HomeMy WebLinkAboutORD 1863terly period of a business. on
account of which a license fee
or tax is hereby required, the.
purcha$er . or transferee shall,
if the. fee or tax has not been
paid :in full for said quarterly
period, be responsible for the
.payment of the tee or tax for:
that portion of the quarterty+
period during which he carries
.on such business.
Section. is. APPLICATIONS
AND RETURNS CONFIDEN-
TIAL: The returns made to the
Treasurer and Clerk pursuant
to this Ordinance shall not be
made public; nor shall they be
subject to the inspection of any.
person except the Mayor, City
Attorney, Treasurer, City Clerk
or his authorized agent, and
members of the City Council;
and it shall be unlawful for any
person to make public or to in-
form any other person as to the
contents or any information
contained in or to permit in-
spection of any return, except
as in this section authorized,
and except in any proceedings
for determination and/or collec-
tion of the tax.
Section 18. OVER OR UN=
DER. -.PAYMENT OF TAX.
Whenever a taxpayer makes an
overpayment, and within two
(2) years after date of such
overpayment, makes application
for a refund or credit of the
overpayment, his. claim shall -
be allowed and if the request is
for an overpayment the over-
payment shall be repaid from
the General Fund, when ap-
proved by the City Clerk., If
refund or credit is not applied
for within two (2) years from
date of overpayment no refund
shall be allowed. If the Clerk
finds that the fee or tax or pen-
alty paid is less than the
amount due, the Clerk s h a l l
mail the taxpayer a statement
showing the balance due 'and
may add thereto a requirement
that interest shall be paid on
such balance at the rate of 6
per cent per annum from date
of under -payment until p a i d
and the taxpayer shall within
three (3) days from the date of
mailing statement pay the
amount shown thereon as th e
balance due plus such interest.
No demand for an additional
fee or tax or penalty shall be
made by the Clerk more than
four (4) years after the close of
the year in which the same ac-
crued except:
(1) Against a taxpayer who
is not registered as required by
this Ordinance; (2) as against
a taxpayer who has been guilty
of fraud or misrepresentation
of a material fact or (3) where
a taxpayer has executed a writ-
ten waiver of such limitations.
Section 20. ENFORCEMENT
AND PENALTIES.
(a) Failure To Make Returns.
If any taxpayer fails, neglects
or refuses to make his return
as and when required herein, or
if upon examination or investi-
gation, the Clerk finds that the
amount of tax liability reported
or paid by any taxpayer ap-
pears to be less than the .cor-
recti amount of his tax liability
under this Ordinance, the Clerk
deemed to be operating with-
out having his license so to do.
any such rule or regulation .
adopted by the City Council.
City of
Renton -Business Tax Ordinance
1961
is authorized to determine the
Section 21. A P P P:.A L TO
Section 23: MAI LING OF
amount of the tax payable, and
CITY COUNCIL: Any taxpayer
.'NOTICES: Any notice required
by mail to notify such taxpayer
of the amount so determined.
aggrieved by the amount of. the
fee to found b the Clerk .:
by this ordinance to be mailed'
to any taxpayer shall be sent `
ORDINANCE NO. 18tis
(e) The -term "gross income
. bor or skill is applied, by hand
sociation required to have a
Business hereunder, or
The Amount so fixed s h a 1 1
or. x Y
to be required under the pro_,
by ordinary mail; addressed to
AN ordinance of the City of
of the business" means the val-
ue proceeding or.. accruing by
or machinery, to materials so
that as a result thereof a new,
.License
liable for fee tax,
thereupon become the tax and
be immediately due and pays-
visions of this Ordinance, may
the address 'of the taxpayer as
'shown the',.
Renton; Washington, relating
reason of the transaction of the'
different or useful article of :for
collection of license
the collection of any license
��
appeal .to the City Council.from .
by. the records of
'address
to and providing for a license
business engaged _ in and in-
tangible personal property. or
fee or tax hereunder or who en-
(b) Collection As D"ebt. Any
such finding b . filin a written •
g Y g
:notice of with the City
,Clerk . or if no such . is
as e.'
: shown, to such address the
or occupation tax upon cer-.
eludes gross proceeds of sales,
substance of trade : or coin-
gages in any business or who
performs any act, for which a
license fee or tax due. and un'
Clerk .within five days" from the .:
Clerk is . able to ascertain by
'fain businesses, occupations,
pursuits and privileges; de-
compensation for the. rendition
of services, gains realized from
merce: is produced and shall ,
include the production or'.fab-. ..license
fee or tax is imposed by
paid and delinquent. under this.
all
time such taxpayer was given
reasonable .effort: Failure: of:-
" �g offenses and. presenb-
trading in stocks, bonds or oth-
rication of `special Made, or ,
His ordinance.
ordinance, and penalties:
thereon, may be collected by '..
notice of such a -m ou'n t. T he s
Clerk shall, as soon as `practi
t13e tax a er to receive such-
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rxrailed notice shall not :release .
in penalties.
g
or evidences of indebtedness,
custom made articles..
