HomeMy WebLinkAbout5673 ORDINANCE NO. 5673
AN ORDINANCE of the City Council of the City of Auburn,
Washington, repealing the current provisions of Chapters
5.44, Gambling, 5.82, Telephone Businesses, and 5.88,
Utility Services, of the Auburn City Code, re-codifying and
replacing them with Chapters 3.80, Gambling, 3.84,
Telephone Businesses, and 3.88, Utility Services,
respectively, of the Auburn City Code
WHEREAS, the current provisions of the Auburn City Code are generally divided
among various areas of municipal responsibilities functions of the City; and,
WHEREAS, there are some codification changes that would lend themselves to
more convenient grouping of some chapters of the City Code, with the re-codification
being the only change; and,
WHEREAS, it is appropriate that re-codification of City Code chapters that deal
with taxes be grouped with other tax and revenue chapters of the City Code; and,
WHEREAS, it is also appropriate to include in the amendment of Section
3.84.010 (formerly codified as 5.82.010) of the City C'ode, to more fully define
telephone businesses to reference the definition of RCW 82.04.065 and to conform
with the intentions of the City Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
SECTION ONE. RE-CODIFICATION OF CHAPTER 5.44 ACC.
That the current provisions of Chapter 5.44 of the Auburn City Code are hereby
repealed, and they are replaced, substituted, superseded and re-codified as Chapter
3.80 ACC, to read as follows:
Chapter 5.d d 3.80
Gambling Activities
Sections:
5.~.d 3.80.010 Permitted generally.
,:~A43.80.020 License - Filing with chief of police.
Ordinance No. 5673
June 25, 2002
Page 1
5.~.~,3.80.030Tax- Required generally.
5.d~.3.80.040Tax - Levy - Bingo, raffles, punchboards, pull tabs and
amusement games.
5.4,13.80.050 Tax - Nonprofit or charitable organizations - Nonimposition when.
,?~,43.80.060 Tax - Levy - Social card games.
5.~, 43.80.070 Tax - Payment - Reports.
5.443.80.080 Ordinance copy to State Gambling Commission.
5.443.80.085 Lien.
5.d d 3.80.090 Violation - Penalty.
5.d 43.80.010 Permitted generally.
Upon the effective date of the ordinance codified in this chapter, all gambling
activities authorized under the laws of the state, and particularly Substitute House Bill
No. 711, Chapter 218, Laws of 1973 (43rd Leg. First Ex. Sess.) and any amendments
thereto, shall be authorized within the city limits, subject to any licensing requirements
and regulatory requirements of the state. (Ord. 2883 § 2, 1975.)
,~A43.80.020 License - Filing with chief of police.
Any person, association or organization, required to obtain a license for gambling
under the laws of the state, which receives such a license, shall upon receipt thereof
immediately file a copy thereof with the chief of police and shall thereafter promptly
notify the chief of police of any change, suspension or action pertaining to such license.
(Ord. 2883 § 3, 1975.)
5.~,~.3.80.030Tax- Required generally.
Upon the effective date of the ordinance codified in this chapter, any person,
association or organization engaging in gambling activities pursuant to a state license
and as authorized under the laws of the state shall be subject to a city tax thereon, as
set out in ACC 6-,443.80.040 and 5.d~.3.80.060. (Ord. 2883 § 4, 1975.)
5.4,13.80..040Tax - Levy - Bingo, raffles, punchboards, pull tabs and amusement
games.
A. There shall be a city tax levied upon bingo and raffles of five percent of the
gross receipts from a bingo game or raffle less the amount awarded as cash or
merchandise prizes.
B. There shall be a city tax levied upon amusement games of two percent of the
gross receipts from the amusement game less the amount awarded as prizes.
C. There shall be a city tax levied upon punchboards and pull tabs for
commercial stimulant operators of five percent of gross receipts. There shall be a city
tax levied upon punchboards and pull tabs for bona fide charitable or nonprofit
organizations of 10 percent based on gross receipts from the operation of the games
less the amount awarded as cash or merchandise prizes. (Ord. 5476 § 2, 2000; Ord.
