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HomeMy WebLinkAboutORD 1999FOLLOWS: 773 _ arnm&4 ab a0 f `2` / r• , ORDINANCE NO. / � I �Z� ZZ AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, RELATING TO AND PROVIDING FOR A LICENSE OR OCCUPATION TAX UPON CERTAIN BUSINESSES, PURSUITS AND PRIVILEGES, LEVYING OF A TAX UPON CERTAIN UTILITIES AND PROVIDING FOR THE NECESSARY ADMINISTRATIVE MACHINERY FOR THE COLLECTION AND ENFORCEMENT OF,THE LICENSES AND TAXES HEREUNDER; DEFINING OFFENSES AND PRESCRIBING PENALTIES THEREFOR. BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF RENTON AS SECTION 1: EXERCISE OF REVENUE LICENSE POWER. The provisions of this 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 eitherthe calendar year or the taxpayer's fiscal year when prior written 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 individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co- partnership, joint venture, club, company, joint-stock company, business trust, corpora- tion, association, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit or otherwise and includes the United States or any instrumentality thereof provided a valid tax may be levied upon 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 possession of the property 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 include the furnishing of food, drink or meals for compensation, whether consumed upon the premises or not. (d) The term "gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property and for services rendered without any deduction on account of the cost of property sold, the cost of materials used, labor costs, -1- interest, discount paid, delivery costs, taxes or any other expense whatsoever paid or accrued and without any deduction on account of losses, except as otherwise provided for in Section 4.. (e) The term "gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds or other evidences of indbbtedness, interest, discount, rents, royalties, fees, commissions, dividends and other emoluments however designated, all without any deduction on account of the cost of the commodity or tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes or any. other expense whatsoever paid or accrued and without any deduction on account of losses, except as otherwise provided for in Section 4. (f) The term "value pm ceeding or accruing" means the consideration, whether money, credits, rights or other property expressed in terms of money, actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. The value proceeding or accruing from sales on the installment plan under conditional contracts of sale may be reported as of the dates when the payments become due. (g) 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 liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (h) The word "taxpayer" includes any individual, group of individuals, corporation or association 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. (i) 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. (j) "Quarterly period" shall mean each three-month period of the calendar year, to -wit: January 1 through March 31, Aprillthrough June 30, July i through September 30 and October 1 through December 31 of each year. (k) The word "Clerk" shall mean the City Clerk of the City of Renton. -2- (1) The word "Treasurer'' shall mean the City Treasurer of the City of Renton. (m) The word "City' shall mean the City of Renton. (n) The word "Employee" shall mean any person employed at any business location within the City of Renton and/or any person furnishing or performing services within the City, and in addition thereto shall include all persons who are self employed. SECTION 3. PERSONS SUBJECT TO LICENSE FEE. (A) On and after the effective date of this Ordinance, there is hereby levied upon and shall be collected from every person engaging in business in the City of Renton an annual license fee or tax for the privilege of engaging in business activities. Such license fee shall be measured by the number of employees of each business employed during the 12 months period immediately preceding the year for which a license fee is payable, as follows; (EXCEPT (a) that a separate license fee shall be imposed for those persons engaged in professional or semi-professional activities as hereinafter set forth; and (b) tha'c in the case of a new business, or any business in which the number of employees in the preceding year is not substantially com- parable to the number in the taxable year, the license fee shall be computed on the number of employees at time of application for license, but shall be subject to revision each quarterly period): 4. For every person employing 1 to 5 employees, $12.00 per annum or any part thereof b. For every person employing more than 5 but not more than 10 employees, $25.00' perannum or any part thereof c. For every person employing more than 10 but not more than 20 employees, $50.00 per annum or any part thereof d. For every person employing more than 20 but not more than 50 employees, $75.00 per annum or any part thereof, e. For every person employing more than 50 but not more than 100 employees, $100.00 per annum or any part thereof f. For every person employing more. than 100 but not more than 300 employees, $150.00 per annum or any part thereof g. For every person employing mare than 300 empbyees, $300.00 per annum or any part thereof. All employees working more. than 1600 hours per annum, including legal holidays and vacation Lime, during the 12 months period:,upon which the license fee is computed as above shall be considered permanent employees; triose