"business"
(P) Words in the singular
shall include the leu•-
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civ it action which remedy. shall
to and all
cable, fixa time and place. for :.
`the `such
-
the:; taxpayer- from an tax or.
y ;
BE . IT. ORDAINED BY THE
`'
interest, discount, rents, royal _
tees; 'fees, commissions, divi-
(j) The word in-
eludes all achvittes and, trans-
number
al; and the lural shall include
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be in addition any,
existing. remedtcs a n
hearing of appeal,
an nalties thereon nor snail'
Y
+ MAYOR 'AND THE CITY .
dends and : other emoluments
actions engaged in with tile. ob..
the singular. Words in one gen-
other . .d
penalties.
.:.which time, shall .be not more
than 30 days after the . filing::of •..:
;such failure operate to°,extend
an time limit et the, pro.
ny, y F
r COUNCIL OF THE CITY. OF
RENTON:
however designated; all without
jest of gain,. °benefit or advan-
der shall include all other gen-
dens:
(c). False Retu rns: It shall,-
.
gal and. he
the nonce of app.
...
. .b
visions. of.this Ordinance.
Section 1. EXERCISE OF
any .deduction on account of the
cost of the commodi ty or tan-
tage to the taxpayer or to. an..
other person or class, direetiy
(q) "Quarterly period" shall
unlawful for any person subject
e tax ,hereunder to fail or
to the
shall cause, a notice of the' ime
and lace thereof to be mailed
p
,Sectiou 24: LICENSE FEE .
T ERS. '
ADDITIONAL O OTH
REVENUE LICENSE POWER.
gible property sold, the. cost of
or indirectiv.:
,
mean each three-month period of
the calendar to wit, Jan
refuse to secure the license or
to the appellant: ,At; such hear
. .—
The: license fee and .tax herein .,
he .. provisions of this Ordi-
nance shall be deemed an ex=
materials used, labor costs; in-
terest, discount, delivery
(.k) The words `engagrng: (or
business'
years,
1 through March 31, April
to make the returns as and ::
when required or to pay -the fee .
'ing the, taxpayer shall-: be en-
titled:,to be heard and to intro-,_ .
levied shall be additional -t6 any.
license tax
ercise of the power of the City
costs,
taxes or, any other e x p e ri s e
engage)nary
in mean
commencing,. c,o n d u c t.i n g . or
1 throw June 30, July l through
through
O+otober 1.-
or tax when due, or for any
,
duce evidence in -his own -.be-
.fee: or .imposed .or,
,_ levied under any law. or a n y
of Renton to license for reve-
whatsoever paid or a c c r u e d
continuing in business and also
r 30 and
September
through December 31 of each :
person to make. any .false or
half: The City, Council s•h;a.11
other 'Ordinance of The City, ex-
F -
nue:
Section 2. DEFINITIONS: In.
and without any deduction on
accourit of losses.
the exercise of corporate qr
year.
fraudulent application or return ,
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or any false statement or rep-
. thereupon ascertain. the correct
po .
amount of. the fee or tax: by
rept as herein otherwise ex•'_
i
ressl
consirwng the provisions of this :
(f) The term value .proceed-
franchise powers as well as liq-
uidatmg a business when the
tr) The word "Clerk" shall
resentation in or in connection .
resolution, and the City. Clerk
, provided::
p Section 25. APPLICATION
ordinance, save when. otherwise
mg or. accruing means the
liquidators thereof hold thein-
mean the City Clerk of the City
Renton
with any such application or re- ''
turn, or to aid or abet, another
shall immediately h<o t i f y ,the
by
Appellant thereof
TO CITY'S BUSINESS: ACTIVI-
TIES. The. City
declared or clearly apparent
from the context, the following
consideration, whether money,
credits, rights or other proper-
selves out to the public as con-.
ducting business,
of
(s) The word "Treasurer"
in any attempt to evade pay -
. :marl,.
which amount, :together w it h
Whenever"
through any department or di-
definitions shall be applied:
"tax: °
ty expressed in terms of .mon-
such
(1) The term "cash discount•'
shall mean the City Treasurer
ment of the fee or tax or any
costs of the appeal, if appellant
vision shall engage in'. any bus-
; . , (a) The term year or
ey, actually received or ac-
means .a deduction' from the in-
bf the. City of Renton.
part thereof, or for any person .
is unsuccessful therein must be
:' activity which if engaged
taxable year shall mean ei-
crued. The term shall be ap-
voice price of goods or charge
Q) The word "City" s h a l l
to fail to appear and/or testify
paid within three days a f. t e r
.loess:
in,.by- any person would under
ther the calendar year or the`
plied, in each. case, on a .cash
for services which is allowed if
mean the City of Renton.
in response to subpoena issued
to testify.
