HomeMy WebLinkAboutORD 1706ORDINANCE
City of Renton-
NO.
enton-NO. f'�� er evidences of
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; de-
fining offenses and prescrib-
ing 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 this Ordi-
nance shall be deemed an ex-
ercise of the power of the City
of Renton to license for reve-
nue.
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 ei-
ther the calendar year or the
taxpayer's fiscal year w h e n
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 individ-
uals 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
upon or collected therefrom un-
der the provisions of this ordi-
nance.
(c) The word "Sale" includes
the exchange of property as
well as the sale thereof for
money; and also includes con-
ditional sales contracts, leases
and any other contract under
which possession of the proper-
ty is given to the purchaser 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 compensa-
tion, whether consumed up on
the premises or not.
(d) The term "gross proceeds
of sales" means the value pro-
ceeding or accruing from the
sale of tangible personal prop-
erty 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 without
any deduction on account of
losses.
(e) The term "gross income
of the business" means the val-
ue proceeding or accuring by
reason of the transaction of the
business engaged in and in-
cludes gross proceeds of sales,
compensation for the rendition
of services, gains realized from
trading in stocks, bonds or oth-
Business
indebtedness,
interest, discount, rents, royal-
ties, fees, commissions, divi-
dends and other emoluments
however designated, all without
any deduction on account of the
cost of the commodity or tan-
gible property sold, the cost of
materials used, labor costs, in-
terest, discount, delivery costs,
taxes or any other e x p e n s e
whatsoever paid or a c c r u e d
and without any deduction on
account of losses.
(f) The term "value proceed-
ing or accruing" m e a n s the
consideration, whether money,
credits, rights or other proper-
ty expressed in terms of mon-
ey, actually received or ac-
crued. The term shall be ap-
plied, in each case, on a cash
receipts or accrual basis ac-
cording to which method of ac-
counting is regularly employed
in keeping the books of the tax-
payer. The value proceeding or
accruing from sales on the in-
stallment plan under condition-
al contracts of sale may be re-
ported 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, min-
eral or other natural resource
product or fells, cuts or takes
timber or other natural prod-
ucts, 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 "manufactur-
er" means every person w h o
either directly or by contract-
ing with others for the neces-
sary labor or mechanical serv-
ices, manufactures for sale any
articles, substances or com—
modities. When the owner of
equipment or facilities furnish-
es, or sells to the customer
prior to manufacture, all or a
portion of the materials that be-
come a part or whole of the
manufactured article, the City
Council shall prescribe equita-
ble rules for determining tax li-
ability.
(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
tangible personal property or
substance of trade or com-
merce is produced and shall
include the production or fab-
rication of special made or
custom made articles.
(j) The word "business" in-
cludes all activities and trans-
actions engaged in with the ob-
ject of gain, benefit or advan-
tage to the taxpayer or to an-
other person or class, directly
or indirectly.
(k) The words "engaging (or
engage) in business" mean
Y- *, :..y -
U
Tax Ordi
commencing, e o n d u c t i n
continuing in business and
the exercise of corporat
franchise powers as well a
uidating a business when
liquidators thereof hold
selves out to the public as
ducting such business.
(1) The term "cash disc
means a deduction from the
voice price of ,goods or chi
for services which is allow{
the bill is paid on or befa
specified date.
(m) The term "tuition
shall be construed to inclu
brary, laboratory, health E
ice and other special fees,
amounts charged for room
board by an educational in
tion when the property or
ice for which such charges
made is furnished exclusi
to the students or facult+
such institution: Provided,
the term "educational in;
tion," as used herein, shat
construed to mean only t
institutions created or gen
ly accredited as such by
State and offering to stud
an educational program i
general academic nature,
those institutions which are
operated for profit and w
are privately endowed and
deed of trust to offer inst
tion in trade, industry and
riculture, but not including
cialty schools, business co
es, trade schools or simila:
stitutions.