working less than 1600 hours, including legal holidays and vacation time, shall be considered temporary employees. In determining the license fee to be paid hereunder by each business, the total number of employees shall be computed by adding together the number of permanent employees and the number of temporary employees, the latter figure to be computed by dividing total min -hours, including legal holidays and vacation time, worked by all temporary employees, by 1600. -3- M (B) Professional or semi-professional persons shall include the following) to -wit: doctor of medicine; other healing art or science; dentist or dental technician; attorney at law; licensed Engineer; surveyor; accountant) whether certified or public accountant; bookkeeper; tax or business consulting service; real estate broker or agency thereof; insurance broker, agent or representative; other brokerage; funeral director or mortuary; rest home, nursing home or place of refuge; specialized private training schools in music, aviation, salesmanship or other skills or trades. The annual license fee or tax for the privilege of engaging in such professional or semi-professional activities shall be as follows: she sum of $25.00 for each profession- al or semi-professional person hereinabove enumerated who is engaged, whether full time or part time, in serving the public in the practice of such profession and who maintains or is employed in such an office, clinic or other establishment in such capacity and for such purpose. SECTION 4. CERTAIN PUBLIC UTILITIES SUBJECT TO TAX. In addition to the foregoing license fees there are hereby levied upon and shall be collected from the persons engaged in certain business activities occupatron takes in the amounts to be determined by the application of the rates herein stated against gross income as follows: (a) Upon every person engaging in carrying on a telephone business within or partly within the City, an annual fee or tax for the privilege of so doing equal to 3% of the total gross subscribers' station exchange revenues from business and residence telephone service (excluding message units) in the City during the tax year for which a license is required. (b) Upon every person engaging in carrying on a telegraph business a fee or tax equal to 3% of the total gross income from such business in the City during the tax year for which a license is required. (c) Upon every person engaging in or oarrying on the business of selling, furnishing, distributing or producing, gaseous gas for commercial or domestic use or purpose, a fee or tax equal to 3% of the total gross income from such business in the City during the tax year for which a license is required. (d) Upon every person engaging in or carrying on the business of selling, furnishing or distributing electricity for light and power, a fee or tax equal to 3% of the total gross income from such business in the City during the tax year for which a license is required. In computing said tax as hereinabove provided taxpayer may deduct in computing gross income the following items: (a) the actual amount of credit losses. and uncollect- ibles sustained by the taxpayer, (b) amounts derived from transactions in interstate and foreign commerce which the City of Renton is prohibited from taxing under the laws and Constitution of the United States. 1EM e SECTION 5: The utility tax imposed by this Ordinance shall be due and payable to the City Treasurer in quarterly installments and remittance thereof shall be made to the City Clerk or City Treasurer on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrued. Quarterly period for the purpose of this Ordinance shall mean each -three months period of the calendar year, to -wit: January 1 through March 31, April 1 through June 30, July 1 through September 30 and October 1 through December 31 of each year.. The taxpayer on or before said last day of said month shall also transmit to the City Clerk or City Treasurer a return upon a form to be prescribed and provided by the City Clerk; which return shall contain a statement by the taxpayer stating the amount of the tax for which he is liable for the p,,raoediAg quarterly period under and computed according to the provisions 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 or authorized agent, 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. SECTION 6: (A) Every person engaging within the City of Renton on and after the effective date of this Ordinance, in any business or activity for which a license fee is provided shall apply for and obtain from the City Clerk a "Business License" for such calendar year or unexpired portion thereof; and on and after the effective date of this Ordinance no person shall engage in any business activity within the City for which a license fee is imposed by this Ordinance without having first obtained and being the holder of a valid and subsisting license so to do, to be known as a "Business License", issued for such calendar year and having paid the license fee imposed herein. Said license MI shall expire at the end of each calendar year and shall be personal and non- transferable. (B) All licenses shall be issued by the City Clerk on forms prescribed and furnished by him and the Clerk shall keep a register thereof. Each license shall be numbered, shall show the name, place and character of business of the taxpayer and 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 return the license to the City Clerk and a new license ahall Wd be issued for the new place of business free of charge. No person shall engage in any business for which a business