A. There is levied a tax on the sale, delivery, distribution or furnishing of water for domestic, business or industrial consumption and for the privilege of carrying on said business, such tax to be equal to seven percent of the total gross income from such business in the city provided that as to the city in the operation of its water utility, such tax shall be applicable to the gross income derived from the sale, delivery, distribution or furnishing of water to retail or industrial business located within or outside the city.

B. Nothing in this section is intended nor shall it be construed to impose taxes on any municipal corporation of the state of Washington other than the city. However, this section does not prohibit the city’s water utility from negotiating “in lieu of” charges with other nonresident customers to the extent permitted under state law. (Ord. 2301 § 2, 1993)