ORD 06-539ORDINANCE NO. & -531
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, EXTENDING AND
INCREASING THE UTILITY TAX RATE TO 7.75% FROM
6% FOR PROVIDING ENHANCED POLICE AND
COMMUNITY SERVICES. (AMENDING ORDINANCE
NOS. 95-257,96-262,96-276, AND 02 -431).
WHEREAS, RCW 35.21.870 permits cities to levy a tax on the privilege of conducting utility
businesses such as electrical energy, natural gas, or telephone business; and
WHEREAS, the City's current levy of 6% utility taxes are necessary for the construction of
the community center, for the overlay program, for the ongoing maintenance of the community
center, Knutzen Family Theatre, Celebration Park, continuation of existing city services; and
WHEREAS, at the November 7, 2006 election, the voters of the City of Federal Way
authorized the City to levy a 1.75% utility tax upon the privilege of conducting an electrical energy,
natural gas, storm drainage, garbage, cable television, cellular and other telephone and wireless
communication services businesses for the purpose of financing enhanced police and community
safety.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Utility Tax. Chapter 14, Article V, Section 14 -173 of the Federal Way City Code
is hereby amended to read as follows:
ORD # 06 -531? , PAGE 1
14 -173 Occupations subject to tax — Amount.
There are levied upon, and shall be collected from everyone, including the city, on account of
certain business activities engaged in or carried on in the city, occupation taxes in the amounts to be
determined by the application of rates given against gross income as follows:
(1) Upon everyone engaged in and carrying on a telegraph business, a tax equal to 6.47.75
percent of the total gross income from such business in the city during the period for which the tax -is
due;
(2) Upon everyone engaged in or carrying on a competitive telecommunication service or
network telecommunication service, a tax equal to €7.75 percent of the total gross income from
such business in the city during the period for which the tax is due. In determining gross income
from such business, including intrastate toll service, the taxpayer shall include 100 percent of the
gross income received from such business in the city;
(3) Upon everyone engaged in or carrying on the business of cellular telephone service, a tax
equal to 6-0-7.75 percent of the total gross income from such business in the city during the period
for which the tax is due;
(4) Upon everyone engaged in or carrying on the business of selling, brokering or furnishing
natural gas for domestic, business or industrial consumption, a tax equal to 642.75 percent of the
total gross income from such business in the city during the period for which the tax is due;
(5) Upon the city in respect to the conduct, maintenance, and operation of its municipal storm
drainage system as a public utility a tax equal to 64.7.75 percent of the total gross income from such
business in the city during the period for which the tax is due;
ORD # Z -53 —,PAGE 2
(6) Upon everyone engaged in or carrying on the business of selling or furnishing electric
energy, a tax equal to 647.75 percent of the total gross income from such business in the city during
the period for which the tax is due;
(7) Upon everyone engaged in the business of collecting solid waste, a tax equal to 6.47.75
percent of the total gross income from the city during the period for which the tax is due, less income
derived from collection and sales of materials not defined herein as solid waste; and
(8) Upon everyone engaged in or carrying on the business of cable communications, a fee or
tax equal to €- 9-7.75 percent of the total gross income from gross subscriber revenues in the city
during the period for which the fee or tax is due. For purposes of this chapter, "gross subscriber
revenues" means and includes those revenues derived from the supplying of subscription services,
that is, installation fees, disconnect and reconnect fees, fees for regular cable benefits including the
transmission of broadcast signals and access and origination channels and per - program or per-
channel charges; it does not include leased channel revenue, advertising revenue, or any other
income derived from the system. (Ord. No. 95 -257, § 1, 12- 19 -95; Ord. No. 96 -262, § 1, 2- 20 -96;
Ord. No. 96 -276, § 1, 12 -3 -96; Ord. No. 02 -431, § 1, 11- 19 -02).
Section 2. Severability. The provisions of this ordinance are declared separate and severable.
The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance
or the invalidity of the application thereof to any person or circumstance, shall not affect the validity
of the remainder of the ordinance, or the validity of its application to other persons or circumstances.
Section 3. Ratification. Any act consistent with the authority and prior to the effective date
of this ordinance is hereby ratified and affirmed.
ORD # 06 -537 , PAGE 3
Section 4. Effective Date. This ordinance shall take effect and be in force five (5) days from
the time of its final passage, as provided by law.
PASSED by the City Council of the City of Federal Way this f� day of
2006.
CITY OF FEDERAL WAY
ATTEST:
T
CITY LERK, LAURA HAT AWAY, CMC
APPROVED AS TO FORM:
&a g"�
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
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ORD # , PAGE 4
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