HomeMy WebLinkAbout102813_ca02JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of County Commissioners
FROM: Philip Morley, County Administrato
DATE: October 28, 2013
RE: Hearing Notice for Proposed Ordinance Amending Jefferson County Code
(JCC) Chapter 3.20 Establishing a County Enhanced 911 Excise Tax on the
Sale of a Prepaid Wireless Telecommunication Service to an End User;
Hearing Scheduled for Tuesday, November 12, 2013 at 11:30 a.m. in the
Commissioners' Chambers
STATEMENT OF ISSUE: Request to set a public hearing date and publish a hearing notice for an
amendment to Chapter 3.20 of the Jefferson County Code to extend an Excise Tax supporting Enhanced
911 emergency communications to include prepaid wireless telecommunications services.
ANALYSIS: As authorized by state law, the County presently has a $0.70 Excise Tax on phones, cell
phones and VOIP to support Enhanced 911 emergency communications provided by JeffCom. During
the 2013 Legislative Session, the State Legislature passed and the Governor signed Second Engrossed
Second Substitute House Bill 1971, which gives counties the authority to set an excise tax of up to $0.70
on prepaid wireless telecommunications services. By exercising this authority, the County would be
evening the retail playing field for different telecommunication providers, and also provide additional
revenue to support emergency communications service by JeffCom to the growing number of citizens
using prepaid cellphone services.
FISCAL IMPACT: If the County adopts the recommended ordinance after the proposed public hearing,
the revenue would be collected by the State Department of Revenue beginning in 2014, and would be
distributed back to JeffCom. This additional support for existing JeffCom services could help offset a
small portion of the fees to JeffCom that all participating governments in JeffCom, including the County,
presently pay to fund JeffCom's operations.
RECOMMENDATION: Pass a motion to set a public hearing date for Tuesday, November 12, 2013 at
11:30 a.m. and authorize the attached Hearing Notice.
RE ED BY:
slip Morl ounty Administrato
Date
Publish one (1) time: October 30, 2013
Bill: Jefferson County Commissioners Office
P.O. Box 1220
Port Townsend, WA 98368
Account: 15829 Non - Departmental
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a public hearing regarding a Proposed Ordinance Amending
Jefferson County Code (JCC) Chapter 3.20 Establishing a County Enhanced 911 Excise Tax on the
Sale of a Prepaid Wireless Telecommunication Service to an End User is scheduled by the Jefferson
County Board of Commissioners for Tuesday November 12. 2013 at 11:30 a.m. in the
Commissioners' Chamber, County Courthouse, 1820 Jefferson Street, Port Townsend, WA 98368.
This Ordinance, if adopted, would impose an excise tax of $.70 on the purchase of a pre -paid wireless
telecommunications device and it would amend existing sections of the relevant County Code to
reflect current excise tax amounts and current procedures. A summary of the sections of the
Ordinance follows:
Section One - States the intent of the Ordinance is to amend Chapter 3.20
Section Two - Amends 3.20.040 regarding handling of excise tax revenues by Treasurer
Section Three- Amends 3.20.080 regarding excise tax on radio access lines (cell phones)
Section Four - Repeals two sections of Ch. 3.20 no longer needed
Section Five - Creates a new article relating to the new excise tax on pre -paid cell phones
Section Six - Creates definitions for the new article relating to pre -paid cell phones
Section Seven - Imposes at tax of $.70 on each retail transaction where a pre -paid cell phone is
purchased.
Section Eight -Lists the duties for sellers of pre -paid cell phones
Section Nine -Lists criminal penalties for violations of the new state law regarding the excise tax
imposed on the sale of a pre -paid cell phone
Section Ten - Severability clause
A complete copy of the proposed Ordinance will be provided to the requester upon request to the
County Commissioners at P.O. Box 1220, Port Townsend, WA 98368, 360 - 385 -9100 or e -mail
request to jeflbocc(aco.jefferson.wa.us
Approved this 28b day of October, 2013.
JEFFERSON COUNTY BOARD OF COMMISSIONERS
John Austin, Chairman
STATE OF WASHINGTON I DRAFT
County of Jefferson
An Ordinance Establishing a County )
Enhanced 911 Excise Tax on the Sale ) ORDINANCE NO.
of a Prepaid Wireless Telecommunication )
Service to an End User )
WHEREAS, the communications industry is undergoing rapid change due to technological advances
and deregulation; and
WHEREAS, the State Legislature concluded Washington's tax system has not kept pace with this
industry; and
WHEREAS, there are a vast array of state taxes and other charges on communications services in
Washington that were established for a far different technological, legal, and structural landscape than
what exists today; and
WHEREAS, the Legislature enacted and the Governor signed 2E2SHB 1971 to address the vast
disparity in tax policy for communications services in an effort to minimize the existing inequity,
inefficiency, and administrative complexity while preserving revenue sufficiency.
