821 Enact New Ch. 3.42 Utility TaxAGENDA ITEM 8 b.
CITY OF YELM
ORDINANCE NO. 821
AN ORDINANCE of the City of Yelm amending the Yelm Municipal Code, by enacting a new
Chapter, 3.42, Utility Tax to replace utility tax references in YMC 5.04.040, subsection A, that
have been repealed by Ordinance No. 820.
WHEREAS, Ordinance 820 repeals and replaces Sections 5.04 and 5.08 of the Municipal Code
without adding Utility Tax regulations that were contained in those sections;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YELM, WASHINGTON DO
ORDAIN AS FOLLOWS:
Section 1. The following Chapters and Subsections are hereby adopted
3.42.010 Exercise of power of the city to license.
3.42.020 Definitions. Providing definitions contained in this chapter.
3.42.030 Business license required.
3.42.040 Imposed Amount. Relating to the conduct of various businesses and
occupations as related to the levying a tax or license fee upon certain
income derived from the conduct of said businesses.
3.42.050 Deductions. Terms for computing tax levied.
Annexation. Subject to city utility tax notification.
Section 2. ADOPTION BY REFERENCE. Yelm Municipal Code, Chapter 3.42 Utility Tax is
hereby adopted by reference as if set forth in full.
Section 3. SEVERABILITY. If any section, subsection, paragraph, sentence, clause, or phrase of
this ordinance is declared unconstitutional or invalid for any reason, such decision
shall not affect the validity of the remaining parts of this ordinance.
Section 4. EFFECTIVE DATE. This ordinance shall take effect five days after its adoption and
publication.
PASS and APPROVED by the Yelm City Council and approved by the Mayor of the City of
Yelm, W,~hin ton, at a regular meeting thereof this 8th day of December 2004.
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Ada ivas, Mayor
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Authenticated: ~-" , ,_r~~,. ";
Ag P. Bennick, City Clerk
App ved as Form ~
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Brent Dille, City Attorney
EFFECTIVE DATE: December 22, 2004
ADOPTED this 8th day of December 2004.
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YELM MUNICIPAL CODE
Chapter 3.42
UTILITY TAX
Sections:
3.42.010 Exercise of power to license for revenue.
3.42.020 Definitions.
3.42.030 Business license required.
3.42.040 Imposed -Amount.
3.42.050 Deductions.
3.42.060 Annexation -Copies of ordinance provided.
3.42.010 Exercise of power to license for revenue.
The provisions of this chapter shall be deemed an exercise of the power of the city to license
for revenue.
3.42.020 Definitions.
In construing the provisions of this chapter, except when otherwise declared or clearly
apparent from the context, the following definitions apply:
A. "Business" means and includes all activities engaged in with the object of gain, benefit or
advantage to the taxpayer or to another person or class, directly or indirectly.
B. "City" means the City of Yelm.
C. "Competitive Telephone Service" means the provision by any person of telephone
telecommunications equipment or apparatus, such as a repair and maintenance service, if
the equipment or apparatus is of a type that can be provided by persons who are not
subject to regulation as telephone companies under Title 80 RCW, and for which a
separate charge is made.
D. "Director" means the City Clerk-Treasurer of the City or any officer, agent or employee of
the City designated to on the Director's behalf.
E. "Gross income" means the value proceeding or accruing by reason of the transaction of
the business engaged in and without deduction on account of the cost of the property
sold, the cost of materials used, labor costs, interest, discount, delivery cost, taxes or any
other expense whatsoever paid or accrued and without any deduction on account of
losses, except as otherwise provided for in this chapter. Gross income does not include
charges which are passed on to subscribers or customers by a taxpayer pursuant to tariffs
required by regulatory order to compensate for the cost to the taxpayer of the tax imposed
by this chapter.
F. "Network Telephone Service" is the provision by any person of access to a local telephone
network, local telephone network switching service, toll service, cellular phone service, or
coin telephone service, or providing telephonic, video, data, pagers, or similar
communication or transmission for hire via a local telephone network, toll line, channel,
cable, microwave, or similar communication or transmission system. Network telephone
service includes interstate and international service, including toll service originating from,
or received on telecommunications equipment or apparatus in this state if the charge for
this service is billed to a person in this state. Network telephone service does not include
the provision of Competitive Telephone Service, cable television service, or broadcast
services by radio or television stations.