such notice is givens
this Ordinance require a Busi-
`taxpayer's, fiscal year when
permission is obtained from the
receipts ,or 'accrual basis ac-
cording to which method of ac -
the bill is paid on or before' a
Section 3. BUSINESS LI -
pursuant hereto, or
falsely upon any investigation
The Mayor, the President of
the City Council, or the Chair-
gess License, and the payment
of a` license fee or tax by such
Clerk to use a fiscal year .in
counting. is regularly employed
specified date:
(m) The term "tuition fee"
CENSE REQUIRED. Every
@ y
person engaging within the city
of the correctness of a return
or upon the hearing of any
of an committee thereof
Y
before
arson, the Cit de artment or
• p, y p.
division engaging in such busi-
lieu of the calendar year.
(b) The word "person" or
in keeping the books of the tax -
payer: The value proceeding cr
shall be construed to include li•
brary, laboratory, health serv-
of Renton during the calendar
year 1961•in any business or ac -
in-
peal, or m any manner to him-
pe
which thea appeal is to be
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heard may, by subpoena, re-
.
ness activityshall as to such
word ' company," herein used
accruing from sales on the fin-
.
ice and other: special fees, and
tivity for which a license lee or
der or delay the City or any of
its in carrying out the
quire the attendance thereat
business activity at: the same
interchangeably means any in- .
dividual, receiver, assignee;
staliment plan under condition-
al contracts of sale may be re
amounts .charged for room and.
tax is provided by this O r d i -
officers
provisions of this Ordinance.
e-
any person, and may also re-
quire him to produce any per-.
time and in the same manner
as-. rsons are re uired here
� q
trustee in bankruptcy,. trust,
ported as of the.dates when the
board by an educational r serv-
tion when the :property or -serv-
Hance, whether such person y
subject to Uig payment of any
(d) Revocation of License.
tinent books and records. Any
under.to make returns and from
estate, firm, co- artnership, .
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joint venture, club, company,
payments become due.
(g) The word "extractor"
ice for .which such charges are
tax thereunder or not,. shall ap-
The .Clerk may revoke the li_
cense issued to any taxpayer
Person served with such sub-
poena shall appear at the time
the funds of such department or
division pay the license :fees or
j P y, business
joint-stock company,
means every person who, from
made is furnished exclusive) y
to the, students or faculty of
ply for and obtain from the
City Clerk a "BUSINESS LI -
who is in default in any pay-
license fee or tax
and place therein stated and .
taxes imposed hereunder.
Section 26. EFFECT OF
trust, corporation, association,
society, or any.group of; individ-
his own land or from the land
of another under a right or li-
such institution: Provided, That
CENSE" for such calendar
ment of any
hereunder, or who shall fail to
produce the books and. records
required', if any, and shall ties-
PARTIAL INVALIDITY. If any
uals acting as a unit, whether
cense granted by lease or con -
the. term "educational institu-
tion," as used ".herein, shall be
year or unexpired p o r t i o n
thereof; and on and after the
comply . with an of the provi-
y
tify truthfully under oath ad-
P rovision, section, paragraph,
mutual, cooperative, fraternal,
non-profit or otherwise and in-
tract, either directly or by con-
tracting with others for the
construed to mean only those
effective date of this ordinance
sions of this Ordinance. Notice
of such revocation shall be
ministered by the Chairman in
charge of the hearing on appeal
clause,,or part of this ordinance
shall `be held . void or unconsti-
eludes the United States or any
necessary labor or mechanical
institutions created. or general-
ly accredited as such b the
Y
no person, whether subject to
the payment of a tax or near
mailed. to the taxpayer by the
and after the
as to any matter required of
tutional the remainder of this
not be affected
i instrumentality thereof provid-
ed a valid tax may be levied
services, for sale .purposes,
mines, quarries, takes or pro
State and offering to students
shall during the. calendar year
Clerk and on
date thereof any such taxpayer
him pertinent to the appeal,
and it shall be unlawful. for him
ordinance shall
thereby; but all o t h e r provi-
upon or collected therefrom un-
duces coal, oil, natural gas, ore,
an . educational program of a
general academic nature, or
1961, engage in any business
activity within the City of Ren -
who continues to engage in bus-
to fail or refuse so to do.
sions, . `sections, paragraphs,
der the provisions of this ordi-
stone, sand, gravel, clay, min- .
those. institutions which are not
ton for which a license fee or
iness shall be deemed to be op-
Section 22. INTERPRETA-
clauses and parts of this ordi-
mance.
eral or other. natural' resource:
operated profit and. which
tax is imposed by this Ordi-
erating without a license and
TION: RULES and REGULA_
nance; not expressly so held to-
(c) The word "Sale" includes
product or fells, cuts or takes
.for
are privately endowed under a
nance without (a) having. first
shall be subject to any or all
herein
TIONS: In the administration
be void or unconstitutional shall
continue and remain in full
the exchange of property as
well as the sale t h e r e o f for-
timber or other natural prod-
ucts, or takes,. cultivatesor
deed of trust to offer instruc-
obtained. and being the holder
penalties provided.
