HomeMy WebLinkAboutORD 1587City of Renton—Business Tax Ordinance 1957
ORDINANCE NO. 1587
An ordinance of the City of
Renton, Washington, relating
to and providing for a license
or occupation tax upon cer-
tain businesses, occupations,
pursuits and privileges; defin-
ing offenses and prescribing
penalties.
BE IT ORDAINED BY THE
MAYOR AND THE CITY
-COUNCIL OF THE CITY OF
RENTON:
Section 1. EXERCISE OF
REVENUE LICENSE POWER.
The provisions of ithis Ordinance
shall be deemed an exercise of
the power of the City of Renton
to license for revenue.
Section 2. DEFINITIONS: In
construing the provisions of this
ordinance, save when otherwise
declared or clearly apparent
from the context, the following
definitions 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 used
interchangeably means any in-
dividual, receiver, assignee,
trustee in bankruptcy, trust,
estate, firm, co -partnership,
joint venture, club, company,
joint-stock company, business
trust, corporation, association,
society, or any group of indivi-
duals acting as a unit, whether
mutual, cooperative, fraternal,
non-profit or otherwise, and in-
cludes the United States or any
instrumentality thereof, provid-
ed a valid tax may be levied up-
on or collected therefrom under
the provisions 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 contracts, leases and any
other contract under which pos-
session of the property is given
to the purchaser but title is re-
tained by the vendor as security
for the payment of the purchase
price or rental. It shall also be
construed to include the furnish-
ing of food, drink or meals for
compensation, whether consum-
ed upon the premises or not.
(d) The term "gross proceeds
of sales" means the value pro-
ceeding or accruing from the
sale of tangible personal proper-
ty and for services rendered
without any deduction on ac-
count 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 with.>ut any
deduction on account of losses.
(e) The term "gross income of
the business" means the value
proceeding or accruing oy rea-
son of the transaction of the
business engaged in and in-
cludes gross proceeds of sales,
compensation for the rendition
of services, gains realiz, i from
trading in stocks, bonds ur other
evidences of .indebtedness, inter-
est, discount, rents, royalties,
fees, commissions, dividends and
other emoluments however des-
ignated, all without any deduc-
tion on account of the cost of
the commodity or -tangible prop-
erty sold, the cost of materials
used, labor costs, interest, dis-
count, delivery costs, taxes or
any other expense whatsoever
paid or accrued and without any
deduction on account of losses.
(f) The term "value proceed-
ing or accruing" means the con-
sideration, whether money, cred-
its, rights or other property ex-
pressed .in terms of money, actu-
ally received or accrued. The
term shall be applied, in each
case, on a cash receipts or ac-
crual :basis according to which
method . of accounting is regu-
larly employed. in keeping the
books of the taxpayer. The
value proceeding or accruing
from sales on the installment
plan under conditional contracts
of sale may ,be reported as of
the dates when the payments
become due.
(g) The word "extractor"
means every person who, from
his own land or from the 'land
of another under a - right or li-
cense granted by lease or con-
tract, either directly or by con-
tracting with others for the
necessary labor or mechanical
services, for sale purposes,
mines, quarries, takes or pro-
duces coal, oil, natural gas, ore,
stone, sand, gravel, clay, miner-
al or other natural resource
product or fells, cuts or takes
timber or other natural pro-
ducts, or takes, cultivates or
raises fish, shell fish or other
sea or inland water foods or
products, but does not include
persons performing under con-
tract 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, manu-
factures for sale any articles,
substances or 'commodities.
When the owner of equipment
or facilities furnishes, or sells
to the customer prior to manu-
facture, all or a portion of the
materials that become a part or
whole of the manufactured ar-
ticle, theCity Council shall pre-
scribe equitable rules for deter-
mining tax. liability.
(i) The term "manufacture"
embraces all the activities of a
commercial nature wherein la-
bor or skill is applied, by hand
or machinery, to materials so
that as a result thereof a new,
different or useful article of tan-
gible personal property or sub-
stance of trade or commerce is
produced and shall include the
production or fabrication of spe-
cial .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 in-
directly.
(k) The words "engaging (or
engage) in business" mean
commencing, conducting or con-
tinuing in business and also the
exercise of corporate or fran-
chise powers as well as liquidat-
ing a business when the liquidat-
ors 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
specified date.
