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HomeMy WebLinkAboutORD 1587City of Renton—Business Tax Ordinance 1957 ORDINANCE NO. 1587 An ordinance of the City of Renton, Washington, relating to and providing for a license or occupation tax upon cer- tain businesses, occupations, pursuits and privileges; defin- ing offenses and prescribing penalties. BE IT ORDAINED BY THE MAYOR AND THE CITY -COUNCIL OF THE CITY OF RENTON: Section 1. EXERCISE OF REVENUE LICENSE POWER. The provisions of ithis Ordinance shall be deemed an exercise of the power of the City of Renton to license for revenue. Section 2. DEFINITIONS: In construing the provisions of this ordinance, save when otherwise declared or clearly apparent from the context, the following definitions shall :be applied: (a) The term "tax year" or "taxable year" shall mean either the calendar year or the taxpay- er's fiscal year when permission is obtained from the Clerk to use a fiscal year in lieu of the calendar year. (b) The word "person" or word "company," herein used interchangeably means any in- dividual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co -partnership, joint venture, club, company, joint-stock company, business trust, corporation, association, society, or any group of indivi- duals acting as a unit, whether mutual, cooperative, fraternal, non-profit or otherwise, and in- cludes the United States or any instrumentality thereof, provid- ed a valid tax may be levied up- on or collected therefrom under the provisions of this 'ordinance. (c) The word "Sale" includes the exchange of property as well as the sale thereof for money; and also includes conditional sales contracts, leases and any other contract under which pos- session of the property is given to the purchaser but title is re- tained by the vendor as security for the payment of the purchase price or rental. It shall also be construed to include the furnish- ing of food, drink or meals for compensation, whether consum- ed upon the premises or not. (d) The term "gross proceeds of sales" means the value pro- ceeding or accruing from the sale of tangible personal proper- ty and for services rendered without any deduction on ac- count of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and with.>ut any deduction on account of losses. (e) The term "gross income of the business" means the value proceeding or accruing oy rea- son of the transaction of the business engaged in and in- cludes gross proceeds of sales, compensation for the rendition of services, gains realiz, i from trading in stocks, bonds ur other evidences of .indebtedness, inter- est, discount, rents, royalties, fees, commissions, dividends and other emoluments however des- ignated, all without any deduc- tion on account of the cost of the commodity or -tangible prop- erty sold, the cost of materials used, labor costs, interest, dis- count, delivery costs, taxes or any other expense whatsoever paid or accrued and without any deduction on account of losses. (f) The term "value proceed- ing or accruing" means the con- sideration, whether money, cred- its, rights or other property ex- pressed .in terms of money, actu- ally received or accrued. The term shall be applied, in each case, on a cash receipts or ac- crual :basis according to which method . of accounting is regu- larly employed. in keeping the books of the taxpayer. The value proceeding or accruing from sales on the installment plan under conditional contracts of sale may ,be reported as of the dates when the payments become due. (g) The word "extractor" means every person who, from his own land or from the 'land of another under a - right or li- cense granted by lease or con- tract, either directly or by con- tracting with others for the necessary labor or mechanical services, for sale purposes, mines, quarries, takes or pro- duces coal, oil, natural gas, ore, stone, sand, gravel, clay, miner- al or other natural resource product or fells, cuts or takes timber or other natural pro- ducts, or takes, cultivates or raises fish, shell fish or other sea or inland water foods or products, but does not include persons performing under con- tract the necessary labor or mechanical services for others. (h) The word "manufacturer". means every person who either directly or by contracting with others for the necessary labor or mechanical services, manu- factures for sale any articles, substances or 'commodities. When the owner of equipment or facilities furnishes, or sells to the customer prior to manu- facture, all or a portion of the materials that become a part or whole of the manufactured ar- ticle, theCity Council shall pre- scribe equitable rules for deter- mining tax. liability. (i) The term "manufacture" embraces all the activities of a commercial nature wherein la- bor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful article of tan- gible personal property or sub- stance of trade or commerce is produced and shall include the production or fabrication of