Ord 96-276
ORDINANCE NO. 96-276
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, INCREASING THE UTILITY TAX RATE TO 5% FROM 1.37%
FOR CAPITAL IMPROVEMENTS INCLUDING THE STREET OVERLAY
PROGRAM AS IDENTIFIED BY THE COUNCIL. (Amends Ordinance No. 95-257
and 96-262)
WHEREAS, on December 19, 1995 the Federal Way City Council passed Ordinance No. 95-257
providing for a 1.37% tax upon the privilege of conducting an electrical energy, natural gas, storm
drainage, garbage, cable television, èellular and other telephone and wireless communications services
business for the purpose of construction and maintenance of certain street and transportation
improvements; and
WHEREAS, the City Council deems it both advisable and necessary to adopt measures to
maintain and preserve existing inffastructure by increasing the resources available for the street
asphalt overlay program; and
WHEREAS, the City Council deems it both advisable and necessary to identifY, prioritize, and
provide funding for community investment projects that provide for public safety and welfare,
improved quality of life, galvanize community pride, and encourage economic development and
vitality; and
WHEREAS, a 5% utility tax (an increase of3,63%) will provide reliable and predictable funding
sources for these purposes; and
WHEREAS, a new "Community Investment Pool Fund" will be created to accumulate tax
receipts and to account for investment earnings until the projects are identified and funds are fully
allocated; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1 Affix Tax Rates: The Federal W¡¡y City Code Ch¡¡pter 14 Section14 173 is amended
as follows:
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 +:37-
.iQ percent of the total gross income from such business in the City during the period
for which the tax is due;
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B, Upon everyone engaged in or carrying on a competitive telecommunication service
or network telecommunication service, a tax equal to t:3't i..Q percent of the total
gross income ITom such business in the City during the period for which the tax is
due. In determining gross income ITom such business, including intrastate toll
service, the taxpayer shall include 100 percent of the gross income received ITom
such business in the City;
C, Upon everyone engaged in or carrying on the business of cellular telephone service,
a tax equal to t:3't i..Q percent of the total gross income ITom such business in the
City during the period for which the tax is due;
D. 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 t:3't i..Q percent of the total gross income ITom such business in the City during
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+Ti' 6 37 percent effective
January 1 1997 and 50 percent effective January 1 1998 of the total gross income
from such business in the City during the period for which the tax is due;
F,
Upon everyone engaged in or carrying on the business of selling or furnishing electric
energy, a tax equal to +:3't ~ percent of the total gross income ITom such business
in the City during the period for which the tax is due;
G. Upon everyone engaged in the business of collecting solid waste, a tax equal to
+:3't 2..Q percent of the total gross income ITom the City during the period for which
the tax is due, less income derived ITom collection and sales of materials not defined
herein as solid waste; and
H. Upon everyone engaged in or carrying on the business of cable communications, a
fee or tax equal to t:3't ~ percent of the total gross income ITom 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 ITom 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 ITom the system.
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 this Ordinance, or the validity of its application to other persons (Jr circumstances.
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Section 3 Ratification, Any act consistent with the authority and prior to the effective date of
this Ordinance is hereby ratified and affirmed,
Section 4 Effective Date. This Ordinance shall take effect and be in force five (5) days ITom
and after its passage, approval and publication, as provided by law; provided, however, that the
assessment and collection date for the increased utility tax ITom 1.37% to 5%, as set forth in Section
1 of this Ordinance, shall not occur until March 1, 1997.
PASSED BY THE CITY COUNCIL, signed and approved this 3rd day of December, 1996.
CITY OF FEDERAL WAY, WASHINGTON
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By~ /jÎ{{~vA (J---d-
MAYOR, MAHLONPRlEST
~ST
,at~~i.~"t1 ~-
ITY CLERK, N, ChristIne Green, CMC
APPROVED AS TO FORM:
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FILED WITH THE CITY DESIGNATED OFFICIAL:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.
11-19-96
12-03-96
12-07-96
12-12-96
96-276
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