(n) The word "succes
means any person who s
through direct or mesne
veyance, purchase or sue
to the business, or p or t
thereof, or the whole or
part of the stock of go
wares or merchandise or
tures or any interest therei
a taxpayer quitting, sel
out, exchanging or other
disposing of his business.
person obligated to fulfill
terms of a contract shal
deemed a successor to any
tractor defaulting in the
formance of any contract s
whom such person is suret
guarantor.
(o) The word "taxpayer'
cludes any individual, grou
individuals, corporation or
sociation required to hav
Business License hereunder
liable for any license fee or
for the collection of any lic
fee or tax hereunder or wh(
gages in any business or
performs any act, for whir
license fee or tax is impose,
this ordinance.
(p) Words in the sing
number shall include the 1
al, and the plural shall inc
the singular. Words in one
der shall include all other
ders.
(q) "Bimonthly period"
mean a two-month period
ginning the first day of the
numbered month and inclu
the last day of the next sue(
ing month.
(r) The word "Clerk"
mean the City Clerk of the
of Renton.
(s) The word "Treasu
shall mean the City Treas
of the City of Renton.
(t) The word "City" s h
mean the City of Renton.
nce 195?
or Section 3. BUSINESS LI -
also CENSE REQUIRED. E v e r y
or person engaging within the city
hq- of Renton during the calendar
the year 195V in any business or ac-
[em- tivity for which a license fee or
con- tax is provided by this O r d i-
nance, whether such person is
,int" subject to the payment of any
in- tax thereunder or not, shall ap-
irge ply for and obtain from the
�d if City Clerk a "BUSINESS LI -
•e a CENSE" for such calendar
yearor unexpired p o r t i o n
fee" thereof; and on and after the
e li. effective date of this ordinance
erv- no person, whether subject to
and the payment of a tax or not,
and shall during the calendar year
titu- 195(, engage in any business
erv- activity within the City of Ren -
are ton for which a license fee or
vely tax is imposed by this Ordi-
of nance without (a) having first
Chat obtained and being the holder
titu- of a valid and subsisting license
l be so to do to be known as a"Bus-
iose iness License," issued for such
gyral- calendar year under the provi-
the sions of this Ordinance as here-
ents inafter provided, and (b) hav-
of a ing paid the license fee and tax
or imposed by this Ordinance. The
not fee or tax for the "Business Li-
hich cense" shall be the license fee
�r a or tax imposed by this Ordin-
ruc- ante, and in addition, the sum
ag- of $129.00 as a license fee which
spe- shall accompany the application
leg- for the license.
in- Said license shall expire at
the end of the calendar year.
,or" Each license shall be personal
call, and non -transferable. In c a s e
con- business is transacted at two or
;eed more separate places by one
i o n taxpayer, a separate license
n y shall be required for e a c h
d s place but for such additional li-
fix- tenses no additional $12.00 fee
n of shall be required.
ling- All licenses shall be issued by
vise the City Clerk on forms pre -
Any scribed and furnished by him
h e and the Clerk shall keep a reg -
be ister thereof. Each license shall
con- be numbered, shall show the
per- name, place and character of
s to business of the taxpayer, such
or other information as the City
Clerk shall d e e in necessary,
in- and shall at all times be post -
of ed in the place of business for
as- which it is issued. When the
e a place of business of a taxpay-
or er is changed, the taxpayer
tax, shall return the license to the
Anse City Clerk and a new license
en- shall be issued-- for the new
who place of business free of
!h a charge. No person shall engage
1 by in any business for which a bus-
iness license is required under
ar this Section, without being reg-
lur- istered and licensed in compli-
tude ante with the provisions of this
en- Section; nor shall any person
en- holding such a "Business Li-
cense" suffer or allow any oth-
hall er person, for whom separate
be- license is required, to operate
Ad- under or display his license.
