HomeMy WebLinkAboutORD 5944CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5944
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER
5-11 OF THE RENTON MUNICIPAL CODE, REORGANIZING, UPDATING
DEFINITIONS, AND ADDING ADMINISTRATIVE PROVISIONS RELATED TO UTILITY
TAX REGULATIONS, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN
EFFECTIVE DATE.
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in
strikethrough and underline edits remain in effect and unchanged.
SECTION II. Chapter 5-11 of the Renton Municipal Code is amended as follows:
CHAPTER 11
UTILITY TAX
SECTION:
5-11-1: Exercise Of Revenue License Power
5-11-2: General Administrative Provisions Apol
5-11-3: Definitions
5-11-4-1: Utility Tax
5-11-5: Cellular Telephone Service Allocation And Administration
5-11-64: Utility Tax Relief
5-11-7-5: Utility Tax Relief; Qualifications
5-11-86: Claim Filing Procedures
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ORDINANCE NO. 5944
5-11-9-7: Consumer Price Index Changes
5-11-109: Rebate For Initial Year
5-11-1 EXERCISE OF REVENUE LICENSE POWER:
The Drovisions of this chanter shall be deemed to be an exercise of the Dower of
the City to license and tax for revenue.
5-11-2 GENERAL ADMINISTRATIVE PROVISIONS APPLY:
The provisions of chapter 5-26 RMC, the Tax Administrative Code, shall be fully
aDDlicable to the Drovisions of this chanter exceat as exaressly stated to the
contrary herein.
5-11-3 DEFINITIONS:
A. CABLE BUSINESS: Every person in the business of constructing, operating
and maintaining a coaxial cable subscriber system for television. radio. and other
audio-visual electrical signal distribution within Renton City limits.
B. CELLULAR TELEPHONE BUSINESS: Every Derson DrovidinR Cellular
Telephone Service.
C. CELLULAR TELEPHONE SERVICE: The Drovidin2 of Mobile
Telecommunications Service or Mobile Wireless Service.
D. COMPETITIVE TELEPHONE SERVICE: The DrovidinR by any Derson of
telecommunications equipment or apparatus, or service related to that
eauiament or aDDaratus such as reaair or maintenance service, if the eauiament
or apparatus is of a type which can be provided by persons that are not subject to
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ORDINANCE NO. 5944
regulation as telephone companies under Title 80 RCW and for which a separate
charge is made.
E. GAS BUSINESS: Every person selling, furnishing, distributing, or producing
seous gas for commercial or domestic use or Duraose within Renton Citv limits.
F. GROSS INCOME: The value proceeding or accruing by reason of the
transaction of the business engaged in and includes gross Droceeds of sal
compensation for the rendition of services, gains realized from trading in stocks,
bonds, or other evidences of indebtedness, interest, discount, rents, royalties,
fees, commissions, dividends, and other emoluments however designated, all
without anv deduction on account of the cost of tangible Drooerty sold. the cost
of materials used, labor costs, interest, discount, delivery costs, taxes, or any other
exDense whatsoever Daid or accrued and without anv deduction on account of
losses.
G. LIGHT OR POWER BUSINESS: Every Derson in the business of selli
furnishing, or distributing electricity for light and power within Renton City limits.
H. MOBILE TELECOMMUNICATIONS SERVICE: Commercial mobile radio
service, as defined in section 20.3, Title 47 C.F.R. as in effect on June 1, 1999.
I. MOBILE WIRELESS SERVICE: A telecommunications service that is
transmitted, conveyed, or routed regardless of the technology used, whereby the
origination and/or termination Doints of the transmission. convevance. or routi
are not fixed, including, by way of example only, telecommunications services that
are provided by a commercial mobile radio service provider.
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ORDINANCE NO. 5944
J. NETWORK TELEPHONE SERVICE: The providing by any person of access to
a local telephone network, local telephone network switchine service, toll servi
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 the provision of transmission to and from
the site of an internet provider via a 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 Drovidine of cable television service, or the Drovidine of broadcast
services by radio or television stations, nor the provision of internet access as
defined in RCW 82.04.297. includine the reception of dial -in connection. Drovided
at the site of the internet service provider.