(3) Penalties. Any p e r s o n
of this Ordinance and the Inter=
of t h e
force -'and effect:
money; and also includes eon-
raises fish, shell fish or other
tion in trade, industry and ag-
of a valid and subsisting license
violating or failing to comply
pretation provisions
thereof, the City Clerk shall be
Section. 27. This Ordinance
ditional . sales contracts, leases
.
sea or. inland water foods or
riculture, but not including spe-
cialtyschools, business . colleg-
so to do to be known as a"Bus-
iness License," issued for such
with any of the provisions of
this Ordinance or any lawful
guided by, the rules and requ-
shall take effect .on::January. 1,
1961 and be in force and effect
and any other contract under
which possession of the proper-
products, but does not include
rsons rformin under con-'
g
es, trade schools or similar in-
calendar year under the provi-
rule or regulation adopted b
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lations as adopted, published
and interpreted by the Excise
on and; after- that date for the
ty is given to the purchaser but .
tract the necessary labor or
stitutions.
(n) The word "successor"
sions of this Ordinance as here -
inafter provided, and (b) hav-
P
the
the Council pursuant thereto,.
u n conviction thereof, shall
Po
Tax Division of the Tax Com-
the State of Wash=
calendar, year 1961.
title is retained by the vendor
as security for the payment of
ty Paan
mechanical services for others..
(h) .The word "manuf
means any person who shall,
ing paid the license fee and tax
be punished by a fine in any
mission of
ington under and in respect to
PASSED BY THE CITY
the purchase price or rental. It
er" means every person who .
o
who
. through direct or mesne con-
e, purchase or succeed
imposed by this Ordinance. The
fee or tax for the "Business Li -
sum not to exceed One Hun-
dred Dollars ($100.00) or by
the State Business and Occupa-
tion Tax Law (Chapter 180,
COUNCIL this 22nd day of Nov—
shall also be construed to in-
elude the furnishing of food,
either directly or by contract-
ing with others for the neces.
to the business, or portion
to the
ee
cense" shall he the license fee
imprisonment in the Cit Jail
Y
Laws of 1935, as amended), in-
ember, 1960.
'
H. Morris
drink or meals for compensa-
sary labor or mechanical sery-
thereof, or the whole or a n y
part of the stock of g o o d s
or tax imposed by this Ordin-
ante, and in addition, the sum
for a term not exceeding thirtyVern
(30) days, or by both such fine
sofas as the same are applica-
ble to and not inconsistent with
City Clerk
tion, whether consumed u o n
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the premises or not.
ices, manufactures for sale any
articles, substances or com-..
wares or merchandise or fix-
of $L.00 as a license fee which
and imprisonment.
the provisions and require-
APPROVED BY THE MAYOR
(d) The term "gross proceeds
modities. When the owner of
tures or aninterest therein of
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taxpayer quitting, selling-
shall accompany the application
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for the license.
(f) Any taxpayer who en-
ments of this ordinance or with
this 22nd day of November,
of sales" means the value pro-
reeding or accruing from the
equipment or facilities furnish-
out, exchanging or otherwise
o
Said license shall expire at
gages in, or carries on, any
business subject to a tax here-
such rules and regulations as;
the City Council may at any
1960.
sale of tangible personal prop
es, or sells to the customer
prior to manufacture, all ora
disposing of his business. Any
the end of the calendar year.
under without having his "Bus-
time adopt hereunder.
Frank Aliment,
erty and for services rendered
portion of the materials that be-
person obligated to fulfill t h e
Each license shall be personal
iness License" so to do shall be
The City Council may from
Mayor
without any deduction on ac-
come a part or of the
terms of a contract . shall be
and non -transferable. In c as e
guilty of a violation of this Or-
time to time adopt, publish and
APPROVED AS TO FORM:
count of the cost of property
.whole
manufactured article, the City
deemed a successor to any con-
tractor defaulting in the
business is transacted at two or
by one.
dinance for each day during
which the business is so en-
enforce rules and regulations
not inconsistent with this ordi-
Gerard M. Shellan
sold, the cost of materials used.
labor costs, interest, discount
Council shall prescribe uita-
ble rules for determining tax li-
per-
formance of any contract as to
more separate places
taxpayer, a separate license
gaged in, or carried on; and
nance or with law for the pur-
City Attorney ; :
paid, delivery costs, taxes, orability.
whom such person is surety or
shall be required for e a c h
any taxpayer who fails or re-
pose of carrying out. the provi-
. Published in the Renton News
any other expense whatsoever
guarantor. -
place but for such additional li-
fuses to pay the license fee or
sions h e r e o f or 'interpreting
RecordDecember 1, 1960.