5013 § 2, 1997; Ord. 3222 §§ 2, 3, 5, 1977.)
· ?~143.80.050 Tax - Nonprofit or charitable organizations - Nonimposition when.
Ordinance No. 5673
June 25, 2002
Page 2
No city tax shall be imposed on bingo or amusement games when such activities
or a combination thereof are conducted by any bona fide charitable or nonprofit
organization, as defined by Chapter 9.46 RCW of the laws of the state, which
organization has no paid operating or management personnel and has gross receipts
from bingo or amusement games, or a combination thereof, not exceeding $5,000 per
year, less the amount awarded as cash or merchandise prizes. No tax shall be imposed
on the first $10,000 of gross receipts less the amount awarded as cash or merchandise
prizes from raffles conducted by any bona fide charitable or nonprofit organization as
defined in Chapter 9.46 RCW. (Ord. 5013 § 2, 1997; Ord. 4608 § 2, 1993; Ord. 3222 §
4, 1977.)
5.d-!,3.80.060 Tax - Levy - Social card games.
With respect to social card games, there shall be a city tax levied in the amount
of 12 percent of the gross amount received therefrom. (Ord. 5218 § 1, 1999; Ord. 2883
§ 4(c), 1975.)
5.d d3.80.070Tax- Payment- Reports.
The taxes called for as set forth in ACC 5.~.d3.80.040 and 5.d~.3.80.060 shall be
paid to the city finance director upon the filing of any report of gambling moneys
received by a license holder to the Washington State Gambling Commission, and a
duplicate copy of any such reports shall be filed simultaneously with the city finance
director along with the payment of the tax thereon. (Ord. 5013 § 2, 1997; Ord. 2883 § 5,
1975.)
5.~, ~, 3.80.080 Ordinance copy to State Gambling Commission.
Upon the effective date of the ordinance codified in this chapter, the city clerk
shall mail a certified copy of the ordinance codified herein to the chairman of the State
Gambling Commission. (Ord. 2883 § 6, 1975.)
5.d-!3.80.085 Lien.
Taxes imposed under this chapter become a lien upon personal and real
property used in the gambling activity in the same manner as provided for under RCW
84.60.010. The lien shall attach on the date the tax becomes due and shall relate back
and have priority against real and personal property to the same extent as ad valorem
taxes. (Ord. 5013 § 2, 1997.)
6-~443.80.090Violation - Penalty.
Any person violating or failing to comply with any of the provisions of this chapter
shall (in addition to being liable for civil remedies in favor of the city for collection of any
delinquent taxes under the provisions of this chapter, and in addition to any penalties
that might be imposed by the state) be punished as set out in ACC 1.24.010. (Ord.
2883 § 7, 1975.)
SECTION TWO. RE-CODIFICATION OF CHAPTER 5.82 ACC.
Ordinance No. 5673
June 25, 2002
Page 3
That the current provisions of Chapter 5.82 of the Auburn City Code are hereby
repealed, and they are replaced, substituted, superseded and re-codified as Chapter
3.84 ACC, to read as follows:
Chapter 5.823.84
Telephone Business
Sections:
5.823.84.010 Defined.
5.823.84.020 Competitive telephone service defined.
5.823.84.030 License - Required.
5.823.84.040 Tax- Imposed.
5.823.84.050 Tax - Payment schedule.
5.823.84.060Tax- Deductions.
5.823.84.063Allocation of income - Cellular telephone service.
5.823.84.065Authority of administrator.
5.823.84.067 Rate change.
5.823.84.070 Records required.
5.823.84.080Tax - Late penalty.
5.823.84.090Credit and refund.
5.823.84.100 Annexation notification.
5.823.84.110Constitutionality.