spe- cial .made or custom made articles. (j) The word `,`business" in- cludes all activities and transac- tions engaged in with the object of gain, benefit or advantage to the taxpayer or to another person or class, directly or in- directly. (k) The words "engaging (or engage) in business" mean commencing, conducting or con- tinuing in business and also the exercise of corporate or fran- chise powers as well as liquidat- ing a business when the liquidat- ors thereof hold themselves out to 'the public as conducting such business. (1) The term "cash discount" means a deduction from the in- voice price of goods or charge for services which is allowed if the bill is paid on or before a specified date. (m) The term "tuition fee" shall be construed to include li- brary, laboratory, health service and other special fees, and amounts charged for room and bgard by an educational institu- ,ion when the property or ser- vice for which such charges are made is furnished exclusively to the students or faculty of such institution:' ':Provided, That the term "educational institution," as used herein, shall be con- strued to mean only those insti- tutions created or generally ac- credited as such by the State and offering to students an edu- cational program of a general academic nature, or those insti- tutions which are not operated for profit and which are pri- vately endowed under a deed of trust to offer instruction in trade, industry and agriculture, but not including specialty schools, business colleges, trade schools or similar institutions. (n) The word "successor" means any person who shall, through direct or mesne con- veyance, purchase or succeed to the business, or portion there- of, or the whole or any part of the stock of goods, wares or merchandise or fixtures or any interest therein of a tax -payer quitting, selling out, exchanging or otherwise disposing of his business. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to whom such person is surety or guarantor. (o) The word "taxpayer" in- cludes any individual, group of individuals, corporation or asso- ciation required to have a Busi- ness License hereunder, or liable for any license fee or tax, or for the collection of any license fee or tax hereunder or who en- gages in any .business or who performs any act, for which a license fee or tax is imposed by this ordinance. (p) Words in the singular number shall include the plural, and the plural shall include the singular. Words in one gender shall include -all other genders. (q) "Bimonthly period" shall mean a two-month period begin- ning the first day of the odd - numbered month and including the last day of the next succeed- . ing month. (r) The word "Clerk" shall mean the City Clerk of the City of Renton. (s) The word "Treasurer" shall mean the City Treasurer of the City of Renton. (t) The word "'City" shall mean the City of Renton. Section 3. BUSINESS LI- CENISE REQUIRED. Every per- son engaging within the city of Renton during the calendar year 1957 in any business or activity for which a license fee or tax is provided by this Ordinance, whether such person is subject to the payment of any tax there--. under or not, shall apply for and obtain from the City Clerk. _a "BUSINESS LICENSE" for such calender year or unexpired portion thereof; and on and af- ter the effective date of this ordinance no person, whether subject to the payment of a tax or not, shall during the calendar year 1957, engage in any :busi- ness activity within the City of Renton for which a license fee or tax is imposed ,by this Ordin- ance without (a) having first obtained and being the holder of a valid and subsisting license so to do to be known as a "Busi- ness License," issued for such calendar year under the provi- sions of this Ordinance as here- inafter provided, and (b) having paid the license fee and tax imposed by this Ordinance. The fee or tax -for the "Business Li. cense" shall .be the license fee or tax imposed by this Ordinance, and in addition the sum of $12.00 as a license fee which shall accompany the application for the license. Said license shall expire at the end of the calendar year. Each license shall be personal and non -transferable. In case busi- ness is transacted at two or rnore separate places by one tax- payer, a separate license shall• be required for each place but for such additional licenses no additional $12.00 fee shall be required. All licenses shall be issued by the City Clerk on forms pre- scribed and furnished by him and the Clerk shall keep a regis- ter thereof. Each license shall be numbered, shall show the name, place and character of business of the taxpayer, such other information as the City Clerk shall deem necessary, and shall at all times be posted in the place of business for which it is issued. When the place of business of a taxpayer is changed, the taxpayer shall re- turn the license to the City Clerk and a new license shall be issued for the new place- of business free of charge. No