paid or accrued and without
(i) The term "manufacture"
(o) The word "taxpayer" in-
renes no additional $12.00 fee
tax, or any part thereof, on or
same, and it shall be unlawful
,
any deduction on account of
embraces all the activities of a
eludes any individual, group of
shall be required.
before the. due date, shall be
to violate or fail to comply with
losses.
commercial nature wherein Ia-
individuals, corporation or as-
All licenses shall be issued by
the City Clerk on forms pre-
scribed and furnished by him
and the Clerk shall keep a reg-
ister thereof. Each license shall
be numbered, shall show the
name, place and character of
business of the taxpayer, such
other information as, the City
Clerk shall d e e in necessary,
and shall at, all times be post-
ed in the place of business for
which it is issued. When the
place of business of a taxpay-
er is changed, the taxpayer
shall return the license to the
City Clerk and a new license
shall be issued for the, new
place of business free of
charge. No person shall engage
in any business for which a bus-
iness license is required under
this Section, without being reg-
istered and licensed in compli-
ance with the provisions of this
Section.; nor shall any person
holding such a "Business Li-
cense" suffer Or auoaw any ve-
er person, for whom separate
license is required, to operate
under or display his license.
Section 4. ENUMERATION
OF PERSONS SUBJECT TO
TAX; MEASURE AND RATES
OF TAX. On and after the ef-
fective -date of this Ordinance,
and during the calendar year
there is hereby levied upon and
shall be collected from and paid
as hereinafter specified by ev-
ery person on account of and
for the privilege of engaging in
business activities, a license fee
or occupation tax, sometimes
herein referred to as the "tax,"
in amounts to be determined
by application of rates g i v e n
against value of products, gross
proceeds of sales, or gross in-
come of business, as the case
may be, for the three calendar
months next preceding the be-
ginning of each quarterly period,
as follows:
(a) Upon every person en-
gaging within this City in busi-
ness as a manufacturer or as
an extractor; as to such per-
sons the amount of the tax with
respect to such business shall
be equal to. the value of the
products manufactured or ex-
tracted for sale, multiplied by
the rate of: eighteen thous-
andths of! one per cent (.00018)
I'he measure of the tax is the
value of the products so manu-
factured or extracted, regard-
less of the place of sale or the
fact that deliveries may be
made to points outside the City.
(b) Upon every person en-
gaging within this City . in the
business of making s a l e s at
wholesale. or retail; as to such
persons the amount of the tax
with respect to such business
shall be equal to the gross pro-
ceeds of such sales of the busi-
ness w i t h o u t regard to the
place of delivery of articles,
commodities o r merchandise
sold, multiplied by the rate of
eighteen thousandths of one
.per cent (.0001$):'
(c) Upon every person en-
gaging within this City in the
business of ; ! : ,
(1) printing or publication of
newspapers, periodicals or mag-
azines.
(2) building, repairing or im-
proving any publicly o w n e d
street, place, road, highway,
bridge or trestle which is used,
or to be used, primarily for foot
or vehicular traffic; as to such
persons the amount of tax with
respect to such business .shall
be equal to the gross income.
of the business multiplied by
the rate of eighteen thous-
andths of one per cent (.00018)
(d) Upon every person engag-.
ing within this City in any of
the following professions a n d
businesses which for the pur-
poses of this Ordinance are
classified as preponderantly in
the nature of rendering services:
1. Doctor of medicine; other
healing art or science; 'dentist
or dental technician; attorney
at law; accountant, bookkeep-
er, or tax services; real estate
broker or agency thereof; in.
surance broker, agent or repre-
sentative; other brokerage; fu-
neral director;.rest home, nurs=
ing home, or place of refuge;
specialized private. training
schools in music, aviation or
other skills;
2. The business of selling or
furnishing water for compensa-
tion;
3. The business of u r b a n
transportation;
4. Telegraph business;
5. The business of selling, fur-
nishing or distributing electri-
city, (exclusive of electricity
sold for the purpose of resale,
and the revenue therefrom) ;
6. The business of selling,
furnishing, distributing or pro-
ducing gaseous gas for com-
mercial or domestic use.
As to such persons the
amount of the tax with respect
to such profession or business
shall be equal to the gross in-
come derived from such profes-
sion or business multiplied by
the rate of six hundredths of
one per cent (.0006)..
In respect to u1nity pusiness-
es herein mentioned the term
"gross income" as heretofore
defined shall include the gross
operating revenue of the busi-
ness;
,(e) Upon every person en7
gaging within this City in any
business activity other than or
in addition to those enumerat-
ed in subsections (a), (b), (c)
and (d) above; as to such per-
sons the amount of the tax with
respect to any such business
activity shall be equal to t he
gross income of the busi
ness multiplied by the rate of
eighteen thousandths of one
per cent (•00018).
