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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO:
Board of Commissioners
Philip Morley, Connty Admini~trator
FROM:
Janet Silvns, Director
JeffCom 911
DATE:
October 11, 2010
RE:
Agreement with Department of Revenue for the CoJleetion of
E911 Excise Taxes
STATEMENT OF ISSUE:
Tbe State of Washington E911 Military Department is requiring that ail counties that collect
telephone excise tax contract with the Department of Revenue to have them directly collect excise
taxes from the carriers.
ANALYSIS:
RCW 82.14B.030 is being modified with regard to the authority to impose E911 excise tax on
wireline and wireless services and further revised to include language regarding the collection of
the taxes. The Department of Revenue will collect all telephone excise tax from carriers, then
distribute revenue collect for each county to their Treasurer. RCW 82.14B.060 is also modified to
eHminate provisions for the county to establish their own procedures for the collection ofE911
Taxes.
FISCAL IMPACT:
Tbe Department of Revenue can keep up to 2% handling fee. For 2011 the fee is established at
1%.
RECOMMENDATION:
Complete c::ontract, attain County Commissioner signature and return both origina1s to JeOCom.
One originaI will be returned to BOCC after State signatures are attained.
DEPARTMENT CONTACT:
Janet Silvus, ext. 788 or!Kathy Young ext. 756
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Date .
AGREEMENT FOR STATE ADMINISTRATION OF COUNTY EI\IHANCED 911 EXCISE TAXES
. THIS AGREEMENT ("AgreementlJ) is entered into by and between ~ County ("CountyJl).and
the State of Washington Department of Revenu~ ("Department") for the administr.ation of county
enhanced 911 excise taxes. This Agreement is effective January 1, 2011.
WHERE;AS, the Legislature of the State of Washington has, by Laws of 201Q, First Special Session,
ch. 19, ~ 3, authorized the County to impose enhanc~d 911 excise taxe~ on switched access lines, radio
access lines, and interconnected voice over internet protocol service lines; and
WHEREAS, Laws Of 2010, First Special Session, ch. 19, ~ 4 requires counties imposing county
enhanced 911 excise taxes to contract with the Department for the administration and collection of the
taxes; and
WHEREAS, the County has by ordinance, a copy of which is attached hereto (~he "Ordinance"),
elected to impose:
1. an enhanced 911 excise tax on switched access lines of f;-e\Jef\\.'( cents (~ per month per
line;
2. an enhanced 911 excise. tax on radio access lines of ~flh.1 cents ~ per month per line;
and
3. an enhanced 911 excise tax on interconnected voice over internet protocol service lines of
~\K2~-\."I-cents ~ per month per line; .
NqW~ THEREFORE, to provide for the administration and collection 'of the co unty enhanced 911
excise taxes imposed by the Ordinance, the parties agree as follows:
1. The Department shall ex~rusively perform all functions incident to the administrat.ion and
collection of the county enhanced 911 excise taxes imposed by the ordinance referenced above,
other than criminal prosecutions. The parties intend any notification that DOR sends to
taxpayers in the course of its administration of the taxes to also' serve as notice from the
counties.
2. The Department shall retain from the county. enhanced 911 excise taxes so collected the
amount of one percent (1%) thereof to cover administration and collection expenses incurred by
the Department. Said percentage amount shall be subject to review during January of each
'year, PROVIDED, HOWEVER, that no change in the percentage retained shall ~e effective
without an amendment to this Agreement.
3. In ~ccordance with Laws of 201~, First Special Session, ch. 19, ~ 4, the r:emainder of the county
enhanced 911 excise taxes so collected shall be deposited by the Department in, the county
enhanced 911 excise tax account in the custody of the State Treasurer. The moneys that accrue
in the county enhanced 911 excise tax account shall be distributed as provided by law.
4. Insofar as they are applicable to the administration, collection, and enforcement of enhanced
911 excise taxes, the Department shall a pply the general administrative provisions contained in
chapter 82.32 RCW as it exists or may hereafter be amended to the performance of its duties
under this Agreement. The Department shall perform its duties u,nder this Agreement so that
as far as possible the county enhanced 911 excise taxes are administered and collected
uniformly with the state enhanced 911 excise taxes. Rules to be adopted by the Department to
facilit.ate the administration and distribution of the state and county enhanced 911 excise taxes
shall be in accordance with chapter 34.05 RCW, the State Administrative Procedure Act.
5. The allocation of county enhanced 911 excise tax collections will be made by the Department to
the State Treasurer within thirty (30) days after the due da"te of the taxable period for which
c;ounty enhanced 911 excise taxes are imposed. Distribution of taxes to the County shall be
made in acc~rdance with laws of 2010, First Special Session, ch. 19, 9 5.
6. The County must notify the Department in wrUing of a, change in the county enhanced 911
e.xcise taxes no less than seventy-five (75) days befpre the effective date of the change.
7. Chapter 82.32 RCW provides a mechanism for taxpayers to seek refunds or credits for overpaid
taxes. All refunds, credits, and interest for enhanced 911 excise taxes imposed by the County
shall be charged to the County.
8. Any taxpayer payments of penalties or interest pursuant to laws of 2010, First Special Session,
ch. 19 will be deposited and distributed according to paragraphs 3'and 5 of this Agreement.
