HomeMy WebLinkAboutOrdinance No. 0882CITY OF MEDINA, WASHINGTON
Ordinance No. 882
AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON,
RELATING TO UTILITY TAXES; AMENDING CHAPTER 5.04 OF THE
MEDINA MUNICIPAL CODE; ADOPTING NEW SECTION ADDING DEFINITIONS
AND CLARIFYING SECTION 5.04.030 OF THE MEDINA MUNICIPAL
CODE RELATING TO THE TELEPHONE BUSINESS TAX
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 has enacted a utility tax upon gross revenues from telephone
business exchange services; and
WHEREAS, the City desires to update and clarify its telephone business utility tax;
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
Section 1. Adoption of Section 5.04.025. A new Section 5.04.025 of the Medina
Municipal Code is adopted to read as follows:
1 of 4
5.04.025 Definitions.
In construing the provisions of this chapter, the following definitions shall be applied.
Words in the singular number shall include the plural, and the plural shall include the
singular.
"Person" means any individual, receiver, administrator, executor, assignee, trustee in
bankruptcy, trust, estate, firm, co -partnership, joint venture, club company, join stock
company, business trust, municipal corporation, political subdivision of the State of
Washington, corporation, limited liability company, association, society, or any group of
individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or
otherwise and the United States or any instrumentality thereof.
"Total gross income" means the value proceeding or accruing from the performance of
the particular public service or transportation business involved, including operations
incidental thereto, but without any deduction on account of the cost of the commodity
furnished or sold, the cost of materials used, labor costs, interest, discount, delivery,
costs, taxes, or any other expense whatsoever paid or accrued and without any
deduction on account of losses.
"Telephone business" means the business of providing by any person of access to a
telephone network, telephone network switching service, toll service, or coin telephone
services, or the providing of telephonic, video, data, or similar communication or
transmission for hire, via a telephone network, toll line or channel, cable, microwave, or
similar communication or transmission system. This includes the provision of
transmission to and from the site of an internet provider via a telephone network, tall line
or channel, cable, microwave, or similar communication or transmission system. It does
not include the providing of competitive telephone service, the providing of cable
television service, the providing of broadcast services by radio or television stations, nor
the provision of internet access as defined in RCW 82.04.297, including the reception of
dial -in connection, provided at the site of the internet service provider.
Section 2. 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 12.01 a.m. on January 8, 2011, 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 privilege of so doing business as hereinafter defined.
A. Upon ever ry person engaging in or carrying on ((ate)) telephone business there shall be
levied a tax equal to three percent of the total gross ((
Fevenu ) income derived from the operation of such ((frorn business and residdeRGe
)) business in the city. In computing
the tax imposed under this subsection there shall be deducted from total dross income
the amounts derived from transaction in interstate or foreign commerce and any
2of4
amounts upon which the city is prohibited from imposing such tax under the Constitution
or laws of the United States or the Constitution or laws of the State of Washington.
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 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 three (3)
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 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 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 three (3)
percent of the total gross revenue derived from solid waste collection, transportation, or
disposal within the city.
F. 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 threl (3) percent of the total gross income derived from
subscribers' revenues from such cable television service provided in the city. Cable
television services means the one-way transmission of video programming and
associated nonvideo signals to subscribers together with subscriber interaction, if any,
which is provided in connection with video programming.
G. Leasehold Excise Tax. Pursuant to the authorization of RCW 82.29A.040, from and
after 12.01 a.m. on January 8, 2011, there is hereby imposed a leasehold excise tax on
the act or privilege of occupying or using publicly owned real or personal property within
the city, through a "leasehold interest" as defined in RCW 82.29A.020. The tax shall be
paid, collected, and remitted to the Washington State Department of Revenue at the
time and in the manner prescribed in RCW 82.29A.050, as it now exists or may
hereafter be amended. The rate of the leasehold excise tax imposed shall be four (4)
percent of the taxable rent, as defined in RCW 82.29A.020(2) as it now exists or may
3of4
hereafter be amended; provided that the credits specified in RCW 82.29A.120, as it now
exists or may hereafter be amended, shall be allowed in determining the tax payable.
Leasehold interests exempted by RCW 82.29A, as it now exists or may hereafter be
amended, shall be exempt from the leasehold excise tax imposed pursuant to this
section.
The annual tax rate of three percent of the total gross income shall be reduced to zero
on January 31, 2013.
Section 2. 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.
Section 3. Effective date. This ordinance shall take effect sixty (60) days after
its publication or the publication of a summary of its intent and contents.
ENACTED BY THE CITY COUNCIL ON THIS 12 DAY OF DECEMBER, 2011 AND
SIGNED IN AUTHENTICATION OF ITS PASSAGE ON THE 12 DAY OF DECEMBER,
2011.
Approved as to form:
_—
Bruce Disend, City Attorney
Passed:
Published:
Effective Date:
12/12/2011
02�(�j(?-olZ
Bret Jordan, Mayor
Attest:
Radhel Baker, City Clerk
4of4