license is required under this Section 6 without being registered and licensed in compliance with the provisions of this Section; nor shall any person holding such a "Business License" suffer or allow any other person, for whom separate license is required, to operate under or display his license. SECTION 7: 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 specifically imposed under separate, applicable Ordinance relating to the regulation of and licensing of the follo%Jng: theatres and shows, games of skill, music devices, taxicabs, peddlers, dance halls, private ddectives, merchant patrolmen, skating rinks, golf courses, bowling alleys, auctions, trailer parks, circuses, side- shows, merry-go-rounds and similar activities, and dispensing of "safe & sane" fireworks. b. Any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm products or edibles raised, caught, produced or manufactured within the State of Washington and sold by the farmer or gardener raising, catching, producing or manu- facturing the same. c. Any person in respect to the business of conducting boxing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Commission. d. Any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the State Horse Racing Commission. e. Fraternal benefit societies as defined in RCW 48.36 (including fraternal fire insurance associations); and beneficiary corporations or societies organized under and existing by virtue of RCW 24.16. f. The gross income received by the United States or any instrumentality thereof, by the State of Washington or any municipal subdivision thereof, or by any religious society, association or corporation, not for profit, through the operation of any hospital, clinic, resort or place of rehabilitation, or similar institutions devoted exclusively to the care, healing or rehabilitation of human beings; provided, however, that no exemption is granted where the income thereof inures to the benefit of any physician, surgeon, stockholder or individual by virtue of ownership or control of such hospital, clinic, resort or other institution. 10 g. Amounts derived from business transactions relating to sale, lease, or rental of real estate, except those taxable under the State Business and Occupation Tax Law (Chapter 180, Laws of 1935, as amended). SECTION 8: BUSINESSESULOCATED OUTSIDE CITY. As to any businesses located outside the City of Renton and furnishing or performing services within the City, the license fee herein shall be measured by the number of employees of such business who perform any part or all of their duties within the City. SECTION 9: PAYMENT OF LICENSE FEES, APPLICATION F0104S AND RECORDS: (A) All license fees and penalties herein provided for shallbe paid by bank draft, certified check, cashier's check, personal check, money order or in cash, payable to the City Treasurer and delivered to the City Clerk or City Treasurer. If payment be made by draft or check, the license fee shall not be deemed paid unless the check or draft is such duly honored in the usual course of business, nor shall acceptance of any/check or draft by the City be an acquittance or discharge of any fee unless and until such check or draft is honored. The City Clerk is authorized, but not required, to mail to taxpayers forms for application for licenses, but failure of the taxpayer to receive any such form shall not excuse the taxpayer from making application for and securing the license required and payment of the license fee when and as due hereunder. (B) It shall be the duty of every person liable for any license fee provided by this Ordinance to keep and preserve for a period of five years such suitable employment records as may be necessary to determine the amount of any license fee for which he may be liable under the provisions of this Ordinance; and such records shall be open for examination at any time by the City Clerk, City,Treasurer, City Attorney or members of the City Council. (C) Each annual license fee herein provided for shall become due and payable on the 1st day of each year as to any business taxable hereunder and in existence on said date. As to any business commenced during any year such annual license fee shall be due and payable on the first day that such business is transacted or carried on. Failure to pay the license fee within 30 daysafter the day on wHch it is due and payable shall render the taxpayer subject to a penalty of 5% of the amount of the license fee for the first month of the delinquency and an additional penalty of 5% for each succeeding month of delinquency, but not exceeding a total penalty of 257 of the amount of such license fee in any event. -7- SECTION 10: OVER OR UNDER PAYMENT OF LICENSE FEE. 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 overpayment shall be repaid from the General Fund, when approved by the City Clerk. If refund or credit is not applied for within two (2) years from date of overpayment no refund shall be allowed. If the Clerk finds that the license fee or penalty 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 interest shall be paid on such balance at the rate of 6 per cent per annum from date of underpayment until paid and the taxpayer shall within three (3) days from the date of mailing statement pay the amount shown thereon as the balance due plus such. interest. No demand for an additional license fee 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 11: FAILURE TO MAKE APPLICATION. If any taxpayer fails, neglects, or refuses to file his application for a business license and to pay any license fee as and when required herein, the City Clerk is authorized to determine the amount of license fee payable and by mail notify such taxpayer of the amount so determined. The amount so determined shall thereupon become the license fee and become immediately due and payable. SECTION 12: APPLICATION AND RETURNS CONFIDENTIAL. 