HomeMy WebLinkAboutORD 5681CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5681
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION
5-11-1, OF CHAPTER 11, UTILITY TAX, OF TITLE V (FINANCE AND BUSINESS
REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL
ORDINANCES OF THE CITY OF RENTON, WASHINGTON", RELATING TO UTILITY
TAX RATES IMPOSED ON WATER, SURFACE WATER AND SOLID WASTE UTILITY
ENTERPRISES.
WHEREAS, state law allows the City to raise taxes on City operated utilities to carry out
City businesses; and
WHEREAS, the City Council, after hearing and duly considering all relevant evidence and
testimony presented, determined that, in order to discharge the expected expenses and
obligations of the City and to preserve services and assets, a limited adjustment to certain
utility businesses would be warranted;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
SECTION I. Section 5-11-1, Utility Tax, of Chapter 11, Utility Tax, of Title V (Finance
and Business Regulations) of Ordinance No. 4260 entitled "Code of General Ordinances of the
City of Renton, Washington", is hereby amended as follows:
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 enterprises engaged in
certain business activities and occupations described in this Section, taxes in the
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ORDINANCE NO. 5681
amounts to be determined by the application of the rates herein stated against
gross income. In computing said tax the business enterprise may deduct in
computing gross income the actual amount of credit losses and uncollectibles
sustained 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 follows:
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%) offoctivo as of
February 16,1991.
2. Definitions: For the purpose of this Section the following terms shall
be defined as follows:
CELLULAR TELEPHONE SERVICE: Cellular 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 service. The definition of "cellular mobile
service" includes other wireless radio communications services such as
specialized mobile radio (SMR), personal communications services (PCS), and any
other evolving wireless radio communications technology which accomplishes a
purpose similar to cellular mobile service.
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ORDINANCE NO. 5681
COMPETITIVE TELEPHONE SERVICE: 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 Title 80 RCW and for which a
separate charge is made. Transmission of communication through cellular
telephones is classified as "telephone business" rather than "competitive
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 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. It further indicates cooperative or
farmer line telephone companies or associations operating an exchange.
"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, nor the providing of broadcast
services by radio or television stations.
3. Deduction from Gross Income: (Rescinded by Ord. 4825,12-20-99)
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ORDINANCE NO. 5681
4. Allocation of Income, Cellular Telephone Service:
a. Service Address: Payments by a customer for the telephone
service from telephones 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 outside the subscriber's normal cellular network area, the gross
income shall be assigned consistent 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 dispute between or among the
City and another city or cities as to the service address of a customer who is
receiving cellular telephone services and the dispute is not resolved by
negotiation among the parties, then the dispute shall be resolved by the City and
the other city or cities by substituting the issue for settlement to the Association
of Washington Cities (AWC). Once taxes on the disputed revenues have been
paid to one of the contesting cities, the cellular telephone service company shall
have no further liability with respect to additional taxes, penalties, or interest on
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the disputed revenues so long as it promptly changes its billing records for future
revenues to comport with the settlement facilitated by AWC.
5. Authority of Administrator: The Administrative Services Director
Administrator is authorized to represent the City in negotiations with other cities
for the proper allocation of taxes due under subsection A4a heroin 5-ll-lA.4.a.
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 Administrative Services Diroctor Administrator shall
send to each cellular telephone 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.
B. Telegraph Utility Tax: Upon every business enterprise engaging in
carrying on a telegraph business, a tax equal to six percent (6%) of the total gross
income from such business in the City shall be charged effoctivo as of January 1,
C. Gas Utility Tax: Upon every business enterprise engaging in or carrying
on the business of selling, furnishing, distributing or producing gaseous gas for
commercial or domestic use or purpose, a tax equal to six percent (6%) of the
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total gross income from such business in the City shall be charged offoctivo 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 offoctivo as of February 16,1991.
E. Cable Utility Tax: Upon every business enterprise engaging in or carrying
on the business of constructing, operating and maintaining a coaxial cable
subscriber system for television, radio and other audio-visual electrical 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 offoctivo as of January 1,1991.
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 RCW
35.21.766, 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
before the first day of January of each year, and made payable to the
Administrative Sorvicos 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.
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G. Sewer Utilities Tax: Upon any business enterprise engaging in or carrying
on the business of selling, furnishing, or distributing sanitary sewer or storm
sowor 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 offoctivo as of January 1, 1991.
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 Chaptor Title 8 (Health and Sanitation) of the Code of
General Ordinances of the City, a tax equal to six and eight-tenths percent (6.8%)
of the operating rate revenue of the solid waste utility and six and eight-tenths
percent (6.8%) of the total gross income for all other business enterprises in the
City covered under this Section shall be charged. Tho tax on tho solid waste
utility shall bo offoctivo as of December 1,1993, and tho tax on all other business
ontorprisos covered under this Section shall be offoctivo on August 8, 1994. The
taxes under this Section shall be payable to tho Finance Department of 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.
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.
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J. Water Utilities Tax: Upon the Water Utility Enterprise Fund engaging in or
carrying on the business of selling, furnishing, or distributing water services for
commercial or domestic use or purpose within the Renton City limits, a tax equal
to seven eight and ono half three-tenths percent (7T5-8.3%) of the total gross
income from such business in the City shall be charged.
K. Storm and Surface Water Utilities Tax: Upon any business enterprise
engaging 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 the Renton City limits, a tax equal to six and eight-tenths percent
(6.8%) of the total gross income from such business in the City shall be charged.
SECTION II. All ordinances or parts of ordinances of the City of Renton in conflict
herewith, and the same, are hereby repealed.
SECTION III. If any section, sentence, clause or phase 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 section, sentence,
clause, or phrase of this ordinance.
SECTION IV. This ordinance, or a summary thereof consisting of the title, shall be
published in the official newspaper of the City and shall take effect January 1, 2013.
PASSED BY THE CITY COUNCIL this 3rd day of December , 2012.
Bonnie I. Walton, City Clerk
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ORDINANCE NO. 5681
APPROVED BY THE MAYOR this 3rd day of December _, 2012.
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication: 12/7/2012 (Summary)
ORD:1782:ll/8/12:scr
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