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ORDIN/%NCE NO. 4 7 2 2
AN ORDINANCE OF THE CITY OF AUBURN, WASHINGTON,
CODIFIED CITY ORDINANCE SECTIONS 5.82.010, 5.82.020,
AND ADDING NEW SECTIONS 5.82.063, 5.82.065 and
PERTAINING TO CELLULAR TELEPHONE SERVICE TAXES.
AMENDING
5.82.060
5.82.067
THE
ORDAIN AS FOLLOWS:
Section 1.
follows:
5.82.010
CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, DO
Section 5.82.010 is hereby amended as
Defined.
"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. 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 providinq of
broadcast services by radio or television stations.
"Cellular telephone service" is a two-way voice and
data teleDhone/telecommunications system based in
whole or substantially in Dart on wireless radio
communications and which is not subject to
regulation by the Washinqton 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 (SMRI. personal communications services (PCS),
and any other evolvinq wireless radio communications
technoloov which accomDlishes a purDose similar to
cellular mobile service.
Ordinance No. 4722
December 16, 1994
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~ Auburn City Code Section 5.82.020 is hereby
amended to read as follows:
5.82.020 Competitive telephone service defined.
"Competitive telephone service" means 'the providing
by any person of tele((Dheme))communications 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
throuah cellular telephones is classified as "telephone
business" in Section 5.82.010 rather than "competitive
telephone service."
Section 3. Auburn City Code Section 5.82.060 is hereby
amended to read as follows:
5.82.060 Tax - Deductions.
In computing the tax there shall be deducted from
the gross operating revenues the following items:
The amount of credit losses and uncollectibles
actually sustained by the taxpayer;
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 bv a taxpayer as a result of cellular
telephone service business which shall be phased in
as follows: twenty percent (20%) of the credit
losses occurrina in 1995; forty percent (40%) of the
credit losses occurrino in 1996: sixty percent (60%)
of the credit losses occurrino in 1997; eighty
Percent (80%) of the credit losses occurring in
1998/ and a complete deduction for the credit losses
occurrino in 1999 and thereafter.
((B)) ~. Amounts derived from transactions in interstate or
foreign commerce or from any business which the city
Ordinance No. 4722
December 16, 1994
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of Auburn, Washington, is
under the Constitutions of
state of Washington;
prohibited from taxing
the United States or the
((e)) ~. Amounts derived by the taxpayer from the city of
Auburn, Washington;
That portion of the oross income derived from
charoes to another telecommunications company, as
defined in RCW 80.04.010, for connectinq fees,
switchin~ charaes, or carrier access charges
relatinq to intrastate toll telephone services, or
for access to. or charaes for. interstate services;
Charoes by a taxpayer enoaoino 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.
Seotion 4. A new Auburn City Code Section 5.82.063 is
hereby adopted as follows:
5.82.063 Allocation 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.
Be
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.
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.
Ordinance No. 4722
December 16, 1994
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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 not
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.
8eotion 5. A new Auburn City Code Section 5.82.065 is
hereby adopted as follows:
5.82.065 Authority of A~ministrator.
The Finance Director is authorized to represent the
city in negotiations with other cities for the
proper allocation of taxes due under Section
5.82.063.
Seotion 6. A new Auburn City Code Section 5.82.065 is
hereby adopted as follows:
5.82.067 Rate ohange.
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.
Ordinance No. 4722
December 16, 1994
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Section 7. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry
out the directions of this legislation.
Section S. This Ordinance shall take effect and be in
force five days from and after its passage, approval and
publication as provided by law.
INTRODUCED:
PASSED:
APPROVED:
ATTEST:
CHARLES A. BOOTH
MAYOR
Robin Wohlhueter,
City Clerk
ORM:
Michael J. Reynolds,
Acting City Attorney
Ordinance No. 4722
December 16, 1994
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