(m) The term "tuition fee"
shall be construed to include li-
brary, laboratory, health service
and other special fees, and
amounts charged for room and
bgard by an educational institu-
,ion when the property or ser-
vice for which such charges are
made is furnished exclusively to
the students or faculty of such
institution:' ':Provided, That the
term "educational institution,"
as used herein, shall be con-
strued to mean only those insti-
tutions created or generally ac-
credited as such by the State
and offering to students an edu-
cational program of a general
academic nature, or those insti-
tutions which are not operated
for profit and which are pri-
vately endowed under a deed
of trust to offer instruction in
trade, industry and agriculture,
but not including specialty
schools, business colleges, trade
schools or similar institutions.
(n) The word "successor"
means any person who shall,
through direct or mesne con-
veyance, purchase or succeed
to the business, or portion there-
of, 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 obligated
to fulfill the terms of a contract
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
individuals, corporation or asso-
ciation required to have a Busi-
ness License hereunder, or liable
for any license fee or tax, or for
the collection of any license fee
or tax hereunder or who en-
gages 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
number shall include the plural,
and the plural shall include the
singular. Words in one gender
shall include -all other genders.
(q) "Bimonthly period" shall
mean a two-month period begin-
ning the first day of the odd -
numbered month and including
the last day of the next succeed- .
ing 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 LI-
CENISE REQUIRED. Every per-
son engaging within the city of
Renton during the calendar year
1957 in any business or activity
for which a license fee or tax
is provided by this Ordinance,
whether such person is subject
to the payment of any tax there--.
under or not, shall apply for and
obtain from the City Clerk. _a
"BUSINESS LICENSE" for
such calender year or unexpired
portion thereof; and on and af-
ter the effective date of this
ordinance no person, whether
subject to the payment of a tax
or not, shall during the calendar
year 1957, engage in any :busi-
ness activity within the City of
Renton for which a license fee
or tax is imposed ,by this Ordin-
ance without (a) having first
obtained and being the holder
of a valid and subsisting license
so to do to be known as a "Busi-
ness License," issued for such
calendar year under the provi-
sions of this Ordinance as here-
inafter provided, and (b) having
paid the license fee and tax
imposed by this Ordinance. The
fee or tax -for the "Business Li.
cense" 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 accompany the application
for the license.
Said license shall expire at the
end of the calendar year. Each
license shall be personal and
non -transferable. In case busi-
ness is transacted at two or
rnore separate places by one tax-
payer, a separate 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 pre-
scribed and furnished by him
and the Clerk shall keep a regis-
ter 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 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 taxpayer shall re-
turn 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 busi-
ness for which a business li-
cense is required under this
Section, without .being regis-
tered and licensed in compliance
with the provisions of this Sec-
tion; nor shall any person hold-
ing such a "Busines License"
suffer or allow any other per-
son, 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 given
against value of products, gross
proceeds of sales, or gross in-
come of business, as the case
may be, for the two calendar
months next preceding the be-
ginning of each bi-monthly per-
iod, as follows:
(a) Upon every person en-
gaging within this City in busi-
ness as a manufacturer or as
an extractor; as to such persons
the amount of the tax with re-
spect to such business shall be
equal to the value of the prod-
ucts manufactured or extracted
for sale, multiplied by the rate
of three hundredths of one per
cent (.0003).
The 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 sales 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 without regard to the place
of delivery of articles, commod-
ities or merchandise sold, mul-
tiplied by the rate of three hun-
dredths of one per cent (.0003).
(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 three -hundredths of
one per cent (.0003).
Yd) Upon every person engag-
ing within this City in any of
the following professions and
businesses which for the pur-
poses of this Ordinance are clas-
sified 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, bookkeeper,
or tax services; real estate
broker or agency thereof; insur-
ance broker, agent or represen-
tative; other brokerage; funer-
al director; rest home, nursing
home, or place of refuge; spe-
cialized,private training schools
in music, aviation or other
skills;
2. The business of selling or
furnishing water for compensa-
tion;
3. The business of urban
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 commer-
cial 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 one-tenth of one per
cent (.001).
In respect to utility businesses
h e r e i n mentioned the term
"gross income" as heretofore
defined shall include the gross
operating revenue of the busi-
ness;
(e) Upon every person en-
gaging within this City in any
business activity other than or
in addition to those enumerated
in subsections (a), (b), (c) and
(d) above; as to such persons
the amount of the tax with re-
spect to any such business ac-
tivity shall .be equal to the gross
income of the business multi-
plied ,by the rate of three -hun-
dredths of one per .cent (.0003).