K. SEWERAGE BUSINESS: Every person engaging in or carrying on the business
of selling, furnishing, or distributing sanitary sewer services for commercial or
domestic use or Durpose within Renton Citv limits.
L. SOLID WASTE BUSINESS: Every person who, within Renton City limits,
receives solid waste or recvclable materials for transfer. storaee. or disposal
including but not limited to all collection services, public or private solid waste
disposal sites. transfer stations. and similar operations. "Solid waste" means all
putrescible and nonputrescible solid and semisolid wastes including, but not
limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge,
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ORDINANCE NO. 5944
demolition and construction waste, abandoned vehicles or parts thereof, and
lable materials. "Recyclable materials" means those solid wastes that are
separated for recycling or reuse, such as papers, metals, and glass.
M. STORM AND SURFACE WATER BUSINESS: Every Gerson enRaRiniz in or
carrying on the business of selling, furnishing, or distributing storm and surface
water drainage services for commercial or domestic use or purpose within Renton
City limits.
N. TELECOMMUNICATIONS SERVICES: The electronic transmission
conveyance, or routing of voice, data, audio, video, or any other information or
signals to a point. or between or among points. "Telecommunications service"
includes such transmission, conveyance, or routing in which computer processing
applications are used to act on the form. code. or Drotocol of the content for
purposes of transmission, conveyance, or routing without regard to whether such
service is referred to as voice over internet Drotocol services or is classified by the
federal communications commission as enhanced or value added.
"Telecommunications service" does not include those activities express
excluded from the definition in RCW 82.04.065(27).
O. TELEPHONE BUSINESS: Every Derson DrovidinE of network telephone
service, telecommunications services, cooperative or farmer line telephone
companies or associations oDeratinL- an exchanL-e within Renton Citv limits.
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ORDINANCE NO. 5944
P. WATER DISTRIBUTION BUSINESS: Every person engaged in the business of
selling, furnishing, or distributiniz water services for commercial or domestic use
or purpose within Renton City limits.
5-11-4-1 UTILITY TAX:
In addition to the license fees provided elsewhere in this Title, there is hereby
levied upon and shall be collected from the business enterprises engaged in
certain business activities and occupations described in this Section, taxes in the
amounts to be determined by the application of the rates herein stated against
gross income.in eernputing said tax the business enteFpr+se may deduct On
sustained bythe usineess enteFp ise, and ameunts deFived fr''eFn tFansactiensin
computed as felle using the following rates:
A. The Telephone Utility Business tax rate:
within the City limits shall be six percent (6%).
B. The Cellular Telephone Business tax rate shall be six percent (6%).
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ORDINANCE NO. 5944
I,•
telece eatie„s equipment eFappaicatus, er seFvice rested tethat
telepheReRetwerk, fecal telephepeF}etyVer SWitG l Rg sei*Ce, tell ser Cze,
t'eTe'p hTeTR i G, v i d e e, data e rsimilar R i e a t i e T e rt'fr"G^PR-S M i -l; JNTTOTTfre, via a
ORDINANCE NO. 5944
does net ORG16ide the PFGVidiRg of cempetitive telephene service, the
custerner supplies to the ta)(payeF is cuFFent and accuFate, unless the ta)(payeF has
shall be assigRed eeRsisteRt With the taxpayer's acceuRtiRg system to the
ORDINANCE NO. 5944
the pare te.p the ali-spute shall be r nlyed -by the Qty aRP-1 rhn n+hnr Gi+"
liability with respect te additieRal taxes, penalties, ar iRterest e_.P the disputed
hefere the effectoye date of the change and except fer a change On the tax Fate
