HomeMy WebLinkAboutORD 1469CITY OF RENTON - BUSINESS TAX ORDINANCE (1954)
ORDINANCE NO. 1469
An ordinance of the City of Ren-
ton, Washington, relating to and
providing for a license or occu-
pation tax upon certain busi-
nesses, occupations, pursuits and
privileges; defining offenses and
prescribing penalties.
BE IT ORDAINED BY THE MAY-
OR AND CITY COUNCIL OF
THE CITY OF RENTON:
Section 1. EXERCISE OF REV-
ENUE LICENSE POWER. The
provisions of this Ordinance shall
be deemed an exercise of the pow-
er of the City of Renton to license
for revenue.•
Section 2. DEFINITIONS: I n
construing the provisions of this
ordinance, save when otherwise de-
clared or clearly apparent from
the context, the following defini-
tions shall be applied:
(a) The term "tax year" or
"taxable year" shall mean either
the calendar year or the taxpay-
er's fiscal year when permission
is obtained from the Clerk to use
a fiscal year in lieu of the calendar
year.
(b) The word "person" or word
"company," herein u s e d inter-
changeably means any individual,
receiver, assignee, trustee in bank-
ruptcy, trust, estate, firm, co -part-
nership, joint venture, club, com-
pany, joint-stock company, busi-
ness trust, corporation, associa-
tion, society, or any group of indi-
viduals acting as a unit, whether
in u t u a 1, cooperative, fraternal,
non-profit or otherwise, and in-
cludes the United States or any
instrumentality thereof, provided a
valid tax may be levied upon or
collected therefrom under the pro-
visions of this ordinance.
(c) The word "Sale" includes
the exchange of property as well
as the sale thereof for money; and
also includes conditional sales con-
tracts, leases and any other con-
tract under which possession of
the property is given to the pur-
chaser but title is retained by the
vendor as security for the payment
of the purchase price or rental.
It shall also be construed to in-
clude the furnishing of food, drink
or meals for compensation, wheth-
er consumed upon the premises or
not.
. (d) The term "gross proceeds
of sales" means the value proceed-
ing or accruing from the sale of
tangible personal property and for
services rendered without any de-
duction on account of the cost of
property sold, the cost of materials
used, labor costs, interest, discount
paid, delivery costs, taxes, or any
other expense whatsoever paid or
accrued and without any deduction
on account of losses.
(e) The term "gross income of
the business" means the value pro-
ceeding or accruing by reason of
the transaction of the business en-
gaged in and includes gross pro-
ceeds of sales, compensation for
the rendition of services, gains
realized from trading in stocks,
bonds or other evidences of indebt-
edness, interest, discount, rents,
royalties, fees, commissions, divi-
dends and other emoluments how-
ever designated, all without any
deduction on account of the cost of
the commodity or tangible proper-
ty sold, the cost of materials used,
labor costs, interest, discount, der-
livery
e-livery costs, taxes or any other
expense whatsoever paid or ac-
crued and without any deduction
account of losses.
(f) The term "value proceeding
or accruing" means the considera-
tion, whether money, credits,
rights or other property expressed
in terms of money, actually re-
ceived or accrued. The term shall
be applied, in each case, on a cash
receipts or accrual basis according
to which method of accounting is
regularly employed in keeping the
books of the taxpayer. The value
proceeding or accruing from sales
on the installment plan under con-
ditional contracts of sale may be
reported as of the dates when the
payments become due.
(g) The word "extractor"
mans every person who, from his
cwn land or from the land of an-
other under a right or license
granted by lease or contract, eith-
er directly or by contracting with
others for the necessary labor or
mechanical services, for sale pur-
poses, mines, quarries, takes or
produces coal, oil, natural gas, ore,
stone, sand, gravel, clay, mineral
or other natural resource product
or fells, cuts or takes timber or
other natural products, or takes,
cultivates, or raises fish, shell fish
or other sea or inland water foods
or products, but does not include
persons performing under contract
the necessary labor or mechanical
services for others.
(h) The word "manufacturer"
means every person who either
directly or by contracting with
others for the necessary labor or
mechanical services, manufactures
for sale any articles, substances or
commodities. When the owner of
equipment or facilities furnishes,
or sells to the customer prior to
manufacture, all or a portion of
the materials that become a part
or whole of the manufactured
article, the City Council shall pre-
scribe equitable rules for de-
termining tax liability.