This sub -section (e) includes,
among others, and without lim-
iting the scope thereof, (whe-
ther 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 other
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 said
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 value of
products extracted or manufac-
tured 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 trans-
ferred out of the City, or to an-
other person, 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
possible to the gross proceeds
from sales in the City of similar
products of like quality and
character, and in similar quan-
tities by other taxpayers. The
City Council shall prescribe uni-
form and equitable rules for
the purpose 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 not
elsewhere, the ,tax shall be mea-
sured upon the entire business
activity without regard to the
place where the products are
delivered or the sales are made
or the services are rendered.
(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 of-
fices, 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 in-
come of the business attribut-
able to .business within the City
ascertained either:
(1) by a segregation of busi-
ness within and business out-
side the City 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 bears 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 within
the State; or
(3) when the use of such ap-
portionment factor is imprac-
ticable or grossly inequitable, by
a fair and equitable apportion-
ment of value of products, gross
proceeds of sales, or gross in-
come of the business, upon such
reasonable b a s i s 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 OON-
SIGN'EE, 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 pro-
perty in his or its own
name and actually so sell-
ing, shall be deemed the seller
of such tangible personal pro-
perty within the meaning of
this Ordinance; and further, the
consignor, bailor, principal or
owner shall be deemed a seller
of such property to the con-
signee, bailee, factor or auction-
eer.
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 personal pro-
perty 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 records are
kept in such manner as shall
clearly confirm the claim.
Section 9. EXEMPTIONS.
The provisions of this ordin-
ance shall not apply to:
(a) Any person in respect to
a business activity with respect
to which the tax liability is spe-
cifically imposed under the pro-
visions of: Ordinances Nos. 900
theatres); 1174 (admissions);
1212 (games of skill); 1319 (mu-
sic devices); 1236 (taxicabs);
940 (peddlers); 1229 (dance
halls) ; 1466 (private detectives,
,Merchant Patrolmen); all as
amended.
(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 subsec-
tion shall not exempt any per-
son engaging in the business
of representing any insurance
company, whether as general or
local agent or acting as broker
for such companies; And pro-
vided, further, That the provi-
sions of this sub -section shall
not exempt any bonding com-
pany 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 con-
tractor.
(c) Any fruits, vegetables,
berries, .butter, eggs, fish, milk,
poultry, m e a t s 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
exhibitions for the conduct of
which a license must be secured
from the State Athletic Com-
mission.
(e) Any person in respect tc
the business of conducting race
meets for the conduct of which
a license must be secured from
the State Horse Racing Commis-
sion.
(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 Rem. Rev.
Stat., Section 7259; fraternal fire
insurance associations, as de-
scribed in subdivision third of
Rem. Rev. Stat., Section 7131,
and beneficiary corporations or
societies, organized under 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 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 c o r 'p o r a t i o n,
through the operation of any
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 the
lease, rental or sale of real es-
tate; Provided, however, That
nothing herein shall be con-
strued as an exemption 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
amended), 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 com-
missions from the sale or rent-
al of real estate.
( j) National, b a n k s, state
banks, trust companies, mutual
savings banks, building and loan
and savings and loan associa-
tions with respect to their bank-
ing business, trust business or
savings and loan .business .but
not with respect to engaging in
any other business taxable here-
under, even though such other
business be conducted primarily
for the purpose of liquidating
the assets 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. 7306-31 Rem. Rev.
Stat.). 44
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 businesses, from
investments or the use of money
as such.
(b) Amounts derived from
bona fide initiation fees, dues,
contributions, donations, tuition
fees as .hereinabove defined, and
endowment funds. The provi-
sions of this paragraph shall not
be construed to exempt any per-
sons, association or society from
tax liability upon selling tan-
gible personal property or upon
providing facilities or services
for which a special charge is
made to members or others;
Provided, That dues which are
for, or graduated upon, the
amount of service rendered by
the recipient thereof are not
permitted as a deduction here-
under.
(c) The amount of cash dis-
count actually taken by the pur-
chaser. This deduction is not
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 credit
losses actually sustained :by tax-
payers whose regular books of
accounts are kept upon an ac-
crual basis.
(e) Amounts derived from
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 more
business activities wherein the
value of products, gross pro-
ceeds of sale or gross income
of the taxable business is less
than $1,700.00 for a bi-monthly
period such person shall be ex-
empt from payment of the tax
under Section 4, :but shall never-
theless make and file the bi-
monthly sworn information Re-
turn required under Section 12,
stating that he is exempt under
this Section 11.
