Ord 2114 - Privilege Tax PGE
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COUNCIL BILL NO. 1504
ORDINANCE NO. 2114
AN ORDINANCE IMPOSING A PRIVILEGE TAX ON PORTLAND GENERAL ELECTRIC
COMPANY, AN OREGON CORPORATION, IN THE AMOUNT OF 1.5 PERCENT OF
DEFINED GROSS REVENUES, REGULATING USE OF THE REVENUES THEREBY
DERIVED, DECLARING AN EMERGENCY AND SETTING AN EFFECTIVE DATE.
WHEREAS, the city has passed an ordinance granting a non-exclusive franchise
to Portland General Electric Company ("Company") for a duration of ten (10) years
from January 1, 1993; and
WHEREAS, said ordinance contemplates the enactment of a tax by the city on
Company revenues as allowed by state law over and above the franchise fee; and
WHEREAS, state law (ORS 221.4501 permits taxation by cities of public
utilities which are actually using the streets, alleys or highways of the city in an
amount not exceeding five percent (5%) of defined gross revenues; and
WHEREAS, pursuant to Oregon P.U.C. regulations, the current franchise
ordinance of the city includes a franchise fee of only 3 JI2 % (three and one-half
percent) of those revenues; and
WHEREAS, the capital improvement needs identified to the Council by the
Woodburn Transportation Force far exceed the revenues available, and
WHEREAS, revenue generated by the privilege tax can be used to fulfill some
of the transportaion needs of the community, NOW, THEREFORE
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. PrivileQe Tax ImDosed. There is hereby imposed a privilege tax on
the gross revenues of Portland General Electric Company, an Oregon corporation, in
the amount of 1 JI2 % (one and one-half percent) of those revenues. As used herein,
"gross revenues" means revenues received by Company from the sale of electric
energy within the city, less net uncollectibles. Gross revenue shall include revenues
from the use, rental or lease of operating facilities of the Company other than
residential-type space and water heating equipment. Gross revenues shall not include
proceeds from the sale of bonds, mortgage or other evidence of indebtedness,
securities or stocks, sales at wholesale prices by one public utility to another when
the utility purchasing the service is not the ultimate consumer, or revenue from joint
pole use.
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COUNCIL BILL NO. 1504
ORDINANCE NO. 2114
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The privilege tax provided in this ordinance is in addition to the franchise fee being
paid by the Company pursuant to Ordinance No. 2109, which grants to PGE a non-
exclusive franchise within the city. That ordinance remains in full force and effect.
Section 2. Payment Dates. The tax provided in this ordinance shall be paid
annually and shall be due for each calendar year or fraction thereof, on or before the
first day of April following the end of the calendar year for which the tax is due; with
the first payment, for gross revenues collected during 1994, due on or before April
1,1995.
Section 3. Interest on Late Payments. In the event PGE fails to pay the tax on
or before the due date, interest shall be owed on the tax from the due date to the date
on which payment is received by the city, compounded daily.
Section 4. Use of Proceeds. The proceeds derived from this ordinance shall
be dedicated toward funding of transportation improvement projects identified in the
city's Capital Improvement Program.
Section 5. Emeroencv Clause and Effective Date. This ordinance being
necessary for the immediate preservation of the public peace, health and safety, an
emergency is declared to exist and this ordinance shall take effect on January 1,
1994, and shall remain in effect until modified or rescinded by ordinance of the City
Council.
Approved as to form~.h ~ / Z/ '2-/7.:1
City Attorney Date
APPROVED: i~ ~
L N ELLEY, AYOR
Passed by the Council December 13, 1993
Submitted to the Mayor December 14, 1993
Approved by the Mayor December 16, 1993
Filed in the Office of the Recorder December 16, 1993
ATTEST:~~ ~^,,^o-d-
Mary enn~t, City Recorder
City of Woodburn, Oregon
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COUNCIL BILL NO. 1504
ORDINANCE NO. 2114