An ordinance amending the Forks Municipal Code with regard the application of the utilities tax on all customers of the City’s water and sewer system.



WHEREAS, the City of Forks municipal code Chapter 3.15.040 imposes a six percent utilities tax upon gross receipts of water and sewer users whose service is located within the City;



WHEREAS, the Supreme Court noted in Burba v. Vancouver, 113 Wn. 2d 800 (1989), that a City’s utility tax could be applied to non-resident customers “if the taxable event occurs substantially within the City and that activity constitutes an integral part of the provision of utility services to the Utility’s nonresident customers….”



WHEREAS, the city’s water and sewer utility services are predominately provided from within the City (wells are located within the City’s limits, the main distribution system is centered in the City, treatment facilities are located within the City, maintenance and crews are distributed from a facility within the City);



WHEREAS, “residents and non-residents receive direct and indirect benefits from the City” including the safeguarding of the water supply, access to the City’s capital and bonding capacity for upgrades and repairs of the distribution system, etc.;



NOW, The City Council of the City of Forks do ordain as follows:



Section 1. Amending FMC 3.15.040.  Said paragraph is amended below with the strike out and or underlined text  indicating the proposed amendment:



Imposition of six percent tax upon sewer and water services.



From and after December 1, 1999, there is levied upon and shall be collected from the City’s Sewer and water department a tax equal to six percent of the total gross receipts from the accounts of the ultimate users within the City of such sewer and water services.  This tax is levied for the act or privilege of engaging in such business activities within the City of Forks where the main distribution, treatment, administration and maintenance centers are located.



Section 2. This amendment shall not be construed as being retroactive on non-city accounts and shall be effective on the date noted herein.





Section 3. Effective Date.  This ordinance shall take effect within five days of its publication in the City’s journal of record.



Passed this ____ day of _____, 2004.



___________________________

Nedra Reed, Mayor

Attested to and Authenticated by:                                       Approved as to Form:



______________________                                                    ____________________

R. Daniel Leinan                                                                        William R. Fleck
Clerk/Treasurer                                                                        Attorney/Planner