Title 08 Taxation and Revenue
Chapter 08.10 Utilities, Franchise Taxes
Section 08.10.040 Exemptions
- There may be exempted from the total gross income upon which the license fee or tax is computed revenues derived from business which the City is prohibited from taxing under the constitution or laws of the State of Washington or the United States, or the charter of the City; and any amount collected by the taxpayer for the United States, the state, or the City as excise taxes levied or imposed directly upon the taxpayer’s customers for the sale or distribution of property or services.
- There may be exempted from the total gross income upon which a license fee or tax is imposed amounts derived from the sale of commodities to persons in the same public service business as the sellers, for resale as such within this state. This exemption is allowed only with respect to those business activities taxed under SMC 8.10.030(A)(1), (A)(2) or (A)(6), or any other public service business as defined in RCW 82.16.010(10) which furnishes water, electrical energy, natural or manufactured gas, or any other commodity in the performance of public service businesses.
- There may be exempted from the total gross income upon which the license fee or tax is computed the amount of state excise taxes imposed pursuant to chapter 82.18 RCW upon persons using the service of a solid waste collection business and collected for payment to the state by the solid waste collection business.
- There may be exempted from the total gross income upon which the license fee or tax is imposed under SMC 8.10.030(A)(1) revenues otherwise taxable derived by a taxpayer from the business of selling electricity for use in the process of manufacturing aeronautical brake components, to the extent said revenues exceed one hundred thousand dollars during a calendar year for which said tax is due. In the event this provision is determined unenforceable for any reason, it shall not affect the validity of the tax or any other provision.
- There may be exempted from the total gross income upon which the license fee or tax is imposed under SMC 8.10.030(A)(2) revenues otherwise taxable derived by a taxpayer arising from the business of selling natural or manufactured gas for use in the process of manufacturing aeronautical brake components, to the extent said revenues exceed one hundred thousand dollars during a calendar year for which said tax is due. In the event this provision is determined unenforceable for any reason, it shall not affect the validity of the tax or any other provision.
- Exemption for Collection of Source-Separated Recyclable Materials.
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- There may be exempted from the total gross income upon which the license fee or tax is imposed under SMC 8.10.030(A)(3) revenues derived from providing the service of collecting source-separated recyclable materials as follows:
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- Residential Recycling.
Revenues derived from providing a residential curbside recycling collection service to the public in accord with the local comprehensive solid waste management plan adopted pursuant to chapter 70.95 RCW.
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- Commercial and Other Recycling.
Revenues derived from the service of collecting commercial or other recyclable materials not included in subsection (F)(1)(a) of this section. This exemption is limited to materials actually resold, computed in proportion to weight, as follows:
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- Any weight added by processing or treatment after collection is subtracted from the weight as sold to obtain the allowable weight as sold; and
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- Revenues are multiplied by a fraction, the numerator of which is the allowable weight as sold and denominator of which is the weight as collected.
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- Unless otherwise approved by the department under circumstances where the taxpayer’s accounting and business practices provide easily verifiable proof of the proper amounts eligible for exemption, exemptions under this subsection (D) of this section are allowed through a refund only. The taxpayer must have timely paid all taxes for the period, including any amounts for which the exemption may be claimed, and must file an application for refund, on forms provided by the department, within six months of the date on which payment was due.
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- This exemption does not apply to any energy-recovery or fuel-use process, nor in any case where materials collected have not been sold for commercial reuse within one hundred days from the date of collection. This period may be extended when a taxpayer shows to the department’s satisfaction that market conditions necessitate a longer period for sale.
- Taxpayers providing pager telephone business service, previously classified within a more generic telephone business service class, may claim an exemption for pager service revenues upon which the former generic telephone business tax under SMC 8.10.030(A)(6) may have applied, provided this exemption is limited to such revenues taxable before April 1, 2001. In addition, the department must receive a claim for this exemption no later than five p.m., December 31, 2001, after which the exemption opportunity expires.
- Taxpayers accounting on an accrual basis may exempt net bad debts from the total gross income upon which a license fee or tax is computed if such items have been previously included and taxed as income.
Date Passed: Monday, May 7, 2007 Effective Date: Wednesday, June 20, 2007 Recodification ORD C34025 Section 1 |
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