Section 12. BI=MONTHLY RE-
TURNS and PAYMENTS. The
license fee or tax imposed by
this Ordinance except the $12.00
fee required to accompany the
annual application for the Busi-
ness License, shall be due and
payable in bi-monthly install-
ments, and remittance therefor
shall be made to the -City Treas-
urer on or before the last day
of the month next succeeding
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 prescribed and pro-
vided by the City Clerk; which
Return shall contain a state-
ment by the taxpayer stating
the amount of the tax for which
he is liable for the preceding
bi-monthly period under and
computed according to the pro-
visions of this ordinance, 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 under the pen-
alties of perjury 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 income of the
business constituting the mea-
sure of the tax liability therein
reported. Provided, however,
that the City Council in its dis-
cretion may at any time by Res-
olution require an annual or
other additional Return from
any taxpayer, setting forth the
value of products, ,gross pro-
ceeds of sales, or gross income
of the business constituting mea-
sure of the tax hereunder, and
such additional information as it
may deem necessary to correctly
determine license fee or tax lia-
bility under this Ordinance, and
containing a statement by the
taxpayer sworn to (or affirmed)
under oath 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:
Whenever the total tax for
which any person is liable under
this Ordinance does not exceed
the sum of $2.00 for any bi-
monthly period, an annual Re-
turn may be made upon written
request to and written approval
by the City Clerk.
Section 13. PAYMENT OF
LICENSE TAX. The license fee
or tax payable hereunder shall
at the time the return is - re-
quired to be filed hereunder be
paid to the City Treasurer by
bank d r a f t, 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 acceptance 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 endorse
thereon the date and amount of
the payment received and shall
thereupon forthwith file the re
turn with the Clerk.
The Clerk is authorized, but
not required, to mail to tax-
payers forms for applications
for license and forms for re-
turns, but failure of the tax-
payer to receive any such forms
shall not excuse the taxpayer
from making application for
and securing the license re-
quired making returns, and pay-
ment of the license fee or tax
when and as due hereunder.
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,
gross proceeds of sale or value
of products, as the case may be,
and from which can be deter.
mined the amount of any -fee
or tax for which he may be li-
able under the provisions of this
Ordinance; and all books, rec-
ords, invoices, inventories and
stocks of goods, wares and mer.
chandise shall -be open for exam-
ination at all reasonable times
by the Clerk or his duly author-
ized agent.
Section 15. FINAL PAYMENT
PUBLIC WORK ,CONTRACT—
LIC'ENSE FEES TO QBE PAID
FIRST: The Clerk shall, before
issuing any warrant making fi-
nal payment to any person per-
forming any public work con.
tract 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 oth-
erwise.
Section 16. EXTENSION OF
TIME FOR ,FILING RETURN'S
—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 minimum
penalty of $3.00.
Section 17. SALE OR TRANS-
FER OF BUSINESS: Upon the
sale or transfer during any bi-
monthly period of a business. on
account of which a license fee
or tax is hereby required, the
purchaser or transferee shall,
if the fee or tax has not been
paid in full for said bi-monthly
.period, be responsible 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 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 con-
tained in or to permit inspection
of any return, except as in this
section authorized, and except
in any proceedings for determin-
ation and/or collection of the
tax.
Section 19. 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 shall mail the
taxpayer a statement showing
the balance due and may add
thereto a requirement that in-
terest shall be paid on such bal-
ance at the rate of 6 per cent
per annum from date of under-
payment until paid and the tax-
payer shall within three (3)
days from the date of mailing
statement pay the amount
shown thereon as the balance
due plus such interest. No de-
mand 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 taxpayer. 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. 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 appears
to , be less than the correct
amount of his tax liability un-
der 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 there-
upon become the tax and be im-
mediately due and payable.
(b) Collection As Debt. Any
license fee or tax due and un-
paid and delinquent under this
ordinance, and all penalties
thereon, may be collected by civ-
il action, which remedy shall be
in addition to any -and all other
existing,remedies and penalties.
(c) False Returns. It shall be
unlawful for any person sub-
ject to the tax hereunder to fail
or refuse to secure the license
or to make the returns as and
when required or to pay the
fee or tax when due, or for any
person to make any false or
fraudulent application or return
or any false statement or rep-
resentation in or in connection
with any such application or -re-
turn, or to aid or abet another
in any attempt to evade pay-
ment of the fee or tax or any
part thereof, or for any person
to fail to appear and/or testify
in response to subpoena issued
pursuant hereto, or to testify
falsely upon any investigation
of the correctness of a return
or upon the hearing of any ap-
peal, or in any manner to hin-
der or delay the City or any of
its officers in carrying out the
provisions of this Ordinance.