This sub -section (e) includes,
among others, and without lim-
iting the scope thereof (wheth-
er or not title to material used
in the performance of such
business passes to another by
accession, . confusion or other
than:by: outright sale), persons
engaged in the business of ren-
dering any, type -of service oth=
er than or in addition to those
enumerated in sub -section (d)
above.
Section 5. TAXABLE AS TO'
EACH ACTIVITY: Every per-
son engaging in activities which
are within the purview of the
provisions of two or more para-
graphs designated (a), (b), (c),
(d), and (e), of Section 4 of this
Ordinance, shall be taxable un-
der each applicable paragraph;
Provided, that persons taxable
under Paragraph (b) of s a i d
section on products sold for de-
livery within the State of Wash-
ington shall not be' taxable un-
der Paragraph (a) thereof with
respect to extracting or manu-
facturing of such products so
sold; and that persons taxable
under Paragraph (a) thereof as
manufacturer shall not be tax-
able under said Paragraph (a)
with respect to extracting the
ingredients of the product so
manufactured.
Section 6. DETERMINATION
OF VALUES: The v a l u e of
products extracted or manufac-
tured shall be determined by
the gross proceeds d e r i v e d
from the sale thereof, whether
such sale is at wholesale or at
retail except:
(a) Where such products are
shipped, transported or trans-
ferred out of the City, or to an-
other person, without prior sale
or are sold under circumstanc-
es such that the gross proceeds
from the sale are not indicative
of the true value of the subject -
matter of the sale.
In the above cases the value
shall correspond as .nearly as
possible to the gross proceeds
from sales -in the City of similar
products. of like quality a n d
character, and in similar quan-
tities by other taxpayers. The
City Council shall prescribe uni-
form and equitable rules f or.
the p u r p o s e of ascertaining
such values.
Section 7. APPORTIONMENT
OF BUSINESS.
(a) As to any person engag.
ing in a business activity both
within and without the City, or
partially within and partially
without the City, but ;maintain-
ing an office or place of busi-
ness within this City and n o t
elsewhere, the tax shall be
measured upon the entire. bus-
iness activity without regard to
the place where the products
are delivered or the, sales are
made or the services are ren-
dered.
(b) Persons engaging in a
business activity both within
and without the City but main-
taining no office or fixed place
of business within: this City, and -
also persons maintaining office
es, plants; warehouses, or oth-
er business` :establishihents in
theState . of .:Washington; part
of which,are .within the :C i t y
and part of which ` are outside
the City,,. shall :be, taxable on
the .value of .products or gross
proceeds of .sales or gross in=
comeof the business attribut-
able to business within the City
ascertained `either:
Ca) by a segregation. of.busi-.
ness' within and business' out;
side the,'Crty, :;shown and sup
ported by separate accounting
records; or
(2) by an apportionment to
the City of that part of the
value of products, gross pro-
ceeds of sales, or gross income
of the business, in the State of
Washington which b e a r s the
same proportion to the whole
thereof that the total number
of its employees employed with-
in the City bears to the total
number of its employees with-
in the State; or
(3) when the use of such ap-
portionment factor is imprac-
ticable or grossly inequitable,
by a fair and equitable appor-
tionment of value of products,
gross proceeds of s a l e s or
gross income of the business,
upon such reasonable basis as
shall be agreed upon between
the City (acting through the
City Clerk and Council) and the
taxpayer after consideration of
the facts.
Section 8. SALES BY CON-
SIGNEE, BAILEE, FACTOR
OR AUCTIONEER: Every con-
signee, bailee, factor or auc-
tioneer, having either actual or
constructive possession of tan-
gible personal property, or hav-
ing possession of the documents
of title thereto, with power to
,sell such tangible personal
property in his or its own name
and actually so selling, shall be
deemed the seller of such tan-
gible personal property within
the meaning of this Ordinance;
and further, the consignor, bail-
or, principal or owner shall be
deemed a seller of such prop-
erty to the consignee, bailee,:
factor or auctioneer.
The burden shall be upon the
taxpayer,in every case to estab-
lish the fact that such taxpayer
is not engaged in the business
of selling tangible p e r s o n a l
.property but is acting merely
as broker or agent in promot-
ing sales for a principal; such.
claim will be allowed only when
the taxpayer'saccount records
are kept in such manner as
shall clearly confirm the claim.'
Section 9. EXEMPTIONS. The
provisions of this ordinance
shall not apply to:
(a) Any person in respect to
a business .activity with respect
to which the tax' liability is spe-
cifioally imposed under applic-
able Ordinances relating to the
regulation of and licensing of the
f o l l o w i n,g: Theatres -Shows,
Games of. Skill, music devices,
taxicabs, peddlers, dance halls,
private. detectives, merchant pa-
trolmen, skating rinks whether
roller skating or. ice skating
golf courses, bowling alleys, auc-
tions and :Trailer -Parks.
