The provisions of this chapter shall be deemed to be an exercise of the powers of the city to license for revenue.
(Ord. 249 § 1, 1957; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
A. "Gross income"
means the value proceeding or accruing from the performance of the particular utility occupation involved, including operations incidental thereto, but without any deduction on account of the cost of the service provided, the cost of the commodity furnished or sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expenses whatsoever paid or accrued and without any deduction on account of losses.
B. "Cellular telephone service"
means 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 regulations 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 special mobile radio (SMR), personal communications services (PCS) and any other evolving wireless radio communications technology which accomplishes the same purposes as cellular mobile service.
C. "Competitive telephone service"
means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, 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 RCW Title 80 and for which a separate charge is made.
D. "Network telephone service"
means the providing by any person of access to local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. "Network telephone service" does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio or television stations.
E. "Telecommunications company"
includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees, or receivers appointed by any court whatsoever, and every city or town owning, operating or managing any facilities used to provide telecommunications for hire, sale, or resale to the general public within this state.
F. "Telephone business"
means the business of providing network telephone service as defined in this section. It includes cooperative or farmer line telephone companies or associations operating an exchange.
G. "Telephone service"
means competitive telephone service or network telephone service, or both, as defined in this section.
(Ord. 1300 § 1, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
No person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by PMC § 3.04.030 without first having obtained and being the holder of a Pacific business license as required by Chapter 5.02 PMC.
(Ord. 249 § 2, 1957; Ord. 1300 § 2, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
From and after October 13, 1996, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on a water service, a sewer service, a stormwater service, a cable television service, a garbage service, a telephone business, a cellular telephone service, an electric power business, a natural gas business, and an artificial gas business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city, the tax for the privilege of doing such business as set forth in this section.
A.
There is levied upon every person, firm or corporation engaged in or carrying on a telephone business, a tax equal to six percent of the total gross income from such business in the city during the period for which the tax is due. In determining gross income from such telephone business, including intrastate toll telephone service, the taxpayer shall include 100 percent of the gross income received from such business in the city.
B.
There is levied upon each person, firm or corporation engaged in or carrying on the business of cellular telephone service, a tax equal to six percent of the total gross income from such business in the city during the period for which the tax is due.
C.
There is levied upon every person, firm or corporation engaged in or carrying on an electric power business, a tax equal to six percent of the total gross income from such business within the city during the period for which the tax is due.
D.
There is levied upon every person, firm or corporation engaged in or carrying on a natural, manufactured, or mixed gas business, a tax equal to six percent of gross income from such business within the city during the period for which the tax is due.
E.
There is levied upon each person, firm or corporation engaged in or carrying on the business of water service, a tax equal to 12.5 percent of the total gross income from such business in the city during the period for which the tax is due for the tax year of 2025. For tax years following 2025, there is levied a tax equal to 15 percent of the total gross income from such business in the city during the period for which the tax is due.
F.
There is levied upon each person, firm or corporation engaged in or carrying on the business of sewer service, a tax equal to 12.5 percent of the total gross income from such business in the city during the period for which the tax is due for the tax year of 2025. For tax years following 2025, there is levied a tax equal to 15 percent of the total gross income from such business in the city during the period for which the tax is due.
G.
There is levied upon each person, firm or corporation engaged in or carrying on the business of stormwater service, a tax equal to 12.5 percent of the total gross income from such business in the city during the period for which the tax is due for the tax year of 2025. For tax years following 2025, there is levied a tax equal to 15 percent of the total gross income from such business in the city during the period for which the tax is due.
H.
There is levied upon each person, firm or corporation engaged in or carrying on the business of garbage service, a tax equal to 12.5 percent of the total gross income from such business in the city during the period for which the tax is due for the tax year of 2025. For tax years following 2025, there is levied a tax equal to 15 percent of the total gross income from such business in the city during the period for which the tax is due.
I.
There is levied upon each person, firm or corporation engaged in or carrying on the business of cable television service, a tax equal to 12.5 percent of the total gross income from such business in the city during the period for which the tax is due for the tax year of 2025. For tax years following 2025, there is levied a tax equal to 15 percent of the total gross income from such business in the city during the period for which the tax is due.
(Ord. 249 § 3, 1957; Ord. 411 § 1, 1967; Ord. 624 § 1, 1976; Ord. 856 § 1, 1982; Ord. 898 § 1, 1983; Ord. 924 § 1, 1983; Ord. 1300 § 3, 1996; Ord. 1600 §§ 2, 3, 2004; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
In computing the tax imposed under this chapter, the following items may be deducted from gross income:
A.
The amount of credit losses and uncollectibles actually sustained by the taxpayer.
B.
Amounts from a business which the city is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States.
C.
That portion of the gross income derived from charges to another telecommunications company for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to or charges for interstate services for network telephone service that is purchased for the purpose of resale.
D.
Charges by a taxpayer engaging in a telephone business to a telecommunications company for telephone service that the purchaser buys for the purpose of resale.
E.
Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was not properly a debt of a customer.
F.
There may be deducted from the total gross income upon which the fee or tax is computed the amount of state and city excise taxes imposed directly upon persons using the utility services and collected in trust for payment to the state and city by the utility company.
(Ord. 249 § 4, 1957; Ord. 1300 § 4, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
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 (cellular telephone company) 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.
D.
Dispute Resolution. If there is a dispute among one or more other cities, and/or taxpayer, 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 taxpayer shall have no further liability with respect to additional taxes on the disputed revenue, so long as the taxpayer changes its billing records for future revenues to comport with the settlement facilitated by AWC.
(Ord. 1300 § 5, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
The tax imposed by PMC § 3.04.030 shall be due and payable quarterly on the last day of the month following the end of each quarterly period in each year. On or before the due date, the taxpayer shall file with the city a written return, upon such form setting forth such information as the clerk shall reasonably require, together with the payment of the amount of the tax.
(Ord. 249 § 5, 1957; Ord. 820 § 1, 1981; Ord. 1300 § 6, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
Each taxpayer shall keep records reflecting the amount of the taxpayer's gross income and any claimed deductions or exemptions from gross income. Such records shall be open at all reasonable times to the inspection of the city clerk, or the city clerk's designee, for the verification of a tax return or for the fixing of the tax of a taxpayer who fails to make such returns.
(Ord. 249 § 6, 1957; Ord. 1300 § 7, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
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.
(Ord. 249 § 7, 1957; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
Any money paid to the city through error or otherwise not in payment of the tax imposed hereby or in excess of such tax shall, upon request by the taxpayer, be credited against any tax due or to become due from such taxpayer hereunder or, upon the taxpayer's ceasing to do business in the city, be refunded to the taxpayer.
(Ord. 249 § 8, 1957; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
The city clerk is hereby authorized to adopt, publish and enforce, from time to time, such rules and regulations for the proper administration of this chapter to violate or to fail to comply with any such rule or regulation lawfully promulgated hereunder.
(Ord. 249 § 11, 1957; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)
No changes 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 city 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. 1300 § 8, 1996; Ord. 2102 § 2, 2025; Ord. 2110 § 2, 2025)