in the city during the tax year for which the license is required This six
(6) nercent tax will be allocated as follows. four and seven -tenths (4 7) percent to the
general fund, three -tenths (0 3) percent
.,.hien revenue a.em said ..,....hal e aea,, ated to youth/ -teen programs, and plus a
t&i of one (1.0) percent_, whiek f:evef ae &E)--1 said 'E� shall be deEhea4ed to street
improvement programs
3 Upon every person firm, or corporation engaged in or carrying on the
business of selling, wheeling, furnishing, or distributing electricity for light and power,
a fee or tax equal to d flee and ene half (3 '"six6 -percent of the total gross income
from such business in the city during the tax year for which a license is required. This
atwE of -three -tenths (0 3)
youth/ -teen programs, and
(1 0) percent_, whieh revenue a,.,., said tax ..hal b dedieatea to
street improvement programs.
4. Upon every person, firm, or corporation engaging in or carrying on a
,s providing garbagesolid waste collection services, a tax equal to six and one
7 8 percent of the total gross income from such
in the city during the tax year for which the license is required This seven
(0 3) percent_, .. lHeh revemae a.em said ,,... shal, >_.. ava.,....va to youth/ -teen
and pIuA me (1 0) percent_,
street improvement programs
5 Upon every person (including the city) engaging in or carrying on the
s of selling, furnishing, or distributing water, sewer, or drainage services, a tax
to t'h ee and one half+' ', six 6 percent of the total gross income from such
t T.
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business in the city during the tax year This six (6) percent tax will be allocated as
follows four and seven -tenths (4 7) percent to the general fund, ha addition, there
shall also be assessed a4ax afthree-tenths (0 3) percent_,
shall b�d-to youth/ -teen programs, and done (1 0) percent, whisk
revenue ffefn said F..., sha4l be dedieated to street improvement programs.
B. In computing the tax provided in subsection (A) e°this sn, the taxpayer
may deduct from total 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
I the United States
See. 3.18.030. Utility tax, when due. The utility tax imposed by KCC
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 that the
amount of tax for which he it is liable for the preceding monthly period, that the
information therein given and the amount of tax liability therein reported are full and
and that the taxpayer knows the same to be true_,Avh+shThis statement shall be
signed by the taxpayer or its authorized agent Taxpayers expected to owe less than
one thousand dollars ($1,000) 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
accrued Quarterly period for the purpose of this chapter shall mean each three (3)
period of the calendar year, commencing on January 1
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See. 3.18.040. Taxpayer's records. Each taxpayer shall keep records
reflecting the amount of total gross income on its business
servvses-within the city, and such records shall be retained for at least six (wears and
shall be open at all reasonable times to the inspeelen by the finance director or
his or her duly authorized suber-Ehnatesfor verification of said tax
returns and supporting records or for the filing of a tax of a taxpayer who fails to make
such a return
See. 3.18.050. F'e°'-•Me ., e'Ee FetHFHS OF t pay taXeS ia r."Tax
Payment failure — Penalty and collection. If any twkpayefperson firm or
corporation subject to this chapter fails; or neglects or ~�esto payany tax required
by this chapter within thirty (30) days from the date the tax is due to the city, a penalty
often (10) percent of the amount of that tax will be imposed make his return as i.A.4;en
FeElUlred t.e. of ft the finat.,.e di Teeter is au4henzed to dete.mtne the a ,.,t of ta*
penalty and ...te,.es4 Delinquent taxes, including any penalhL(Lsy, are also subject to an
interest charge of one (1) percent per month (t.•'�12°/ percent per annumyear),
ie_ ene (` pereent „ fneff" on any unpaid balance from the date the tax payment
became due, as provided in KCC 3 18 030, until all past due taxes and penalties are
Any unpaid tax, penalty, or interest due under this chapter and unpaid,
Sec. 3.18.060. Overpayment of tax. Any money paid to the city through
, or otherwise not in payment of the tax imposed by this chapter, or in excess of
tax, shall, upon request of the taxpayer, be credited against any tax due or to
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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 Ch 2 32 KCC
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, firm, or
corporation subject to this chapter to fail or refuse to pay the tax when due, or for any
person, firm, or corporation 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 fails or neglects Fef}ises-to make tax returns or
makes a false statement or representation in or in
ection with a utility tax return, or who otherwise violates or refuses to comply
this chapter, is subject to a cumulative penalty in the amount of seve��ty-fii�e-one
($7-519JO per day for each violation in addition to the non-payment
All penalties imposed under this chanter
constitute a debt to the city—The city may. at its discretion, pursuant
be -seek collectioneellested
court proceedings, which remedies shall be in addition to all other remedies
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SECTION 2. — Severabih If any one or more section, subsections,
or sentences of this ordinance are held to be unconstitutional or invalid, such decision
shall not affect the validity of the remaining portion of this ordinance and the same
shall remain in full force and effect
SECTION 3. — Effective Dates This ordinance was enacted by the city
council by its passage on June 3, 2003. The effective date of this ordinance will be
five (5) days after publication, as provided by law, or 12 01 am., June 13, 2003,
whichever is later, PROVIDED, that pursuant to RCW 35 21 865, the utility tax rate
increases affecting private telephone, gas, and electricity businesses and amending
KCC 3 18 020(A)(1), (2) and (3), will not take effect until sixty (60) days after
enactment of this ordinance, or 12 01 a.m , Sunday, August 3, 2003._„
CITY CLERK
AS TO FORM
BRUBAKER, CITY ATTORNEY
t
"S .Wel[7
9 Utility Taxes — Ch. 3.18
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PASSED 3 day of June, 2003.
APPROVED 2 day of June, 2003.
PUBLISHED: I day of June, 2003.
I hereby certify that this is a true copy of Ordinance No ,-t5I5 passed
by the city council of the city of Kent, Washington, and approved by the mayor of the
city of Kent as hereon indicated
P \a,momi...\omnyT.x-a wAd,..t..0 d
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