9. The "Department shall require redistribution upon ten (10) days notice to the affected county
when it determines that any county enhanced 911 excise tax has been distributed to a. county
other than the county entitled to the tax. Such redistribution shall not be made with respect to
amounts originally distribu!ed earlier than six (6) monthly p~riods before the monthly period in
which the Department determines that improper distribution occurred. If a dis.pute arises
between or among counties as to which county is entitle~ to particular funds collected under
any county's enhanced 911 excise tax, the Department shall determine which county is entitled
to the disputed funds. A dispute between a county and the Department regarding the
Department's determination shall be. resolved according to paragraph 12 of this Agreement.
10. The Department shall provide taxpayer information, documentation, and reports to the County
in accordance with the disclosure limitations of RCW 82.32.330. Upon request by the County,
the Department s~all provide: the names of all taxpayers collecting the County's enhanced 911
excis'e taxes; the number of switched access lines, radio access lines, and interconnected voice
over internet protocol service lines on which each taxpayer collected the County's enhanced 911
excise taxes by collection period; and the amount of the County's enhanced 911 excise tax, by
type of line, ~ollected and remitted by each taxpayer by collection period. The Department shall
not be obligated to provide this information more frequently than monthly. Insofar as
practicable, the Department sha II provide this information ~Iectronically. Authorized
representatives of the County reque.sting and receiving confidential information mu~t sign a
Depart'ment Secrecy Clause Affidavit, acknowledging that they understand and will comply with.
RCW 82.32.330. Amo.ng other things, RCW 82.32.330 provides that unauthorized disclosure of
confidential tax information is a misdemeanor. The County shall have the right "from time to
time to examin.e the records of the Department as they concern the County or the taxpayers of
the County subject to the county enhanced.911 excise taxes, subject to the limitations of RCW
82.32.330.
11. The parties agree to establish and maintain open lines.of comr)1unication and to work
cooperatively in order to improve administration of the county enhanced 911 excise taxes.
Either party may initiate a meeting, to be held at a'mutually convenient time and place, to share
information and to discuss matters related to administration and collection of county enhanced
911 excise taxes.
12. In .the event that a dispute arises under this Agreement, either party may elect mediation in
which the Department and County shall. each individually appoint one member to a Dispute-
Board and those members sh.all select a third member.
In the event a dispute arises between or among counties as described in paragraph 9, a county
that disagrees with the Department's resolution of the issue may elect mediation. In that,case,
each county claiming entitlement to the disputed funds and the Department shall individually
appoint one member to a Dispute Board. If the number of members is odd, then no additional
members need be appointed. Lf the number of members is even, then the members of the
. .
Di,spute Board sh~1I together select one additional member.
The Dfspute Board shall evaluate the dispute and make a written determination after
considering the relevant facts and legal authorities. The Dispute Board's determination shall be
given significant weight by all parties who.will meet after the determination is issued to resolve
the dispute. If a resolution is not reached, the dete.rmination of the Dispute Board shall be
admissible in any future legal proceeding between the parti~s concerning the dispute. Each
party shall be responsible for a proportionate share of the costs ~f the members of the Dispute
Board. This remedy is not intended to be exclusive of other remedies exi~ting in law, by statute,
or oth'erwise.
13. This Agreement shall be governed by the laws of the State of Washington.
14. To the extent permitted by law, the County agrees to defend a~d hold harm.!ess the Department
or the State of Washington from claims that challenge the authority of the County to impose the
county enhanced 911 excise taxes identified in the aforementioned Ordinance. The ,County
understands that in the event of a legal challenge to the Ordinance or otherwise, the
Department shall not be obligated to represent the County or otherwise to defend the County's
position in any proceeding relating to such challenge.
15. The parties to this Agreement will notify each other in a timely manner when they find it
necessary to request an amendment ~o this Agreement. No changes'in or additions to this
Agreement shall be made except as agreed to by both parties, reduced to writing, and executed
with the same.formalities as are required for the execution of this Agreement.
16. The following persons shaU administer this Agreement on behalf of the parties. Any notice
required by this Agreement shall be achieved by providing writt~n notice to the persons liste~
below:
Tiffany Johnson
Department of Revenue
P.O. Box 47476
Suite 301
Olympia, WA 98504-7476
360-902-7122
TiffanyJ@dor.w~.gov
ADDRESS ~ \ E.\~, oS ~, ~O(-\. ~c\ \Oa- UJf\
PHONE 3~o 3t./4-..97g~ '18339
EMAIL ~SU-\l(AS@::r~Psrv..uS
17. This Agreement represents the entire agreement between the parties and no other statements
or representations shan be deemed a part thereof. The recitals to this Agreement are
incorporated by reference and are part of the Agreement. This Agreement may be executed in
tWo original counterparts, and each counterpart shall constitute but.one and the same
instrument. Duplicate copies of the Agreement shall have the sa~e force and effect as the
original copies.
18. The prqvisions of this Agreement are intended to be severable. If any term or provision is illegal
or invalid for any reason whatsoever, such 'illegality or invalidity shall not affect the remainder of
the contract.
19. This Agreement takes effect at 12:01 AM, January 1, 2011, and shall thereafter be automatically
renewed on December 31 of each year unless one of the parties gives written notice of
termjnation on or before November 1 of each such year..
IN WITNESS WHEREOF, the State of Washington Department of Revenue and:r~ounty have
executed this Agreement as of the day and year written below.
Date
Deputy Director
Department of Revenue
Approved as to form:_On file at WA DOR_
Assistant Attorney General
State of~Washington
Date
Title ~h(\,(rt'tt\f), "&<<(~~ ColL1\"W
.:r~~ County Cofl\tl\\~'on~
Approved as to form only:
Deputy Prosecuting Attorney