(i) The term "manufactu r e"
embraces all the activities of a
commercial nature wherein labor
or skill is applied, by hand or ma-
chinery, to materials so that as a
result thereof a new, different or
useful article of tangible personal
property or substance of trade or
commerce is produced and shall
include the production or fabrica-
tion of special made or custom
made articles.
Q) The word "business" in-
cludes all activities and transac-
tions engaged in with the object of
gain, benefit or advantage to the
tax -payer or to another person or
class, directly or indirectly.
(k) The words "engaging (or
engage) in business" mean com-
inencing, conducting or continuing
in business and also the exercise
of corporate or franchise powers
as well as liquidating a business
when the liquidators thereof hold
themselves out to the public as
conducting such business.
(1) The term "cash discount"
means a deduction from the in-
voice price of goods or charge for
services which is allowed if the
bill is paid on or before a speci-
fied date.
(m) The term "tuition f e e"
shall be construed to include li-
brary, laboratory, health service
and other special fees, and
amounts charged for room and
board by an educational institu-
tion when the property or service
for which such charges are made
is furnished exclusively to the stu-
dents or faculty of such institution:
Provided, That the term "educa-
tional institution," as used herein,
shall be construed to mean only
those institutions created or gener-
ally accredited as such by the
State and offering to students an
educational program of a general
academic nature, or those institu-
tions which are not operated for
profit and which are privately en-
dowed under a deed of trust to
offer instruction in trade, industry
ana agriculture, but not including
specialty schools, business col-
leges, trade schools or similar in-
stitutions.
(n) The word "successor"
means any person who s h a 11,
through direct or mesne convey-
ance, purchase or succeed to the
business, or portion thereof, or the
whole or any part of the stock of
goods, wares or merchandise or
fixtures or any interest therein of
a tax=payer quitting, selling out,
exchanging or otherwise disposing
of his business. Any person obli-
gated to fulfill the terms of a con-
tract shall be deemed a successor
to any contractor defaulting in the
performance of any contract as to
which such person is surety or
guarantor.
(o) The word "taxpayer" in-
cludes any individual, group of in-
dividuals, corporation or associa-
tion required to have a Business
License hereunder, or liable for
any license fee or tax, or for.the
collection of any license fee or tax
hereunder. or who engages in any
business or who performs any act,
for which a license fee or tax is
imposed by this ordinance.
(p) Words in the singular num-
ber shall include the plural, and
the plural shall include the singu-
lar. Words in one gender shall in-
clude all other genders.
(q) "Bi -monthly period" shall
mean a two-month period begin-
ning the first day of the odd -num-
bered month and including the last
day of the next succeeding month.
(r) The word "Clerk" shall
mean the City Clerk of the City of
Renton.
(s) The word "Treasurer"
shall mean the City Treasurer of
the City of Renton.
(t) The word "City" shall mean
the City of Renton.
Section 3. BUSINESS LICENSE
REQUIRED. Every person engag-
ing within the city of Renton dur-
ing the calendar year 1954 in any
business or activity for which a
license fee or tax is provided by
this Ordinance, whether such per-
son is subject to the payment of
any tax thereunder or not, shall
apply for and obtain from the City
Clerk a "BUSINESS LICENSE"
for such calendar year or unexpir-
ed portion thereof; and on and af-
ter the effective date of this or-
dinance no person, whether subject
to the payment of a tax or not,
shall during the calendar year 1954
engage in any business activity
within the City of Renton for which
a license fee or tax is imposed by
this Ordinance without (a) having
first obtained and being the holder
of a valid and subsisting license so
to do to be known as a "Business
License", issued for such calendar
year under the provisions of this
Ordinance as hereinafter provided,
and (b) having paid the license fee
and tax imposed by this Ordinance.
The fee or tax for the "Business
License" shall be the license fee
or tax imposed by this Ordinance,
and in addition the sum of $12.00
as a license fee which shall ac-
company the application for the li-
cense.
Said license shall expire at the
end of the calendar year. Each
license shall be personal and non-
transferable. In case business is
transacted at two or more separ-
ate places by one taxpayer, a sep-
arate license shall be required for
each place but for such additional
licenses no additional $12.00 fee
shall be required.