person shall engage in any busi- ness for which a business li- cense is required under this Section, without .being regis- tered and licensed in compliance with the provisions of this Sec- tion; nor shall any person hold- ing such a "Busines License" suffer or allow any other per- son, for whom separate license is required, to operate under or display his license. Section 4. ENUMERATION OF PERSONS SUBJECT TO TAX; MEASURE AND RATES OF TAX. On and after the ef- fective date of this Ordinance, and during the calendar year there is hereby levied upon and shall be collected from and paid as hereinafter specified by ev- ery person on account of and for the privilege of engaging in business activities, a license fee or occupation tax, sometimes herein referred to as the "tax," in amounts to be determined by application of rates given against value of products, gross proceeds of sales, or gross in- come of business, as the case may be, for the two calendar months next preceding the be- ginning of each bi-monthly per- iod, as follows: (a) Upon every person en- gaging within this City in busi- ness as a manufacturer or as an extractor; as to such persons the amount of the tax with re- spect to such business shall be equal to the value of the prod- ucts manufactured or extracted for sale, multiplied by the rate of three hundredths of one per cent (.0003). The measure of the tax is the value of the products so manu- factured or extracted, regard- less of the place of sale or the fact that deliveries may be made to points outside the City. (b). Upon every person en- gaging within this City in the business of making sales at wholesale or retail; as to such persons the amount of the tax with respect to such business shall be equal to the gross pro- ceeds of such sales of the busi- ness without regard to the place of delivery of articles, commod- ities or merchandise sold, mul- tiplied by the rate of three hun- dredths of one per cent (.0003). (c) Upon every person en- gaging within this City in the business of (1) printing or publication of newspapers, periodicals or mag- azines; . (2) building, repairing or im- proving any publicly o w n e d street, place, road, highway, bridge or trestle which is used, or to be used, primarily for foot or vehicular traffic; as to such persons the amount of tax with respect to such business shall be equal to the gross income of the business multiplied by the rate of three -hundredths of one per cent (.0003). Yd) Upon every person engag- ing within this City in any of the following professions and businesses which for the pur- poses of this Ordinance are clas- sified as preponderantly in the nature of rendering services: 1. Doctor of medicine; other healing art or science; dentist or dental technician; attorney at law; accountant, bookkeeper, or tax services; real estate broker or agency thereof; insur- ance broker, agent or represen- tative; other brokerage; funer- al director; rest home, nursing home, or place of refuge; spe- cialized,private training schools in music, aviation or other skills; 2. The business of selling or furnishing water for compensa- tion; 3. The business of urban transportation; 4. Telegraph business; 5. The business of selling, fur- nishing or distributing electri- city, (exclusive of electricity sold for the purpose of resale, and the revenue therefrom); 6. The business of selling, furnishing, distributing or pro- ducing gaseous gas for commer- cial or domestic use. As to such persons the amount of the tax with respect to such profession or business shall be equal to the gross in- come derived from such profes- sion or business multiplied by the rate of one-tenth of one per cent (.001). In respect to utility businesses h e r e i n mentioned the term "gross income" as heretofore defined shall include the gross operating revenue of the busi- ness; (e) Upon every person en- gaging within this City in any business activity other than or in addition to those enumerated in subsections (a), (b), (c) and (d) above; as to such persons the amount of the tax with re- spect to any such business ac- tivity shall .be equal to the gross income of the business multi- plied ,by the rate of three -hun- dredths of one per .cent (.0003). This sub -section (e) includes, among others, and without lim- iting the scope thereof, (whe- ther or not title to material used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of ren- dering any type of service other than or in addition to those enumerated in sub -section (d) above. Section 5. TAXABLE AS TO EACH ACTIVITY: Every per- son engaging in activities which are within the purview of the provisions of two or more para- graphs designated (a), (b), (c), (d), and (e) of Section 4 of this Ordinance, shall be taxable un- der each applicable paragraph; Provided, that persons taxable under Paragraph (.b) of said section on products sold for de- livery within the State of Wash- ington shall not be taxable un- der Paragraph (a) thereof with respect to