HomeMy WebLinkAbout11/20/2018 3AAGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Ordinance No. 5359 amending
Section 3.50.050 of the Bremerton Municipal
Code entitled "Persons Subject to Tax —
Amount" to allocate Stormwater Fees or
Taxes Collected for Street Improvements
3A
Study Session Date: November 14, 2018
COUNCIL MEETING Date: November 20. 2018
Department: City Council
Presenter: Eric Younger
Council President
Phone: (360) 473-5280
SUMMARY: The proposed ordinance amends Section 3.50.050 of the Bremerton Municipal Code
entitled "Persons Subject to Tax — Amount" relating to the assessments of the utility taxes for water,
wastewater, and stormwater utilities amending language relating to the allocation of stormwater fees
or taxes collected to the Transportation Capital Fund and the Residential Street and Sidewalk Fund
for funding street improvements within the City.
ATTACHMENTS:
1) Proposed Ordinance No. 5359 amending section 3.50.050 of the Bremerton Municipal Code
FISCAL IMPACTS (Include Budgeted Amount):
This action will change 2019 estimated ending fund balances for the following funds:
• General Fund ($166,952)
• Transportation Capital Improvement ($250,427)
• Residential Streets Fund $417,379
STUDY SESSION AGENDA: o Brief Presentation (Full discussions held during Budget Workshops)
STUDY SESSION ACTION: ❑ Consent Agenda
RECOMMENDED MOTION:
0 General Business ❑ Public Hearing
Move to pass Ordinance No. 5359 amending Section 3.50.050 of the Bremerton Municipal Code
entitled "Persons Subject to Tax — Amount" to allocate Stormwater Fees or Taxes Collected for Street
Improvements.
COUNCIL ACTION: q Approve
Form Updated 01/07/15
❑ Deny ❑ Table ❑ Continue ❑ No Action
ORDINANCE NO. 5359
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending Section 3.50.050 of the
Bremerton Municipal Code entitled Persons Subject to Tax —
Amount" relating to the allocation of stormwater fees or taxes
collected for street improvements.
WHEREAS, the City Council desires to amend Section 3.50.050 of the Bremerton
Municipal Code entitled "Persons Subject to Tax — Amount" to change the percentage of
stormwater fees or taxes collected by the City that is allocated to the Transportation Capital Fund
and the Residential Street and Sidewalk Fund for the purpose of funding street improvements
within the City and to make other related amendments; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION]. Section 3.50.050 of the Bremerton Municipal Code entitled
"Persons Subject to Tax — Amount" is hereby amended to read as follows:
3.50.050 PERSONS SUBJECT TO TAX - AMOUNT.
In addition to other taxes or fees that may be imposed or levied by the City, there is
hereby levied upon all persons (including the City) engaging in business within the City a fee or
tax to be collected as follows:
(a) Gas. Upon every person engaging in the business of transmitting, distributing or
the selling of manufactured or natural gas, a fee or tax equal to sixerp cent (6%) per -6& of the
total gross income from such business conducted within the City.
(b) Water. Upon every person engaging in the business of providing water utility
service, a fee or tax equal to fifteen and one-halferp cent (15.5%) per-eefA of the total gross
income from such business conducted within the City. The total gross income from the business
of providing water utility service includes the "gross income from timber sales" of the utility as
that term is defined in this chapter.
(c) Wastewater. Upon every person engaging in the business of providing wastewater
utility service, a fee or tax equal to twenty en rcent (20%) hof the total gross income from
such business conducted within the City.
(d) Stormwater. Upon every person engaging in the business of providing stormwater
utility service, a fee or tax equal to twentyerp cent (20%) per-sen_of the total gross income from
such business conducted within the City. E_glAy (80) : feei +All of the fees or taxes collected
under this subsection shall be dedicated for street improvements with fifty percent (50%)
allocated and transferred to the Transportation Capital Fund and fifty percent (50%) allocated
and transferred to the Residential Street and Sidewalk Fund , unless
otherwise allocated by the City Council.
(e) Cable. Upon every person engaging in the business of transmitting television
signals by means of a cable distribution system commonly known as television cable service, a
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Allocation of Stormwater Taxes
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fee or tax equal to sevenerp cent (7%) peA of the total gross income from such business
conducted within the City.
(f) Solid Waste. Upon every person engaging in the business of providing solid waste
collection service, a fee or tax equal to nine and one-halferp cent (9.5%) pereexA of the total
gross income from such business conducted within the City.
(g) Electricity. Upon every person engaging in the business of producing,
transmitting, distributing or selling electricity, a fee or tax equal to sixerg cent (6%) persefttof
the total gross income from such business conducted within the City.
(h) Telephone. Upon every person engaged in carrying on a telephone business for
hire or for sale of a commodity or a service within or partly within the corporate limits of the
City, a tax for the privilege of so doing business equal to sixerp cent (6%) percent of the total
gross income rendered within the City.
(1) Deductions. In computing the telephone tax, there shall be deducted from
the gross operating revenues the following items:
(i) Amounts derived from transactions in interstate or foreign
commerce or from any business which the City is prohibited from taxing under the Constitutions
of the United States or the State of Washington.
(ii) Amounts derived from that portion of network telephone service,
as defined in RCW 82.04.065, which represents charges to another communications 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 or
charges for network telephone service that is purchased for the purpose of resale.
(iii) Adjustments made to a billing or to a customer account or to a
communications 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.
(iv) A complete deduction from gross income shall be allowed for
credit losses, 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 by a taxpayer
as a result of telephone service business.
(2) Allocation of Income - Cellular Telephone Service.
(i) 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.
(ii) 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.
SECTION 2. Section 1— Effective Date. The amendments to Section 3.50.050
of the Bremerton Municipal Code entitled "Persons Subject to Tax — Amount" as set forth in
Section 1 above shall be effective January 1, 2019.
SECTION 3. Severability. If any one or more sections, subsections, or sentences
of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the
validity of the remaining portion of this ordinance and the same shall remain in full force and
effect.
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SECTION 4. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the r a day of N00n'YIb�j' , 2018.
ERIC YO1 ER, ouncil President
Approved this o day of N t7V CXYli—r3-Pit/ 12018.
ATTEST:
� ,, �" 1, -C"
GREG EELER, Mayor
APPROVED AS TO FORM:
RO ER A. LUBOVICH, City Attorney
PUBLISHED the day of QQgeAY16f-y' , 2018.
EFFECTIVE the�- f}'Z day of —L)ErfM J�yeY— , 2018.
ORDINANCE NO. 535q
R:\Legal\Legal\Ordinances\Finance\BMC 3.50.050 Stonnwater Taxes.docx
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