All licenses shall be issued by the
City Clerk on forms prescribed and
furnished by him and the Clerk
shall keep a register thereof. Each
license shall be numbered, shall
show the name, place and charac-
ter of business of the taxpayer,
such other information as the City
Clerk shall deem necessary, and
shall at all times be posted in the
place of business for which it is
issued. When the place of business
of a taxpayer is changed, the tax-
payer 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 per-
son shall engage in any business
for which a business license is re-
quired under this Section, without
being registered and licensed in
compliance with the provisions of
this Section; nor shall any person
holding such a "Business License"
suffer or allow any other person,
for whom separate license is re-
quired, to operate under or display
his license.
Section 4. ENUMERATION OF
PERSONS SUBJECT TO TAX;
MEASURE AND RATES OF TAX.
On and after the effective date of
this Ordinance, and during the cal-
endar year there is hereby levied
upon and shall be collected from
and paid as hereinafter specified
by every 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", i n
amounts to be determined by ap-
plication of rates given against
value of products, gross proceeds
of sales, or gross income of busi-
ness, as the case may be, for the
two calendar months next preced-
ing the beginning of each bimonth-
ly period, as follows:
(a) Upon every person engag-
ing within this City in business as
a manufacturer or as an extractor;
as to such persons the amount of
the tax with respect to such busi-
ness shall be equal to the value of
the products manufactured or ex-
tracted for sale, multiplied by the
rate of six hundredths of one per
cent (.0006) ;
The measure of the tax is the
value of the products so manufac-
tured or extracted, regardless of
the place of sale or the fact that
deliveries may be made to points
outside the City.
(b) Upon every person engag-
ing within this City in the business
of making sales at wholesale or re-
tail; as to such persons the amount
of the tax with respect to such bus-
iness shall be equal to the gross
proceeds of such sales of the busi-
ness without regard to the place of
delivery of articles, commodities
or merchandise sold, multiplied by
the rate of six hundredths of one
per cent (.0006) ;
(c) Upon every person engaging
within this City in the business of
(1) printing or publication of news-
papers, periodicals or magazines;
'(2) building, repairing or improv-
ing any publicly owned 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 six -hundredths of
one per cent. (.0006) ;
(d) Upon every person engag-
ing within this City in" any of the
following professions and busines-
es (which for the purposes of this
Ordinance are classified as pre-
ponderantly in the nature of ren-
dering services):
1. Doctor of medicine; other
healing art or science; dentist or
dental technician; attorney at law -
accountant, bookkeeper, or tax ser-
vices; real estate broker or agen-
cy -thereof; insurance b r o.k e r,
agent, or representative-, other
brokerage; funeral director, rest
home, nursing home, or place of
refuge; specialized private train-
ing schools, in music, aviation or
other skills;
2. The business of selling or fur-
nishing water for compensation;
3. The business of urban trans-
portation;
4. Telegraph business;
5. The business of selling, fur-
nishing or distributing electricity,
(exclusive of electricity sold for
the purpose of resale, and the
revenue therefrom) ;
6. The business of selling, fur-
nishing, distributing, or producing
gaseous gas for commercial 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 income derived
from such profession or business
multiplied by the rate of one-fifth
of one per cent. (.002).
In respect to utility businesses
herein mentioned the term "gross
income" as heretofore defin e d
shall include the gross operating
revenue of the business;
(e) Upon every person engag-
ing within this City in any busi-
ness activity other than or in ad-
dition to those enumerated in sub-
sections (a), (b), (c) and (d)
above; as to such persons the
amount of the tax with respect to
any such business activity shall be
equal to the gross income of the
business multiplied by the rate of
six -hundredths of one p e r c e n t
(.0006).
This sub -section (e) includes,
among others, and without limit-
ing the scope thereof, (whether or
not title to material used in the
performance of such business pass-
es to another by accession, con-
fusion or other than by outright
sale), persons engaged in the busi-
ness of rendering any type of serv-
ice other than or in addition to
those enumerated in sub -section
(d) above.
Section 5. TAXABLE AS TO
EACH ACTIVITY: Every person
engaging in activities which are
within the purview of the provi-
sions of two or more paragraphs
designated (a), (b), (c), (d), and
(e) of Section 4 of this Ordinance,
shall be taxable under each ap-
plicable paragraph; Provided, that
persons taxable under Paragraph
(b) of said section on products
sold for delivery within the State
of Washington shall not be taxable
under Paragraph (a) thereof with
respoct to extracting or manufac-
turing of such products so sold;
and that persons taxable under
Paragraph (a) thereof as manufac-
turer shall not be taxable under
said Paragraph (a) with respect
to extracting the ingredients of
the product so manufactured.
