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Council weighs proposal for 6% municipal tax on cell-phone service
Summary
City legal staff and the mayor discussed a draft ordinance to add a 6% municipal utility tax on cellular telecommunications (taxing providers as businesses), legal steps required (60 days' notice to carriers, WUTC issues, Internet Tax Freedom Act exclusions) and an early revenue estimate of about $5,000–$6,000 per month.
City legal staff and council discussed a draft ordinance on April 21 to impose a 6% municipal utility tax on cellular and telecommunications services.
Legal staff explained the proposed tax would generally be assessed on providers as a business-and-occupation style tax, then passed through on customer bills after providers obtain necessary approvals from the Washington Utilities and Transportation Commission. "The…
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