(b) Any person in respect to
insurance business upon which
a tax based on gross premiums
is paid'to the State of Washing-
ton; Provided, however, That
the : provisions of this sub -sec-
tion shall not exempt. any per-
son engaging in the business of
.representing 'a n y insurance
company, whether as general
or local agent or a c t i n g as
broker -for such companies;
And provided; further;,. That the
provisions of this sub -section
shall not exempt any bonding
company from tax with respect
to gross income derived f r o m
the completion of any contract
as. to which it is a surety, or
as to any liability as successor
to the liability of the defaulting
contractor.
(c) Any fruits, vegetables,
berries, butter, eggs, fish, milk,
poultry, • meats or any farm
products or edibles raised,
caught, produced or manufac
tured within the State' of Wash-
ington and sold by the farmer
or gardener raising, catching,
producing or manufacturing the
same.
(d) Any person in respect to
the business of conducting box-
ing contests and sparring and -
or wrestling matches and exhi-
bitions for the conduct of
which a license must be se-
cured from the State Athletic
Commission.
(e) Any person ir, respect to
the business of conducting race
meets for the conduct of which
a license must be secured from
the State Horse Racing C o m -
mission.
(f) Any person in respect to
his employment in the capacity
of an employee or servant as
distinguished from that of an
independent contractor.
(g) Fraternal benefit socie-
ties as .defined in RCW 48.36,
(including fraternal fire insur-
ance associations); and bene-
ficiary corporations or socie-
ties organized under and exist -
ting by virtue of RCW 24.16.
(h) The g r o s s income re-
ceived by the United States or
any instrumentality thereof, by
the State of Washington or any
municipal subdivision thereof,
or by any religious society, as-
sociation or corporation
through the operation of a n y
hospital, clinic, resort or other
institution devoted exclusively
to the care or healing of human
beings; Provided, That no ex-
emption is granted where the
income therefrom inures to the
benefit of any physician, sur-
geon, stockholder or individual
by virtue of ownership. or con-
trol of such hospital, clinic, re-
sort or other institution.
(i) Amounts derived from busi-
ness transactions relating to
sale, lease, or rental of real
estate, except those taxable un-
der the State Business and Oc-
cupation Tax Law (Chapter 180,
Laws of 1935, as amended).
-(j) National banks, s t a t e
banks, trust companies, mutual
savings banks, building and
loan and savings and loan as-
sociations with respect to their
banking business, trust business
or savings and loan business.
but not with respect to engag-
ing in any other business tax-
able hereunder, even . though
such other business be conduct-
ed primarily for the purpose :of.
liquidating; theassets thereof.
(k) The business of manufac-
turing, selling, or distributing
motor vehicle fuel, as that term
is defined in Chapter 58, Laws
of 1933, as amended:
(1) Liquor as defined by State
law (Sec. 7306-3, Rem. Rev
Stat.) .
Section 10. DEDUCTIONS
ALLOWED IN COMPUTING.
LICENSE FEES: In computing
the license fee or tax there may
be deducted from the measure
of tax the following items:
(a) Amounts derived by per-
sons, other than those engaging
in banking, loan, security or
other financial business, from
investments or the use of mon.
ey as such.
(b) Amounts derived f r o in
bona fide initiation fees, dues,
contributions, donations, tuition
fees as hereinabove defined,
and endowment funds. The pro-,
visions of this paragraph shall
not be construed to exempt any
n-C."a association nr snriaty
from tax liability upon selling
tangible personal property or
upon providing facilities or
services for which a special
charge is made to members or
others; Provided, That d u e s
which are for, or graduated up-
on, the amount of service ren-
dered by the recipient thereof
are not permitted as a deduc-
tion hereunder.
(c) The amount of cash dis-
count actually taken by the pur-
chaser. This deduction is n o t
allowed in arriving at the tax-
able amount under the extrac-
tive and/or manufacturing clas-
sifications with respect to ar-
ticles produced or manufac-
tured, the values of which, for
the purpose of this tax, have
been computed according to the
provisions of Section 6 hereof.
(d) The amount of c r e d i t
losses actually sustained by
taxpayers whose regular books
of accounts Iare kept upon an
accrual basis.
(e) Amounts derived f r o in
business which the City is pro-
hibited from taxing under the.
constitution or laws of the State:
or the constitution or laws, of
the United S t a t e s and any
amounts collected by the tax-
payer as an excise tax.
Section 11. LOW VOLUME
EXEMPTION. Whenever a per-
son engages in one or in o r e
business activities wherein . the
value of -products, gross pro-
ceeds of sale or gross income
of the taxable business is less
than $2,500.00 for a quarterly
period such person shall be ex-
empt from payment of the tax
under Section 4, but shall nev-
ertheless make and file the quar-
terly sworn information, Re-
turn required under Section 12;
stating that he is. exempt:under
this Section 11.
Section 12. QUARTERLY
RETURNS and 'PAYMENTS.
