HomeMy WebLinkAbout5797ORDINANCE NO. 5 7 9 7
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF AUBURN, WASHINGTON, AMENDING SECTIONS
3.84.040 AND 3.88.040 OF THE AUBURN CITY CODE
RELATING TO TAXES ON OUTSIDE UTILITIES
WHEREAS, within the City of Auburn, several utilities operated by companies
other than the City (outside utilities) provides services to citizens within the City of
Auburn, including electric, natural gas and telephone utilities; and,
WHEREAS, state law provides authority for municipality to impose a tax on such
utility operations, with a maximum non-voted rate of six percent; and,
WHEREAS, in the Auburn City Code (ACC), the City of Auburn provides for
taxes on outside utilities at a rate of four and one half percent, which rate is lower than
those of surrounding cities; and,
WHEREAS, in order to address the current needs of the City, it is appropriate
that the City consider utilizing the available taxing authority; and,
WHEREAS, based upon projections, it is proposed that the City increase/provide
for a five percent outside utility tax, still keeping its rate less than the maximum non-
voted rate and less than neighboring municipalities.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Amendment to Code Section. That Section 3.84.040 ACC, relating to
the City's Telephone Utility Tax, is amended to read as follows:
3.84.040 Tax- Imposed.
On and after Jc,-,u=,'¥ April 1, 19972004, 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 3.84.010. Upon any
telephone business there shall be levied a tax equal to ~
Ordinance No. 5797
December 1, 2003
Page 1 of 3
halffive 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. 5673 § 2, 2002; Ord.
4185 § 2, 1986. Formerly 5.82.040.)
Section 2. Amendment to Code Section. That Chapter 3.88.040 ACC, relating to
the City's Utility Tax, is amended to read as follows:
3.88.040 Tax - Levy.
From and after January !, !987April 1, 2004, 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 feur-ar~l
er~=~five .percent of the total gross revenues received from the
operation of such businesses within the city limits. (Ord. 5673 § 3, 2002;
Ord. 4180 § 1, 1986; Ord. 3827 § 1, 1982; Ord. 3679 § 1, 1981; 1957
code § 5.42.030. Formerly 5.88.040.)
Section 3. Implementation. The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directives of this
legislation.
Section 4. Effective Date. This Ordinance shall take effect and be in force five (5)
days from and after its passage, approval and publication as provided by law, and on
April 1, 2004.
INTRODUCED: DEC ] 2003
DEC I 2003
PASSED:
C 1~~~n03
PETER B. LEWIS
MAYOR
Ordinance No. 5797
December 1, 2003
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ATTEST:
Danielle E. Daskam,
City Clerk
PUBLISHED: ,/~- --'' ~
Ordinance No. 5797
December 1, 2003
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