ing Section 4. ENUMERATION
ed- OF PERSONS SUBJECT TO
TAX; MEASURE AND RATES
hall OF TAX. On and after the ef-
ity fective date of this Ordinance,
and during the calendar year
er" there is hereby levied upon and
firer shall be collected from and paid
as hereinafter specified by ev-
ery person on account of and
for the privilege of engaging in
business activities, a license fee
or occupation tax, sometimes
herein referred to as the "tax,"
in amounts to be determined
by application of rates g i v e n
against value of products, gross
proceeds of sales, or gross in-
come of business, as the case
may be, for the 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 per-
sons the amount of the tax with
respect to such business shall
be equal to the value of the
products manufactured or ex-
tracted for sale, multiplied by
the rate of 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 s a l e s at
wholesale or retail; as to such
persons the amount of the tax
with respect to such business
shall be equal to the gross pro-
ceeds of such sales of the busi-
ness w i t h o u t regard to the
place of delivery of articles,
commodities o r merchandise
sold, multiplied by the rate of
three hundredths 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).
(d) Upon every person engag-
ing within this City in any of
the following professions a n d
businesses which for the pur-
poses of this Ordinance are
classified as preponderantly in
the nature of rendering services:
1. Doctor of medicine; other
healing art or science; dentist
or dental technician; attorney
at law; accountant, bookkeep-
er, or tax services; real estate
broker or agency thereof; in-
surance broker, agent or repre-
sentative; other brokerage; fu-
neral director; rest home, nurs-
ing home, or place of refuge;
specialized p r i v a t e training
schools ih music, aviation or
other skills;
2. The business of selling or
furnishing water for compensa-
tion;
3. The business of u r b an
transportation;
4. Telegraph business;
5. The business of selling, fur-
nishing or distributing electri-
city, (exclusive of electricity
sold for the purpose of resale,
and the revenue therefrom);
6. The business of selling,
furnishing, distributing or pro-
ducing gaseous gas for com-
mercial or domestic use.
As to such persons the
amount of the tax with respect
to such profession or business
shall be equal to the gross in-
come derived from such profes-
sion or business multiplied by
the rate of one-tenth of one per
cent (.001).
In respect to utility business-
es herein 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 enumerat-
ed in subsections (a), (b), (c)
and (d) above; as to such per-
sons the amount of the tax with
respect to any such business
activity shall be equal to t he
gross income of the business
multiplied by the rate of three -
hundredths of one per cent
(.0003).
This sub -section (e) includes,
among others, and without lim-
iting the scope thereof (wheth-
er or not title to material used
in the performance of such
business passes to another by
accession, confusion or other
than by outright sale), persons
engaged in the business of ren-
dering ary type of service oth-
er than or in addition to those
enumerated in sub -section (d)
above.
Section 5. TAXABLE AS TO
EACH ACTIVITY: Every per-
son engaging in activities which
are within the purview of the
provisions of two or more para-
graphs designated (a), (b), (c),
(d), and (e), of Section 4 of this
Ordinance, shall be taxable un-
der each applicable paragraph;
Provided, that persons taxable
under Paragraph (b) of s a i d
section on products sold for de-
livery within the State of Wash-
ington shall not be taxable un-
der Paragraph (a) thereof with
respect to extracting or manu-
facturing of such products so
sold; and that persons taxable
under•Paragraph (a) thereof as
manufacturer shall not be tax-
able under said Paragraph (a)
with respect to extracting the
ingredients of the product so
manufactured.
Section 6. DETERMINATION
OF VALUES: The v a l u e of
products extracted or manufac-
tured shall be determined by
the gross proceeds d e r i v e d
from the sale thereof, whether
such sale is at wholesale or at
retail except:
(a) Where such products are
shipped, transported or trans-
ferred out of the City, or to an-
other person, without prior sale
or are sold under circumstanc-
es such that the gross proceeds
from the sale are not indicative
of the true value of the subject -
matter of the sale.
In the above cases the value
shall correspond as nearly as
possible to the gross proceeds
from sales in the City of similar
products of like quality a n d
character, and in similar quan-
tities by other taxpayers. The
City Council shall prescribe uni-
form and equitable rules- f or
the p u r p o s e of ascertaining
such values.