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 inform any other person as to the contents or any' information contained in or to permit inspection of any return, except as in this section authorized, and except in any proceedings for determination and/or collection of the tax. .� SECTION 13; COLLECTION AS DEBT, FALSE RETURNS, REVOCATION OF LICENSE: Any license fee or tax due and unpaid 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 and penalties. (B) It shall be unlawful for any person subject to the tax hereunder to fail of 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 representation in or in connection with any such application or return, or to aid or abet another in any attempt to evade payment of the fee or tax or any part thereof, or for any person to fail to appear and/or testify in 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 appeal, or in any manner to hinder or delay the City or any of its officers in carrying out the provisions of this Ordinance. (C) The Clerk may revoke the license issued to any taxpayer who is in default in any payment of any license fee or tax hereunder, or who shall fail to comply with any of the provisions of this Ordinance. Notice of such revocation shall be mailed to the taxpayer by the Clerk and on and after the date thereof any such taxpayer who continues to engage in business shall be deemed to be operating without a license and shall be subject to any or all penalties herein provided. (D) Any person violating or failing to comply with any of the provisions of this Ordinance or any lawful rule or regulation adopted by the City Council pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed Five Hundred Dollars ($500.00) or by imprisonment in the City Jail for a term not exceeding ninety (90) days, or by both such fine and imprisonment. (E) Any taxpayer who engages in, or carries on, any business subject to a tax hereunder without having his "business license" so to do shall be guilty of a separate violation of this Ordinance for each day during which the business is so engaged in, or carried on; and any taxpayer who fails or refuses to pay the license fee or tax, or any part thereof, on or before the due date, shall be deemed to be operating without having his license so to do. SECTION 14: CLERK TO MAKE RULES. The City Clerk shall have the power and it shall be his duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this Ordinance or with the law for the purpose of carrying out the provisions hereof, and it shall be unlawful for any taxpayer to violate or fail to comply with any such rule or regulations. SECTION 15: APPEAL TO CITY COUNCIL. Any taxpayer aggrieved by the amount of the fee or tax found by the Clerk to be required under the provisions of this Ordinance, may agoeal 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 introduce evidence in his own behalf. The City Council shall thereupon ascertain the correct amount of the fee or tax by Resolution and the City Clerk shall immediately notify the Appellant thereof by mail, which amount, together with costs of the appeal if appellant is unsuccessful therein, must be paid within three days after such notice is given. The Mayor, the President of the City Council, or the Chairman of any committee thereof 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 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 16. 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 except as herein otherwise expressly provided. SECTION 17: EFFECT OF PARTIAL INVALIDITY. If any provision, section, paragraph, clause or part of this Ordinance shall be held void or unconstitutional, the remainder of this Ordiance 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 18: This Ordinance shall become effective on and after January 1, -10- 1963 after its passage, approval and legal ,p/ublications. ! PASSED BY THE CITY COUNCIL this 1'" :day of December, 1962. Helmie Nelson, City Clerk APPROVED BY THE MAYOR this/0/6/--day of December, 1962. APPROVED LS TO FORM: uerara M. 5nenan, Ulty Attorney I t CDATE OF <) -11- Frank Aliment, Mayor ORDINANCE N6. 1999 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, RELATING TO AND PROVIDING FOR A LICENSE OR OCCUPATION TAX UPON CER- TAIN BUSINESSES, PURSUITS AND PRIVILEGES, LEVYING OF A TAX UP- ON CERTAIN UTILITIES AND PRO- VIDING FOR THE NECESSARY AD- MINISTRATIVE MACHINERY FOR THE COLLECTION AND ENFORCEMENT OF THE LICENSES AND TAXES HERE. UNDER; DEFINING OFFENSES AND PRESCRIBING PENALTIES THEREFOR. BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF RENTON AS FOLLOWS: SECTION 1: EXERCISE OF REVENUE LICENSE POWER. The provisions of this Ordinance shall be deemed on exer. cise of the power of the City of Renton to license for revenue. SECTION 2: DEFINITIONS: In con- struing the provisions of this Ordinance, save when otherwise declared or clear- ly apparent from the context, the fol- lowing definitions shall be applied: (a) The term "tax year" or "taxable year" shall mean either the calendar year or the taxpayers fiscal year when prior written permission is obtained from the Clerk to use a fiscal year in lieu of the calendar year. (b) The word "person" or word "com- pany" herein used interchangeably means any individual, receiver, assig- nee, trustee in bankruptcy, trust, estate, firm, co -partnership, joint