Section 6. DETERMINAT I O N
OF VALUES: The value of prod-
ucts extracted or manufactured
shall be determined by the gross
proceeds derived. from the sale
thereof, whether such sale is at
wholesale or at retail, except:
(a) 'Where such products are
shipped, transported or transferred
out of the City, or to another per-
son, without prior sale or are sold
under circumstances 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 pos-
sible to the gross proceeds from
sales in this City of similar pro-
ducts of like quality and character,
and in similar quantities by other
taxpayers. The City Council shall
prescribe uniform and equitable
rules for the purpose of ascertain- ords are kept in such manner as
ing such values. shall clearly confirm the claim.
Section 7. APPORTIONMENT Section 9. EXEMPTIONS. The
OF BUSINESS. provisions of this ordinance shall
(a) As to any person engaging
in a business activity both within
and without the City, or partially
within and partially without the
City, but maintaining an office or
place of business within this City
and not elsewhere, the tax shall
be measured upon the entire busi-
ness activity without regard to the
place where the products are de-
livered or the sales are made or
the services are rendered.
(b) Persons engaging in a bus-
iness activity both within and with-
out the City but maintaining no of-
fice or fixed place of business with-
in this City, and also persons main-
taining offices, plants, warehouses,
or other business establishments in
the State of Washington, part of
which are within the City and part
of which are outside the City, shall
be taxable on the value of products
or gross proceeds of sales or gross
income of the business attribut-
able to business within the City
ascertained either:
(1) by a segregation of business
within and business outside the
City shown and supported by sep-
arate accounting records; or
(2) by an apportionment to the
City of that part of the value of
products, gross proceeds of sales,
or gross income of the business,
in the State of Washington, which
bears the same proportion to the
whole thereof that the total num-
ber of its employees employed
within the City bears to the total
number of its employees within
'he State; or
(3) when the use of such appor-
tionment factor is impracticable or
grossly inequitable, by a fair and
equitable apportionment of value
of products, gross p r o c e e d s of
sales, or gross income of the busi-
ness, upon such reasonable basis
as shall be agreed upon between
the City (acting through the City
Clerk and Council) and the taxpay-
er after consideration of the facts.
Section 8. SALES BY CON-
SIGNEE, BAILEE, FACTOR OR
AUCTIONEER: Every consignee,
bailee, factor or auctioneer, having
eithEr actual or constructive pos-
session of tangible personal-
prop-erty, or having possession of the
documents of title thereto, with
power to sell such tangible per-
sonal property in his or its own
name and actually so selling, shall
be deemed the seller of such
tangible personal property within
the meaning of this Ordinance; and
further, the consignor, bailor, lirin-
cipal or owner shall be deemed a
seller of such property to the con-
signee, bailee, factor or auctioneer.
The burden shall be upon the
caxpayer in every case to establish
the fact that such taxpayer is not
engaged in the business of selling
tarrgible personal property blit is
acting merely as broker or agent
in promoting sales for a principal;
such claim will be allowed only
when the taxpayer's account rec-
not apply to:
(a) Any person in respect to a
business activity with respect to
which the tax liabilty is specifi-
cally imposed under the provisions
of: Ordinances Nos. 900 (theatres);
1174 (admissions); 1212 (games of
skill); 1319 (music devices); 1236
(taxicabs); 940 (peddlers); 1229
(dance halls); 1466 (private detec-
tives, Merchant Patrolmen) ; all as
amended.
(b) Any person in respect to in-
surance business upon which a
tax based on gross premiums is
paid to the State of -Washington;
Provided, however, That the provi-
sions of this sub -section shall not
exempt any person engaging in the
business of representing any in-
surance company, whether as gen-
eral or local agent or acting as
broker for such companies; And
provided, further, That the provi-
sions of this sub -section shall not
exempt any bonding company from
tax with respect to gross income
derived from the completion of any
contract as to which it is a surety,
or as to any liability as successor
to the liabilty of the defaulting
contractor.
(c) Any fruits, vegetables, ber-
ries, butter, eggs, fish, milk, poul-
try, meats or any farm products
or edibles raised, caught, produced
or manufactured within the State
of Washington and sold by the
farmer or gardener raising, catch-
ing, producing or manufacturing
the same.
