HomeMy WebLinkAboutOrdinance No. 0962WHEREAS, the City of Medina is classified as a non -charter code city under Title
35A ICJ; and
WHEREAS, RCW 35A,21.160 provides that a code city shall have all of the powers
which any city of any class may have; and
WHEREAS, pursuant to Washington state law, code cities are authorized to impose
taxes upon gross revenues earned by utility and service providers within the taxing city's
jurisdictional boundaries; and
WHEREAS, the City Council approved Ordinance No. 951 on October 91h, 2017,
renewing the state's authorized six percent utility tax rate upon gross revenues derived from
telephone and telegraph businesses, electric utilities, natural gas, solid waste and cable service
operators, all as codified at Chapter 5.04 of the Medina Municipal Code, and reducing the six
percent annual tax rate to zero on January 31, 2019; and
WHEREAS, having duly considered financial analyses and other budget studies a
information regarding City operations and needs, the City Council finds it is in the public intere
and necessary to add water and sewer utility providers to the list of taxable businesses with
the City, and to continue the applicable tax rate of six percent without recurring expiration date
and
WHEREAS� RCW 35,21.865 provides that a change in the rate of tax imposed on the
privilege of conducting an electrical energy, natural gas, or telephone business may not take
effect before the expiration of sixty days following the enactment of the ordinance establishing
the change.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, Di
ORDAIN AS FOLLOWS
Section 1. Amendment of Title. The title of Chapter 5.04 of the Medina Municipal
Code is hereby amended to read as follows:
Chapter 5,04: Business and Occupation Taxes and Licenses.
Section 2. Amendment of Section 5.04.010. Section 5.04.010 of the Medina
Municipal Code is hereby amended to read as follows:
5-04V0 Generally.
The provisions of this chapter shall be deemed to be an exercise of the power of
the city to license businesses and occupations for revenue and regulatory
purposes.
Section 3. Amendment of Section 5.04.030. Section 5.04.030 of the Med]179
Municipal Code im hereby amended to read as followsI
Ordinance No. 952 Page 1 of 3
There is levied upon and there shall be collected from every person engaged in
carrying on the following business for hire or for sale of a commodity or a service
within or partly Within the corporate limits of the city the tax for the priviIege of so
doing business as hereinafter defined,
A. Upon every person engaging in or carrying on telephone business
there shall be levied a tax equal to six percent of the total gross 'income derived
from the operation of such business in the city. In computing the tax imposed
under this subsection, there shall be deducted from total gross income the
amounts derived from transaction in interstate or foreign commerce and any
amounts upon which the city is prohibited from imposing such tax under the
income from such business in the city; provided, however, that there shall not be
any tax levied for installation charges of gas energy units, nor on any business
that is exempt under RCW 35.21.870,
E. There is levied a tax on the business of solid waste collection,
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Ordinance No. 962 Page 2 of 3
Section 4. Effective Date of New Utility Taxes. The tax and rate changes enact
by this ordinance for water and sewer utilities shall be applicable beginning on November
2018 for the purpose of enabling collection and remittance of tax revenues to the City in the fill
quarter of 2019. 1
•aji not arrect tne vailaity OT any otner section, sent rice, cial♦ Ot -
of this ordinance. The City Clerk is authorized to make or approve ministerial changes in this
ordinance necessary to reflect the intent of the Council, and to correct maniest errors,
typographical errors, and the like
Approved as to form:
Scott Missall, City Attorney
Ogden Murphy Wallace PLLC
Cynthi,a(Adkins, Mayor
Aimee Kellerman, City Clerk
Ordinance No. 962 Page 3 of 3