ORD NO. 2016-19 AMENDING BIMC CHAPTER 5.08 RELATED TO UTILITY TAXESORDINANCE NO. 2016-19
AN ORDINANCE of the City of Bainbridge Island, Washington, relating to
utility tax and amending Chapter 5.08 of the Bainbridge Island Municipal Code
(BIMC) to levy a tax on all utilities for the purpose of providing sufficient
revenue to carry on the normal activities of the City as required by law.
WHEREAS, utility taxes may be levied on the gross operating revenues earned by
private utilities from operations within the boundaries of a city and by a city's own municipal
utilities; and
WHEREAS, the Utility Advisory Committee (UAC) recommended that the City Council
eliminate the utility tax charged against the City water utility, sewer utility, and stormwater
utility based on the UAC's concern that the tax is inequitable because it only applies to the City
of Bainbridge Island systems and does not apply to other water and sewer systems providing
service to Bainbridge Island customers; and
WHEREAS, the City Council considered the recommendation of the UAC at its July 12,
2016, meeting, as well as information provided by the City Manager related to the City's
financial position; and
WHEREAS, the City's ongoing revenues are not likely to keep pace with ongoing
expenditures; and
WHEREAS, the City's capital projects demand, including street, facility, and non -
motorized improvements, include many unfunded projects and will not be met without General
Fund contributions; and
WHEREAS, the City Council directed staff to bring forward an ordinance to levy a 6%
tax on water and sewer utilities not owned by the City for the purpose of providing sufficient
revenue to carry on the normal activities of the City as required by law; and
WHEREAS, the City Council considered the ordinance on September 13, 2016, and a
public hearing was held on September 27, 2016; and
WHEREAS, on November 7, 2016, the City Council discussed this topic further in the
context of budget discussions and directed staff to bring an ordinance which extends the utility
tax to all publicly -owned utilities meaning, in this context, utilities that are owned or managed by
municipal corporations, and to all for-profit utilities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS:
Section 1. Section 5.08.040 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.08.040 Tax -
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 eity-ewned utility that is owned or managed by a municipal corporation or a
for-profit entity, 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 &y -owned utility that is owned or managed y a municipal corporation or a
for-profit entity 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 `.� 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.
D. Upon any person selling or otherwise providing coaxial or other cable distribution of
entertainment or information including television, radio, computer data, or any other
electronically transmitted information, a tax equal to a percentage of the total gross
income derived from the operation of such business within the city which percentage
shall be the lower of the percentage charged to utility providers under Chapter 3.88
BIMC or the percentage charged to utility providers under other subsections of this
section.
Section 2. Section 5.08.050 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.08.050 Tax - Payment.
A. The tax imposed by this chapter shall be due and payable in quarterly installments and
remittance shall be made on or before the last day of the month next succeeding the end
of the quarterly period in which the tax accrued. These quarterly periods are as follows:
2
1. First quarter, January, February, March;
2. Second quarter, April, May, June;
3. Third quarter, July, August, September;
4. Fourth quarter, October, November, December.
B. The first payment made under this chapter shall be made by April 30th for the 3 -
month period ending March 31 st. On or before said due date the taxpayer shall file with
the Finance director ok�fk a written return, upon such form and setting forth such
information as the finance director clerk shall reasonably require, together with the
payment of the amount of the tax.
Section 3. Section 5.08. 100 of the Bainbridge Island Municipal Code is hereby deleted in its
entirety.
ena�nn�an exations
i
Section 4. Section 5.08.110 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.08.110 Enforcement.
The finance director elk is authorized to adopt, publish and enforce, from time to time,
such rules and regulations for the proper administration of this chapter as shall be
necessary, and it shall be a violation of this chapter to violate or to fail to comply with
any such rule or regulation lawfully promulgated under this chapter.
Section 5. In accordance with RCW 35.21.706, this ordinance is subject to referendum. A
referendum petition may be filed within seven (7) days of passage of this ordinance with the City
Clerk. Within ten (10) days, the City Clerk shall confer with the petitioner concerning form and
style of the petition, issue the petition an identification number, and secure an accurate, concise,
and positive ballot title from the City Attorney. The petitioner shall have thirty (30) days in
which to secure the signatures of not less than fifteen (15) percent of the registered voters of the
city, as of the last municipal general election, upon petition forms which contain the ballot title
and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the
signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify
the referendum measure to the next election ballot within the city or at a special election ballot as
provided pursuant to RCW 35.17.260(2).
Section 6. This ordinance shall take effect and be in force as of January 1, 2017,
PASSED BY THE CITY COUNCIL this 22"d day of November, 2016.
APPROVED BY THE MAYOR this 22"d day of November, 2016.
ATTEST/AUTHENTICATE:
�n VW
Rosalind 1)..Lassoff, CNAC, City Clerk
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NUMBER:
Val Tolle son, Mayo17
September 7, 2016
November 22, 2016
December 2, 2016
January 1, 2016
2016-19
Cl