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HomeMy WebLinkAboutORD 1803City of Renton -Business Tax Ordinance 1960 ORDINANCE NO. 1803 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 tip 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 cwt of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense wnatsoever 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, bands or oth- er evidences of 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- ieral 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 commencing, conducting or continuing in business and also the exercise of corporate or franchise powers as well as liq- uidating a business when the liquidators thereof hold them- selves out to the public as con- ducting 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 toinclude li• brary, laboratory, health serv- ice and other special fees, and amounts charged for room and board by an educational institu- tion when the property or serv- ice for which such charges are made is furnished exclusively to the students or faculty of such institution: Provided, That the term "educational institu- tion," as used herein, shall be construed to mean only those institutions created or general- ly accredited as such by the State and offering to students an educational program of a general academic nature, or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer . instruc- tion in trade, industry and ag- riculture, but not including spe- cialty schools, business colleg- es, trade schools or similar in- stitutions. (n) The word "successor" means any person who shall, through direct or mesne con- veyance, purchase or succeed to the business, or p o r t i o n thereof, or the whole or a n y part of the stock of g o o d s wares or merchandise or fix- tures or any interest therein of a taxpayer quitting, selling - out, exchanging or otherwise disposing of .his business. Any person obligated to fulfill t he terms of a contract shall be deemed a successor to any con- tractor defaulting in the per- formance 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 as- sociation required to have a Business License hereunder, or liable for any license fee or tax, 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 plur- al, and the plural shall include the singular. Words in one gen- der shall include all other gen- ders. (q) "Quarterly Period" shall tnean each three-month period of tate calendar years, to -wit, Jan- wary 1 through March 31, April 1 through June 30, July 1 twough $eptember 30 and Oetober 1 through December 31 of each year. (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" s h a l l mean the City of Renton. Section 3. BUSINESS LI- CENSE REQUIRED. E v e r y person engaging within the city of Renton during the calendar year 1964 in any ;business or ac- tivity for which a license tee or tax is provided by this O r d fi- nance, whether such person is subject to the payment of any tax thereunder or not, shall ap- ply for and obtain from the City Clerk a "BUSINESS LI- CENSE" for such calendar year or unexpired p o r t i o n thereof; and on and after the effective date of this ordinance no person, whether subject to the payment of a tax or not, shall during the calendar year [960, engage in any business activity within the City of Ren- ton for which a license fee or tax is imposed by this Ordi- nance without (a) having first obtained and being the holder ,of a valid and subsisting license so to do to be known as a"Bus- iness License," issued for such calendar year under the provi- sions of this Ordinance as here- inafter provided, and (b) hav- ing 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 Ordin- ance, 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 c a s e business is transacted at two or more separate places by one taxpayer, a separate license shall be required for e a c h place but for such additional li- censes 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 reg- ister thereof. Each license shall be numbered, shall ..show the name, place and character of business of the taxpayer, such other information as the City Clerk shall d e e m necessary, and shall at all times be post- ed in the place of business for which it is issued. When the place of business of a taxpay- er is changed, the taxpayer shall return the license to the City Clerk and a new license shall be issued for the new place of business free of charge. No person shall engage in any business for which a bus- iness license is required under this Section, without being reg- istered and licensed in compli- ance with the provisions of this Section; nor shall any person holding such a 'Business Li- cense" suffer or allow any oth- er person, for whom separate license is required, to operate under or display his license. Section 4. ENUMERATION OF PERSONS SUBJECT TO TAX; MEASURE AND RATES OF TAX. On and after the ef- fective date of this Ordinance, and during the calendar year there is hereby levied upon and shall be collected from and paid as hereinafter specified by ev- ery person on account of and for the privilege of engaging in business activities, a license fee or occupation tax, sometimes herein referred to as the "tax," in amounts to be determined by application of rates g i v e n against value of products, gross proceeds of sales, or gross in- come of business, as the case may be, for the three calendar months next preceding the be- ginning of each quarterly period, as follows: (a) Upon every person en- gaging within this City in busi- ness as a manufacturer or as an extractor; as to such per- sons the amount of the tax with respect to such business shall be equal to the value of the products manufactured or ex- tracted for sale, multiplied by the rate of twenty -foul' hun- dredths of one per cent (.00024). 