NOW, THEREFORE, BE IT ORDAINED by the Jefferson County Board of County Commissioners as
follows:
Section One: That Jefferson County Code, Chapter 3.20, entitled "Enhanced 911 Emergency System
Excise Taxes" be amended as described below.
Section Two: That current Jefferson County Code §3.20.040 is amended to read in its entirety as
follows:
"There is hereby created a special account known as the "Jeffcom General Fund" account
with the County Treasurer. The Treasurer may change the name of this account at his or
her discretion, but not its function. All excise taxes levied pursuant to this chapter shall
be placed in said account for the purpose of paying all or any part of the cost of all
expenses related to the planning, acquisition, installation, addition, improvement,
replacement, repair, maintenance or operation of an Enhanced 911 telephone system,
including reimbursement to the local exchange companies for actual costs of
administration and collection of the tax imposed."
Section Three: That current Jefferson County Code §3.20.080 is amended to read in its entirety as
follows:
"There is hereby levied a per month excise tax in the amount listed in JCC 1.20.0 10 on
each radio access line whose place of primary use, as defined in RCW 82.14B.020(7) as
currently enacted or hereafter amended, is within Jefferson County, said excise tax to
assist in financing the Jefferson County emergency communications system."
DRAFT
Section Four: That current Jefferson County Code §3.20.060 and §3.20.085 are hereby repealed and not
replaced.
Section Five: That there be added to Chapter 3.20, a new Article entitled "Prepaid Wireless
Telecommunications Service."
Section Six: That within the new Article to be made part of Chapter 3.20 there be added a new Section
entitled "Definitions" which shall read in its entirety as follows:
`Consumer' shall have for purposes of this Chapter the same definition as found at RCW
82.14B.020(1), as that state law may hereafter be amended.
`Prepaid wireless telecommunications service' shall have for purposes of this Chapter the
same definition as found at RCW 82.14B.020(8), as that state law may hereafter be
amended.
`Seller' shall have for purposes of this Chapter the same definition as found at RCW
82.14B.020(13), as that state law may hereafter be amended.
'Subscriber' shall have for purposes of this Chapter the same definition as found at RCW
82.14B.020(14), as that state law may hereafter be amended.
Section Seven: That within the new Article to be made part of Chapter 3.20 there be added a new
Section entitled "Imposed" which shall read in its entirety as follows:
"Effective January 1, 2014, there shall be imposed upon a Consumer whose retail
transaction for the purchase of a Prepaid wireless telecommunications service occurs
within Jefferson County a county enhanced 911 excise tax of seventy cents ($0.70) per
retail transaction."
Section Eight: That within the new Article to be made part of Chapter 3.20 there be added a new
section called "Duties of a Seller" which shall read in its entirety as follows:
"A Seller, as defined in this Article, shall have the following duties with respect to the
sale of a Prepaid wireless communication service to a Consumer: to 1) collect from the
Consumer the full amount of the excise tax described in this Article, 2) insure and
require the uniformity of the size of the excise tax described in this Article for all such
retail transactions, 3) provide to the Consumer a sales invoice or instrument of sale which
separately states the taxes to be collected pursuant to this Article, and 4) remit the excise
tax collected pursuant to this Article to the WA State Department of Revenue on a tax
return or form provided by that state agency."
Section Nine: That within the new Article to be made part of Chapter 3.20 there be added a new section
called "Criminal Penalties" which shall read in its entirety as follows:
2
j' DRAFT
"(1) Any Seller that appropriates or converts the tax collected under Ch. 82.14B RCW or
Ch. 3.20 to its own use or to any use other than the payment of the tax to the extent that
the money collected is not available for payment on the due date as prescribed in this
chapter is guilty of a gross misdemeanor.
(2)Any Seller that fails or refuses to collect the tax due under Ch. 82.14B RCW or Ch.
3.20 JCC as required with intent to violate the provisions of this chapter or to gain some
advantage or benefit, either direct or indirect is guilty of a misdemeanor."
Section Ten: Severability. If any section, subsection, sentence, clause or phrase of this Ordinance, or
its application to any person or circumstances, is held invalid the remainder or application of this
Ordinance to other persons or circumstances shall not be affected.
Approved this day of November, 2013
SEAL:
ATTEST:
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
John Austin, Chair
Phil Johnson, Member
Carolyn Avery, David Sullivan, Member
Deputy Clerk of the Board
APPROVED AS TO FORM:
David Alvarez,
Deputy Prosecuting Attorney