Loading...
HomeMy WebLinkAboutORD 1532CITY OF RENTON - BUSINESS TAX ORDINANCE 1956 Business Tax Ordinance 1956 ORDINANCE NO. 1532 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 THE 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: In 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. (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 re- alized 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, d:acount, de- livery costs, taxes or any other expense whatsoever paid or ac- crued and without any deduction on 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. (b) The word "person" or word (g) The word "extractor" "company," herein used inter- means every person who, from his changeably means any individual, own land or from the land of an - receiver, assignee, trustee in bank- other under a right or license ruptcy, trust, estate, firm, co -part- ranted by�ase or contract, eith- lele nership, joint venture, club, com-� er directly by contracting with pany, joint-stock company, busi- others for the necessary labor or ness trust, corporation, associa- tion,Asociety, or any group of indi- mechanical services, for sale pur- viduals acting as a unit, whether poses, mines, quarries, takes or produces coal, oil, natural gas, ore, m u t u a 1, cooperative, fraternal, stone, sand, gravel, clay, mineral non-profit or otherwise, and in- or other natural. resource product cludes the United States or any instrumentality thereof, provided a or fells, cuts or takes timber or valid tax may be levied upon or other natural products, or takes, cultivates or raises fish, shell fish collected therefrom under the pro- or other sea or inland water foods visions of this ordinance. or products, but does not include (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. 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 w it h 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 determin- ing tax liability. (i) The term "manufacture" 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. (j) The word "business" in- cludes all activities and transac- tions engaged in with the object of gain, benefit or advantage to the taxpayer or to another person or class, directly or indirectly. (k) The words "engaging (or engage) in business" mean com- mencing, 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 fee" shall be construed to include li- brary, laboratory, health service and o t h e r 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 and agriculture, but not including specialty schools, business col- leges, trade schools or similar in- stitutions. (n), The word "successor') means any person who shall, 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 bligated 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 whom 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) "Bimonthly 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 1956 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 unex- pired portion thereof; and on and after the effective date of this or- dinance no person, whether subject to the payment of a tax or not, shall during the calendar year 1956, 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," in 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 business- 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; o t h e r 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). designated (a), (b), (c), (d), and (e) of Section 4 of this Ordinance, shall be taxable under each _ap--, -12 licableparagraph; 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 respect 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. DETERMINATION 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 the City of similar prod- ucts 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- ing such values. Section 7. APPORTIONMENT OF BUSINESS. In respect to utility businesses (a) As to an herein mentioned the term "gross y person engaging income" as heretofore defined in a business activity both within shall include the gross operating and without the City, or partially revenue of the business; .,,?within and partially without t h e City, �Et maintaining an office or (e) Upon every person engag- place of business within this City ing within this City in any busi- and not elsewhere, the tax shall ness activity other than or in ad- be measured upon the entire busi- dition to those enumerated in sub- ness activity without regard to the sections (a), (b), (c) and (d) place where the products are de - above; as to s u c h persons the livered or. the sales are made or amount of the tax with respect to the services are rendered. 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 a re within the purview of the provi- sions of two or more paragraphs (b) Persons engaging in a busi- ness 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 t h e 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 the 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 proceeds 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. S A L E S 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, w it h power to sell such tangible per- sonal property in his or its own name and actually so selling, shall be deemed the seller of s u c h tangible personal property within the meaning of this Ordinance; and further, the consignor, bailor, prin- cipal or owner shall be deemed a seller of such property to the con- signee, bailee, factor or auctioneer. The burden shall be upon th e taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but 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- ords 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 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 liability 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 exhibitions for t he 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 t h e 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 b u s i n e s s 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. (k) The business of manufac- turing, selling, or distributing mo- tor 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 Al - 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, f r o m invest- ments or the use of money as such. (b) Amounts derived from bona fide initiation fees, dues, contribu- tions, donations, tuition fees as herinabove 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 I Pro- vided, That dues which are fbr, or graduated upon, the amount of ser- vice rendered by the recipient 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 t he 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 accounts 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 p e r s o n engages in one or more business activities wherein t he 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- mittance therefor shall be made to the City Treasurer on or before the last 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 last 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- ing the measure of the tax liabili- ty therein reported., Provided, how- ever, that the City Council in its discretion may at any time by 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 t a x hereunder, and such additional in- formation as it may deem neces- sary to correctly determine license fee or tax liability under this Or- dinance,. a n d 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 he 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 t he 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 m a i 1 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 REC- ORDS. EGORDS. 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 — LICENSE FEES TO BE PAID 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 OF 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 Ordi- nance and may grant such reason- able additional time within which to file such returns as he in a y 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 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 I ale 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 Ordi- nance shall not be made public, nor shall they be subject to the in- spection 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 con- tained in or to permit inspection of any return except as in this sec- tion 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 t h r e e (3) days from t h' a 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. I Section 20. ENFOR C E 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, t he Clerk is authorized to determine the amount of the tax payable, and by mail to notify such taxpayer of the amount so determined. T he amount so fixed shall thereupon become the tax and be immediate- ly. 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 f a 1 s e statement 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 w h o 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 w i t h any of the provisions of this Ordi- nance or any lawful rule or reg- ulation adopted by t he Council pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed One Hundred Dollars ($1100.00), 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. APPEAL 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 C it y 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. T h e 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 t i me 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 rec- ords 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,a4. 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 Ordi- nance of The City except as here- in otherwise expressly provided. Section 25. APPLICATION TO CITY'S BUSINESS ACTIVITIES. Whenever The City through a n y department or division shall en- gage in any business activity 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 s h a 11 continue and remain in full force and effect. .Section 27. This Ordinance shall take effect on January 1, 1956 and be in force and effect on and after that date for the calendar year ;mr 1956. PASSED by the City Council this 8th day of November, 1955. Floyd W. Shaff, City Clerk APPROVED by the Mayor this this 8th day of November, 1955. Joe R. Baxter, Mayor Approved as to form: ARTHUR L. HAUGAN, City Attorney. Published in the Renton Chron- icle, November 24, 1955.