Ordinance 3883-22 - Laserfiche WebLink

EVERETT WASHINGTON ORDINANCE NO. 3883-22 An ORDINANCE relating to Utility Taxes,AMENDING EMC 3.28.050 and EMC 3.28.090 WHEREAS, A. The City's Utility Tax Code, Chapter 3.28 EMC, requires modifications periodically to clarify or update the tax administration process. B. The City's Utility Tax Code tax obligation begins at the first dollar of gross receipts generated in Everett. C. The City's Utility Tax Code does not allow annual reporting for telephone utility taxpayers. D. Aligning the Utility Tax Code with the Business & Occupation Tax Code will make the tax rules easier for businesses to follow and improve efficiency in administration of the code. NOW,THEREFORE,THE CITY OF EVERETT DOES ORDAIN: Section 1. Effective January 1, 2023, EMC 3.28.050 is amended as follows: There is hereby levied and shall be collected a tax on account of the business activities described herein,and in the amounts to be determined by the application of the rates against gross income, as follows: A. Upon every person engaged in or carrying on a telephone business, a tax equal to six percent of the gross income derived from the operation of such business within the city of Everett. 1. The utility tax imposed in this section shall not apply to any telephone business whose gross income derived from the operation of such business within the city of Everett is equal to or less than $400 during any calendar year, or is equal to or less than$100 during any quarter if reporting on a quarterly basis. The yearly $400 threshold and the quarterly $100 threshold will adjusted annually as set forth in subsection (A)(2) of this section. 2. Tax Obligation Threshold Adjustment. The office of the clerk shall administratively adjust annually the yearly threshold provided for in subsection (A)(1) of this section in an amount equal to the annual change in the June-to- June Consumer Price Index (CPI-U) (1982-84=100) for the Seattle-Tacoma- Bremerton area as published by the United States Department of Labor (CPI), compounded from the base year of 2023. To calculate the adjustment, the yearly threshold established in subsection (A)(1) of this section will be multiplied by one plus the compounded annual change in the CPI between the current year and 2023.The amount of the yearly threshold so calculated will be adjusted in increments of one hundred dollars, rounding upward to the nearest