extracting or manu- facturing of such products so sold; and that persons taxable under Paragraph (a) thereof as manufacturer shall not be tax- able under said Paragraph (a) with respect to extracting the ingredients of the product so manufactured. Section 6. DETERMINATION OF VALUES: The value of products extracted or manufac- tured shall -be determined by the gross proceeds derived from the sale thereof, whether such sale is at wholesale or at retail except: (a) Where such. products are shipped, transported or trans- ferred out of the City, or to an- other person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject - matter of the sale. In the above cases the value shall correspond as nearly as possible to the gross proceeds from sales in the City of similar products of like quality and character, and in similar quan- tities by other taxpayers. The City Council shall prescribe uni- form and equitable rules for the purpose of ascertaining such values. Section 7. APPORTIONMENT OF BUSINESS. (a) As to any person engag- ing in a business activity both within and without the City, or partially within and partially without the City, but maintain- ing an office or place of busi- ness within this City and not elsewhere, the ,tax shall be mea- sured upon the entire business activity without regard to the place where the products are delivered or the sales are made or the services are rendered. (b) Persons engaging in a business activity both within and without the City but main- taining no office or fixed place of ,business within this City, and also persons maintaining of- fices, plants, warehouses, or other business establishments in the State of Washington, part of which are within the City and part of which are outside the City, shall be taxable on the value of products or gross proceeds of sales or gross in- come of the business attribut- able to .business within the City ascertained either: (1) by a segregation of busi- ness within and business out- side the City shown . and sup- ported by separate accounting records; or (2) by an apportionment to the City of that part of the value of products, gross pro- ceeds of sales, or gross income of the business, in the State of Washington which bears the same proportion to the whole thereof that the total number of its employees employed with- in the City bears to the total number of its employees within the State; or (3) when the use of such ap- portionment factor is imprac- ticable or grossly inequitable, by a fair and equitable apportion- ment of value of products, gross proceeds of sales, or gross in- come of the business, upon such reasonable b a s i s as shall be agreed upon between the City (acting through the City Clerk and Council) and the taxpayer after consideration of the facts. Section 8. SALES BY OON- SIGN'EE, BAILEE, FACTOR OR AUCTIONEER: Every con- signee, .bailee, factor or auc- tioneer having either actual or constructive possession of tan- gible personal property, or hav- ing possession of the documents of title thereto, with power to sell such tangible personal pro- perty in his or its own name and actually so sell- ing, shall be deemed the seller of such tangible personal pro- perty within the meaning of this Ordinance; and further, the consignor, bailor, principal or owner shall be deemed a seller of such property to the con- signee, bailee, factor or auction- eer. The burden shall be upon the taxpayer in every case to estab- lish the fact that such taxpayer is not engaged in the business of selling tangible personal pro- perty but is acting merely as • broker or agent in promoting sales for a principal; such claim will be allowed only when the taxpayer's account records are kept in such manner as shall clearly confirm the claim. Section 9. EXEMPTIONS. The provisions of this ordin- ance shall not apply to: (a) Any person in respect to a business activity with respect to which the tax liability is spe- cifically imposed under the pro- visions of: Ordinances Nos. 900 theatres); 1174 (admissions); 1212 (games of skill); 1319 (mu- sic devices); 1236 (taxicabs); 940 (peddlers); 1229 (dance halls) ; 1466 (private detectives, ,Merchant Patrolmen); all as amended. (b) Any person in respect to insurance business upon which a tax based on gross premiums is paid to the State of Washing- ton; Provided, however, That the provisions of this subsec- tion shall not exempt any per- son engaging in the business of representing any insurance company, whether as general or local agent or acting as broker for such companies; And pro- vided, further, That the provi- sions of this sub -section shall not exempt any bonding com- pany from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting con- tractor. (c) Any fruits, vegetables, berries, .butter, eggs, fish, milk, poultry, m e a t s or any farm products or edibles raised, caught, produced or manufac- tured within the State of Wash- ington and sold by the farmer or gardener raising, catching, producing or manufacturing