HomeMy WebLinkAboutOrdinance No. 0861CITY OF MEDINA, WASHINGTON
Ordinance No. 861
AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON,
RELATING TO UTILITY TAXES; AMENDING SECTION 5.04.030 OF THE
MEDINA MUNICIPAL CODE ADOPTING NEW UTILITY TAX RATES
WHEREAS, the City of Medina is classified as a non -charter code city under title
35A RCW; 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, RCW 35.22.280(32) authorizes any city of the first class "[t]o grant
licenses for any lawful purpose, to fix by ordinance the amount to be paid therefore, and to
provide for revoking the same ...."; and
WHEREAS, the Washington Supreme Court in Fleetwood v. Read, 21 Wash. 547,
552-553 (1899) and subsequent decisions has interpreted this language as authorizing
licenses for revenue purposes as well as regulation; and
WHEREAS, pursuant to the above authority, code cities are authorized to impose
taxes upon gross revenues earned by utility and service providers within their jurisdictional
boundaries, and
WHEREAS, the City of Medina has previously approved imposition of a utility tax
upon gross revenues derived from telephone and telegraph businesses, electric utilities,
natural gas, sewer utility, solid waste and cable service operators, which utility tax is
codified at Chapter 5.04 of the Medina Municipal Code; and
WHEREAS, state law provides at RCW 35.21.865 that a change in the rate of tax it
imposes on the privilege of conducting an electrical energy, natural gas, or telephone
business may take effect before the expiration of sixty days following the enactment of the
ordinance establishing the change; and
WHEREAS, the adoption of an ordinance pertaining to enforcement relates solely to
governmental procedures and contains no substantive standards respecting use or
modification of the environment and is therefore exempt from the requirements of the State
Environmental Policy Act pursuant to WAC 197-11-800(19).
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON,
DO ORDAIN AS FOLLOWS
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Section 1. Amendment of Section 5.04.030. Section 5.04.030 of the Medina
Municipal Code is hereby amended to read as follows:
From and after ((ApFil 1, #906)) 12.01 a.m. on January 8, 2011, there is levied upon and
there shall be collected from every person((, foRn OF GGFpoFati9R)) 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 privilege of so doing business as hereinafter
defined.
A. Upon any telephone business there shall be levied a tax equal to ((Zere)) three 3
percent of the total gross subscriber station exchange revenues from business and
residence telephone service (excluding message units) from business in the city.
B. Upon every person, firm or corporation engaged alone or in conjunction with another in
the business of selling or leasing telephone or telegraph or related communication
equipment at retail or to or for the public and thereafter installing, maintaining or
repairing the same, a fee equal to ((zere)) three 3 percent of the total gross income
from such business in the city; provided further, that this fee or tax shall not be imposed
on any business otherwise subject to fee or tax under this chapter nor on the business
of selling or installing telephone or telegraph or related communication equipment to
telephone or telegraph companies taxed under this chapter.
C. There is levied a tax on the sale, delivery or distribution of electricity or electrical energy
and for the privilege of carrying on said business, such tax to be equal to ((Zere)) three
percent of the total gross revenue derived from sales of such electricity to ultimate
users within the city; provided, however, that there shall not be any tax levied for the
installation charges of electrical units.
D. There is levied a tax on the sale, delivery, distribution or furnishing of natural gas for
domestic, business or industrial consumption and for the privilege of carrying on said
business, such tax to be equal to ((zeFe)) three 3 percent of the total gross income
from such business in the city; provided, however, that there shall not be any tax levied
for installation charges of gas energy units.
E. There is levied a franchise fee on the business of the operation and sale of water and
water service and for the privilege of carrying on said business, such franchise fee to be
equal to zero percent of the total gross revenue derived from the sale of water within the
city.
F. There is levied a franchise fee on the business of the operation and sale of services for
sewer utilities and for the privilege of carrying on said business, such franchise fee to be
equal to zero percent of the total gross revenue derived from the sale of sewer services
within the city.
G. There is levied a tax on the business of solid waste collection, transportation, or disposal
and for the privilege of carrying on said business, such tax to be equal to ((zero)) three
percent of the total gross revenue derived from solid waste collection, transportation,
or disposal within the city.
H. ((
pFivilege Of GarFying on said business, suGh tax te be equal to zero pement of the total
heweveF
))
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There is levied upon and there shall be collected from every person engaged in the
business of providing cable television service for a monetary consideration within or
partly within the corporate limits of the city, an annual tax for the privilege of so doing,
such tax to be equal to three (3) percent of the total gross income derived from
subscribers' revenues from such cable television service provided in the city. Cable
televisionservices" means the one-wav transmission of video proarammina and
associated nonvideo signals to subscribers together with
which is provided in connection with video programming_
Section 2. The annual tax rate of th
be reduced to zero on January 31, 2012.
sha
Section 3. Referendum authorized. A referendum petition to repeal this
ordinance may be filed with the City Clerk within seven days of passage of this ordinance.
Within ten days of such filing, the City Clerk shall confer with the petitioner concerning form
and style of the petition, issue the petition an identification number, and secure an
accurate, concise, and positive ballot title from the designated local official. The petitioner
shall have thirty (30) days in which to secure the signatures of not less than fifteen (15)
percent of the registered voters of the city, as of the last municipal general election, upon
petition forms that contain the ballot title and the full text of the measure to be referred. The
City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid
signatures are properly submitted, shall certify the referendum measure to the next election
ballot within the city or at a special election ballot as provided pursuant to RCW
35.17.260(2). Except as otherwise provided herein, all provisions set forth at RCW
35.17.250 through RCW 35.17.360 that are applicable to the character and form for an
initiative petition, to the examination and certification thereof, and to the submission to the
vote of the people of the ordinance proposed thereby, shall apply to the referendum petition
authorized herein and to this ordinance.
Section 4. Severability. If any section, sentence, clause, or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of any other section, sentence,
clause, or phrase of this ordinance.
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Section 5. Effective date. This ordinance shall take effect five (5) days after its
publication or the publication of a summary of its intent and contents.
ENACTED BY THE CITY COUNCIL ON THIS 8 DAY OF NOVEMBER, 2010 AND
SIGNED IN AUTHENTICATION OF ITS PASSAGE ON THE 8 DAY OF NOVEMBER,
2010.
Appro ed as to rm:
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Bruce Disend, bYy Attorney
Ordinance passed 11/08/2010
Ordinance published: 11/11/2010
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Bret Jordan, Mayor
Atte :
R chel Baker, City Clerk