en a telex Faph business, a tax equal te six rt /GO/\ of the tetal g
ORDINANCE NO. 5944
C. The Gas Business U#4y Tax: "^^^ every 165iRess ^^*^r^ris^ ^in
gas for tst+suse er purpose,a tax equal +^ tax rate shall be six
percent (6%) of the—teetalgress income fr^w, s eh n the City sha he
D. The Light or Power Business €Tectrie Utility Tax: WpeR every hUsiRess
entefpfi s e engaging in e F earryi ng en the ef selling, furn i s#ig—er
disticibuting electFieffity feF light and peweF, a ta)equawe tax rate shall be six
percent (6%) of the total gressnEeme fr^w, such business it the City shall be
E. The Cable Business' Utility Tax: U pen eveFy businessente. ^
c-a be subscriber systern-der—televismen,radie and ether awe visual electFi cal
is tax rate shall be six percent (6%) of the tetal gF9SS Weeme freim h„�,n^«
f... f� }1:Tl7:■:1�ilT
{'�71�5��:Ci■S'1.7IIT7:*!TTl:�iT.7�.�RiP.TTS�1:�J�1�Ts7�.T1�Ei9:T�ifr�:�L�J
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ORDINANCE NO. 5944
FG. The Sewerage Business Utilities Tax: "p^^ any business enterprise
engaging in er carrying Ae n *tee-btl siRessselling, rf U F R i S h i Rg, OF GIOS4419161ti R g
Renten City tax equal te tax rate shall be six percent (6%) of the tetal gress
GK The Solid Waste Business Utility, Handling Upen the solid waste
of General OFelinances ef the City, a tax equal to tax rate shall be six and eight -
tenths percent (6.8%) of the -eperating-rate revenue-efthe solid waste utility and
uehe.r this Seet.e.p. Sh ll be payable-te the City. Pursuant to RCW 35.58.080,
nothing in this Section is intended nor shall it be construed to impose any tax or
excise on any County -owned solid waste facility.
H1. The Cable Business Medem Utility Ta)("^^R cable meden; serviEe-and
equate tax rate shall be six percent (6%) of the tetal gFess ineerne frem such
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ORDINANCE NO. 5944
Id. The Water Distribution Business 1--tilitiesTax: UpeR the Water Ut+lit�
Rear City a tax equal to tax rate shall be six and eight -tenths percent
(6.8%) of the tetaI gFOSS e frAem. business it the City shall be charged
X. The Storm and Surface Water Business Ut+lit-iesTax: l pee any business
eer+se e �-g-�-��Tearr9Tren the business selling, fa^r•shrti^r^
vT
use eF lawpesewithin the Renton City tax equal te tax rate shall be six and
eight -tenths percent (6.8%) of the tetal gress ineeme frl,m s ch business in +h
1sr..-:it-- �: ..�s�:esrssr.T=
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ORDINANCE NO. 5944
M:M:r_v:nr.
enterprise or authoFized agent, and the SigRing ef sarne shall be deemed and
law, pay a penalty ef five peFeent 0
ef delinquency and an additional penalty ef five peFeent (5,14) feF each succeeding
(250%) of the ameunt ef such taxes due in any eveiq-t.
bear *nteFest at the rate ef twelve percent (12%) peF annum until paid.
^v�S�TrC�ri r^�Sii Icm—rfreta R t h e value—p r e c e edoRg eF a G G F 6H R g f F E) rrrt h e Sa�I P- A- f
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ORDINANCE NO. 5944
i r�ter# A;—dTsssd, taxe=sy eFeR se-,;Tseeue� , aR Woth ae a„y
5-11-5 CELLULAR TELEPHONE SERVICE ALLOCATION AND ADMINISTRATION:
A. Allocation of Income. Cellular Teleahone Service:
1. Service Address: Payments by a customer for the telephone service
from teleahones without a fixed location shall be allocated amone taxi
jurisdictions to the location of the customer's principal service address during the
riod for which the tax aaDlies.
2. Presumption: There is a presumption that the service address a
customer suaDlies to the taxDaver is current and accurate, unless the taxaaver has
actual knowledge to the contrary.
3. Roamine Phones: When the service is Drovided while a subscriber is
roaming outside the subscriber's normal cellular network area, the gross income
shall be assiened consistent with the taxDaver's accountine system to the location
of the originating cell site of the call, or to the location of the main cellular
switchine office that switched the call.