venture, club, company, joint-stock company, business trust, corporation, association, society or any group of individuals acting as a unit, whether mutual, cooperative, fra- ternal, non-profit or otherwise and in- cludes the United States or any instru- mentality thereof provided a valid tax may be levied upon or collected there- from under the provisions of this Ordi- nance. (c) The word "sale' includes the ex- change of property as well as the sale thereof for money; and also includes conditional sales contracts, leases and any other contract under which posses- sion of the property is given to the pur- chaser but title is retained by the ven- dor as security for the payment of the purchase price or rental. It shall also be construed to include the furnishing of food, drink or meals for compensation, whether consumed upon the premises or not. (d)The term "gross proceeds of sales" means the value proceeding or accruing from the sale of tangible per- sonal property and for services ren - dared without any deduction on ac- count of the cost of property sold, the cost of materials used, labor costs, in- terest, discount paid, delivery costs, taxes or any other expense whatsoever paid or accrued and without any deduc- tion on account of losses. except as oth- erwise provided for in Section 4. (e)The term "gross income of the business' means the value proceeding or accruing by reason of the transac- tion of the business engaged in and in- cluoes gross proceeds of sales, com- pensation for the rendition of services, gains realized from trading in stocks, bonds or other evidences of indebted- ness, interest, discount, rents, royalties, fees, commissions, dividends and other emoluments however designated, all without any deduction on account of the cost of the commodity or tangible property sold, the cost of materials used, labor costs, interest, discount, de- livery costs, taxes or any other expense whatsoever paid or accrued and with- City of Renton -- Business Tax Ordinance 1999 out any deduction on account of losses, except as otherwise provided for in Sec- tion 4. (f) The term "value proceeding or ac- cruing" means the consideration, wheth- er money, credits, rights or other pro- perty expressed in terms of money, ac- tually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis accord- ing to which method of accounting is regularly employed in keeping the books of the taxpayer. The value pro- ceeding or accruing from sales on the installment plan under conditional con- tracts of sale may be reported as of the dates when the payments become due. (g)The words "engaging" (or en- gage) in business mean commencing, conducting or continuing in business and also the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves out to the public as con- ducting such business. (h) The word "taxpayer' includes any individual, group of individuals, cor- poration or association required to have a Business License hereunder, or liable for any license fee or tax, for the collection of any license fee or tax here- under or who engages in any business or who performs any act, for which a license fee or tax is imposed by this Ordinance. (i) 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. (j)"Quarterly period" shall mean each three-month period of the calen- dar year, to -wit: January I through March 31, April 1 through June 30, July 1 through September 30 and October 1 through December 31 of each year. (k) The word "Clerk" shall mean the City Clerk of the City of Renton. (1) The word "Treasurer' shall mean the City Treasurer of the City of Renton. (m) The word "City" shall mean the City of Renton. (n) The word "Employee" shall mean any person employed at any business location within the City of Renton and/or any person furnishing or per- forming services within the City, and in addition thereto shall include all per- sons who are self employed. SECTION 3: PERSONS SUBJECT TO LICENSE FEE. (A) On and after the ef- fective date of this Ordinance, there is hereby levied upon and shall be col- lected from every person engaging in business in the City of Renton an annual license fee or tax for the privilege of engaging in business activities. Such license fee shall be measured by the number of employees of each business employed during the 12 months period immediately preceding the year for which a license fee is payable, as fol- lows; (EXCEPT (a) that a separate li- cense fee shall be imposed for those persons engaged in professional or semi-professional activities as herein- after set forth; and (b) that in the case of a new business, or any business in which the number of employees in the preceding year is not substantially com- parable to the number in the taxable year, the license fee shall be computed on the number of employees at time of application for license, but shall be subject to revision each quarterly per- iod): er- iod): a. For every person employing 1 to 5 employees, $12.00 per annum or any part thereof b. For every person employing more than 5 but not more than 10 employees, $25.00 per annum or any part thereof c. For every person employing more than 10 but not more than 20 employ- ees, $50.00 per annum or any part thereof d. For every person employing more than 20 but not more than 50 employ- ees, $75.00 per annum or any part thereof e. For every person employing more than 50 but not more than 100 employ- ees, $100.00 per annum or any part thereof f. For every person employing more than 100 but not more than 300 employ- ees, $150.00 per annum or any part thereof g. For every person employing more than 300 employees, $300.00 per an- num or