the same. (d) Any person in respect to the business of conducting box- ing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Com- mission. (e) Any person in respect tc the business of conducting race meets for the conduct of which a license must be secured from the State Horse Racing Commis- sion. (f) Any person in respect to his employment in the capacity of an employee or servant as distinguished from that of an independent contractor. (g) Fraternal benefit socie- ties, as defined in Rem. Rev. Stat., Section 7259; fraternal fire insurance associations, as de- scribed in subdivision third of Rem. Rev. Stat., Section 7131, and beneficiary corporations or societies, organized under and existing by virtue of Rem. Rev. Stat., Sections 3872 and 3883, inclusive, if such corporations or societies provide in their by- laws for the payment of death benefits as set forth in Rem. Rev. Stat., Section 3879. (h) The g r o s s income re- ceived by the United States or any instrumentality thereof, by the State of Washington or any municipal subdivision thereof, or by any religious society, as- sociation or c o r 'p o r a t i o n, through the operation of any hospital, clinic, resort or other institution devoted exclusively to the care or healing of human beings; Provided, That no ex- emption is granted where the income therefrom inures to the benefit of any physician, sur- geon, stockholder or individual by virtue of ownership or con- trol of such hospital, clinic, re- sort or other institution. (i) Amounts derived from the lease, rental or sale of real es- tate; Provided, however, That nothing herein shall be con- strued as an exemption of the business activity of operating a . hotel or a multiple apartment house renting more than four apartments and/or stores and shops, if taxable under the State business and occupation tax law (Chap. 180, Laws of 1935 as amended), nor be construed to allow a deduction of amounts derived from engaging in any business wherein a mere license to use or enjoy real property is granted, or to allow a deduction of amounts received as com- missions from the sale or rent- al of real estate. ( j) National, b a n k s, state banks, trust companies, mutual savings banks, building and loan and savings and loan associa- tions with respect to their bank- ing business, trust business or savings and loan .business .but not with respect to engaging in any other business taxable here- under, even though such other business be conducted primarily for the purpose of liquidating the assets thereof. (k) The business of manufac- turing, selling, or distributing motor vehicle fuel, as that term is defined in Chapter 58, Laws of 1933, as amended: (1) Liquor as defined by State law (Sec. 7306-31 Rem. Rev. Stat.). 44 Section 10. DEDUCTIONS ALLOWED IN COMPUTING LICENSE FEES: In computing the license fee or tax there may be deducted from the measure of tax the following items: (a) Amounts derived .by per- sons, other than those engaging in banking, loan, security or other financial businesses, from investments or the use of money as such. (b) Amounts derived from bona fide initiation fees, dues, contributions, donations, tuition fees as .hereinabove defined, and endowment funds. The provi- sions of this paragraph shall not be construed to exempt any per- sons, association or society from tax liability upon selling tan- gible personal property or upon providing facilities or services for which a special charge is made to members or others; Provided, That dues which are for, or graduated upon, the amount of service rendered by the recipient thereof are not permitted as a deduction here- under. (c) The amount of cash dis- count actually taken by the pur- chaser. This deduction is not allowed in arriving at the tax- able amount under the extrac- tive and/or manufacturing clas- sifications with respect to ar- ticles produced or manufac- tured, the values of which, for the purpose of this tax, have been computed according to the provisions of Section 6 hereof. (d) The amount of credit losses actually sustained :by tax- payers whose regular books of accounts are kept upon an ac- crual basis. (e) Amounts derived from business which the City is pro- hibited from taxing under the constitution or laws of the State or the constitution or laws of the United S t a t e s, and any amounts collected by the tax- payer as an excise tax. Section 11. LOW VOLUME EXEMPTION. Whenever a per- son engages in one or more business activities wherein the value of products, gross pro- ceeds of sale or gross income of the taxable business is less than $1,700.00 for a bi-monthly period such person shall be ex- empt from payment of the tax under Section 4, :but shall never- theless make and file the bi- monthly sworn information Re- turn required under Section 12, stating that he is exempt under this Section 11. Section 12. BI=MONTHLY RE- TURNS and PAYMENTS. The license fee or tax imposed by this Ordinance except the $12.00 fee required to accompany