5.823.84.120 Regulation promulgation.
5.823.84.130 Applicable provisions.
5.823.84.010 Defined.
A. "Telephone business" means the business of providing access to a local
telephone network, local telephone network switching service, toll service, cellular
telephone service, or coin telephone services, or providing telephonic, video, data, or
similar communication or transmission for hire, via a local telephone network, toll line or
channel, or similar communication or transmission system, and as more fully defined in
RCW 82.04.065. It includes cooperative or farmer line telephone companies or
associations operating an exchange. "Telephone business" does not include the
providing of competitive telephone service, nor the providing of cable television service,
nor the providing of broadcast services by radio or television stations.
B. "Cellular telephone service" is a two-way voice and data
telephone/telecommunications system based in whole or substantially in part on
wireless radio communications and which is not subject to regulation by the
Washington Utilities and Transportation Commission (WUTC). This includes cellular
mobile service. The definition of cellular mobile service includes other wireless radio
communications services such as specialized mobile radio (SMR), personal
communications services (PCS), and any other evolving wireless radio communications
technology which accomplishes a purpose similar to cellular mobile service. (Ord. 4722
§ 1, 1994; Ord. 3679 § 4, 1981.)
O~inance No. 5673
June 25, 2002
Page 4
5.823.84.020 Competitive telephone service defined.
"Competitive telephone service" means the providing by any person of
telecommunications equipment, apparatus, or service related to that equipment or
apparatus, such as repair or maintenance services, if the equipment or apparatus is of
a type which can be provided by persons that are not subject to regulation as telephone
companies under Title 80 RCW, and for which a separate charge is made.
Transmission of communication through cellular telephones is classified as "telephone
business" in ACC 5.823.84.010 rather than "competitive telephone service." (Ord. 4722
§ 2, 1994; Ord. 4594 § 2, 1992; Ord. 3679 § 4, 1981.)
5.823.84.030 License - Required.
On and after January 1, 1982, no person, firm or corporation shall engage in or
carry on any business, occupation, act or privilege for which a tax is imposed by ACC
5.823.84.040 of this chapter without first having obtained, and being the holder of, a
license so to do, to be known as an occupation license. Each such person, firm or
corporation shall promptly apply to the Auburn city clerk for such license upon such
forms as the clerk shall prescribe, giving such information as the clerk shall deem
reasonably necessary to enable the clerk's office to administer and enforce this chapter;
and, upon acceptance of such application by the clerk, the clerk shall thereupon issue
such license to the applicant. Such occupation license shall be personal and
nontransferable and shall be valid as long as the licensee shall continue in the business
and shall comply with this chapter. (Ord. 3679 § 3, 1981 .)
5.823.84.040Tax - Imposed.
On and after January 1, 1987, there is levied upon, and there shall be collected
from every person, firm or corporation 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, a tax for the privilege of so doing business as defined in ACC 5.823.84.010.
Upon any telephone business there shall be levied a tax equal to four and one-
half percent of the total gross operating revenues, including revenues from intrastate
tolls derived from the operation of such business within the city. Gross operating
revenues for this purpose shall not 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 this chapter. (Ord. 4185
§ 2, 1986.)
5.823.84.050Tax - Payment schedule.
The tax imposed by this chapter shall be due and payable in quarterly
installments and remittance shall be made on or before the thirtieth day of the month
next succeeding the end of the quarterly period in which the tax accrued. Such quarterly
periods are as follows:
First quarter- January, February, March
Second quarter - April, May, June
Third quarter - July, August, September
Fourth quarter - October, November, December
Ordinance No. 5673
June 25, 2002
Page 5
The first payment made hereunder shall be made by April 30, 1982, for the
three-month period ending March 31, 1982. On or before the due date the taxpayer
shall file with the city clerk a written return, upon such form and setting forth such
information as the clerk shall reasonably require, together with the payment of the
amount of the tax. (Ord. 3679 § 5, 1981.)