The ;license fee ur tax imposed,
by this Ordinance except t he
;$12:00_ fee .required to accom-
pany' the annual application for
the Business License, -shall be
due.- and . payable in quarterly
installments, and:,remittance
therefor shall be made to the
City Treasurer on or before the
last day of the month next suc-
ceeding the end of the quar-
terly period in which the tax
accrued. The license -taxpayer,
on or before said last day of
said .month, shall also transmit
to the City Treasurer a Return,
upon a form to be prescribed
and provided by the City
Clerk; which Return shall con-
tain a statement by the t a x
payer stating the amount of the
tax for which he is liable for
the preceding quarterly period
under and computed according
to the provisions of this ordi-
nance, that the information.
therein given and the amount of
tax liability therein reported
are full and true, and that he
knows the same to be so; which
statement shall be signed by
the taxpayer, and the signing
of same shall be deemed and
constitute the same a statement
iinder the penalties of periury
equivalent to and as if sworn
to under oath. The Return when
thus signed need not disclose
the value of products, g r o s s
proceeds of sales, or gross in-
come of the business constitut-
ing the measure of the tax lia-
bility therein reported. Provid-
ed, h o w e v e r, that the City
Council in its discretion may at
any time by Resolution require
an .annual or another additional
Return from any taxpayer, set-
ting forth the value of products,
gross proceeds of ' sales, or
gross income of the business
constituting measure of the tax
hereunder, and such additional
information as it may d e e in
necessary to correctly deter-
mine license fee or tax liabili-
ty under this Ordinance, a n d
containing a statement by t h e
taxpayer sworn to (or. af-
firmed) under oath that the in-
formation therein given and the
amount of tax liability therein
reported are full and true and
that he knows the same to be
SO.
Whenever the total tax for
which any person is liable un-
der this Ordinance does not ek
seed the sum of $2.00 for any
quarterly period, an annual
Return may be made upon writ-
ten request to and written ap-
proval by the City Clerk.
Section 13. PAYMENT OF
LICENSE TAX. The license fee
or tax payable hereunder shall
atthe time the return is re-
quired to be filed hereunder be
paid to the City Treasurer by
bank draft, certified check,
cashier's check, personal check
or money order, or in cash. If
payment is made by draft or
check, the tax or fee shall'not
be deemed paid unless the
check or draft is honored in the
usual course of business; n o r
shall the acceptance of any
sum by the Treasurer be an ac-
quittance or discharge of t he
taxi or fee due, u n l e s s the
amount of the payment is: in
the • full and actual amount due.
The. return shallfirst be pre-
sented to :the City. Treasurer,
who shall endorse thereon the
date and amount of the p a y-
ment received and shall there-
upon forthwith file the return
with the Clerk.
The Clerk is authorized, but.
not required, to mail to t a x -
payers forms for applications
for license and forms for re-
turns, but failure of the taxpay-
er to receive any such forms
shall .not excuse the taxpayer
from making application for
and securing the license re-
quired, making returns, and
payment of the license fee or
tax when. and as due hereun-
der.
Section 14: PRESERVING
RECORDS. It shall be the duty
of every person liable for the
payment of any fee or tax im-
posed by this Ordinance to keep
and preserve for the period of
five years such books, and rec-
ords as will accurately reflect
the amount of his gross income,
dross nroceeds of sale or value
of products, as the case may
be, and from which can be de-
termined the amount of any fee
or tax for which he may be li-
able under the provisions of
this Ordinance; and all books,
records, invoices, inventories
and stocks of goods, wares and
merchandise shall be open, for
examination at all reasonable
times by the Clerk or his duly
authorized agent.
Section 15. FINAL PAY-
MENT PUBLIC WORK CON-
TRACT—LICENSE FEES TO
BE PAID FIRST: 'The Clerk
shall, before issuing any war-
rant making final payment to
any person performing any pub-
lic work contract for the City,
require such person to pay in
full all license fees or taxes
due under this ordinance from
such person on account of such
contract, or otherwise.
Section 16. EXTENSION OF
TIME FOR FILING RETURNS
—PENALTIES. The Clerk for
good cause shown may extend
the time for making and filing
any return as required under
this Ordinance and may grant
such reasonable additional time
within which to file such re-
turns as he may deem proper:
Provided, That' any extension
in excess of thirty (30) days
shall be conditioned upon pay-
ment of interest of one-half
of one per cent (1 per cent) for
each thirty (30) days or portion
thereof on the amount of the
tax from the date upon which
said tax became due.
If payment of any tax is not
received within ten (10) days
from the due date of such tax,
there shall be added a penalty
as follows:
11 to 40 days delinquency, 10
per cent with a minimum pen-
alty of $1.00; 41 to 70 days de-
linquency, 15 per cent with a
minimum penalty of $2.00; and
71 or more days delinquency,
20 per cent with a nunimum
penalty of $100."'1"
Section 17. SALE OR TRANS-
FER OF BUSINESS: -Upon the
rale or transfer during anyquar•