the annual application for the Busi- ness License, shall be due and payable in bi-monthly install- ments, and remittance therefor shall be made to the -City Treas- urer on or before the last day of the month next succeeding the end of the bi-monthly period in which the tax accrued. The license -taxpayer, on or before said last day of said month, shall also transmit to the ,City Treasurer a Return, upon a form to be prescribed and pro- vided by the City Clerk; which Return shall contain a state- ment by the taxpayer stating the amount of the tax for which he is liable for the preceding bi-monthly period under and computed according to the pro- visions of this ordinance, that the information therein given and the amount of tax liability therein reported are full and true, and that he knows the same to .be so; which statement shall be signed by the taxpayer, and the signing of same shall be deemed and constitute the same a statement under the pen- alties of perjury equivalent to and as if sworn to under oath. The Return when thus signed need not disclose the value of products, g r o s s proceeds of sales, or gross income of the business constituting the mea- sure of the tax liability therein reported. Provided, however, that the City Council in its dis- cretion may at any time by Res- olution require an annual or other additional Return from any taxpayer, setting forth the value of products, ,gross pro- ceeds of sales, or gross income of the business constituting mea- sure of the tax hereunder, and such additional information as it may deem necessary to correctly determine license fee or tax lia- bility under this Ordinance, and containing a statement by the taxpayer sworn to (or affirmed) under oath that the information therein given and the amount of tax liability therein reported are full and true and that he knows the same to be so: Whenever the total tax for which any person is liable under this Ordinance does not exceed the sum of $2.00 for any bi- monthly period, an annual Re- turn may be made upon written request to and written approval by the City Clerk. Section 13. PAYMENT OF LICENSE TAX. The license fee or tax payable hereunder shall at the time the return is - re- quired to be filed hereunder be paid to the City Treasurer by bank d r a f t, certified check, cashier's check, personal check or money order, or in cash. If payment is made by draft or check, the tax or fee shall not be deemed paid unless the check or draft is honored in the usual course of business; nor shall the acceptance of any sum by the Treasurer be an acquittance or discharge of the tax or fee due unless the amount of the payment is in the full and actual amount due. The return shall first be presented to the City Treasurer, who shall endorse thereon the date and amount of the payment received and shall thereupon forthwith file the re turn with the Clerk. The Clerk is authorized, but not required, to mail to tax- payers forms for applications for license and forms for re- turns, but failure of the tax- payer to receive any such forms shall not excuse the taxpayer from making application for and securing the license re- quired making returns, and pay- ment of the license fee or tax when and as due hereunder. Section 14. PRESERVING RECORDS. It' shall be the duty of every person liable for the payment of any fee or tax im- posed by this Ordinance to keep and preserve for the period of five years such books, and rec- ords as will accurately reflect the amount of his gross income, gross proceeds of sale or value of products, as the case may be, and from which can be deter. mined the amount of any -fee or tax for which he may be li- able under the provisions of this Ordinance; and all books, rec- ords, invoices, inventories and stocks of goods, wares and mer. chandise shall -be open for exam- ination at all reasonable times by the Clerk or his duly author- ized agent. Section 15. FINAL PAYMENT PUBLIC WORK ,CONTRACT— LIC'ENSE FEES TO QBE PAID FIRST: The Clerk shall, before issuing any warrant making fi- nal payment to any person per- forming any public work con. tract for the City, require such person to pay in full all license fees or taxes due under this ordinance from such person on account of such contract, or oth- erwise. Section 16. EXTENSION OF TIME FOR ,FILING RETURN'S —PENALTIES. The Clerk for good cause shown may extend the time for making and filing any return as required under this Ordinance and may grant such reasonable additional time within which to file such re- turns as he may deem proper: Provided, That any extension in excess of thirty (30) days shall be conditioned upon pay- ment of interest of one-half (%) of one per cent (1 per cent) for each thirty (30) days or portion thereof on the amount of the tax from the date upon which said tax became due. If payment of any tax is not received within ten (10) days from the due date of such tax, there shall be added a penalty as follows: 11 to 40 days delinquency 10 per cent