5.823.84.060 Tax- Deductions.
In computing the tax there shall be deducted from the gross operating revenues
the following items:
A. The amount of credit losses and uncollectibles actually sustained by the
taxpayer;
B. A deduction from gross income shall be allowed, only to cellular telephone
service companies which keep their regular books of account on an accrual basis, for
cash discounts and credit losses actually sustained by a taxpayer as a result of cellular
telephone service business which shall be phased in as follows: 20 percent of the credit
losses occurring in 1995; 40 percent of the credit losses occurring in 1996; 60 percent
of the credit losses occurring in 1997; 80 percent of the credit losses occurring in 1998;
and a complete deduction for the credit losses occurring in 1999 and thereafter.
C. Amounts derived from transactions in interstate or foreign commerce or from
any business which the city of Auburn, Washington, is prohibited from taxing under the
Constitutions of the United States or the state of Washington;
D. Amounts derived by the taxpayer from the city of Auburn, Washington;
E. That portion of the gross income derived from charges to another
telecommunications company, as defined in RCW 80.04.010, for connecting fees,
switching charges, or carrier access charges relating to intrastate toll telephone
services, or for access to, or charges for, interstate services;
F. Charges by a taxpayer engaging in a telephone business to a
telecommunications company, as defined in RCW 80.04.010, for telephone service that
the purchaser buys for the purpose of resale. (Ord. 4722 § 3, 1994; Ord. 3679 § 6,
1981.)
5.823.84.063Allocation of income - Cellular telephone service.
A. Service Address. Payments by a customer for the telephone service from
telephones without a fixed location shall be allocated among taxing jurisdictions to the
location of the customer's principal service address during the period for which the tax
applies.
B. Presumption. There is a presumption that the service address a customer
supplies to the taxpayer is current and accurate, unless the taxpayer has actual
knowledge to the contrary.
C. Roaming Phones. When the service is provided while a subscriber is roaming
outside the subscriber's normal cellular network area, the gross income shall be
assigned consistent with the taxpayer's accounting system to the location of the
originating cell site of the call, or to the location of the main cellular switching office that
switched the call.
O~inance No. 5673
June 25, 2002
Page 6
D. Dispute Resolution. If there is a dispute between or among the city and
another city or cities as to the service address of a customer who is receiving cellular
telephone services and the dispute is not resolved by negotiation among the parties,
then the dispute shall be resolved by the city and the other city or cities by submitting
the issue for settlement to the Association of Washington Cities (AWC). Once taxes on
the disputed revenues have been paid to one of the contesting cities, the cellular
telephone service company shall have no further liability with respect to additional
taxes, penalties, or interest on the disputed revenues so long as it promptly changes its
billing records for future revenues to comport with the settlement facilitated by AWC.
(Ord. 4722 §4, 1994.)
5.823.84.065Authority of administrator.
The finance director is authorized to represent the city in negotiations with other
cities for the proper allocation of taxes due under ACC 5.823.84.063. (Ord. 4722 § 5,
1994.)
5.823.84.067 Rate change.
No change in the rate of tax upon persons engaging in providing cellular
telephone service shall apply to business activities occurring before the effective date of
the change and, except for a change in the tax rate authorized by RCW 35.21.870, no
change in the rate of the tax may take effect sooner than 60 days following the
enactment of the ordinance establishing the change. The finance director shall send to
each cellular telephone service company, at the address on its license, a copy of any
ordinance changing the rate of tax upon cellular telephone service promptly upon its
enactment. (Ord. 4722 § 6, 1994.)
5.223.84.070 Records required.
Each taxpayer shall keep records reflecting the amount of his gross operating
revenues, and such records shall be open at all reasonable times to the inspection of
the city clerk, or her duly authorized subordinates, for verification of the tax returns or
for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. 3679 § 7,
1981 .)
5.823.84.080Tax- Late penalty.