(d) Any person in respect to the
business of conducting boxing con-
tests and sparring and/or wrestling
matches and exhibitons for the
conduct of which a license must be
secured from the State Athletic
Commission.
(e) Any person in respect to the
business of conducting race meets
for the conduct of which a license
must be secured from the State
Horse Racing Commission.
(f) Any person in respect to his
employment in the capacity of an
employee or servant as distin-
guished from that of an independ-
ent contractor.
(g) Fraternal benefit societies,
as defined in Rem. Rev. Stat., Sec-
tion 7259; fraternal fire insurance
associations, as described in sub-
division third of Rem. Rev. Stat.,
Section 7131, and beneficiary cor-
-porations or societies organized un-
der and existing by virtue of Rem.
Rev. Stat., Sections 3872 and 3883,
inclusive, if such corporations or
societies provide in their by-laws
for the payment of death benefits
as set forth in Rem. Rev. Stat.,
Section 3879.
(h) The gross income received
by the United States or any instru-
mentality thereof, by the State of
Washington, or any municipal sub-
division thereof, or by any reli-
gious society, association or cor-
poration, through the operation of
any hospital, clinic, resort or other
institution devoted exclusively to
the care or healing of human be-
ings: Provided, That no exemption
is granted where the income there-
from inures to the benefit of any
physician, surgeon, stockholder or
individual by virtue of ownership
or control of such hospital, clinic,
resort or other institution.
(i) Amounts derived from the
lease rental or sale of real estate;
Provided, however, That nothing
herein shall be construed as an ex-
emption of the business activity of
operating a hotel or a multiple
apartment house renting more than
four apartments and/or stores and
shops, if taxable under the State
business and occupation tax law
(Chap. 180, Laws of 1935 as amend-
ed), nor be construed to allow
a deduction of amounts derived
from engaging in any business
wherein a mere license to use or
enjoy real property is granted, or
to allow a deduction of amounts
received as commissions from the
sale or rental of real estate.
(j) National banks, state banks,
trust companies, mutual savings
banks, building and loan and sav-
ings and loan associations with re-
spect to their banking business,
trust business or savings and loan
business but not with respect to
engaging in any other business
taxable hereunder, even though
such other business be conducted
primarily for the purpose of liquid-
ating the assets thereof.
tk) The business of manufac-
turing, selling, or distributing mo -
ter vehicle fuel, as that term is de-
fined in Chapter 58, Laws of 1933,
as amended.
(1) Liquor as defined by State
law (Sec. 7306-3, Rem. Rev. Stat.).
Section 10. DEDUCTIONS AI_
LOWED IN COMPUTING LI-
CENSE 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 fi-
nancial businesses, from invest-
ments or the use of money as such.
(b) Amounts derived from bona
fide initiation fees, dues, contribu-
tions, donations, tuition fees as
hereinabove defined, and endow-
ment funds. The provisions of this
paragraph shall not be construed
to exempt any persons, association
or society from tax liability upon
selling tangible personal property
or upon providing facilities or ser-
vices for which a special charge is
made to members or others: Pro-
vided, That dues which are for, or
graduated upon, the amount of ser-
vice rendered by the r e c i p i e n t
thereof are not permitted as a de-
duction hereunder.
(c) The amount of cash discount
actually taken by the purchaser.
This deduction is not allowed in
arriving at the taxable amount
under the extractive and/or manu-
facturing classifications with re-
spect to articles produced or man-
ufactured, the values of which, for
the purpose of this tax, have been
computed according to the provi-
sions of Section 6 hereof.
(d) The amount of credit losses
actually sustained by taxpayers
whose regular books of account are
kept upon an accrual basis.
(e) Amounts derived from busi-
ness which the City is prohibited
from taxing under the constitution
or laws of the State or the consti-
tution or laws of the United States,
and any amounts collected by the
taxpayer as an excise tax.
Section 11. LOW VOLUME EX-
EMPTION. Whenever a person
engages in one or more business
activities wherein the value of
products, gross proceeds of sale or
gross income of the taxable busi-
ness is less than $1700.00 for a bi-
monthly period such person shall
be exempt from payment of the
tax under Section 4, but shall
nevertheless make and file the bi-
monthly sworn information Return
required under Section 12, stating
that he is exempt under this Sec-
tion 11.