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 twenty-four hundredths of one per cent (.00024). (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 rage of twenty-four hun- dredths of one per cent (.00024). (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 in music, aviation or other skills; 2. The business of selling or furnishing water for compensa- tion; 3. The business of u r b a n transportation; 4. Telegraph business; 5. The business of selling, fur- nishing or distributing electri- city, (exclusive of electricity sold for the purpose of resale, and the revenue therefrom) ; 6. The business of selling, furnishing, distributing or pro- ducing gaseous gas for com- mercial or domestic use. As to such persons the amount of the tax with respect to such profession or business shall be equal to the gross in- come derived from such profes- sion or business multiplied by the rate of eight hundredths of one per cent (.0008). 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 twen- ty-four hundreths of one per cent (.00024). 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 apy type of service oth- er than or in addition to those enumerated in sub -section (d) above. Section 5. TAXABLE AS TO EACH ACTIVITY: Every per- son engaging in activities which are within the purview of the provisions of two or more para- graphs designated (a), (b), (c), (d), and (e), of Section 4 of this Ordinance, shall be taxable un- der each applicable paragraph; Provided, that persons taxable under Paragraph (b) of s a i d section on products sold for de- livery within the State of Wash- ington shall not be taxable un- der Paragraph (a) thereof with respect to extracting or manu- facturing of such products so sold; and that persons taxable under Paragraph (a) thereof as manufacturer shall not be tax- able under said Paragraph (a) with respect to extracting the ingredients of the product so manufactured. Section 6. DETERMINATION OF VALUES: The v a l u e of products extracted or manufac- tured shall be determined by the gross proceeds d e r i v e d from the sale thereof, whether such sale is at wholesale or at retail except: (a) Where such products are shipped, transported or trans- ferred out of the City, or to an- other person, without prior sale or are sold under circumstanc- es such that the gross proceeds from the sale are not indicative of the true value of the subject - matter of the sale. In the above cases the value shall correspond as nearly as possible to the gross proceeds from sales in the City of similar products of like quality a n d character, and in similar quan- tities by other taxpayers. The City Council shall prescribe uni- form and equitable rules f or the p u r p o s e of ascertaining such values. Section 7. APPORTIONMENT OF BUSINESS. (a) As to any person engag- ing in a business activity both within and without the City, or partially within and partially without the City, but maintain- ing an office or place of busi- ness within this City and n o t elsewhere, the tax shall be measured upon the entire bus- iness activity without regard to the place where the products are delivered or the sales are made or the services are ren- dered. (b) Persons engaging in a business activity both within and without the City but main- taining no office or fixed place of business within this City, and also persons maintaining offic- es, plants, warehouses, or oth- er business establishments in the State of Washington, part of which are within the C i t y and part of which are outside the City, shall be taxable on the value of products or gross proceeds of sales or gross in- come of the business attribut- able to business within the City ascertained either: (a) 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 b e a r s the same proportion to the whole thereof that the total number of its employees employed with- in the City bears to the total number of its employees with- in the State; or (3) when the use of such ap- portionment factor is imprac- ticable or grossly inequitable, by a fair and equitable appor- tionment of value of products, gross proceeds of s a l e s or gross income of the business, upon such reasonable basis as shall be agreed upon between the City (acting through the City Clerk and Council) and the taxpayer after consideration of the facts. Section 8. SALES BY CON- SIGNEE, BAILEE, FACTOR OR AUCTIONEER: Every con- signee, bailee, factor or auc- tioneer, having either actual or constructive possession of tan- gible personal property, or hav- ing possession of the documents ,of . title thereto, with power to sell such tangible personal property in his or its own name and actually so selling, shall be deemed the seller of such tan- gible personal property within the meaning of this Ordinance; and further, the consignor, bail- or, principal or owner shall be deemed a seller of such prop- erty to the consignee, bailee,. factor or auctioneer. The burden shall be upon the taxpayer in every case to estab- lish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promot- ing sales for a principal; -such claim will be allowed only when the taxpayer's account records are kept in . such manner as shall clearly confirm the claim. Section 9. EXEMPTIONS. The provisions of this ordinance shall not apply to: (a) Any person in respect to a business activity with respect to which the tax liability is spe- cifically imposed under applic- able Ordinances relating to the regulation of and licensing of the to l l o w i n g: Theatres -Shows, Games of Skill, music devices, taxicabs, peddlers, dance halls, private detectives, merchant pa- trolmen, skating rinks whether roller