Section 7. APPORTIONMENT
OF BUSINESS.
(a) As to any person engag-
ing in a business activity both
within and without the Cita}, 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
measured upon the entirebus-
iness activity without regard to
the place where the pr ucts
are delivered or the sales are
made or the services are en-
dered.
(b) Persons engaging in a
business activity both within
and without the City butmain-
taining no office or fixed place
of business within this City, and
also persons maintaining dffic-
es, plants, warehouses, or oth-
er business establishmentin
the State of Washington, art
of which are within the C . t y
and part of which are outside
the City, shall be taxable on
the value of products or gross
proceeds of sales or gross in-
come of the business at 'but -
able to business within theity
ascertained either: I�
(a) by a segregation of busi-
ness within and business out-
side the City shown and up -
ported by separate accounting
records; or
(2) by an apportionmen to
the City of that part of I the
value of products; grosspro-
ceeds of sales, or gross inc me
of the business, in the Statl2 of
Washington which b e a r s the
same proportion to the ole
thereof that the total number
of its employees employed 'th-
in the City bears to the total
number of its employeeswith-
in the State; or
(3) when the use of such ap-
portionment factor is imprac-
ticable or grossly inequitable,
by a fair and equitable appor-
tionment of value of products,
gross proceeds of s a 1 e s or
gross income of the business,
upon such reasonable basi as
shall be agreed upon be een
the City (acting through the
City Clerk and Council) an the
taxpayer after consideratio of
the facts.
Section 8. SALES BYjoN-
SIGNEE, BAILEE, FAROR AUCTIONEER: Everon-
signee, bailee, factorouc-
tioneer, having either actu or
constructive possession oftan-
gible personal property, orhav-
ing possession of the docum ants
of title thereto, with power to
sell such tangible personal
property in his or ,its own nAme
and actually so selling, shall be
deemed the seller of such tan-
gible personal propertytthin
the meaning of this Ord;nai}ce;
and further, the consignor, l -
or, principal or owner shal' be
deemed a ,seller of such prop-
erty to the consignee, ba'lee,
factor or auctioneer.
The burden shall be upon the
taxpayer in every case to estab-
lish the fact that such taxpayer
is not engaged in the business
of selling tangible p e r s oA a l
property but is acting me ely
as broker or agent in promot-
ing sales for a principal; such
claim will be allowed only xNhen
the taxpayer's account records
are kept in such in a n n e r as
shall clearly confirm the claim.
Section 9. EXEMPTIONS. The
provisions of this ordinance
shall not apply to:
(a) Any person in respect to
a business activity with respect
to which the tax liability is spe-
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 a n y insurance
company, whether as general
or local agent or a c t i n g as
broker for such companies;
And provided, further, That the
provisions of this sub -section
shall not exempt any bonding
company from tax with respect
to gross income derived f r o in
the completion of any contract
as to which it is a surety, or
as to any liability as successor
to the liability of the defaulting
contractor.
(c) Any fruits, vegetables,
berries, butter, eggs, fish, milk,
poultry, meats or any farm
products or edibles r a i s e d,
caught, produced or manufac-
tured within the State of Wash-
ington and sold by the farmer
or gardener raising, catching,
producing or manufacturing the
same.
(d) .Any person in respect to
the business of conducting box-
ing contests and sparring and -
or wrestling matches and exhi-
bitions for the conduct of
which a license must be se-
cured from the State Athletic
Commission.
(e) Any person in respect to
the business of conducting race
meets for the conduct of which
a license must be secured from
the State Horse Racing C o m -
mission.
(f) Any person in respect to
his employment in the capacity
of an employee or servant as
distinguished from that of an
independent contractor.
(g) Fraternal benefit socie-
ties, as defined in Rem. Rev.
Stat., Section 7259; fraternal
fire insurance associations, as
described 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 corporation
through the operation of a n y
hospital, clinic, resort or oth(+r
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 li-
cense to use or enjoy real
property is granted, or to al-
low a deduction of amounts re-
ceived as commissions f r o in
the sale or rental of real es-
tate.