Section 12. BI -MONTHLY RE-
TURNS and PAYMENTS. The li-
cense fee or tax imposed by this
Ordinance except the $12.00 fee re-
quired to accompany the annual
application for the Business Li-
cense, shall be due and payable
in bi-monthly installments, and re-
inittance therefor shall be made
to the City Treasurer on or before
the 25th day of the month next suc-
ceeding the end of the bi-monthly
period in which the tax accrued.
The license -taxpayer, on or before
said 25th day of said month, shall
also transmit to the City Treasurer
a Return, upon a form to be pre-
scribed and provided by the City
Clerk; which Return shall contain
a statement by the taxpayer stat-
ing the amount of the tax for which
he is liable for the preceding bi-
monthly period under and comput-
ed according to the provisions of
this ordinance, that the informa-
tion therein given and the amount
of tax liability therein reported are
full and true, and that he knows
the same to be so; which state-
ment shall be signed by the'tax-
payer, and the signing of same
shall be deemed and constitute the
same a statement under the pen-
alties of perjury equivalent to and
as if sworn to under oath. The Re-
turn when thus signed need • not,
disclose the value of products,
gross proceeds of sales, or gross
income of the business constitut-
hig the measure of the tax liabili-
ty therein reported. Provided, how-
ever, that the City Council in its
discretion may at any time6y Res-
olution require an annual or other
additional Return from any tax-
payer, setting forth the value of
products, gross proceeds of sales,
or. gross income of the business
constituting measure of the" tax
hereunder, and such additional in-
formation as it may deem neces-
sary. to correctly determine license
fee or tax liability under this Or-
dinance, and containing a state-
ment by the taxpayer sworn to
(or affirmed) under oath that the
information therein given and the
amount of tax liability therein re-
ported are full and true and that
Ire knows the same to be so.
Whenever the total tax for which
any person' is liable under this Or-
dinance does not exceed the sum of
$2.00 for any bi-monthly period, an
annual Return may be made upon
written request to and written ap-
proval by the City Clerk.
Section 13. PAYMENT OF LI-
CENSE TAX. The license fee or
tax payable hereunder shall at the
time the return is required 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; nor shall the accept-
ance of any sum by the Treasurer
be an acquittance or discharge of
the tax or fee due unless the
amount of the payment is in the
full and actual amount due. The
return shall first be presented to
the City Treasurer, who shall en-
dorse thereon the date and amount
of the payment received and shall
thereupon forthwith file the return
with the Clerk.
The Clerk is authorized, but not
required, to mail to taxpayers
forms for applications for license
and forms for returns, but failure
of the taxpayer to receive any such
forms shall not excuse the taxpay-
er from making application for and
securing the license required mak-
ing returns, and payment of the
License fee or tax, when and as due
hereunder.
Section 14. PRESERVING RE-
CORDS. It shall be the duty of
every person liable for the pay-
ment of any fee or tax imposed by
this Ordinance to keep and pre-
serve for the period of five years
such books and records as will ac-
curately reflect the amount of his
gross income, gross proceeds of
sale or value of products, as the
case may be, and from which can
be determined the amount of any
fee or tax for which he may be
liable 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 PAYMENT
PUBLIC WORK CONTRACT—LI-
CENSE FEES TO BE 'P A I D
FIRST: The Clerk shall, before is-
suing any warrant making final
payment to any person perform-
ing any public 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 O F
TIME FOR FILING RETURNS—
PENALTIES. The Clerk for good
cause shown may extend the time
for making and filing any re-
turn as required under this Ordin-
ance. and may grant such reason-
able additional time within which
to file such returns 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 (1/s)
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 fol-
lows:
11 to 40 days delinquency 10 per-
cent with a minimum penalty of
$1.00; 41 to 70 days delinquency,
15 per cent with a minimum penal-
ty of $2.00; and 71 or more days
delinquency, 20 per cent . with a
minimum penalty of $3.00.
Section 17. SALE OR TRANS-
FER OF BUSINESS: Upon the
saie or transfer during any bi-
monthly period of a business on
account of which a license fee or
tax is hereby required, the pur-
chaser or transferee shall, if the
fee or tax has not been paid in full
for said bi-monthly period, be .re-
sponsible for the payment of the
fee or tax for that portion of the
bi-monthly period during which he
carries on such business.