with a minimum pen- alty of $1.00; 41 to 70 days de- linquency, 15 per cent with a minimum penalty of $2.00; and 71 or more days delinquency, 20 per cent with a minimum penalty of $3.00. Section 17. SALE OR TRANS- FER OF BUSINESS: Upon the sale or transfer during any bi- monthly period of a business. on account of which a license fee or tax is hereby required, the purchaser or transferee shall, if the fee or tax has not been paid in full for said bi-monthly .period, be responsible for the payment of the fee or tax for that portion of the bi-monthly .period during which he carries on such business. Section 18. APPLICATIONS AND RETURNS CONFIDEN- TIAL: The returns made to the Treasurer and Clerk pursuant to this Ordinance shall not be made public, nor shall they be subject to the inspection of any person except the Mayor, City Attorney, Treasurer, City Clerk or his authorized agent, and members of the City Council; and it shall be unlawful for any person to make public or to in- form any other person as to the contents or any information con- tained in or to permit inspection of any return, except as in this section authorized, and except in any proceedings for determin- ation and/or collection of the tax. Section 19. OVER OR UN- DER -PAYMENT OF TAX. Whenever a taxpayer makes an overpayment, and within two (2) years after date of such overpayment makes. application for a refund or credit of the overpayment, his claim shall be allowed and if the request is for an overpayment the over- payment shall be repaid from the General Fund, when ap- proved by the City Clerk. If refund or credit is not applied for within two (2) years from date of overpayment no refund shall be allowed. If the Clerk finds that the fee or tax or pen- alty paid is less than the amount due, the Clerk shall mail the taxpayer a statement showing the balance due and may add thereto a requirement that in- terest shall be paid on such bal- ance at the rate of 6 per cent per annum from date of under- payment until paid and the tax- payer shall within three (3) days from the date of mailing statement pay the amount shown thereon as the balance due plus such interest. No de- mand for an additional fee or tax or penalty shall be made by the Clerk more than four (4) years after the close of the year in which the same accrued except: (1) Against a taxpayer who is not registered as required by this Ordinance; (2) as against a taxpayer. who has been guilty of fraud or misrepresentation of a material fact or (3) where a taxpayer has executed a written waiver of such limitations. Section 20. ENFORCEMENT AND PENALTIES. (a) Failure To Make Returns. If any taxpayer fails, neglects or refuses to make his return as and when required herein, or if upon examination or investi- gation, the Clerk finds that the amount of tax liability reported or paid by any taxpayer appears to , be less than the correct amount of his tax liability un- der this Ordinance, the Clerk is authorized to determine the amount of the tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall there- upon become the tax and be im- mediately due and payable. (b) Collection As Debt. Any license fee or tax due and un- paid and delinquent under this ordinance, and all penalties thereon, may be collected by civ- il action, which remedy shall be in addition to any -and all other existing,remedies and penalties. (c) False Returns. It shall be unlawful for any person sub- ject to the tax hereunder to fail or refuse to secure the license or to make the returns as and when required or to pay the fee or tax when due, or for any person to make any false or fraudulent application or return or any false statement or rep- resentation in or in connection with any such application or -re- turn, or to aid or abet another in any attempt to evade pay- ment of the fee or tax or any part thereof, or for any person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon any investigation of the correctness of a return or upon the hearing of any ap- peal, or in any manner to hin- der or delay the City or any of its officers in carrying out the provisions of this Ordinance. (d) Revocation of License. The Clerk may revoke the license issued to any taxpayer who is in default in any payment of any license fee or tax hereun- der, or who shall fail to comply with any of the provisions of this Ordinance. Notice of such revocation shall be mailed to the taxpayer by the Clerk, and on and after the date thereof any such taxpayer who con- tinues to engage in business shall be deemed to be operating without a license and shall be subject to any or all penalties herein provided. (e) Penalties. Any person violating or failing to comply with any of the provisions of this Ordinance or any lawful rule or regulation adopted by the Council pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed One Hun- dred Dollars ($100.00), or by imprisonment in the City Jail for a term not exceeding thirty (30) days, or by both such fine and imprisonment. (f) Any