HomeMy WebLinkAbout4803 Ordinance - Amending PMC Section 5.45.040 Tax - Levied
Ordinance – Amending PMC 5.45.040 - 1
ORDINANCE NO. 4803
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING PASCO MUNICIPAL CODE SECTION 5.45.040 “TAX –
LEVIED” TO ADJUST THE UTILITY TAX RATE FOR CITY-PROVIDED
WATER, SEWER, IRRIGATION, STORMWATER, AND PROCESS WATER
RECLAMATION FACILITY SERVICES; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE OF JANUARY 1, 2026.
WHEREAS, the City of Pasco (City) is authorized under RCW 35A.82.020 and PMC
Chapter 5.45 to levy an occupation tax on the gross operating revenues of utilities operating within
the City; and
WHEREAS, the City Council discussed General Fund sustainability and utility tax options
during the September 8, 2025 Council Workshop, and the November 10, 2025 Council Workshop;
and
WHEREAS, the City’s current utility tax rate under PMC 5.45.040 is 8.5% for most utility
categories, with no state-law rate limitation for water, sewer, stormwater, and irrigation services;
and
WHEREAS, Council finds that a modest adjustment to the utility tax rate for City-
provided utilities will enhance fiscal sustainability for essential services while producing minimal
impacts to ratepayers; and
WHEREAS, the City Council desires to amend PMC Section 5.45.040 Tax-Levied to
adjust the rate for City-provided utility services while leaving rates for non-City providers
unchanged.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. That section 5.45.040 of the Pasco Municipal Code entitled “Tax - Levied
specifically, are hereby amended and shall read as follows:
Ordinance – Amending PMC 5.45.040 - 2
PMC 5.45.040 Tax – Levied
There is levied upon, and there shall be collected from, every person, firm or
corporation engaged in carrying on the following businesses for hire or for sale of
a commodity or a service within or partly within the corporate limits of the City of
Pasco the tax for the privilege of so doing business as hereinafter defined:
(1) Upon any telephone business there shall be levied a tax equal to eight and one-
half percent of the gross operating revenues derived from the operation of such
businesses within the City of Pasco.
(2) Upon any business selling or distributing electricity and electrical energy, a tax
to be equal to eight and one-half percent of the total gross operating revenue derived
from sales of such electricity to ultimate users within the City of Pasco; provided,
however, that there shall not be any tax levied for the installation charges of
electrical service units.
(3) Upon any business selling, manufacturing, or distributing natural gas for
residential, commercial or industrial consumption, a tax to be equal to eight and
one-half percent of gross operating revenues from such sales within the limits of
the City of Pasco; provided, however, that there shall not be any tax levied for the
installation charges of gas service units. The provisions of this subsection do not
apply to sales by a gas distribution business of:
(a) Compressed natural gas or liquefied natural gas, where the compressed
natural gas or liquefied natural gas is to be sold or used as transportation
fuel; or
(b) Natural gas from which the buyer manufactures compressed natural gas
or liquefied natural gas, where the compressed natural gas or liquefied
natural gas is to be sold or used as transportation fuel.
(4) Upon any business selling a cable or microwave signal by subscription for
television, radio, or other audio-visual purposes, a tax equal to eight and one-half
percent of gross operating revenues from such sales within the limits of the City of
Pasco.
(5) Upon any business selling solid waste collection and disposal service, a tax of
eight and one-half percent of gross operating revenues from such sales within the
limits of the City of Pasco.
(6) Upon any business, public or private, selling domestic water via a public water
supply and distribution system and selling sanitary sewer service via a collection
grid, a tax of eight and one-half ten percent of gross operating revenues from such
sales within the limits of the City of Pasco.
Ordinance – Amending PMC 5.45.040 - 3
(7) Upon any business, public or private, selling irrigation water, a tax equal to
eight and one-half ten percent of gross operating revenues from such sales within
the limits of the City of Pasco.
(8) Two and one-half percent of the tax levied and collected upon telephone,
electrical energy and natural gas business shall be used for anticrime
purposes. [Ord. 4175, 2014; Ord. 3399 § 1, 1999; Ord. 2707 § 1, 1988; Ord. 2300
§ 4, 1981; Code 1970 § 5.32.040.]
Section 2. Severability. If any section, subsection, sentence, clause, phrase or word
of this Ordinance should be held to the invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or
constitutionality of any other section, subsection, sentence, clause phrase or word of this
Ordinance.
Section 3. Corrections. Upon approval by the city attorney, the city clerk or the code
reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s errors
or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or
numbering or referencing of ordinances or their sections and subsections.
Section 4. Effective Date. This Ordinance shall take full force and effect on January
1, 2026, after approval, passage and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, on this 17th day of
November, 2025.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: _____________________________
Sunday, November 23, 2025