(j) National banks, s t a t e
banks, trust companies, mutual
savings banks, building and
loan and savings and loan as-
sociations with respect to their
banking business, trust business
or savings and loan business
but not with respect to engag-
ing in any other business tax-
able hereunder, even though
such other business be conduct-
ed primarily for the purpose of
liquidating 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. 7306-3, Rem. Rev.
Stat.) .
Section 10. DEDUCTIONS
ALLOWED IN COMPUTING
LICENSE FEES: In computing
the license fee or tax there may
be deducted from the measure
of tax the following items:
(a) Amounts derived by per-
sons, other than those engaging
in banking, loan, security or
other financial business, from
investments or the use of mon-
ey as such.
(b) Amounts derived f r o m
bona fide initiation fees, dues,
contributions, donations, tuition
fees as hereinabove defined,
and endowment funds. The pro-
visions of this paragraph shall
not be construed to exempt any
persons, association or society
from tax liability upon selling
tangible personal property or
upon providing facilities or
services for which a special
charge is made to members or
others; Provided, That d u e s
which are for, or graduated up-
on, the amount of service ren-
dered by the recipient thereof
are not permitted as a deduc-
tion hereunder.
(c) The amount of cash dis-
count actually taken by the pur-
chaser. This deduction is n o t
allowed in arriving at the tax-
able amount under the extrac-
tive and/or manufacturing clas-
sifications with respect to ar-
ticles produced or manufac-
tured, the values of which, for
the purpose of this tax, have
been computed according to the
provisions of Section 6 hereof.
(d) The amount of c r e d i t
losses actually sustained by
taxpayers whose regular books
of accounts are kept upon an
accrual basis.
(e) Amounts derived f r o in
business which the City is pro-
hibited from taxing under the
constitution or laws of the State
or the constitution or laws of
the United S t a t e s and any
amounts collected by the tax-
payer as an excise tax.
Section 11. LOW VOLUME
EXEMPTION. Whenever a per-
son engages in one or in o r e
business activities wherein the
value of products, gross pro-
ceeds of sale or gross income
of the taxable business is less
than $1,700.00 for a bi-monthly
period such person shall be ex-
empt from payment of the tax
under Section 4, but shall nev-
ertheless 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 -M O N T H L Y
RETURNS and PAYMENTS.
The license fee or tax imposed
by this Ordinance except t he
$12.00 fee required to accom-
pany the annual application for
the Business License, shall be
due and payable in bi-monthly
installments, and remittance
therefor shall be made to the
City Treasurer on or before the
last day of the month next suc-
ceeding the end of the bi-
monthly period in which tree tax
accrued. The license -taxpayer,
on or before said last day of
said month, shall also transmit
to the City Treasurer a Return,
upon a form to be prescribed
and provided by the City
Clerk; which Return shall con-
tain a statement by the t a x -
payer stating the amount of the
tax for which he is liable for
the preceding bi-monthly period
under and computed according
to the provisions of this ordi-
nance, that the information
therein given and the amount of
tax liability therein reported
are full and true, and that he
knows the same to be so; which
statement shall be signed by
the taxpayer, and the signing
of same shall be deemed and
constitute the same a statement
under the penalties 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 in-
come of the business constitut-
ing the measure of the tax lia-
bility therein reported. Provid-
ed, h o w e v e r, that the City
Council in its discretion may at
any time by Resolution require
an annual or another additional
Return from any taxpayer, set-
ting forth the value of products,
gross proceeds of sales, or
gross income of the business
constituting measure of the tax
hereunder, and such additional
information as it may d e e in
necessary to correctly deter-
mine license fee or tax liabili-
ty under this Ordinance, a n d
containing a statement by t h e
taxpayer sworn to (or af-
firmed) under oath that the in-
formation therein given and the
amount of tax liability therein
reported are full and true and
that he knows the same to be
SO.
