HomeMy WebLinkAbout4175 OrdinanceORDINANCE NO.
AN ORDINANCE of the City of Pasco, Washington, Amending Section
3.98.022 "Natural Gas - Use Tax Imposed"; and Amending Section 5.32.040 "Tax -
Levied" Providing for a Tax Exemption for Natural Gas Fuel used for Transportation.
WHEREAS, the Washington State legislature has by ESSB 6440 determined that the
construction and operation of liquefied natural gas plants and compressed natural gas refueling
stations uses transportation fuel and provides positive job creation, economic development,
environmental benefits, and lower fuel costs for the benefit of the citizens of the State of
Washington; and
WHEREAS, this legislation creates an exemption to both the utility tax and broker natural
gas use tax for transportation fuels intended to encourage the location of this beneficial industry
which the City, by the advance adoption of these exemptions, seeks to encourage locating facilities
within the community. NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS
FOLLOWS:
Section 1. That Section 3.98.022 entitled "Natural Gas - Use Tax Imposed" of the Pasco
Municipal Code, shall be and hereby is amended and shall read as follows:
3.98.022 NATURAL GAS - USE TAX IMPOSED. There is hereby levied and shall
be collected from every person within the City a use tax for the privilege of using natural gas within
the City as a consumer. The tax shall be levied and collected in an amount equal to the value of the
article used by the taxpayer multiplied by the rate imposed upon the occupation or business activity
of furnishing or selling natural gas as provided in Section 5.32.040 (C) as now or hereafter amended.
The tax imposed by this section does not apply to the use of natural gas compressed natural ag_s_or
liquefied natural gas if the consumer uses the gas for transportation fuel The amount shall be
subject to such exemptions and exclusion and procedures as provided by RCW 82.12.022 and the
rules of the State of Washington Department of Revenue adopted in accord therewith. (Ord. 3912,
2009.)
Section 2. That Section 5.32.040 entitled "Tax - Levied" of the Pasco Municipal Code
shall be and hereby is amended and shall read as follows:
5.32.040 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:
A) Upon any telephone business there shall be levied a tax equal to eight and
one -half percent (8.5 %) of the gross operating revenues derived from the operation of such
businesses within the City of Pasco.
B) Upon any business selling or distributing electricity and electrical energy, a
tax to be equal to eight and one -half percent (8.5 %) 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.
C) 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 (8.5 %) 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.
1) 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
2) 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
D) 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
(8.5 %) of gross operating revenues from such sales within the limits of the City of Pasco.
E) Upon any business selling solid waste collection and disposal service, a tax of
eight and one -half percent (8.5 %) of gross operating revenues from such sales within the
limits of the City of Pasco.
F) 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 percent (8.5 %) of gross operating revenues from such sales within
the limits of the City of Pasco.
G) Upon any business, public or private, selling irrigation water, a tax equal to
eight and one -half percent (8.5 %) of gross operating revenues from such sales within the
limits of the City of Pasco.
H) Two and one -half percent of the tax levied and collected upon telephone,
electrical energy and natural gas business shall be used for anti -crime purposes. (Ord. 3399
Sec. 1, 1999; Ord. 2707 Sec. 1, 1988; Ord. 2300 Sec. 4, 1981.)
Section 3. This Ordinance shall take full force and effect five (5) days after its approval,
passage and publication as required by law.
PA. SED by the City C unc of the City of Pasco, Washington, and approved as provided by
law this 0 day of O Gft , 2014.
Matt Watkins, Mayor
Ast 0 Appr o Form:
Debbie Clar , ity Jerk . err, City Attorney
Ordinance - Natural Gas for Transportation