any part thereof All employees working more than 1600 hours per annum, including legal holidays and vacation time, during the 12 months period upon which the license fee is computed as above shall be con- sidered permanent employees; those working less than 1600 hours, including legal holidays and vacation time, shall be considered temporary employees. In determining the license fee to be paid hereunder by each business, the total number of employees shall be computed by adding together the num- ber of permanent employees and the number of temporary employees, the latter figure to be computed by divid- ing total man-hours, including legal holidays and vacation time, worked by all temporary employees, by 1600. (B) Professional or semi-professional persons shall include the following to - wit: doctor of medicine; other healing art or science; dentist or dental tech- nician; attorney at law; licensed Engi- neer; surveyor; accountant, whether cer- tified or public accountant; bookkeep- er; tax or business consulting service; real estate broker or agency thereof; insurance broker, agent or representa- tive; other brokerage; funeral director or mortuary; rest home, nursing home or place of refuge; specialized private training schools in music, aviation, salesmanship or other skills or trades. The annual license fee or tax for the privilege of engaging in such profes- sional or semi-professional activities shall be as follows: the sum of $25.00 for each professional or semi-profes- sional person hereinabove enumerated who is engaged, whether full time or part time, in serving the public in the practice of such profession and who maintains or is employed in such an of- fice, clinic or other establishment in such capacity and for such purpose. SECTION 4: CERTAIN PUBLIC UTILI- TIES SUBJECT TO TAX. In addition to the foregoing license fees there are hereby levied upon and shall be collec- ted from the persons engaged in cer- tain business activities occupation taxes in the amounts to be determined by the application of the rates herein stated against gross income as follows: (a) Upon every person engaging in carrying on a telephone business with- in or partly within the City, an annual fee or tax for the privilege of so doing equal to 3% of the total gross subscrib- ers station exchange revenues from business and residence telephone serv- ice (excluding message units) in the City during the tax year for which a license is required. (b) Upon every person engaging in carrying on a telegraph business a fee or tax equal to 3% of the total gross income from such business in the City during the tax year for which a license is required. (c) Upon every person engaging in or carrying on the business of selling, furnishing, distributing or producing gaseous gas for commercial or domes- tic use or purpose, a fee or tax equal to 3% of the total gross income from such business in the City during the tax year for which a license is required. (d) Upon every person engaging in or carrying on the business of selling, furnishing or distributing electricity for light and power, a fee or tax equal to 3% of the total gross income from such business in the City during the tax year for which a license is required. In computing said tax as hereinabove provided taxpayer may deduct in com- puting gross income the following items: (a) the actual amount of credit losses and uncollectibles sustained by the tax- payer, (b) amounts derived from trans- actions in interstate and foreign com- merce which the City of Renton is pro- hibited from taxing under the laws and Constitution of the United States. SECTION 5: The utility tax imposed by this Ordinance shall be due and payable to the City Treasurer in quar- terly installments and remittance there- of shall be made to the City Clerk or, City Treasurer on or before the last day of the month next succeeding the end of the quarterly period in which the tax ac- crued. Quarterly period for the purpose of this Ordinance shall mean each three months period of the calendar year, to - wit: January 1 through March 31, April 1 through June 30, July 1 through Sep- tember 30 and October 1 through De- cember 31 of each year. The taxpayer on or before said last day of said month shall also transmit to the City Clerk or City Treasurer a return upon a form to be prescribed and provided by the City Clerk; which return shall contain a statement by the taxpayer stating the amount of the tax for which he is liable for the preceding quarterly period un- der and computed according to the pro- visions of this Ordinance, 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; which statement shall be signed by the taxpayer or authorized agent, and the signing of some shall be deemed and constitute the same a state- ment under the penalties of perjury equivalent to and as if sworn to under oath. SECTION 6: (A) Every person engag- ing within the City of Renton on and af- ter the effective date of this Ordinance, in any business or activity for which a license fee is provided shall apply for and obtain from the City Clerk a "Busi- ness License" for such calendar year or unexpired portion thereof; and on and after the effective date of this Or- dinance no person shall engage in any business activity within the City for which a license fee is imposed by this Ordinance without having first obtain- ed and being the holder of a valid and subsisting license so to do, to be known as a 'Business License," issued for such calendar year and having paid the li- cense fee imposed herein. Said license shall expire at the end of each calen- dar year and shall be