Ord 96-262
ORDINANCE NO. ~262
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY, WASHINGTON, ADDING A DEFINITION OF "SOLID WASTE"
TO CHAPTER 14 TAXATION, ARTICLE V, AND CLARIFYING THE
EXEMPTION FROM THE UTILITY TAX OF INCOME FROM THE
COLLECTION AND RESALE OF RECYCLABLE MATERIALS. (Amends
Ordinance No. 95-257).
WHEREAS,
on December 19,
1995 the Federal Way city Council
passed Ordinance No.
95-257 providing,
among other things,
for
taxes upon persons
in the business of collecting solid waste
("utility Tax ordinance")¡ and
WHEREAS, the utility Tax Ordinance did not define solid waste
to exclude recyclables and yard waste, and did not exempt revenue
derived from the resale of recyclables.¡
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
section 1.
Amendment.
The Federal Way City Code Article v,
section 14 is hereby amended to read as follows:
Article V.
utilities
section 14.170 Exercise of license revenue power.
The provisions of this chapter shall be deemed an
exercise of the power of the City of Federal Way to tax for
revenue.
section 14.171 Definitions.
In construing the provisions of this chapter,
definitions shall be applied:
the following
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C(Q)~Y(
A. "Gross income" means 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 the investment of capital in the business engaged
in, including rentals, royalties, fees, or other emoluments,
however designated (excluding receipts or proceeds form the use
or sale of real property or any interest therein, and proceeds
from the sale of notes, bonds, mortgages, or other evidences of
indebtedness, or stocks and the like) and without any deduction
on account of the cost of the property sold, the cost of
materials used, labor costs, interest or discount paid, or any
expense whatsoever, and without any deduction on account of
losses, including the amount of credit losses actually sustained
by the taxpayer whose regular books or accounts are kept upon an
accrual basis.
B. "Cable service" means (1) a system providing service
pursuant to a franchise issued by the City under the Cable
Communications Policy Act of 1984 Public Law No. 98-549, 47
U.S.C. § 521, as it may be amended or superseded; and (2) any
system that competes directly with such franchised system by
employing antennae, microwave, wires, wave guides, coaxial
cables, or other conductors, equipment or facilities designed,
construed or used for the purpose of: (i) collecting and
amplifying local and distant broadcast television signals and
distributing and transmitting them; (ii) transmitting original
cablecast programming not received through television broadcast
signals; or (iii) transmitting teievision pictures, film and
videotape programs not received through broadcast television
signals, whether or not encoded or processed to permit reception
by only selected receivers; provided, however, that 'cable
television service' shall not include entities that are subject
to charges as 'Commercial TV stations' under 47 UoS.C. section
158."
c. "Cellular telephone service" means 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 the same purpose as cellular mobile service.
D. "competitive telecommunication service" means 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
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subject to regulation as telephone companies under Title 80 RCW
and for which a separate charge is made.
E. "Designated Official" means such city employee or agent
as the City Manager shall designate.
F. "Network telecommunication service" means the providing
by any person of access to a local telephone network, local
telephone network switching service, toll service, .or coin
telephone services, or the providing of telephonic, video, data,
pagers, or similar communication or transmission for hire, via a
local telephone network, toll line or channel, cable, microwave,
or similar communication or transmission system. "Network
telecommunication 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
telecommunication service" does not include the providing of
competitive telecommunication service, the providing of cable
television service, nor the providing of broadcast services by
radio or television stations.
G. "Telecommunications company" includes every corporation,
company, association, joint stock association, partnership and
person, their lessees, trustees or receivers appointed by any
court whatsoever, and every city or town owning, operating or
managing any facilities used to provide telecommunications for
hire, sale, or resale to the general public within this state.
H. "Telephone business" means the business of providing
Network telecommunication service, as defined in this section.
It includes cooperative or farmer line telephone companies or
associations operating an exchange.
I. "Telephone service" means competi ti ve telecommunication
service or network telecommunication service, or both, as defined
in this section.
~ "Solid Waste" means aarbaae. trash. rubbish. or other
materials discarded as worthless or not economical Iv viable for
further use. The term does not include hazardous or toxic waste.
and does not include vard waste or material collected primarilv
for recvclina or salvaae.
section 14.172 Business license.
No person, firm or corporation shall engage in or carry
on any business, occupation or act or privilege for which a tax
is imposed by FWCC 14-173 without first having obtained, and
being the holder of a business license as provided in FWCC
Chapter 9.
