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Home My WebLink About1989-3163 OCCUPATION TAXES ON PUBLIC UTILITIES 8163 1110 ORDINANCE NO. AN ORDINANCE relating to occupation taxes on public utilities; changing tax rates, tax bases and tax audit and reporting procedures; and amending Sections 5.50.050, 5.50.090, 5.50.130 and 5.50.140 of the City of Yakima Municipal Code. WHEREAS, the City of Yakima (the "City") hereby finds and declares that the recent increase in criminal activity in the City, especially crime related to illegal drugs, has caused a need for increased personnel in the City's police and legal departments; and WHEREAS, the City hereby finds and declares it necessary to increase tax revenue due to such need for increased personnel; and 4110 WHEREAS, by Section 5.50.050 of the City of Yakima Municipal Code (the "Municipal Code"), the City has imposed taxes on the privilege of conducting telephone, electric, gas and steam busi- nesses in the City and has set the rates and other provisions of such taxes; and WHEREAS, by Section 5.50.090 of the Municipal Code, the City has provided for payment of such taxes; and WHEREAS, the City hereby finds and determines that it is in the best interest of the City and its inhabitants to amend Munici- pal Code Section 5.50.050 to increase revenues to the City from fees and taxes; 1110 NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 5.50.050 of the Municipal Code is hereby amended to read as follows: "A. There are levied and shall be collected annual license fees or taxes against the persons on account of business activities, and in the amounts to be determined by the application of the rates herein prescribed, as follows: 1. Commencing January 1, 1985, upon every person engaged in or carrying on the business of selling or furnishing electric light or power, a fee or tax equal to five and five-tenths percent of the total gross income derived from such business in the city of Yakima; provid- ed, for the year 1986 and succeeding years, the rate of the fee or tax imposed by this subsection shall be reduced according to the following schedule: 4110 Year Rate 1 11 0 1986 5.2% 1987 4.9% 1988 4.6% 1989 4.4% 1990 4.2% 1991 4.0% 2. Commencing January 1, 1985, and until July 1, 1989, upon every person engaged in carrying on a telephone business, a fee or tax equal to five and two- tenths percent of the total gross income, excluding income from intrastate tolls, derived from such business in the city of Yakima; provided, that the rate of the fee or tax imposed by this subsection shall be reduced according to the following schedule: Year Rate 1986 5.0% 1987 4.8% 1 110 1988 4.6% 1989 4.4% Commencing July 1, 1989, upon every person engaged in carrying on a telephone business, a fee or tax equal to six percent of the total gross income derived from such business in the city of Yakima; provided, that such fee or tax be subject to the limitations prescribed by RCW 35.21.714, and provided, further, that the City shall suspend collection of any franchise fee on a telephone business in excess of the rates of fees and taxes per- mitted under RCW 35.21.870(2), which rates are as follows: Year Rate 1989 6.4% 1990 6.2% 1991 and thereafter 6.0% Total gross income for this purpose shall not 1 11 0 include charges which are passed on to the subscribers by a telephone company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by the ordinance codified in this section. 'Telephone business' as used herein means the business of providing access to a local telephone net- work, local telephone network switching service, toll service or coin telephone services, or providing tele- phonic, video, data or similar communication or transmis- sion for hire, via a local telephone network, toll line or channel, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. 'Tele- phone business' does not include the providing of 'competitive telephone service' as defined hereinbelow nor the providing of cable television service. -2- ASRR.082 89/03/15 4110 4111 'Competitive telephone service' as used herein means t he providing by any person of telephone equipment, apparatus, or service, other than toll service, which is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made. 3. Commencing January 1, 1985, upon every person engaged in or carrying on the business of selling or furnishing natural gas for heat, power, light and other purposes, a fee or tax equal to five and two - tenths percent of the total gross income derived from such business in the city of Yakima; provided, for the year 1986 and succeeding years, the rate of the fee or tax imposed by this subsection shall be reduced according to the following schedule: Year Rate 1986 5.0% 1987 4.8% 1988 4.6% 1989 4.4% 1990 4.2% 1991 4.0% 4. Commencing January 1, 1985, upon