skating or ice skating, golf courses, bowling alleys, auc- 'tions and Trailer Parks. (b) Any person in respect to insurance business upon which a tax based on gross premiums is paid to the State of Washing- ton; Provided, however, That the provisions of this 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 m the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of .the defaulting contractor. (c) Any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm products or edibles 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 o f 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 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-, peon, 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 m 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 in bona fide initiation fees, dues, contributions, donations, tuition fees as hereinabove defined, and endowment funds. The pro- visions of this paragraph shall not be construed to exempt any 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 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 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 m 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 m or ei business activities wherein the, value of products, gross pro- ceeds of sale or gross income of the taxable business is less than $2,500.00 for a quarterly period such person shall be ex- empt from payment of the tax under Section 4, but shall nev- ertheless make and file the quar- terly sworn information Re- turn required under Section 12, stating that he is exempt under this Section 11. Section 12. QUARTERLY RETURNS and PAYMENTS. The license fee 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 quarterly installments, and remittance therefor shall be made to the City Treasurer on or before the last day of the month next suc- ceeding the end of the quar- terly period in which the tax accrued. The license -taxpayer, on or before said last day of said month, shall also transmit to the City Treasurer a Return, upon a form to be prescribed and provided by the City Clerk; which Return shall con- tain a statement by the t a x - payer stating the amount of the tax for which he is liable for the preceding quarterly period under and computed according to the provisions of this ordi- nance, that the information therein given and the amount of tax liability therein reported are full and true, and that he knows the same to be so; which statement shall be signed by the taxpayer, and the signing of same shall be deemed and constitute the same a statement 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 cf 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 m 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. quarterly period, an annual Return may be made upon writ- ten request to and written ap- proval by the City Clerk. Section 13. PAYMENT OF LICENSE_ TAX. The license fee or tax payable hereunder shall 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 1 e ss 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 unless 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. FINAL PAY- MENT PUBLIC WORK CON- TRACT—LICENSE FEES TO BE PAID FIRST: The Clerk shall, before issuing any war- rant making final payment to any person performing any pub- lic work contract for the City, require such person to pay in full all license fees or taxes due under this ordinance from such person on account of such contract, or otherwise. Section 16. EXTENSION OF TIME FOR FILING RETURNS —PENALTIES. The Clerk for good cause shown may extend the time for making and filing any return as required under this. Ordinance and may grant such reasonable additional time within which to file such re- turns as he may deem proper: Provided, That any extension in excess of thirty (30) days shall be conditioned upon pay- ment of interest of one-half (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 rale or transfer during any quar- terly 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 quarterly period, be responsible for the payment of the fee or tax for that portion of the quarterly 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 C;ty Clerk. If refund or credit is not applied for within two (2) years from date of overpayment no refund shall be allowed. If the Clerk finds that the fee or tax or pen- alty paid is less than the amount due, the. Clerk s h a l l mail the taxpayer a statement showing the balance due and may add thereto a requirement that interest shall be paid on such balance at the rate of 6 per cent per annum from date of under -payment until p a i d and the taxpayer shall within three (3) days from the date of mailing statement pay the amount shown thereon as t he 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. I 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 l l 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 11 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 asi 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: 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 reasonable effort. , Failure of the taxpayer to receive such mailed notice shall `not release N, the taxpayer from any tax or any penalties thereon, nor shall such failure operate to extend any time limit set by the pro- visions 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 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, 1960 and be in force and effect on and after that date for the calendar year 1960. PASSED by the City Council this 24th day of November, 1959. VERN H. MORRIS City Clerk. APPROVED by the Mayor this 24th day of November, 1959. JOE R. BAXTER, Mayor. Approved as to form: Gerard M. Shellan City Attorney. Published in The R e n t o n Chronicle, December 2, 1959.