4. Dispute Resolution: If there is a dispute between or among the City and
another citv or cities as to the service address of a customer who is receivi
cellular telephone services and the dispute is not resolved by negotiation among
the Darties. then the dispute shall be resolved by the Citv and the other citv or
cities by substituting the issue for settlement to the Association of Washington
Cities (AWC). Once taxes on the disauted revenues have been Daid to one of the
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ORDINANCE NO. 5944
contesting cities, the cellular telephone service company shall have no further
liabilitv with respect to additional taxes, penalties, or interest on the disputed
revenues so long as it promptly changes its billing records for future revenues to
comport with the settlement facilitated by AWC.
B. Authority of Administrator: The Administrative Services Administrator is
authorized to represent the Citv in negotiations with other cities for the proper
allocation of taxes due under Subsection 5-11-5.A.1.
C. Rate Chance: No chance in the rate of tax upon persons enaaRina in
providing cellular telephone service shall apply to business activities occurring
before the effective date of the change and. except for a chance in the tax rate
authorized by RCW 35.21.870, no change in the rate of the tax may take effect
sooner than sixtv (60) days following the enactment of the ordinance establishi
the change. The Administrative Services Administrator shall send to each cellular
telephone service companv. at the address on its license, a copv of anv ordinance
changing the rate of tax upon cellular telephone service promptly upon its
In computing said tax the business enterprise may deduct in computing
ross income the actual amount of credit losses and uncollectibles sustained
the business enterprise, and amounts derived from transactions in interstate and
foreiL-n commerce which the City is Drohibited from taxing under the laws and
Constitution of the United States.
5-11-64 UTILITY TAX RELIEF:
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ORDINANCE NO. 5944
There is granted to persons who meet the qualifications and requirements of RMC
5-11-7-5 relief from the utility tax of the City as follows:
A. For all billings paid directly or indirectly by the person during a calendar
year for service charges to any organization which paid the utility tax of the City,
the City is authorized to pay to such person a "reimbursement" in a maximum
amount determined in accordance with RMC 5-11-97; provided, that the total
amount of all reimbursements paid pursuant to this subsection shall not exceed
the total dollar amount established through the budget process.
B. The amount of maximum relief for a calendar year is $110.00 and shall be
adjusted for each subsequent year in accordance with RMC 5-11-9-7, prorated for
each month of residency in the City.
5-11-7-5 UTILITY TAX RELIEF; QUALIFICATIONS:
To qualify for the relief set forth in RMC 5-11-64.A, a person must be requesting
reimbursement of City utility taxes and must meet the criteria in RMC 8-4-31.C,
and have been a resident of the dwelling unit within the City at all times during
any period for which a reimbursement is requested, and have contributed to the
payment of City utility charges from his or her income or resources.
5-11-86 CLAIM FILING PROCEDURES:
A. All claims for relief under RMC 5-11-64 must be filed with the City or its
agent no later than the date established by the Administrative Services
Administrator (AdrninistFate4 for the calendar year for which a "reimbursement"
is requested.
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ORDINANCE NO. 5944
B. The Administrator shall adopt rules and procedures for the filing of
reimbursement claims and for the administration of RMC 5-11-64.
5-11-9-7 CONSUMER PRICE INDEX CHANGES:
The amount of relief established under RMC 5-11-64.6 shall be administratively
adjusted on January 1st of each year by the Administrative Services Administrator
to reflect changes in the cost of living, as defined by the United States Bureau of
Labor a4+4-Statistics. The amount of maximum relief shall be communicated by the
City to potentially eligible citizens.
5-11-109 REBATE FOR INITIAL YEAR:
The rebate amount for the initial year shall provide for a full rebate for the
calendar year.
SECTION Ill. If any section, subsection, sentence, clause, phrase or work of this
ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction,
such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other
section, subsection, sentence, clause, phrase or word of this ordinance.
SECTION IV. This ordinance shall be in full force and effect thirty (30) days after
publication of a summary of this ordinance in the City's official newspaper. The summary shall
consist of this ordinance's title.
PASSED BY THE CITY COUNCIL this 18th day of November, 2019.
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ORDINANCE NO. 5944
APPROVED BY THE MAYOR this 18th day of November, 2019.
Approved as to form:
Shane Moloney, City Attorney
Date of Publication: 11/22/2019 (Summary)
ORD:2078:10/18/19
ALL
Denis Law, Mayor
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