personal and non -transferable. (B) All licenses shall be issued by the City Clerk on forms prescribed and fur- nished by him and the Clerk shall keep a register thereof. Each license shall be numbered, shall show the name, place and character of business of the taxpayer and 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 tax- payer 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 business for which a business license is required un- der this Section 6 without being regis- tered and licensed in compliance with the provisions of this Section; nor shall any person holding such a "Business Li- cense" suffer or allow any other per- son, for whom separate license is re- quired, to operate under or display his license. SECTION 7: EXEMPTIONS. The pro- visions of this Ordinance shall not ap- ply to: a. Any person in respect to a business activity with respect to which the tax li- ability is specifically imposed under separate, applicable Ordinance relat- ing to the regulation of and licensing of the following: theatres and shows, games of skill, music devices, taxicabs, peddlers, dance halls, private detec- tives, merchant patrolmen, skating rinks, golf courses, bowling alleys, auc- tions, trailer parks, circuses, sideshows, merry-go-rounds and similar activities, and dispensing of "safe b sane" fire- works. b. Any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm products or edibles raised, caught, produced or manufactured within the State of Washington and sold by the farmer or gardener raising, catching, producing or manufacturing the some. c. Any person in respect to the busi- ness of conducting boxing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Commission. d. Any person in respect to the busi- ness of conducting race meets for the conduct of which a license must be se- cured from the State Horse Racing Com- mission. e. Fraternal benefit societies as de- fined in RCW 48.36 (including frater- nal fire insurance associations); and beneficiary corporations or societies organized under and existing by virtue of RCW 24.16. f. The gross income received by the United States or any instrumentality thereof, by the State of Washington or any municipal subdivision thereof, or by any religious society, association or corporation, not for profit, through the operation of any hospital, clinic, resort or place of rehabilitation, or similar in- stitutions devoted exclusively to the care, healing or rehabilitation of hu- man beings; provided, however, that no exemption is granted where the in- come thereof inures to the benefit of any physician, surgeon, stockholder or individual by virtue of ownership or control of such hospital, clinic, resort or other institution. g. Amounts derived from business transactions relating to sale, lease, or rental of real estate, except those tax- able under the State Business and Oc- cupation Tax Law (Chapter 180, Laws of 1935, as amended). SECTION 8: BUSINESSES LOCATED OUTSIDE CITY. As to any businesses lo- cated outside the City of Renton and furnishing or performing services within the City, the license fee herein shall be measured by the number of employees of such business who perform any part or all of their duties within the City. SECTION 9: PAYMENT OF LICENSE FEES, APPLICATION FORMS AND RE- CORDS: (A) All license fees and penal- ties herein provided for shall be paid by bank draft, certified check, cashier's check, personal check, money order or in cash, payable to the City Treasurer and delivered to the City Clerk or City Treasurer. If payment be made by draft or check, the license fee shall not be deemed paid unless the check or draft is duly honored in the usual course of business, nor shall acceptance of any such check or draft by the City be an acquittance or discharge of any fee un- less and until such check or draft is hon- ored. The City Clerk is authorized, but not required, to mail to taxpayers forms for application for licenses, but failure of the taxpayer to receive any such form shall not excuse the taxpayer from mak- ing application for and securing the license required and payment of the license fee when and as due hereunder. (B) It shall be the duty of every per- son liable for any license fee provided by this Ordinance to keep and preserve for a period of five years such suitable employment records as may be neces- sary to determine the amount of any license fee for which he may be liable under the provisions of this Ordinance; and such records shall be open for ex- amination at any time by the City Clerk, City Treasurer, City Attorney or mem- bers of the City Council. (C) Each annual license fee herein provided for shall become due and payable on the 1st day of each year as to any business taxable hereunder and in existence on said date. As to any business commenced during any year such annual license fee shall be due and payable on the first day that such business is transacted or carried on. Failure to pay the license fee within 30 days after the day on which it is due and payable shall render the taxpayer subject to a penalty of 5% of the amount of the license fee for the first month of the delinquency and an addi- tional penalty of 5% for each succeed- ing month of delinquency, but not ex- ceeding a total penalty of 25% of the amount of such license fee in any event. SECTION 10: OVER OR UNDER PAY- MENT OF LICENSE FEE. 