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section 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:
A. Upon everyone engaged in and carrying on a telegraph
business, a tax equal to 1.37 percent of the total gross income
from such business in the City during the period for which the
tax is due;
B. Upon everyone engaged in or carrying on a competitive
telecommunication service or network telecommunication service, a
tax equal to 1. 37 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 telephone business,
including intrastate toll telephone service, the taxpayer shall
include 100 percent of the gross income received from such
business in the city;
C. Upon everyone engaged in or carrying on the business of
cellular telephone service, a tax equal to 1.37 percent of the
total gross income from such business in the City during the
period for which the tax is due;
D. Upon everyone engaged in or
selling, brokering or furnishing
business or industrial consumption,
of the total gross income from such
the period for which the tax is due;
E. 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 1.37 percent of the total gross income
from such business in the City during the period for which the
tax is due;
carrying on the business of
natural gas for domestic,
a tax equal to 1.37 percent
business in the city during
F. Upon everyone engaged in or carrying on the business of
selling or furnishing electric energy, a tax equal to
1.37 percent of the total gross income from such business in the
City during the period for which the tax is due;
G. Upon everyone engaged in the business of collecting
~arBa~e aJld e~Rer solid waste, a tax equal to 1.37 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 reeyoliJl~ ae~ivi~ies,
sale af~er prooessiJl~ ef yard t:as~e prsà\iets, sales sf ufteeled
con~aiJlers \,lsed far eslleetioJl of resideJl~ial gelid ','as~e,
eallec~iaJl aJld dispoaal af )¡HÜJEY i~8iIIs aJld \..hi~e ~seds, aJld
~raJl~e aJld contracts frem ~s7erftffieJ\tal a~eJ\eies; and
4-
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H. Upon everyone engaged in or carrying on the business of
cable communications, a fee or tax equal to 1.37 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.
section 14.174 Cellular telephone service - rncome allocation
and administration
A. Allocation of Income.
1. Service Address. Payments by a customer for
cellular 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.
2. 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.
3 . Roaming. When the cellular telephone 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.
B. Authority of Administrator. The city Manager or his or
her designee is authorized to represent the city in negotiations
with other cities for the proper allocation of cellular telephone
service taxes imposed pursuant to this chapter.
section 14.175 Tax Rate Change.
No change in the rate of tax imposed by Section 14.173
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 designated official shall
send to each affected business at the address of record a copy of
any ordinance changing the rate of tax promptly upon its
enactment.
section 14.176 Exemption.
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The tax herein levied is in lieu of any excise, privilege
or occupational tax under any chapters of this title with respect
to activities specifically within the provisions of this chapter.
Nothing herein shall be construed to exempt persons taxable under
the provisions of this chapter from tax under any other chapters
of this title with respect to activities other than those
specifically within the provisions of this chapter.
section 14.177 License tax year.
All utility occupation licenses and the fee for the tax
therefor shall be for the tax year for which issued and shall
expire at the end of the tax year. The tax year shall commence
January 1 and shall end on December 31.
section 14.178 Deductions.
In computing the tax imposed by this chapter,
following items may be deducted from the measure of the tax:
the
A. The amount of credit losses actually sustained by
taxpayers whose regular books are kept upon an accrual basis.
B. Charges by a taxpayer engaging in a telephone
business to a telecommunications company for telephone service
that the purchaser buys for the purpose of resale.
C. That portion of the gross income derived from
charges to another telecommunications company for connecting
fees, switching charges, or carrier access charges relating to
intrastate toll telephone services, or for access to, or charges
for, interstate services.
D. Adjustments made to a billing or to a customer
account or to a accrual account in order to reverse a billing or
charge that had' been made as a result of third-party fraud or
other crime and was not properly a debt of the customer.
E. Amounts derived from a business which the City is
prohibited from taxing under the Constitution of this state or
the Constitution or laws of the united states.
E....
Grants from qovernmental aqencies.
section 14.179 Monthly installments.
The tax imposed by FWCC 14-173 shall be due and payable
in monthly installments, and remittance therefor shall be made on
or before the last day of the month following the end of the
monthly period in which the tax is accrued. On or before said
due date, the taxpayer shall file with the designated official a
written return upon such form and setting forth such information
as the designated official shall reasonably require, together
with the payment of the amount.
Ord. # 9&-&2 , Page #
(f)
section 14.180 Taxpayer's records.
Each taxpayer shall keep records for up to six years
reflecting the amount of his or her gross operating revenues on
services within the city, and such records shall be open at all
reasonable times to the inspection of the designated official, or
his or her duly authorized subordinates for verification of said
tax returns or for the filing of the tax of a taxpayer who fails
to make such return.
section 14.181 Applications and returns confidential.
The applications, statements or returns made to the
designated official pursuant to this chapter shall not be made
public, nor shall they be subject to the inspection of any person
except the mayor, City manager, city attorney, designated
official or authorized agent and to members of the city council;
and it is unlawful for any person to make public or inform any
other person as to the contents of or any information contained
in or to permit inspection of any application or return;
provided, however, that the foregoing shall not be construed to
prohibit the designated official from making known or revealing
names, addresses and telephone numbers of utilities operating
within the City facts or information contained in any return to
any taxpayer or disclosed in any investigation or examination of
the taxpayer's books or records to the state Department of
Revenue, for official purposes, but only if the statutes of the
state grant substantially similar privileges to the proper
officers of the city.
section 14.182 Failure to make returns or to pay the tax in
full.