Whenever the total tax for
which any person is liable un-
der this Ordinance does not ex-
ceed the sum of $2.00 for any
bi-monthly period, an annual
Return may be made upon writ-
ten request to and written ap-
proval by the City Clerk.
Section 13. PAYMENT OF
LICENSE TAX. The license fee
or tax payable hereunder shall
at the time the return is re-
quired to be filed hereunder be
paid to the City Treasurer by
bank draft, certified check,
cashier's check, personal check
or money order, or in cash. If
payment is made by draft or
check, the tax or fee shall not
be deemed paid u n l e s s the
check or draft is honored in the
usual course of business; n o r
shall the acceptance of any
sum by the Treasurer be an ac-
quittance or discharge of t he
tax or fee due u n l e s s the
amount of the payment is in
the full and actual amount due.
The return shall first be pre-
sented to the City Treasurer,
who shall endorse thereon the
date and amount of the p a y-
ment received and shall there-
upon forthwith file the return
with the Clerk.
The Clerk is authorized, but
not required, to mail to t a x -
payers forms for applications
for license and forms for re-
turns, but failure of the taxpay-
er to receive any such forms
shall not excuse the taxpayer
from making application for
and securing the license re-
quired making returns, and
payment of the license fee or
tax when and as due hereun-
der.
Section 14. PRESERVING
RECORDS. It shall be the duty
of every person liable for the
payment of any fee or tax im-
posed by this Ordinance to keep
and preserve for the period of
five years such books, and rec-
ords as will accurately reflect
the amount of his gross income,
gross proceeds of sale or value
of products, as the case may
be, and from which can be de-
termined the amount of any fee
or tax for which he may be li-
able under the provisions of
this Ordinance; and all books,
records, invoices, inventories
and stocks of goods, wares and
merchandise shall be open for
examination at all reasonable
times by the Clerk or his duly
authorized agent.
Section 15. F I N A L PAY-
MENT PUBLIC WORK CON-
TRACT—LICENSE FEES TO
BE PAID FIRST: The Clerk
shall, before issuing any war-
rant making final payment to
any person performing any pub-
lic work contract for the City,
require such person to pay in
full all license fees or taxes
due under this ordinance from
such person on account of such
contract, or otherwise.
Section 16. EXTENSION OF
TIME FOR FILING RETURNS
—PENALTIES. The Clerk for
good cause shown may extend
the time for making and filing
any return as required under
this Ordinance and may grant
such reasonable additional time
within which to file such re-
turns as he may deem proper:
Provided, That any extension
in excess of thirty (30) days
shall be conditioned upon pay-
ment of interest of one-half (1/2)
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 tee 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
contained in or to permit in-
spection of any return, except
as in this section authorized,
and except in any proceedings
for determination and/or collec-
tion of the tax.
Section 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 s h a 11
mail the taxpayer a statement
showing the balance due and
may add thereto a requirement
that interest shall be paid on
such balance at the rate of 6
per cent per annum from date
of under -payment until p a i d
and the taxpayer shall within
three (3) days from the date of
mailing statement pay the
amount shown thereon as t h e
balance due plus such interest.
No demand for an additional
fee or tax or penalty shall be
made by the Clerk more than
four (4) years after the close of
the year in which the same ac-
crued except:
(1) Against a taxpayer who
is not registered as required by
this Ordinance; (2) as against
a taxpayer who has been guilty
of fraud or misrepresentation
of a material fact or (3) where
a taxpayer has executed a writ-
ten waiver of such limitations.
Section 20. ENFORCEMENT
AND PENALTIES.
(a) Failure To Make Returns.
If any taxpayer fails, neglects
or refuses to make his return
as and when required herein, or
if upon examination or investi-
gation, the Clerk finds that the
amount of tax liability reported
or paid by any taxpayer ap-
pears to be less than the cor-
rect amount of his tax liability
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 s h a 11
thereupon become the tax and
be immediately due and paya-
ble.
(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
civil action, which remedy shall
be in addition to any and all
other existing remedies a n d
penalties.
