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A tax is levied, in such amount as shall be determined by the city council from time to time by ordinance, said tax to be imposed upon and collected from every person, firm, corporation or other entity engaged in or carrying on the following types of businesses within or partly within the corporate limits of the city, said tax being for the privilege of being allowed to do business as defined in this section:

A. Upon everyone engaged in or carrying on a telephone business, a tax based on the total gross income from such business in the city. Gross income 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 tax imposed by this chapter.

The term “telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone service, 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. In determining gross income from such telephone business, including intrastate toll telephone service, the taxpayer shall include 100 percent of the gross income derived from such business in the city. The term “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;

B. A tax on the sale, delivery or distribution of electricity and electrical energy and for the privilege of carrying on said business, said tax to be based on the total gross income from such business in the city; provided, however, that there shall not be any tax levied for installation charges of electrical units;

C. A tax on the sale, delivery, distribution or furnishing of natural gas for domestic, business or industrial consumption and for the privilege of carrying on said business, such tax to be based on the total gross income from such business in the city; provided, however, that there shall not be any tax levied for installation charges of gas energy units;

D. A tax based on the total gross income derived from the business of furnishing community antenna television (cable television) services in the city;

E. A tax based on the total gross income derived from the business of collecting, handling or transporting garbage and refuse within the city;

F. Upon everyone engaged in or carrying on a cellular telephone business or service, a tax based on the total gross income from such business. “Cellular telephone business or service” means a 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 regulation 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 specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service. “Cellular telephone business or service” does not mean telephone business or competitive telephone service as previously defined.

1. There shall be excluded from the total gross income upon which the tax is computed the following:

a. That portion of the gross income derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services;

b. Charges by a taxpayer engaging in a telephone business to a telecommunications company, as defined in RCW 80.04.100, for telephone service that the purchaser buys for the purpose of resale;

c. 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;

d. Charges to cellular telephone service subscribers passed on to compensate for the cost to the company of the tax imposed by this chapter;

2. 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. 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;

3. 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;

4. 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 no 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;

5. The city manager or his/her appointed designee is authorized to represent the city in negotiations with other cities for the proper allocation of taxes due under this subsection F;

6. 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 city manager or his/her designee 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;

G. A tax equal to eight percent effective November 1, 2020, through October 31, 2023, and a tax equal to 5.3 percent effective on and after November 1, 2023, of the total gross income derived from the sale, delivery, distribution, furnishing or maintenance of water services for residential, commercial, or public consumption and for the privilege of carrying on said business, such tax to be based on the total gross income from such business in the city; provided, however, that there shall not be any tax levied for water service connection or installation charge;

H. A tax equal to eight percent effective November 1, 2020, through October 31, 2023, and a tax equal to 5.3 percent effective on and after November 1, 2023, of the total gross income derived from the furnishing, operation, or maintenance of sewer services for residential, commercial, or public consumption and for the privilege of carrying on said business, such tax to be based on the total gross income from such business in the city; provided, however, that there shall not be any tax levied for sewer service connection or installation charges;

I. A tax equal to eight percent effective November 1, 2020, through October 31, 2023, and a tax equal to 5.3 percent effective on and after November 1, 2023, of the total gross income derived from the furnishing, operation, or maintenance of storm water services for residential, commercial, or public use and for the privilege of carrying on said business, such tax to be based on the total gross income from such business in the city; provided, however, that there shall not be any tax levied for storm water service fee-in-lieu or installation charges. (Ord. 20C-20 § 1; Ord. 17C-11 § 1; Ord. 12C-12 § 1; Ord. 09C-13 § 1; Ord. 95C-002 § 1).