G. "Person", "firm", or "corporation" used interchangeable in this chapter, means any
individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership,
joint venture, club, company, joint stock company, business trust, corporation, association,
society, or any group of individuals acting as a unit, whether mutual, cooperative,
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fraternal, nonprofit or otherwise, and includes the United States, the state of Washington
and any political subdivision thereof, including the city, provided a valid tax may be levied
upon or collected there from under the provisions of this chapter.
H. "Quarterly period" means athree-month period beginning the first day of the following
months: January, April, July and October.
I. "Taxpayer" means and includes any person, firm or corporation liable to the utility tax
imposed by this chapter.
J. "Tax year" or "taxable year" means either the calendar year or the taxpayer's fiscal year
when permission is obtained from the clerk-treasurer to use a fiscal year in lieu of a
calendar year.
K. "Telephone Business" means the business of providing Network Telephone Service as
defined in subsection (F) above. It includes cooperative or farmer line telephone
companies or associations operating an exchange. The term"Telephone Business" shall
include one hundred percent (100%) of the toll service fees from calls originating in and/or
billed to subscribers within the City of Yelm.
L. "Value proceeding or accruing" means the consideration, whether money, credits, rights or
other property expressed in terms of money, actually received or accrued. The terms shall
be applied, in each case, on acash-receipts or accrual basis according to which method
of accounting is regularly employed in keeping the books of the taxpayer.
3.42.030 Business license required.
A. No person shall engage in or carry on any business, occupation, pursuit or
privilege for which a tax is imposed by this chapter without first having obtained, and being
the holder of, a valid and subsisting license so to do, to be known as a "business license"
hereinafter referred to as "license," issued under the provisions of this chapter as
hereinafter provided, and without paying the license fee or tax imposed by this chapter.
B. Application for such licenses shall by made to and issued by the City
Clerk's Office upon prescribed forms and giving such information as is
deemed reasonably necessary to enable administration and enforcement of
this chapter. The fee or tax for a certificate shall be the tax imposed by
Section 3.42.040. Licenses issued pursuant to the provisions of this chapter
shall be personal and nontransferable, and shall by valid as long as the
person, firm or corporation to whom the same is issued continues in
business and complies with the provision of this chapter.
3.42.040 Imposed -Amount
There is levied and there shall be collected from every person, firm or corporation engaged in
the business activities hereinafter set forth, for the act or privilege of engaging in such activities within
the city, a tax to known as a "utility tax" in the amounts to be determined by the application of the rates
herein stated against gross income, as follows:
A. Upon every person, firm or corporation engaged in or carrying on a telephone business, or
a combined telephone and telegraph business, a tax equal to four percent of the total
gross operating income, including income from inter state toll derived from the operation
of such businesses within the city. "Telephone business" does not include the providing of
competitive telephone service, nor the providing of cable television service.
B. Upon every person, firm or corporation providing cable modem services, a tax equal to
four percent of the total gross income derived from such services; provided, however, that
in the event a city franchised cable company pays a franchise fee on income derived from
cable modem services provided within the city, any such payments shall be credited
against the tax imposed hereunder.
C. Upon every person, firm or corporation engaged in or carrying on a telegraph business, a
tax equal to four percent of the total gross income from such business in the city;
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D. Upon every person, firm or corporation engaged in or carrying on a business of sale,
delivery or distribution of electricity and electrical energy, a tax equal to four percent of the
total gross income derived from the sales of such electricity to ultimate users in the city,
provided that there shall not be any such tax levied upon installation charges for electrical
units;
E. Upon every person, firm or corporation engaged in or carrying on the business of sale,
delivery, distribution of furnishing of natural gas for domestic, business or industrial
consumption, a tax equal to four percent of the total gross income derived from such sales
to ultimate users in the city; provided, that there shall no be any such tax levied upon
installation charges for gas energy units;
F. Upon every person, firm or corporation engaged in or carrying on the business o solid
waste collection, hauling and disposal, a tax equal to four percent of the total gross
income from such business in the city;
3.42.050 Deductions
In computing the tax levied under this chapter, there shall be deducted from the gross income
the following items:
A. Income derived from transactions in interstate or foreign commerce or from
any business which the city is prohibited from taxing under the
Constitutions of the United States or the State of Washington.
B. The amount of credit losses and uncollectible actually sustained by taxpayers whose
regular books of account are dept upon an accrual basis.
3.42.060 Annexation -copies of ordinance provided.
Whenever the boundaries of the city are extended by annexation, all persons and businesses
providing services subject to the city's utility tax shall be notified of the annexation and of their utility
tax obligations pursuant to this chapter.
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