every person engaged in or carrying on the business of selling or furnishing steam for heating or other commercial consumption, a fee or tax equal to five and eight - tenths percent of the total gross income derived from such business in the city of Yakima. B. The minimum fee or tax on each such business activity shall not be less than $250.00 per tax year. C. Until July 1, 1989, the rates of tax set forth in subsection A above shall be measured against a maximum of the first five hundred dollars of the total gross income attributable to selling or furnishing electric light or power, selling or furnishing telephone service, 4111 selling or furnishing natural gas or selling or furnish- ing steam to any one customer in any one calendar month or fraction thereof. Commencing July 1, 1989, the rates of tax set forth in subsection A above shall be measured against a maximum of the first three thousand dollars of the total gross income attributable to selling or furnishing electric light or power, selling or furnishing telephone service, selling or furnishing natural gas or selling or furnish- ing steam to any one customer in any one calendar month or fraction thereof." Section 2. Section 5.50.090 of the Municipal Code is hereby amended to read as follows: "Every taxpayer shall pay the fee or tax in this chapter provided on or before the twenty -fifth day of each and every month hereafter beginning on February 25, 4111 -3- ASRR.082 89/03/15 1962, on said total gross income derived from any such business activity during the next preceding calendar or related billing month. Every taxpayer also shall file with the Director of Finance and Budget of the City, at the time of paying its fee or tax, a return in the form prepared by the Director. Such return shall include a schedule of all revenue, taxable under this Chapter and earned for the period payable under this Section, which schedule identifies, by total dollar amount and number of accounts, gross income in $1,000 increments." Section 3. Section 5.50.130 of the Municipal Code is hereby amended to read as follows: "It shall be the duty of each taxpayer taxed upon his gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his gross income, which account shall always be open to the inspection of the Director of Finance and Budget of the City, or his duly authorized agent, and from which said officer or his agent may verify the return made by the taxpayer. The applications, statements or returns made to the Director of Finance and Budget, pursuant to this chapter, shall be subject to disclosure as provided by state law." Section 4. Section 5.50.140 of the Municipal Code is hereby amended to read as follows: "If any taxpayer fails to apply for license or make his return, or if the Director of Finance and Budget of the City is dissatisfied as to the correctness of the statements made in the application or return of any taxpayer, said officer, or his authorized agent, may enter the premises of such taxpayer at any reasonable time for the purpose of auditing or otherwise inspecting his books or records of account to ascertain the amount of the fee or tax or to determine the correctness of such statements, as the case may be, and may examine any person under oath administered by said officer, or his agent, touching the matters inquired into, or said officer, or his authorized agent, may fix a time and 4 110 place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer, or any other person, to attend upon such investigation and there testify, under oath administered by said officer, or his agent, in regard to the matters inquired into and may, by subpoena, require him, or any person, to bring with him such books, records and papers as may be necessary." -4- ASRR.082 89/03/15 • • 411/ Section 5. This ordinance shall be effective thirty (30) days a its adoption and publication as provided by law. 5 r PASSED BY THE CITY COUNCIL, signed and approved this 21 day oflc.cd.N , 1989. CITY OF YAKIMA, WASHINGTON B y pa: May r ATTEST: City Clerk Pub Date MAR 2 4 1989 Eff Date APR 2 3 1989 411/ -5- ASRR.082 89/03/15 CERTIFICATE 4 11 0 I, the undersigned, Clerk of the City of Yakima, Washington (the "City"), and keeper of the records of the City Council (herein called the "Council"), DO HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance Na. (0:5 of the Council (herein called the "Ordinance"), duly passed at a regular meeting thereof held on the 0 :Z)day of 1989. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal 410 quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceed- ings incident to the proper passage of said Ordinance have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed Ed the official seal of the City this 93day of YX4./..-, 1989. Ai a . A .L ,_ 4 4.e0 City Clerk 1 111 ASRR.082 89/03/15 1