Section 18. APPLICATIONS
AND RETURNS CONFIDENTIAL:
The returns made to the Treasur-
er and Clerk pursuant to this Ordin-
ance shall not be made public, nor
shall they be subject to the inspec-
tion of any person except the May-
or, 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 inform any
other person as to the contents or
any information contained in or to
permit inspection of any return ex-
cept as in this section authorized,
and except in any proceedings for
determination and/or collection of
the tax.
Section 19. OVER OR UNDER-
PAYMENT OF TAX. Whenever a
taxpayer makes .an overpayment,
and within two (2) years after date
of such overpayment makes appli-
cation for a refund or credit of the
overpayment, his claim shall be
allowed and if the request is, for
an overpayment the overpayment
shall be repaid from. the General
Fund, when approved by the City
Clerk. If refund or credit is' not
applied for within two (2) years.
from. date of overpayment no re-
fund shall be allowed. If the Clerk
finds that the fee or tax or pen-
alty paid is less than the amount
due the Clerk shall mail the tax-
payer a statement showing the bal-
ance 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 underpayment until paid and the
taxpayer shall within three (3)
days from the date of mailing
statement pay the amount shown
thereon as the 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
accrued except:
(1) Against a taxpayer who is
not registered as required by this
Ordinance; (2) as against a tax-
payer who has been guilty of fraud
or misrepresentation of a material
fact or (3) where a taxpayer has
executed a written waiver of such
limitations.
Section 20. ENFORCE M E N T
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 investigation the
Clerk finds that the amount of tax
liability reported or paid by any
taxpayer appears to be less than
the correct amount of his tax lia-
bility under this Ordinance, the
Clerk is authorized to determine
the amount of the tax payable, and
by mail to notify such taxpayer of
the amount so determined. The
amount so fixed shall thereupon
become the tax and be immedi-
ately due and payable.
(b) Collection As Debt. Any li-
cense fee or tax due and unpaid
and delinquent under this ordi-
nance, and all penalties thereon,
may be collected by civil action,
which remedy shall be in addition
to any and all other existing rem-
edies and penalties.
(c) False Returns. It shall be
unlawful for any person subject
to the tax hereunder to fail or re-
fuse to secure the license or to
make the returns as and when re-
quired or to pay the fee or tax
when due, or for any person to
make any false or fraudulent ap-
plication or return or any false
sts+tement or representation in or
in connection with any such appli-
cation or return, or to aid or abet
another in any attempt to evade
payment of the fee or tax or any
part thereof, or for any person to
fail to appear and/or testify in re-
sponse to subpoena issued pursuant
hereto, or to testify falsely upon
any investigation of the correctness
of a return or upon the hearing of
any appeal, or in any manner to
hinder or delay the City or any of
its officers in carrying out the pro-
visions of this Ordinance.
(d) Revocation of License. The
Clerk may revoke the license is-
sued to any taxpayer who is in
default in any payment of any li-
cense fee or tax hereunder, or who
shall fail to comply with any of
the provisions of this Ordinance.
Notice of such revocation shall be
mailed to the taxpayer by the
Clerk, and on and after the date
thereof any such taxpayer who
continues to engage in business
shall be deemed to be operating
without a license and shall be sub-
ject to any or all penalties herein
provided.
(e) Penalties. Any person vio-
lating or failing to comply with
any of the provisions of this Ordi-
nance or any lawful rule or reg-
ulation adopted by the Council
purusant thereto, upon conviction
thereof, shall be punished by a
fine in any sum not to exceed One
Hundred Dollars ($100.00), or by
imprisonment in the City Jail for
a term not exceeding thirty (30)
days, or by both such fine and im-
prisonment.
(f) Any taxpayer who engages
in, or carries on, any business sub-
ject to a tax hereunder without
having his "Business License" so
to do shall be guilty of a violation
of this Ordinance for each day dur-
ing which the business is so en-
gaged in, or carried on; and any
taxpayer who fails or refuses to
pay the license fee or tax, or any
part thereof, on or before the due
date, shall be deemed to be operat-
ing without having his license so
to do.