(d) Revocation of License. The
Clerk may revoke the license
issued to any taxpayer who is
in default in any payment of
any license fee or tax hereun-
der, 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 con-
tinues to engage in business
shall be deemed to be operating
without a license and shall be
subject to any or all penalties
herein provided.
(e) Penalties. Any person
violating or failing to comply
with any of the provisions of
this Ordinance or any lawful
rule or regulation adopted by
the Council pursuant thereto,
upon conviction thereof, shall
be punished by a fine in any
sum not to exceed One Hun-
dred Dollars ($100.00), or by
imprisonment in the City Jail
for a term not exceeding thirty
(30) days, or by both such fine
and imprisonment.
(f) Any taxpayer who en-
gages in, or carries on, any busi-
ness subject to a tax hereunder
without having his "Business
License" so to do shall be guilty
of a violation of this Ordinance
for each day during which the
business is so engaged in, or car-
ried on; and any taxpayer who
fails or refuses to pay the li-
cense fee or tax, or any part
thereof, on or before the due
date, shall be deemed to be oper-
ating without having his license
so to do.
Section 21. APPEAL TO •CITY
COUNCIL: Any taxpayer ag-
grieved by the amount of the
fee or tax found by the Clerk to
be required under the provisions
of this Ordinance, may appeal
to the City Council from such
finding by filing 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 hearing
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
entitled to be heard and to in-
troduce evidence in his own be-
half. The City Council shall
thereupon ascertain the correct
amount of the fee or tax by
resolution and the City Clerk
shall immediately notify the Ap-
pellant 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 Chair-
man of any committee thereof
before which the appeal is to be
heard may,. by subpoena, require
the attendance thereat of any
person, and may also require
him to produce any pertinent
books and records. Any person
served with such subpoena shall
appear at the time and place
therein stated and produce the
books and records required, if
any, and shall testify truthfully
under oath administered by the
Chairman in charge of the hear-
ing on appeal as to any matter
required of him pertinent to the
appeal, and it shall be unlawful
for him to fail or refuse so
to do.
Section 22. INTERPRETA-
TION:' RULES and REGULA-
TIONS. In the administration of
this Ordinance and the inter-
pretation of the provisions
thereof, the City Clerk shall be
guided by the rules and regula-
tions as adopted, published and
interpreted by the Excise Tax
Division of the Tax Commission
of the State of Washington un-
der and in respect to the State
Business and Occupation Tax
Law (Chapter. 180, Laws of 1935,
as amended), insofar as the
same are applicable to and not
inconsistent with the provisions
and requirements of this ordin-
ance or with such rules and reg-
ulations 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 inconsistent with this or-
dinance or with law for the pur-
pose of carrying out the provi-
sions h e r e o f or interpreting
same, and it shall be unlawful
to violate or fail to comply with
any such r u 1 e or regulation
adopted by the City Council.
Section 23: MAILING OF
NOTICES: Any notice required
by this ordinance to be mailed
to any taxpayer 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 rea-
sonable effort. Failure of the
taxpayer to receive such mailed
notice shall not release the tax-
payer from any tax or any pen-
alties thereon, nor shall such
failure operate to extend any
time limit set by the provisions
of this Ordinance.
Section 24: LICENSE FEE
ADDITIONAL TO OTHERS:
The license fee and tax herein
levied shall be additional to any
license fee or tax imposed or
levied under any law or any
other Ordinance of The City ex-
cept as herein otherwise ex-
pressly provided.
Section 25. APPLICATION
TO CITY''S BUSINESS ACTIVI-
TIES. Whenever The City
through any department or div-
ision shall engage in any busi-
nes activity which if engaged in
by any person would under this
Ordinance require a Business
License and the payment of a
license fee or tax by such per-
son, the City department or div-
ision engaging in such business
activity shall as to such busi-
ness activity at the same time
and in the same manner as per-
sons are required hereunder to
make returns and f r o m the
funds of such department or
division pay the license fees or
taxes imposed hereunder. .
Section 26. EFFECT OF PAR-
TIAL INVALIDITY. If any pro-
vision, section, paragraph,
clause, or part of this ordinance
shall be held void or unconsti-
tutional, the remainder of this
ordinance shall not be affected
thereby, but all other provisions,
sections, paragraphs, 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,
1957 and be in force and effect
on and after that date for the
calendar year 1957.
PASSED by the City Council
this 4th day of December, 1956.
ELTON L. ALEXANDER
City Clerk.
APPROVED by the Mayor
this 4th day of December, 1956.
JOE R. BAXTER, ;Mayor.
Approved as to form:
Gerard M. Shellan
City Attorney.
Published in The Renton News
Record, Dec. 13, 1956.