If any person, firm or corporation subject to this chapter shall fail to pay any tax
required by this chapter within 30 days after the due date thereof, there shall be added
to such tax a penalty of 12 percent of the amount of such tax, and any tax due under
this chapter and unpaid, and all penalties thereon, shall constitute a debt to the city of
Auburn, Washington and may be collected by court proceedings, which remedy shall be
in addition to all other remedies. (Ord. 3679 § 8, 1981.)
5.823.84.090 Credit and refund.
Any money paid to the city of Auburn, Washington through error or otherwise not
in payment of the tax imposed or in excess of such tax shall, upon request of the
taxpayer, be credited against any tax due or to become due from such taxpayer under
Ordinance No. 5673
June 25, 2002
Page 7
this chapter or, upon the taxpayer's ceasing to do business in the city of Auburn,
Washington be refunded to the taxpayer. (Ord. 3679 § 9, 1981.)
5.823.84.100 Annexation notification.
Whenever the boundaries of the city of Auburn, Washington ars extended by
annexation, all persons, firms and corporations subject to this chapter will be provided
copies of all annexation ordinances by the first of the succeeding year. (Ord. 3679 § 10,
1981.)
5.823.84.110 Constitutionality.
The invalidity or unconstitutionality of any provision or section of this chapter
shall not render any other provision or section of this chapter invalid or unconstitutional.
(Ord. 3679 § 11, 1981.)
5.823.84.120 Regulation promulgation.
The city clerk is authorized to adopt, publish and enforce, from time to time, such
rules and regulations for the proper administration of this chapter as shall be necessary,
and it shall be a violation of this chapter to violate or to fail to comply with any such rule
or regulation lawfully promulgated under this section. (Ord. 3679 § 12, 1981.)
5.823.84.130 Applicable provisions.
The provisions of this chapter shall be subject to the provisions of ACC 5.88.060
through 5.88.100. (Ord. 3679 § 13, 1981.)
SECTION THREE. RE-CODIFICATION OF CHAPTER 5.88 ACC.
That the current provisions of Chapter 5.88 of the Auburn City Code ars hereby
repealed, and they ars replaced, substituted, superseded and rs-codified as Chapter
3.88 ACC, to rsad as follows:
Chapter 5.883.88
Utility Services
Sections:
5.883.88.010 Exercise of revenue power.
5.883.88.020Administration rules and regulations.
5.883.88.030 Occupation license - Required -Application - Issuance.
5.883.88.040 Tax - Levy.
5.883.88.050 Tax- Exempt revenues.
5.883.88.060Tax- Payment- Returns.
5.883.88.070 Revenue records.
5.S83.88.080Tax - Payment failure - Penalty and collection.
5.883.88.090Tax- Overpayments.
5.883.88.100 Violation - Penalty.
5.883.88.010 Exercise of revenue power.
Ordinance No. 5673
June 25, 2002
Page 8
The provisions of this chapter shall be deemed to be an exercise of the power of
the city to license for revenue. (1957 code § 5.42.010.)
5.9~3.88.020Administration rules and regulations.
The city clerk is authorized to adopt, publish and enforce, from time to time, rules
and regulations for the proper administration of this chapter, and it is unlawful to violate
or to fail to comply with any such rule or regulation lawfully promulgated under this
section. (1957 code § 5.42.015.)
5.9~3.88.030 Occupation license - Required -Application -Issuance.
After January 1, 1956, no person, firm or corporation shall engage in or carry on
any business, occupation, act or privilege for which a tax is imposed by ACC
5.993.88.040 without first having obtained and being the holder of a license so to do, to
be known as an occupation license. Each such person, firm or corporation shall
promptly apply to the city clerk for such license upon such forms as the clerk deems
reasonably necessary to enable him to administer and enforce this chapter; and, upon
acceptance of such application by the clerk, he shall thereupon issue such license to
the applicant. Such occupation license shall be personal and nontransferable and shall
be valid as long as the licensee continues in said business and complies with this
chapter. (1957 code § 5.42.020.)
5.993.88.040Tax- Levy.
