There is hereby imposed upon the Power, Water, and Rail Divisions of the Department of Public Utilities taxes upon the gross earnings of said divisions and each of them at the following rates of gross earnings, for the benefit of the General Fund of the City: upon the Power Division, 6 percent, except for gross earnings derived from cable television activity for which the rate shall be 8 percent; and upon the Water and Rail Divisions, 8 percent; which taxes however shall be subordinate to any payments required to be made by any of said divisions from said gross earnings into any fund or funds heretofore or hereafter created for the payment of the principal of and interest on revenue bonds of the City heretofore or hereafter issued.
Department of Public Utilities Activity | Tax Rate |
|---|---|
Power Division | 6% |
Cable Television | 8% |
Water and Rail Systems | 8% |
(Ord. 27297 § 1, 2004-11-23; Ord. 28339 Ex. A, 2015-12-08; Ord. 29092, 2026-02-24)
There is hereby imposed upon the Solid Waste Utility Division of the Department of Environmental Services, and upon the Sewer Utility of the Department of Public Works, for the benefit of the General Fund of the City, a tax upon the gross earnings of said utilities of 8 percent of said gross earnings, except that earnings from the activity involved in the sale of electricity or natural gas shall be taxed at the rate of 6 percent. The tax shall, however, be subordinate to any payments required to be made by any of said divisions from said gross earnings into any fund or funds heretofore or hereafter created for the payment of the principal of and interest on revenue bonds of the City heretofore or hereafter issued. Said taxes are hereby found to be reasonable and not disproportionate to the amount of taxes which said divisions or subdepartments would pay if operated as private utilities.
Department of Environmental Services Activity | Tax Rate |
|---|---|
Solid Waste and Sewer Utility Divisions | 8% |
Sale of Electricity or Natural Gas | 6% |
(Ord. 27297 § 1, 2004-11-23; Ord. 28339 Ex. A, 2015-12-08; Ord. 28933 Ex. A, 2024-01-16; Ord. 29092, 2026-02-24)
As used in this chapter, the term “gross earnings” shall mean and include the consideration, whether money, credits, rights, or property expressed in terms of money proceeding or accruing by reason of the transaction of business and includes gross proceeds of sales, compensation for rendition of services, gains realized from interest, rents, royalties, fees, commissions, dividends, and other emoluments, however designated, all without any deduction on account of cost of property sold, materials used, labor, interest, losses, discount, and any other expense whatsoever.
(Ord. 27297 § 1, 2004-11-23)
In computing the gross earnings tax due under the provisions of this chapter, there shall be deducted from the measure of the tax the following items:
A.
Uncollected accounts, if the books of the utility are on an accrual basis as distinguished from a cash basis.
B.
Amounts received through contemplated or actual condemnation proceedings or on account of any federal, state, or local public work project.
C.
Amounts received as compensation or reimbursement for damages to any property of the utility.
D.
Taxes collected as trust funds. Amounts collected from consumers to satisfy third-party obligations to pay taxes such as the retail sales tax, use tax, or customer excise tax.
E.
Amounts received for street lights.
F.
Fire service, hydrant rental.
G.
Inter-departmental rent or other inter-departmental expense payments (i.e. postage, phone, etc.).
H.
Amounts received from surcharge to water rates charged outside City limits users for system improvements necessary to meet City standards.
I.
Service of Collecting, Hauling and/or Processing Commercial Recyclable Materials.
1.
For tax periods January 1, 2024, through December 31, 2024, one hundred percent (100%) of amounts received from the service of collecting commercial recyclable materials.
2.
For tax periods beginning January 1, 2025, Solid Waste Management may deduct a percentage of its gross income derived from the service of collecting, hauling and/or processing commercial recyclable materials. The Recycling Rate is calculated and certified annually as outlined in TMC § 12.09.070E. The annual certified Recycling Rate determines the amount of tax deduction for the subsequent calendar year as follows:
Tier | Recycling Rate | Tax Deduction |
|---|---|---|
0 | 0%-1% | None |
1 | 2% - 25% | 12.5% |
2 | 26% - 50% | 37.5% |
3 | 51% - 75% | 62.5% |
4 | 76% - 100% | 100% |
J.
Effective January 1, 2020, amounts received as grants.
(Ord. 27297 § 1, 2004-11-23; Ord. 28416 Ex. A, 2017-03-21; Ord. 28933 Ex. A, 2024-01-16; Ord. 29006 Ex. A, 2024-12-17)
(Overpayment of tax. Ord. 28208 Ex. A, 2014-03-18; Ord. 28593 Ex. A, 2019-07-02; repealed by Ord. 29009 Ex. A, 2024-12-17)