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Home My WebLink AboutORD 4503 Amends ORD 4377 Amended by ORD 4825 CITY OF RENTON, WASHINGTON SUMMARY OF ORDINANCE NO. 4503 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING �. SUBSECTION 5-11-1.A 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 CELLULAR TELEPHONE SERVICE TAX. The following is a summary of this ordinance. SECTION I. This ordinance establishes definitions related to cellular telephone service, establishes a cellular telephone � service tax and deductions from gross income for purposes of calculating that tax. The ordinance also allocates income for cellular telephone service for the purpose of taxation, establishes a dispute resolution mechanism and establishes when and how the � cellular telephone service tax rate may change. A full text of this ordinance will be �mailed, without charge, upon request to the City Clerk. Date of publieation: April 7 , 1995 ORD. 437 : 3/8/95 :as . Amends ORD 4377 Amendei��by ORD 4825 CITY OF RENTON, WASHINGTON ORDINANCE NO. 4503 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTION 5-11-1.A 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 CELLULAR TELEPHONE SERVICE TAX. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. Section 5-11-1 .A 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 to read as follows : , 5-11-1.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 � �ercent (6�) effective as of February 6, 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 sub 'ect � to regulation by the Washington Utilities and Transportation Commission (WUTC) . This includes cellular mobile service. The definition of cellular mobile service includes other wirel.ess radio communications services such as specialized mobile rae�io ( SMR) , personal communications services (PCS) , and any other ORDINANCE NO. 4503 evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service. COMPETITIVE TELEPHONE SERVICE: The providing by any person of telecommunications equipment or apparatus, or service I 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 - servic��, 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. "Netwark telephone service" does not include the providing of competitive telephone service, the providing of cable television 2 ORDINANCE NO. 4503 service, nor the providing of broadcast services by radio or II television stations . 3 . A deduction from gross income shall be allowed, only to cellular telephone service companies which keep their regular books of account on an accrual basis, for [cash discounts and] credit losses actually sustained by a taxpayer as a result of cellular telephone service business which shall be phased in as follows : twenty percent (20�) of the credit losses occurring in 1995; forty percent [40� ] of the credit losses occurring in 1996; sixty percent ( 60�) of the credit losses occurring in 1997; eighty � percent ( 80� ) of the credit losses occurring in 1998; and a complete � deduction for the credit. losses occurring in 1999 and thereafter. 4 . Allocation of Income - Cellular Telephone Service. a. Service address : Payments by a customer. for the • � telephorie 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 3 ORDINANCE NO. 4503 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 ce.11ular t_elephone service company shall have no further liability . with respect to additional taxes, penalties, or interest on the .__-d�s�uted revenues so. long as. it promptly changes its billing records ;f_or . _f�ture� ..r.e�er�u�s. � to r comport with the sett�lement facilitated by , Ia;�C, . 5 . Authority of Administrator. The Finance and Information Services Director is authorized to represent the city in negotiations with other cities for the proper allocation of taxes due under section 3 .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 60 days following the enactment of the ordinance establishing the change. The Finance & Information Services Director shall send 4 ORDINANCE NO. 4503 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. SECTION II. This ordinance shall be effective upon its passage, approval, and thirty days after publication. PASSED BY THE CITY COUNCIL this 3rd day of April , 1994 . Marilyn tersen, City Clerk APPROVED BY THE MAYOR this 3rd day of April , 1994 . Ear lymer, Mayor t k�prcvzd as to �orm: Lawrence J. War n, City Attorney Date of Publication: April 7 , 1995 ORD.418 : 1/9/94 . 5