taxpayer who en- gages in, or carries on, any busi- ness subject to a tax hereunder without having his "Business License" so to do shall be guilty of a violation of this Ordinance for each day during which the business is so engaged in, or car- ried on; and any taxpayer who fails or refuses to pay the li- cense fee or tax, or any part thereof, on or before the due date, shall be deemed to be oper- ating without having his license so to do. Section 21. APPEAL TO •CITY COUNCIL: Any taxpayer ag- grieved by the amount of the fee or tax found by the Clerk to be required under the provisions of this Ordinance, may appeal to the City Council from such finding by filing a written notice of appeal with the City Clerk within five days from the time such taxpayer was given notice of such amount. The Clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not more than 30 days after the filing of the notice of appeal, and he shall cause a notice of the time and place thereof to be mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to in- troduce evidence in his own be- half. The City Council shall thereupon ascertain the correct amount of the fee or tax by resolution and the City Clerk shall immediately notify the Ap- pellant thereof by mail, which amount, together with costs of the appeal, if appellant is un- successful therein, must be paid within three days after such notice is given. The 'Mayor, the President of the City Council, or the Chair- man of any committee thereof before which the appeal is to be heard may,. by subpoena, require the attendance thereat of any person, and may also require him to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the Chairman in charge of the hear- ing on appeal as to any matter required of him pertinent to the appeal, and it shall be unlawful for him to fail or refuse so to do. Section 22. INTERPRETA- TION:' RULES and REGULA- TIONS. In the administration of this Ordinance and the inter- pretation of the provisions thereof, the City Clerk shall be guided by the rules and regula- tions as adopted, published and interpreted by the Excise Tax Division of the Tax Commission of the State of Washington un- der and in respect to the State Business and Occupation Tax Law (Chapter. 180, Laws of 1935, as amended), insofar as the same are applicable to and not inconsistent with the provisions and requirements of this ordin- ance or with such rules and reg- ulations as the City Council may at any time adopt hereunder. The City Council may from time to time adopt, publish and enforce rules and regulations not inconsistent with this or- dinance or with law for the pur- pose of carrying out the provi- sions h e r e o f or interpreting same, and it shall be unlawful to violate or fail to comply with any such r u 1 e or regulation adopted by the City Council. Section 23: MAILING OF NOTICES: Any notice required by this ordinance to be mailed to any taxpayer shall be sent by ordinary mail, addressed to the address of the taxpayer as shown by the records of the Clerk, or if no such address is shown, to such address as the Clerk is able to ascertain by rea- sonable effort. Failure of the taxpayer to receive such mailed notice shall not release the tax- payer from any tax or any pen- alties thereon, nor shall such failure operate to extend any time limit set by the provisions of this Ordinance. Section 24: LICENSE FEE ADDITIONAL TO OTHERS: The license fee and tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other Ordinance of The City ex- cept as herein otherwise ex- pressly provided. Section 25. APPLICATION TO CITY''S BUSINESS ACTIVI- TIES. Whenever The City through any department or div- ision shall engage in any busi- nes activity which if engaged in by any person would under this Ordinance require a Business License and the payment of a license fee or tax by such per- son, the City department or div- ision engaging in such business activity shall as to such busi- ness activity at the same time and in the same manner as per- sons are required hereunder to make returns and f r o m the funds of such department or division pay the license fees or taxes imposed hereunder. . Section 26. EFFECT OF PAR- TIAL INVALIDITY. If any pro- vision, section, paragraph, clause, or part of this ordinance shall be held void or unconsti- tutional, the remainder of this ordinance shall not be affected thereby, but all other provisions, sections, paragraphs, clauses and parts of this ordinance not expressly so held to be void or unconstitutional shall continue and remain in full force and effect. Section 27. This Ordinance shall take effect on January 1, 1957 and be in force and effect on and after that date for the calendar year 1957. PASSED by the City Council this 4th day of December, 1956. ELTON L. ALEXANDER City Clerk. APPROVED by the Mayor this 4th day of December, 1956. JOE R. BAXTER, ;Mayor. Approved as to form: Gerard M. Shellan City Attorney. Published in The Renton News Record, Dec. 13, 1956.