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HomeMy WebLinkAbout01.Chapter 5-11 RMCEXHIBIT C-1 706 City of Renton 5-11-1 5-11-1 CHAPTER 11 UTILITY TAX SECTION: 5-11-1: Utility Tax 5-11-2: Utility Tax; When Due 5-11-3: Definition Of Gross Income 5-11-4: Utility Tax Relief 5-11-5: Utility Tax Relief; Qualifications 5-11-6: Claim Filing Procedures 5-11-7: Consumer Price Index Changes 5-11-8: Rebate For Initial Year 5-11-1: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 enter- prises 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 com- puting said tax the business enterprise may deduct in computing gross income the actual amount of credit losses and uncollectibles sus- tained by the business enterprise, and amounts derived from transactions in interstate and foreign commerce which the City is prohibited from taxing under the laws and Constitution of the United States. The amount of tax shall be computed as fol- lows: (Ord. 3773, 12-19-83, eff. 1-1-84) A. Telephone Utility Tax: 1. Effective Date: The utility tax for the privilege of conducting a telephone business within the City limits shall be six percent 6%) effective as of February 16, 1991. 2. Definitions: For the purpose of this Sec- tion the following terms shall be defined as follows: CELLULAR TELEPHONE SERVICE: Cellu- lar telephone service is a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission WUTC). This includes cellular mobile ser- vice. The definition of “cellular mobile ser- vice” includes other wireless radio communications services such as specialized mobile radio (SMR), personal communica- tions services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cel- lular mobile service. COMPETITIVE TELEPHONE SERVICE: The providing by any person of telecommuni- cations 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 sub- ject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. Transmission of communica- tion through cellular telephones is classified as “telephone business” rather than “competi- tive telephone service”. TELEPHONE BUSINESS: The providing by any person of access to the local telephone network, local telephone network switching service, toll service, cellular telephone ser- vice, or coin telephone services, or the provid- ing 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. It further indicates cooperative or farmer line telephone compa- nies or associations operating an exchange. Network telephone service” includes inter- state service, including toll service, originat- ing 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 tele- phone service, the providing of cable televi- sion service, nor the providing of broadcast services by radio or television stations. 3. Deduction from Gross Income: (Rescinded by Ord. 4825, 12-20-99) 4. Allocation of Income, Cellular Telephone Service: 5-11-1 5-11-1 706 City of Renton a. Service Address: Payments by a cus- tomer for the telephone service from tele- phones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies. b. Presumption: There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary. c. Roaming Phones: When the service is provided while a subscriber is roaming out- side the subscriber’s normal cellular network area, the gross income shall be assigned con- sistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call. d. Dispute Resolution: If there is a dis- pute between or among the City and another city or cities as to the service address of a cus- tomer who is receiving cellular telephone ser- vices and the dispute is not resolved by negotiation among the parties, then the dis- pute shall be resolved by the City and the other city or cities by substituting the issue for settlement to the Association of Washing- ton Cities (AWC). Once taxes on the disputed revenues have been paid to one of the con- testing cities, the cellular telephone service company shall have no further liability 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 settle- ment facilitated by AWC. 5. Authority of Administrator: The Finance and Information Services Director is autho- rized to represent the City in negotiations with other cities for the proper allocation of taxes due under subsection A4a herein. 6. Rate Change: No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than sixty (60) days following the enactment of the ordinance establishing the change. The Finance and Information Ser- vices Director shall send to each cellular tele- phone service company, at the address on its license, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment. (Ord. 4503, 4- 3-95) B. Telegraph Utility Tax: Upon every business enterprise engaging in carrying on a tele- graph business, a tax equal to six percent 6%) of the total gross income from such busi- ness in the City shall be charged effective as of January 1, 1991. (Ord. 4303, 12-17-90) C. Gas Utility Tax: Upon every business enter- prise engaging in or carrying on the business of selling, furnishing, distributing or produc- ing gaseous gas for commercial or domestic use or purpose, a tax equal to six percent (6%) of the total gross income from such business in the City shall be charged effective as of February 16, 1991. D. Electric Utility Tax: Upon every business enterprise engaging in or carrying on the business of selling, furnishing or distributing electricity for light and power, a tax equal to six percent (6%) of the total gross income from such business in the City shall be charged effective as of February 16, 1991. Ord. 4309, 4-1-91) E. Cable Utility Tax: Upon every business enterprise engaging in or carrying on the business of constructing, operating and main- taining a coaxial cable subscriber system for television, radio and other audio-visual elec- trical signal distribution throughout the City of Renton or any part thereof, a tax equal to six percent (6%) of the total gross income from such business in the City shall be charged effective as of January 1, 1991. (Ord. 4303, 12-17-90) F. Ambulance Services Tax: Upon any business enterprise, licensed by the State to provide and engage in emergency medical care and transportation services, pursuant to chapter 208, Session Laws of 1973, First Ex. Session, and as same may be amended from time to