HomeMy WebLinkAboutOrdinance No. 0869CITY OF MEDINA, WASHINGTON
Ordinance No. <�>&
AN ORDINANCE OF THE CITY OF MEDINA, WASHINGTON,
RELATING TO A LEASE HOLD EXCISE TAX; AMENDING SECTION 5.04.030 OF THE
MEDINA MUNICIPAL CODE ADOPTING NEW LEASEHOLD EXCISE TAX
WHEREAS, the City of Medina is classified as a non -charter code city under Title 35A
RCW; and
WHEREAS, properties owned by the City are exempted by Article 7, section 1 of the
state Constitution from property tax obligations; and
WHEREAS, the state legislature recognizes that lessees of public properties receive
substantial benefits from governmental services provided by units of government including the
City of Medina; and
WHEREAS, in recognition of such benefit the state legislature has.provided authority for
imposition of a leasehold excise tax to compensate units of government for providing such
services; and
WHEREAS, the legislature has authorized the City to impose and collect a leasehold
excise tax of up to 4 percent of taxable rent; and
WHEREAS, the City Council finds that it would be in the best interests of the public
health, safety and welfare to impose a leasehold excise tax in the manner set forth in Chapter
82.29A RCW; and
WHEREAS, the adoption of an ordinance pertaining to assessment and collection of
taxes is exempt from the requirements of the State Environmental Policy Act pursuant to WAC
197-11-800(14) (b).
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, DO
ORDAIN AS FOLLOWS
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 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 any telephone business there shall be levied a tax equal to 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.
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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
three (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
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 (3) percent of the total gross income shall be reduced to zero on
January 31, 2012.
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.
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Section 3. 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 DAY OFPF� 2010 AND SIGNED IN
AUTHENTICATION OF ITS PASSAGE ON THE DAY 2010.
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Bruce Disend, Co Attorney
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Attest-
Ra hel Baker, City Clerk