Section 21. APPEALS TO CITY
COUNCIL: Any taxpayer aggriev-
ed by the amount of the fee or tax
found by the Clerk to be required
under the provisions of this Ordi-
nance, may appeal to the City
Council from such finding by fil-
ing a written notice of appeal with
the City Clerk within five days
from the time such taxpayer was
given notice of such amount. The
Clerk shall, as soon as practicable,
fix a time and place for the hear-
ing of such appeal, which time
shall be not more than 30 days
after the filing of the notice of
appeal, and he shall cause a notice
of the time and place thereof to be
mailed to the appellant. At such
hearing the taxpayer shall be en-
titled to be heard and to introduce
evidence in his own behalf. The
City Council shall thereupon as-
certain the correct amount of the
fee or tax by resolution and the
City Clerk shall immediately noti-
fy the appellant thereof by mail,
which amount, together with costs
of the appeal, if appellant is un-
successful therein, must be paid
within three days after such notice
is given.
The Mayor, the President of the
City Council, or the Chairman of
any committee thereof b e f o r e
which the appeal is to be heard,
may, by subpoena, require the at-
tendance thereat of any person,
and may also require him to pro-
duce any pertinent books and rec-
ords. Any person served with such
subpoena shall appear at the time
and place therein stated and pro-
duce the books and records requir-
ed, if any, and shall testify truth-
fully under oath administered by
the Chairman in charge of the
hearing on appeal as to any mat-
ter required of him pertinent to the
appeal, and it shall be unlawful for
him to fail or refuse so to do.
Section 22. INTERPRETATION:
RULES and REGULATIONS. In
the administration of this Ordi-
nance and the interpretation of the
provisions thereof, the City Clerk
shall be guided by the rules and
regulations as adopted, published
and interpreted by the Excise Tax
Division of the Tax Commission of
the State of Washington under and
in respect to the State Business
and Occupation Tax Law (Chap-
ter 180, Laws of 1935, as amend-
ed), insofar as the same are ap-
plicable to and not inconsistent
with the provisions and require-
ments of this ordinance or with
such rules and regulations as the
City Council may at any time
adopt hereunder.
The City Council may from time
to time adopt, publish and enforce
rules and regulations not incon-
sistent with this ordinance or with
law for the purpose of carrying
out the provisions hereof or inter-
preting same, and it shall be un-
lawful to violate or fail to comply
with any such rule or regulation
adopted by the City Council.
Section 23. MAILING OF NO-
TICES: Any notice required by this
ordinance to be mailed to any tax-
payer shall be sent by ordinary
mail, addressed to the address of
the taxpayer as shown by the
records of the Clerk; or if no such
address is shown, to such address
as the Clerk is able to ascertain
by reasonable effort. Failure of the
taxpayer to receive such mailed
notice shall not release the tax-
payer from any tax or any penal-
ties thereon, nor shall such failure
operate to extend any time limit
set by the provisions of this Ordi-
nance.
Section 24. L I C E N S E FEE
ADDITIONAL TO OTHERS: The
license fee and tax herein levied
shall be additional to any license
fee or tax imposed or levied un-
der any law or any other Ordin-
ance of The City, except as herein
otherwise expressly provided.
Section 25. APPLICATION TO
CITY'S BUSINESS ACTIVITIES.
Whenever The City through any
department or division shall en-
gage in any business a c t i v i t y
which if engaged in by any person
would under this Ordinance require
a Business License and the pay-
ment of a license fee or tax by
such person, the City department
or division engaging in such busi-
ness activity shall as to such busi-
ness activity at the same time and
in the same manner as persons are
required hereunder to make re-
turns and from the funds of such
department or division pay the li-
cense fees or taxes imposed here-
under.
Section 26. EFFECT OF PAR-
TIAL INVALIDITY. If any pro-
vision, section, paragraph, clause
or part of this ordinance shall be
held void or unconstitutional, the
remainder of this ordinance shall
not be affected thereby, but all
other provisions, sections, para-
graphs, clauses and parts of this
ordinance not expressly so held to
be void or unconstitutional shall
continue and remain in full force
and effect.
Section 27. This Ordinance shall
take effect on January 1, 1954, and
be in force and effect on and after
that date for the calender year
1954.
PASSED by the City Council this
8th day of December, 1953.
Wiley Crook,
City Clerk
APPROVED by the Mayor this
8th day of December, 1953.
Joe R. Baxter,
Mayor.
Approved as to form:
ARTHUR L. HAUGAN,
City Attorney.
Published Dec. 24, 1953.
30 Published in The Renton Chronicle, December 24, 1953