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 Gen- eral Fund, when approved by the City Clerk. If refund or credit is not applied for within two (2) years from date of overpayment no refund shall be al- lowed. If the Clerk finds that the li- cense fee or penalty 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 interest shall be paid on such balance at the rate of 6 per cent per annum from date of under- payment until paid and the taxpayer shall within three (3) days from the date of mailing statement pay the amount shown thereon as the balance due plus such interest. No demand for an addi- tional license fee 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 register- ed as required by this Ordinance; (2) as against a taxpayer who has been guilty of fraud or misrepresentation of a ma- terial fact, or (3) where a taxpayer has executed a written waiver of such limi- tations. SECTION 11: FAILURE TO MAKE AP- PLICATION. If any taxpayer fails, neg- lects, or refuses to file his application for a business license and to pay any license fee as and when required here- in, the City Clerk is authorized to de- termine the amount of license fee pay- able and by mail notify such taxpayer of the amount so determined. The amount so determined shall thereupon become the license fee and become immediately due and payable. SECTION 12: APPLICATION AND RE- TURNS CONFIDENTIAL. The returns made to the Treasurer and Clerk pur- suant 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 inform any other person as to the contents or any infor- mation 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 collection of the tax. SECTION 13: COLLECTION AS DEBT, FALSE RETURNS, REVOCATION OF LI- CENSE: Any license fee or tax due and unpaid 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 and penal- ties. (B) It shall be unlawful for any per- son 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 representation in or in connectidn with any such appli- cation or return, or to aid or abet anoth- er in an attempt to evade payment of the fee or tax or any part thereof, or for any person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon investigation of the correctness of a return or upon the hearing of any appeal, or in any manner to hinder or delay the City or any of its officers in carrying out the provisions of this Ordi- nance. (C) The Clerk may revoke the license issued to any taxpayer who is in default in any payment of any license fee or tax hereunder, or who shall fail to com- ply with any of the provisions of this Ordinance. Notice of such revocation shall be mailed to the taxpayer by the Clerk and on and after the date thereof any such taxpayer who continues to engage in business shall be deemed to be operating without a license and shall be subject to any or all penalties herein provided. (D) Any person violating or failing to comply with any of the provisions of this Ordinance or any lawful rule or regulation adopted by the City Council pursuant thereto, upon conviction there- of, shall be punished by a fine in any sum not to exceed Five Hundred Dol- lars ($500.00) or by imprisonment in the City Jail for a term not exceeding ninety (90) days, or by both such fine and imprisonment. (E) Any taxpayer who engages in, or carries on, any business subject to a tax herunder without having his "business license" so to do shall be guilty of a separate 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 license fee or tax, or any part thereof, on Qr before the due date, shall' be deemed to be op- erating without having his license so to do. - SECTION 14: CLERK TO MAKE RULES. The City Clerk shall have the power and it shall be his duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this Ordinance or with the law for the pur- pose of carrying out the provisions hereof, and it shall be unlawful for any taxpayer to violate or fail to com- ply with any such rule or regulations. SECTION 15: APPEAL TO CITY COUN- CIL. Any taxpayer aggrieved by the amount of the fee or tax found by the Clerk to be required under the provi- sions 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 ap- pellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence in his own behalf. The City Council shall thereupon ascer- tain the correct amount of the fee or tax by Resolution and the City Clerk shall immediately notify the Appellant thereof by mail, which amount, together with costs of the appeal if appellant is unsuccessful therein, must be paid with- in three days after such notice is given. The Mayor, the President of the City Council, or the Chairman of any com- mittee thereof before which the appeal is to be heard may, by subpoena, re- quire the attendance thereat of any person, and may also require him to produce any pertinent books and rec- ords. Any person served with such sub- poena 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 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 16. LICENSE FEE ADDI- TIONAL TO OTHERS. The license fee and tax herein levied shall be addition- al to any license fee or tax imposed or levied under any law or any other Ordi- nance of the City except as herein oth- erwise expressly provided. SECTION 17: EFFECT OF PARTIAL INVALIDITY. If any provision, section, paragraph, clause or part of this Ordi- nance shall be held void or unconstitu- tional, 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 uncon- stitutional shall continue and remain in full force and effect. SECTION 18: This Ordinance shall become effective on and after January 1, 1963 after its -passage, approval and legal publications. PASSED BY THE CITY COUNCIL this 10th day of December, 1962. Helmie Nelson, City Clerk APPROVED BY THE MAYOR this 10th day of December, 1962. Frank Aliment, Mayor APPROVED AS TO FORM: Gerard M. Shellan, City Attorney Published in The Record -Chronicle December 19, 1962