time, a tax in the sum of four hundred dollars 400.00) per year which shall apply to all of said State licensees doing business in, from or about the City. Such tax shall be paid on or 508 City of Renton 5-11-1 5-11-3 before the first day of January of each year, and made payable to the Finance and Infor- mation Services Administrator, City of Renton. Said tax is imposed pursuant to RCW 35.21.768 and the laws and statutes of the State relating to noncharter code cities operating under the Optional Municipal Code. (Ord. 3773, 12-19-83, eff. 1-1-84) G. Water and Sewer Utilities Tax: Upon any business enterprise engaging in or carrying on the business of selling, furnishing, or dis- tributing water, sanitary sewer, or storm sewer services for commercial or domestic use or purpose within the Renton City limits, a tax equal to six percent (6%) of the total gross income from such business in the City shall be charged effective as of January 1, 1991. (Ord. 4303, 12-17-90) H. Solid Waste Utility, Handling Tax: Upon the solid waste utility and upon every business enterprise or other entity engaged in solid waste handling as defined in Section 8-1-2 of Chapter 8 (Health and Sanitation) of the Code of General Ordinances of the City, a tax equal to six percent (6%) of the operating rate revenue of the solid waste utility and six per- cent (6%) of the total gross income for all other business enterprises in the City cov- ered under this Section shall be charged. The tax on the solid waste utility shall be effective as of December 1, 1993, and the tax on all other business enterprises covered under this Section shall be effective on August 8, 1994. The taxes under this Section shall be payable to the Finance Department of the City. Pur- suant to RCW 35.58.080, nothing in this Sec- tion is intended nor shall it be construed to impose any tax or excise on any County- owned solid waste facility. (Ord. 4457, 6-27- 94) I. Cable Modem Utility Tax: Upon cable modem service and upon every business or entity engaged in providing cable modem service, a tax equal to six percent (6%) of the total gross income from such business in the City shall be charged. (Ord. 4972, 6-17-02) 5-11-2:UTILITY TAX; WHEN DUE: The utility tax imposed by this Chapter shall be due and payable to the Finance and Infor- mation Services Administrator in monthly install- ments and remittance thereof shall be made to the Finance and Information Services Administrator on or before the last day of the next month suc- ceeding the end of the monthly period in which the tax accrued. The business enterprise on or before said last day of said month shall also transmit to the Finance and Information Services Administra- tor a return upon a form to be prescribed and pro- vided by the Finance and Information Services Administrator; which return shall contain a state- ment by the business enterprise stating the amount of the tax for which he is liable for the pre- ceding monthly 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 business enterprise or authorized agent, and the signing of same shall be deemed and constitute the same as a statement under the penalties of perjury equivalent to and as if sworn to under oath. A. Penalties for Nonpayment: A business enter- prise who fails to remit the amount of utility tax when due shall, in addition to all other penalties provided by law, pay a penalty of five percent (5%) of the amount of tax due for the first month of delinquency and an addi- tional penalty of five percent (5%) for each succeeding month of delinquency, but not exceeding a total penalty of twenty five per- cent (25%) of the amount of such taxes due in any event. B. Interest: In addition to such penalties, any late payment of utility tax shall bear interest at the rate of twelve percent (12%) per annum until paid. (Ord. 3773, 12-19-83, eff. 1-1-84; Ord. 5367, 4-7-08) 5-11-3:DEFINITION OF GROSS INCOME: Gross income” shall mean the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages or other evidence of indebtedness, or stocks and the like) and without any deduction on account of the cost of the property sold, cost of materials used, labor costs, interest or discount paid, taxes, or any 5-11-3 5-11-8 508 City of Renton expenses whatsoever, and without any deduction on account of losses. This definition shall apply as of March 1, 2000. (Ord. 4825, 12-20-99; amd. Ord. 4873, 11-20-00) 5-11-4:UTILITY TAX RELIEF: There is granted to persons who meet the qualifications and requirements of RMC 5-11-5 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 5-11-7; provided, that the total amount of all reimbursements paid pursuant to this subsection shall not exceed the total dollar amount established through the bud- get 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- 11-7, prorated for each month of residency in the City. (Ord. 5212, 6-19-06) 5-11-5:UTILITY TAX RELIEF; QUALIFICATIONS: To qualify for the relief set forth in RMC 5-11-4.A, a person must be requesting reimburse- ment of City utility taxes and must meet the crite- ria in RMC 8-4-31.C, and have been a resident of the dwelling unit within the City at all times dur- ing 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. (Ord. 5212, 6-19-06) 5-11-6:CLAIM FILING PROCEDURES: A. All claims for relief under RMC 5-11-4 must be filed with the City or its agent no later than the date established by the Finance and Information Services Administrator (Admin- istrator) for the calendar year for which a reimbursement” is requested. B. The Administrator shall adopt rules and pro- cedures for the filing of reimbursement claims and for the administration of RMC 5- 11-4. (Ord. 5212, 6-19-06) 5-11-7:CONSUMER PRICE INDEX CHANGES: The amount of relief established under RMC 5-11-4.B shall be administratively adjusted on January 1st of each year by the Finance and Information Services Administrator to reflect changes in the cost of living, as defined by the Bureau of Labor and Statistics. The amount of maximum relief shall be communicated by the City to potentially eligible citizens. (Ord. 5212, 6- 19-06) 5-11-8:REBATE FOR INITIAL YEAR: The rebate amount for the initial year shall provide for a full rebate for the calendar year. Ord. 5212, 6-19-06)