If any taxpayer fails, neglects or refuses to make its
return as and when required herein the designated official is
authorized to determine the amount of tax payable, and by mail to
notify such taxpayer of the amount so determined. The amount so
fixed shall thereupon be the tax and be immediately due and
payable, together with penalty and interest. Delinquent taxes,
including any penalty and interest, are subject to an interest
charge of twelve percent (12%) per year on any unpaid balance
from the date the tax became due as provided in FWCC 14-179 until
paid.
section 14.183 penalty for delinquent payment.
If any person, firm or corporation subject to this tax
fails to pay any tax required by this chapter within fifteen days
after the due date thereof, there shall be added to such tax a
penalty of ten percent (10%) of the amount of such tax, and any
tax due under this chapter which is unpaid and all penalties
thereon shall constitute a debt to the City and may be collected
by court proceedings, which remedy shall be in addition to all
other remedies.
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section 14.184 overpayment of tax.
Any money paid to the City through error, or otherwise
not in payment of the tax imposed by this chapter, or in excess
of such tax, shall, upon the request of the taxpayer, be credited
against any tax due or to become due from such taxpayer
hereunder, or, upon the taxpayer ceasing to do business in the
City, be refunded to the taxpayer.
section 14.185 Noncompliance - Penalty.
Any person, firm or corporation subject to this chapter,
who fails or refuses to apply for a business license or to make
tax returns or to pay any tax when due, or who makes any false
statement or representation in or in connection with any such
application for a business license or tax return, or who
otherwise violates or refuses to comply with this chapter, is
guilty of a misdemeanor, and each such person, firm or
corporation is guilty of a separate offense for each and every
day or portion thereof during which any violation of any of the
provisions of this chapter is committed, continued or permitted,
and upon conviction of any such violation, such person shall be
punishable by a fine not to exceed $350.00 for each day or
portion thereof which such person, firm or corporation is found
guilty of noncompliance with the provisions of this chapter.
section 14.186 Appeal to hearing examiner.
Any taxpayer aggrieved by the amount of the fee or tax
determined by the designated official to be due under the
provisions of this chapter may appeal such determination to the
City hearing examiner in accordance with, and subject to the
procedures set forth in, FWCC section 22-431 through 22-460
pursuant to Process II Appeal Procedures. Pending a hearing, a
taxpayer may withhold the fee or tax determined by the designated
official. If the tax or fee is withheld, the taxpayer shall pay
such amount to the City with interest from the date the amount
was withheld. The designated official shall periodically set the
applicable interest rate for withholding.
section 14.187 Designated Official to make rules.
The designated official shall have the power, and it
shall be his or her duty, from time to time, to adopt, publish
and enforce rules and regulations not inconsistent with this
chapter or with the law for the purpose of carrying out the
provisions thereof, and it is unlawful to violate or fail to
comply with any such rule or regulation.
section 14.188 False returns.
It is unlawful for any person subject to this chapter to
fail or refuse to make application or return for a license or to
pay the fee or tax or installment thereof when due, or for any
person to make any false or fraudulent application or return or
any false statement or representation in, or in connection with
any such application or return, or to aid or abet another in any
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attempt to evade payment of the fee or tax, or any part thereof,
or to testify falsely upon any investigation of the correctness
of a return upon the hearing of any appeal or in any manner
hinder or delay the city or any of its officers in carrying out
the provisions of this chapter.
section 2.
Initiative and Referendum.
This Ordinance shall be subject to initiative and referendum
powers as set forth in Chapter 2, Article III of the Federal Way
City Code.
section 3.
Severabilitv.
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
this
Ordinance,
or the validity of
its
application to
other
persons or circumstances.
section 4.
Ratification.
Any
act
consistent
with
the
authority
and
prior
to
the
effective date of this Ordinance is hereby ratified and affirmed.
section 5.
Effective Date.
This Ordinance shall take effect and be in force 30 days from
and after its passage, approval and publication, as provided by
law.
Ord. # 9/0-2&2 , Page # q
PASSED BY THE CITY COUNCIL, signed and approved this
20th day
of February, 1996.
CITY OF FEDERAL WAY, WASHINGTON
By ;þ;f/~ Á (~.
MAYOR, MARLON S. PRIEST
APPROVED AS TO FORM:
, ~ - --------"
¿;C!~ TTO~NDI K. LINDELL
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.
01/30/96
02/20/96
02/24/96
03/25/96
96-262
k:\ORDIN\UTlLITY. TAX
Ord. # 91.n-2Jp2, Page # /0