From and after January 1, 1987, there is levied upon and there shall be collected
from every person, firm or corporation engaged in carrying on an electric power
business, natural gas business and/or artificial gas business for hire within or partly
within the city limits an annual tax for the privilege of so doing, such tax to be equal to
four and one-half percent of the total gross revenues received from the operation of
such businesses within the city limits. (Ord. 4180 § 1, 1986; Ord. 3827 § 1, 1982; Ord.
3679 § 1, 1981; 1957 code § 5.42.030.)
5.993.88.050Tax - Exempt revenues.
In computing the annual tax there shall be deducted from the gross operating
revenues the following items:
A. The amount of credit losses and uncollectibles actually sustained by the
taxpayer;
B. Amounts derived from transactions in interstate or foreign commerce or from
any business which the city is prohibited from taxing under the Constitutions of the
United States or the state. (1957 code § 5.42.040.)
5.993.88.060Tax - Payment - Returns.
The tax imposed by ACC 5.993.88.040 shall be due and payable quarterly on or
before the last day of the month following the end of each quarterly period in each year,
with the first quarterly payment payable on the last day in October, 1976. On or before
the due date the taxpayer shall file with the city clerk a written return, upon such form
and setting forth such information as the clerk shall reasonably require, together with
Ordinance No. 5673
June 25, 2002
Page 9
the payment of the amount of the tax. (Ord. 3085 § 1, 1976; 1957 code § 5.42.050.)
5.883.88.070 Revenue records.
Each taxpayer shall keep records reflecting the amount of his gross operating
revenues, and such records shall be open at all reasonable times to the inspection of
the city clerk, or his duly authorized subordinates, for verification of the tax returns or for
the fixing of the tax of a taxpayer who fails to make such returns. (1957 code §
5.42.060.)
5.883.88.080Tax - Payment failure - Penalty and collection.
If any person, firm or corporation subject to this chapter fails to pay any tax
required by this chapter within 30 days after the due date thereof, there shall be added
to such tax a penalty of 10 percent of the amount of such tax, and any tax due under
this chapter and unpaid, and all penalties thereon, shall constitute a debt to the city and
may be collected by court proceedings, which remedy shall be in addition to all other
remedies. (1957 code § 5.42.070.)
5.883.88.090Tax - Overpayments.
Any money paid to the city through error or otherwise not in payment of the tax
imposed by this chapter or in excess of such tax shall, upon request of the taxpayer, be
credited against any tax due or to become due from such taxpayer under this chapter
or, upon the taxpayer's ceasing to do business in the city, be refunded to the taxpayer.
(1957 code § 5.42.080.)
5.883.88.100 Violation - Penalty.
Any person, firm or corporation subject to this chapter who fails or refuses to apply for
an occupation license or to make the tax returns or to pay the tax when due, or who
makes any false statement or representation in or in connection with any such
application for an occupation license or such tax return, or otherwise violates or refuses
or fails to comply with this chapter, is guilty of a misdemeanor and, upon conviction
thereof, shall be punished by a fine of not to exceed $300.00 or by the imprisonment in
the city or county jails for a term of not to exceed 30 days, or by both. (1957 code §
5.42.090.)
SECTION FOUR. GENERAL SEVERABILITY.
That if any provision of this Ordinance or the application thereof to any person or
circumstance is held to be invalid, the remainder of such code, ordinance or regulation
or the application thereof to other person or circumstances shall not be affected.
SECTION FIVE. IMPLEMENTATION.
The Mayor is hereby authorized to implement such administrative procedures as may
be necessary to carry out the directives of this legislation.
Ordinance No. 5673
June 25, 2002
Page 10
SECTION SIX. EFFECTIVE DATE.
That this Ordinance shall be in full force and effect five (5) days after publication of the
Ordinance Summary. JUL -
INTRODUCED~__
PASSED:
APPROVED: JUL - ! Z01E
ATTEST:
"D~n'1elle E. Daskam, City Clerk
PUBLISHED: '~-
Ordinance No. 5673
June 25,2002
Page 11