ORD 98-26 CITY'S UTILITY TAXORDINANCE NO. 98-26
AN ORDINANCE of the City of Bainbridge Island, Washington,
relating to the City' s utility tax; amending Sections 5.08.040 and
5.08.120 of the Bainbridge Island Municipal Code; and repealing
Section 5.08.030 of the Bainbridge Island Municipal Code.
WHEREAS, the City's utility tax imposed under BIMC 5.08.040 is a financial hardship on the
many small private water service providers operating within the City; and
WHEREAS, the City is the only municipal corporation that sells, transmits, or distributes water
within the City and is the only entity providing storm drainage service within the City; and
WHEREAS, in addition to the City, one other municipal corporation provides sewer service
within the City, but judicial decisions limit a city' s authority to impose a business and occupation tax on
another municipal corporation; now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBIRDGE ISLAND, WAHSINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. Section 5.08.030 of the Bainbridge Island Municipal code is repealed.
Section 2.
follows:
Section 5.08.040 of the Bainbridge Island Municipal Code is amended as
Tax - Levy. There is levied upon and there shall be collected from, every person, firm or
corporation engaged in carrying on the following 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 as hereinafter defined:
A. Upon any city owned utility selling, transmitting or distributing water a tax to be equal
to a percent of the total gross income derived from the operation of such business within the city
as established by resolution of the city council.
B. Upon any city owned utility providing sewer service, a tax to be equal to a percent of the
total gross income from the operation of such business within the city as established by resolution
of the city council.
C. Upon any city owned utility providing storm drain service, a tax to be equal to a percent
of the total gross income from the operation of such business within the city as established by
resolution of the city council.
Section 3.
follows:
Section 5.08.120 of the Bainbridge Island Municipal Code is amended as
Violation - Penalty. Any person, firm or corporation subject to this chapter who fails or refuses
to file a tax return or to pay tax when due, or who makes any false statement or representation in
or in connection with a tax return, or otherwise violates or refuses or fails to comply with this
chapter, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a
fine not to exceed $500.00 or by imprisonment not to exceed six months, or by both.
Section 4.
passage, approval and publication as provided by law.
PASSED by the City Council this 16th day of July, 1998.
APPROVED by the Mayor this 17th day of July, 1998.
This ordinance shall take effect and be in force five days from and after its
ATTEST/AUTHENTICATE:
~p. KASPER, City Clerk
APPROVED AS TO FORM:
GI-I~ SUTTON, Mayor
ROD P. KASEGUMA, City Attorney
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLICATION DATE:
EFFECTIVE DATE:
ORDINANCE NO.:
May 29, 1998
July 16, 1998
July 22, 1998
July 27, 1998
98-26