HomeMy WebLinkAbout02/02/2011 7B DATE SUBMITTED
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL 7108
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SUBJECT: Ordinance N5/4 for Use Committee Meeting Date 01 -26 -2011
Tax on Natural or Manufactured Gas COUNCIL MEETING Date 02 -02 -2011
Department Finance
Presenter Becky Hasart
Phone 360- 473 -5722
SUMMARY: On May 20, 2008, the Court of Appeals issued a decision clantdng the "place of use"
for local option brokered natural gas tax as the place where the customer first takes control of the
product and not the place of consumption For Bremerton, this means that Cascade Natural Gas no
longer pays the 6% utility tax on the gas delivered to the Puget Sound Naval Shipyard, as PSNS takes
control of the gas at a location outside our city limits.
To rectify this loophole, many cities are amending their municipal codes to levy a brokered natural
gas use tax. The attached ordinance will create this taxing authority for our BMC This change does
not currently affect any existing businesses as the PSNS has a federal exemption. But this change will
allow us to already have the authority on the books should new customers within our city limits
consume brokered natural gas. Anyone already subject to the 6% utility tax on natural gas would not
be affected
ATTACHMENTS: Proposed ordinance — An Ordinance.. creating Chapter 3 49. entitled "Use Tax
— Natural or Manufactured Gas " p rAL-0- is — A o • 5141
FISCAL IMPACTS (Include Budgeted Amount): None.
APPROVALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY
FINANCE DIRECTOR-
MAYOR.
COMMITTEE CHAIR G
COUNCIL PRESIDENT. CONSENT AGENDA ❑
GENERAL BUSINESS A
PUBLIC HEARING ❑
RECOMMENDED MOTION:
Move to approve Ordinance No. 5 creating Chapter 3 49 of the Bremerton Municipal Code
entitled "Use Tax — Natural or Manufactured Gas "
COUNCIL ACTION: EO Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action