6.06.050 Occupations subject to tax – Amounts

6.06.050 Occupations subject to tax – Amounts.

There are levied and shall be collected annual license fees or occupation taxes against the persons on account of the business activities, and in the amounts to be determined by the application of the rates against gross income, as follows:

A. Telephone Business. Upon every person engaged in or carrying on a telephone business, there shall be levied a tax equal to the following percentages:

1. 7.614 percent in 1987;

2. 7.345 percent in 1988;

3. 7.076 percent in 1989;

4. 6.807 percent in 1990;

5. 6.538 percent in 1991;

6. 6.269 percent in 1992;

7. 6.000 percent in 1993 and each year thereafter of the total gross operating revenues, derived from the operation of such businesses within the city; provided, however, that the minimum fee shall not be less than $100.00 per tax year. Gross operating revenue for this purpose shall not include charges which are passed on to the subscribers by a telephone company pursuant to tariffs required by the regulatory order to compensate for the cost to the company of the tax imposed by this chapter.

B. Telegraph Business. Upon every person engaged in or carrying on the telegraph business, a fee or tax equal to three and one-half percent of the total gross income from such business in the city during this fiscal year next preceding the tax year for which the license is required; provided, however, that the minimum fee or tax shall not be less than $100.00 per tax year.

1. Upon every person engaged in or carrying on the business of selling or furnishing gas for hire, a fee or tax equal to the following percentages:

a. 6.6 percent in 1985;

b. 6.5 percent in 1986;

c. 6.4 percent in 1987;

d. 6.3 percent in 1988;

e. 6.2 percent in 1989;

f. 6.1 percent in 1990;

g. 6.0 percent in 1991 and each year thereafter of the total gross income from such business conducted within the city with a minimum fee or tax of $100.00 per tax year; provided, however, that a fee or tax of one percent shall apply to that portion of gross income derived from a single use site in excess of $250,000 per month. Suppliers claiming the reduced rate for volume sales to single users shall supplement monthly returns required by BMC 6.06.070(B) as required by the finance director.

2. a. In accordance with applicable state law, the tax of this subsection (C) of this section shall apply to every person for the privilege of using natural gas or manufactured gas in the city as a consumer. The rate of tax herein shall be applied to the value of the article used by the taxpayer for domestic, business, or industrial consumption.

b. The “value of the article used” shall have the meaning set forth in RCW 82.12.010(1) (as from time to time amended), and shall not include any amounts that are paid for the hire or use of a natural gas business in transporting the gas which are subject to and do pay the tax imposed by subsection (C)(1) of this section.

c. There shall be a credit against the tax levied under subsection (C)(1) of this section in an amount equal to any tax paid by:

i. The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to this section by another state with respect to the gas for which a credit is sought; or

ii. The person consuming the gas upon which a use tax similar to the tax imposed by this subsection was paid to another state with respect to the gas for which a credit is sought.

d. The use tax hereby imposed shall be paid by the consumer. The administration and collection of the tax hereby imposed shall be by the Washington State Department of Revenue pursuant to RCW 82.14.050.

D. Upon every person engaged in or carrying on the business of selling or furnishing electric light and power, a fee or tax equal to the following percentages:

1. 6.6 percent in 1985;

2. 6.5 percent in 1986;

3. 6.4 percent in 1987;

4. 6.3 percent in 1988;

5. 6.2 percent in 1989;

6. 6.1 percent in 1990;

7. 6.0 percent in 1991 and thereafter of the total gross income from such business in the city; provided, however, that the minimum fee or tax shall not be less than $100.00 per tax year; and provided further, that this tax shall not apply to persons or entities selling electric power to a utility otherwise taxed under this subsection (D) which ultimately resells power to consumers.

E. Water Suppliers. Upon every person, including any water department, engaged in or carrying on the business of selling or furnishing water for domestic or commercial purposes, a fee or tax equal to 18.25 percent of the total gross income from such activity, such tax to be paid covering each month’s business activity and to be paid within 30 days following the conclusion of the next preceding month. Such tax shall be applicable to the extraterritorial revenues of such businesses if their principal place of business is situated within the corporate limits of Bellingham and if the system which generates the extraterritorial revenue is interconnected with a portion of the system located within the city and at least 75 percent of the total system (by value) is located within the city of Bellingham. If the water utility collects a fee to acquire and preserve land within the Lake Whatcom watershed to protect the water quality of Lake Whatcom, the fees collected for that program shall only be subject to a fee or tax equal to 11.5 percent.

F. Upon every person engaged in or carrying on the business of community antenna TV, also known as cable TV, there is provided a fee or tax to be levied and collected as provided herein, equal to six percent of the total gross income from such business from any source whatsoever, commencing on the first day of January, 1983.

G. Sewer Collection and Treatment. Upon every person, including any sewer utility, engaged in or carrying on the business of collecting and creating sewerage waste within the city, a fee or tax equal to 11.5 percent of the total gross income from such activities, such tax to be paid covering each month’s business activities, and to be paid within 30 days following the conclusion of such month.

H. Repealed by Ord. 2019-12-042.

1. With regard to cellular telephone businesses, which are taxes in accordance with subsection (A) of this section, a deduction from gross income shall be allowed, only to those companies which keep their regular books of account on an accrual basis, for cash discounts, credit losses actually sustained, or to reverse a billing or charge that had been made as a result of third-party fraud or other crime not properly a debt of a customer to be phased in as follows: 20 percent for those occurring in 1995, 40 percent for those occurring in 1996, 60 percent for those occurring in 1997, 80 percent for those occurring in 1998, and a complete deduction for those occurring in 1999 and thereafter.

2. With regard to allocation among taxing jurisdictions based on service address:

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 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 between or among the city and other 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 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.

J. Storm and Surface Water. The city’s storm and surface water utility shall pay a tax equal to 11.5 percent of the total gross income from the utility, such tax to be paid covering each month’s business and to be paid within 30 days following the conclusion of such month. [Ord. 2019-12-042; Ord. 2010-12-081; Ord. 2002-12-101; Ord. 2001-02-009; Ord. 2000-11-070; Ord. 2000-05-022; Ord. 1998-05-024; Ord. 10800 § 1, 1996; Ord. 10611 § 2, 1995; Ord. 10503, 1994; Ord. 10412, 1993; Ord. 10277 § 1, 1992; Ord. 10170, 1991; Ord. 10164 § 1, 1991; Ord. 9760 § 1, 1988; Ord. 9616, 1986; Ord. 9537, 1986; Ord. 9376 §§ 1 – 3, 1984; Ord. 9366 § 1, 1984; Ord. 9268 § 1, 1983; Ord. 9260 §§ 1 – 3, 1983; Ord. 9214 § 1, 1983; Ord. 9154 §§ 1 – 3, 1982; Ord. 9122 § 1, 1982; Ord. 9040 § 3, 1981; Ord. 8988 § 1, 1981; Ord. 8954 § 1, 1981; Ord. 8921 § 1, 1980; Ord. 8886 § 2, 1980; Ord. 8630 § 1, 1977; Ord. 8629 § 1, 1977; Code 1980 at §§ 15.04.050, 15.04.060].