HomeMy WebLinkAbout12-01-2003 ITEM VIII-A-1CITY OF
1 71
AGENDA BILL APPROVAL FORM
WASHINGTON
Agenda Subject
Date:
Taxes
November 21, 2003
-Utility
Department:
Attachments:
Budget Impact:
Finance
Ordinance No. 5797
Administrative Recommendation:
City Council introduce and adopt Ordinance No. 5797.
Background Summary:
Ordinance No. 5797 amends Auburn City Code sections 3.84.040 and 3.88.040 relating to taxes on
outside utility taxes. The ordinance will increase the City's Telephone Utility Tax from four and one half
percent to five percent; increase the City's Utility Tax relating to electric power business, natural gas
business and/or artificial gas business from four and one half percent to five percent; and include a cable
communication business tax at five percent.
N1201-4
F6.8
Reviewed by Council & Committees:
Reviewed by Departments & Divisions:
❑ Arts Commission COUNCIL COMMITTEES:
❑ Airport
❑ Human Resources
❑ Hearing Examiner ❑ Finance
❑ Building ❑ M&O
❑ Human Services ❑ Municipal Serv.
❑ Cemetery ❑ Mayor
❑ Library Board ❑ Planning & CD
❑ Finance ❑ Parks
❑ Park Board ❑ Public Works
❑ Fire ❑ Planning
❑ Planning Comm. ❑ Other
❑ Legal ❑ Police
❑ Public Works
Action:
Committee Approval: ❑Yes ❑No
Council Approval: ❑ Yes []NO Call for Public Hearing
Referred to Until
Tabled Until
Councilmember: Poe Staff: Coleman
Meeting Date: December 1, 2003 Item Number: VIII.A.1
AUBURN* MORE THAN YOU IMAGINED
ORDINANCE 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, telephone and cable television 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 ja-nuafy-April 1, 4072004, 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 four and eee-
Ordinance No. 5797
Page 1 of 3
November 20, 2003
laalffive 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 wary —1, 1WApril 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, cable communication
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 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:
PASSED:
APPROVED:
Ordinance No. 5797
Page 2 of 3
November 20, 2003
PETER B. LEWIS
MAYOR
ATTEST:
Danielle E. Daskam,
City Clerk
Ddniel B. HPi
City Attorney
PUBLISHED:
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Ordinance No. 5797
Page 3 of 3
November 20, 2003