The URL can be used to link to this page

Ord 2145 - Priv Tax NW Natural COUNCIL BILL NO. 1636 ORDINANCE NO. 2145 AN ORDINANCE IMPOSING A PRIVILEGE TAX ON NORTHWEST NATURAL GAS COMPANY. AN OREGON CORPORATION. IN THE AMOUNT OF 2.0 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 Northwest Natural Gas Company ("Company") for a duration of ten (10) years from August 22, 1994; 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 221,450) 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% (three 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 transportation needs of the community, NOW. THEREFORE THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. Privileoe Tax Imoosed. There is hereby imposed a privilege tax on the gross revenues of Northwest Natural Gas Company, an Oregon corporation. in the amount of 2% (two percent) of those revenues. "Gross revenue" as used in this ordinance shall be deemed to include any revenue earned within the City from the sale of natural gas after deducting from the total billings of the Grantee the total net writeoff of uncollectible accounts. Gross revenues shall include revenues from the use, rental or lease of operating facilities of the utility 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, revenues derived from the sale or transportation of gas supplied under an interruptible tariff schedule, sales at wholesale to a public utility when the utility purchasing the Page 1 - COUNCIL BILL NO, 1636 ORDINANCE NO. 2145 ...,.....__.... ,.._" ......._. "_,"nu',._.._..__._,"m _.._.~___~_,,___~~.~.~__~ service is not the ultimate consumer, or revenue paid directly by the United States of America or any of its agencies. The privilege tax provided in this ordinance is in addition to the franchise fee being paid by the Company pursuant to Ordinance No. 2133, which grants to Company 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 quarterly and shall be due for each calendar quarter or fraction thereof, on or before thirty (30) days following the end of the calendar quarter, or fraction thereof. for which the tax is due; with the first payment, for gross revenues collected during that portion of the 3rd quarter of 1995 in which this ordinance is in effect, due on or before October 1, 1995. Section 3. Interest on Late Payments, In the event Company 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. Emeraencv 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 June 18, 1995, and shall remain in effect until modified or rescinded by ordinance of the City Council. Passed by the Council Submitted to the Mayor Approved by the Mayor Approved as to for';V)~' 0t~ S City Attorney Date APPR~N~'K~r.' May 22, 1995 May 23, 1995 May 23, 1995 15: (Council (Council President) President) Filed in the Office of the Recorder ATTEST: ~~~ Mary Tenn t, City Recor er City of Woodburn, Oregon May 23. 1995 Page 2 - COUNCIL BILL NO. 1636 ORDINANCE NO. 2145 -~--- .'.--....--- .-......"