(c) False Returns. It shall be
unlawful for any person subject
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 li-
cense issued to any taxpayer
who is in default in any pay-
ment of any license fee or tax
hereunder, or who shall fail to
comply with any of the provi-
sions of this Ordinance. Notice
of such revocation s h a l l be
mailed to the taxpayer by the
Clerk and on and a f t e r the
date thereof any such taxpayer
who continues to engage in bus-
iness shall be deemed to be op-
erating without a license and
shall be subject to any or all
penalties herein provided.
(3) Penalties. Any p e r s o n
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
business subject to a tax here-
under without having his "Bus-
iness License" so to do shall be
guilty of a violation of this Or-
dinance for each day during
which the business is so en-
gaged in, or carried on; and
any taxpayer who fails or re-
fuses to pay the license fee or
tax, or any part thereof, on or
before the due date, shall be
deemed to be operating with-
out having his license so to do.
Section 21. APPEAL TO
CITY COUNCIL: Any taxpayer
aggrieved by the amount of the
fee or tax found by the Clerk
to be required under the pro-
visions 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 a in o u n t. The
Clerk shall, as soon as practi-
cable, 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 hear-
ing the taxpayer shall be en-
titled to be heard and to intro-
duce evidence in his own be-
half. The City Council s h a 11
thereupon ascertain the correct
amount of the fee or tax by
resolution and the City Clerk
shall immediately n o t i f y the
Appellant t h e r e o f by mail,
which amount, together w it h
costs of the appeal, if appellant
is unsuccessful therein must be
paid within three days a f t e r
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, re-
quire the attendance thereat of
any person, and may also re-
quire him to produce any per-
tinent books and records. Any
person served with such sub-
poena shall appear at the time
and place therein stated a n d
produce the books and records
required, if any, and shall tes-
tify truthfully under oath ad-
ministered by the Chairman in
charge of the hearing 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 t h e provisions
thereof, the City Clerk shall be
guided by the rules and regu-
lations as adopted, published
and interpreted by the Excise
Tax Division of the Tax Com-
mission of the State of Wash-
ington under and in respect to
the State Business and Occupa-
tion Tax Law (Chapter 180,
Laws of 1935, as amended), in-
sofar as the same are applica-
ble to and not inconsistent with
the provisions and r e q u i r e-
ments of this ordinance or with
such rules and regulations as
the City Council may at a n y
time adopt hereunder.
The City Council may from
time to time adopt, publish and
enforce rules and regulations
not inconsistent with this ordi-
nance 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 rule or regulation
adopted by the City Council.
Section 23: M A I L I N G 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
reasonable effort. Failure of
the taxpayer to receive such
mailed notice shall not release
the taxpayer from any tax or
any penalties thereon, nor shall
PASSED by the City Council this 18th day of November,
APPROVED by the Mayor this 18th day of November,
Approved as to form:
Gerard M. Shellan, City Attorney
Date of Publication: November 26, 1958
such failure operate to extend
any time limit set by the pro-
visions of.this Ordinance.
Section 21: 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 a n y
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 di-
vision shall engage in any bus-
iness activity which if engaged
in by any person would under
this Ordinance require a Busi-
ness License and the payment
of a license fee or tax by such
person, the City department or
division engaging in such busi-
ness activity shall as to such
business activity at the same
time and in the same manner
as persons are required here-
under to make returns and from
the funds of such department or
division pay the license fees or
taxes imposed hereunder.
Section 26. E F F E C T OF
PARTIAL INVALIDITY. If any
provision, 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 o t h e r provi-
sions, sections, paragraphs,
clauses and parts of this ordi-
nance 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,
195' and be in force and effect
on and after that date for the
calendar year 195'
PASSED by the Cit,
this 19th day of Novem
ELTON L. A
City Clerk.
APPROVED the Mayor
this 19th day November, 1957.
JOE R BAXTER, Mayor.
; ed as to form:
rrM. Shellan
Attorney.
dished in The R e n t o n
:iicle, December 5, 1957.
1958.
Elton L. Alexander, Ulty Clerk
oe