Chapter 5.04
OCCUPATION TAXES
Sections:
5.04.010 Purpose.
5.04.020 Business entity defined.
5.04.030 Place of business – Requirements.
5.04.040 Permit – Required.
5.04.050 Permit – Term.
5.04.060 Permit – Application.
5.04.070 Occupation tax – Required – Amount.
5.04.080 Occupation tax – When due.
5.04.090 Occupation tax – Late payment.
5.04.100 Occupation tax – Determination of number of employees.
5.04.110 Permit – Issuance.
5.04.120 Permit – Transferability.
5.04.130 Permit – Revocation.
5.04.140 Liquor licenses.
5.04.150 Permit for temporary display of merchandise outside.
5.04.160 Violations – Penalties – Alternative remedies.
5.04.010 Purpose.
The taxes imposed under this chapter shall be in addition to all ad valorem taxes, licenses and excises now or hereafter levied pursuant to law, and shall be in addition to any and all other fees or taxes imposed by the United States Government, or by the state. It is specifically declared that the taxes imposed pursuant to the provisions of this chapter are for the purpose of raising revenues, and that any and all taxes imposed hereby shall be considered reasonable for the purpose of raising revenues. (Ord. 77-10 § 1)
5.04.020 Business entity defined.
As used in this chapter, “business entity” means any individual, firm, company, corporation, association or partnership conducting any trade, profession, occupation or pursuit for gain, including property rental, except it does not include the following:
A. Tax-Exempt Organizations. Any organization that has an exemption from income taxes from the Internal Revenue Service and the State of Oregon Department of Revenue;
B. Wholesale Distributors. Any organization that sells a product directly to a business entity for retail and is engaged exclusively in a wholesale business;
C. A business entity regulated by the state, where the state has specifically preempted and precluded the imposition of a business occupation tax by a local government;
D. A business entity located outside of the city of Lincoln City and doing business in Lincoln City only within the city of Lincoln City. (Ord. 2010-11 § 2; Ord. 91-17 § 1; Ord. 84-4 § 1; Ord. 77-10 § 2(1)(a) – (d))
5.04.030 Place of business – Requirements.
A. Every business entity doing business from a specific location within the corporate limits of the city must operate from a place of business which is within an enclosed building which meets the requirements of all city building, fire and life safety code and LCMC Title 17 standards and all other city ordinances; except that a business with a valid permit for the temporary display and sale of merchandise outside, which permit has been issued pursuant to LCMC 5.04.150, or with a temporary use permit which has been obtained in accordance with LCMC Title 17 requirements, may temporarily display and sell merchandise outside of the building; provided, that all conditions of the temporary permit are followed.
B. Notwithstanding the provisions of subsection (A) of this section, a business entity doing business in the city whose specific business location is outside of the city, which must, by the nature of its work or service, provide its work or service at a location designated by its customer, shall not be required to operate from an enclosed building.
C. Farmers’ Markets.
1. Notwithstanding the provisions of subsection (A) of this section, a business entity or tax-exempt organization doing business in the city as a farmers’ market shall not be required to operate from an enclosed building.
2. For the purposes of this section, the term “farmers’ market” means a public market place, operated not more than two days per week during the growing season, where vendors who have grown, gathered, raised, processed, or caught fresh or processed foods and nursery stock from Lincoln County or the immediately surrounding counties sell them directly to the public.
3. A farmers’ market may include vendors of art and handicrafts made in Lincoln County or the immediately surrounding counties, but at least half of the vendors in the market must be vendors principally selling fresh or processed foods and nursery stock.
4. No reselling of any kind is permitted in a farmers’ market, nor may any used or second-hand items be sold in a farmers’ market.
5. The growing season is considered to run from May 1st to November 30th.
6. A farmers’ market is considered to be a business entity of the type that rents out booths or tables for the purposes of the determination of the number of employees.
7. Farmers’ market vendors are responsible for obtaining all licenses and/or permits required by the Lincoln County public health department and the state of Oregon. Copies of all licenses/permits must be available for inspection at all times when the farmers’ market is operating. (Ord. 2006-05 § 2; Ord. 2005-11 § 2; Ord. 91-17 § 2; Ord. 87-17 § 1; Ord. 82-4 § 13; Ord. 77-10 §§ 2(2), 5(5) – (6))
5.04.040 Permit – Required.
A. Business Occupation Tax Permits Required. It shall be a violation of this chapter for any business entity to conduct, engage in, carry on or practice any trade, profession, occupation or pursuit for gain within the city without first securing an occupation tax permit from the city manager or designate and paying the occupation tax therefor as prescribed in this chapter, except those exempted therefrom in LCMC 5.04.020(B) and (C). A tax-exempt organization shall secure an occupation tax permit, but shall be exempt from payment of the occupation tax.
B. Temporary or Seasonal Permits for the Display of Merchandise Out of Doors Required. It shall be a violation of this chapter for any business entity or tax-exempt organization to display and sell merchandise outside of a building without a valid temporary or seasonal permit for the temporary display of merchandise outside, except street vendors licensed pursuant to Chapter 5.28 LCMC. (Ord. 2001-11 § 2; Ord. 94-04 § 1; Ord. 77-10 § 4(1))
5.04.050 Permit – Term.
Any permit issued under this chapter shall be for the calendar year commencing January 1st and expiring December 31st of the same year, and no permit shall be issued for less than said calendar year, except that if a new applicant commences business on or after July 1st and before December 31st next following, one-half of the annual tax shall be imposed. (Ord. 77-10 § 4(2))
5.04.060 Permit – Application.
A. Each and every business entity who seeks to do business in the city shall complete an application for an occupation tax permit on a form prepared by the city.
B. There shall be an application fee of $50.00 for all new applications from business entities that do not have current occupation tax permits. Should the application for an occupation tax permit be denied by the city, the fee will not be refunded and will be used to offset the cost of processing the application.
C. The city manager or his designate shall send applications to all current holders of city occupation tax permits on or before December 1st of each calendar year; and if the permit holder is still in business, it shall complete the application and return it with the proper amount of tax due on or before January 31st of the next calendar year.
D. Any business entity that owes the city any moneys, and is delinquent with regards to such moneys, shall not be issued an occupation tax permit until it has made arrangements with the city to pay such moneys due and owing to the city in an arrangement which is satisfactory to the city. (Ord. 2001-11 § 2; Ord. 91-17 §§ 3, 4; Ord. 77-10 § 5(1) – (4))
5.04.070 Occupation tax – Required – Amount.
All business entities doing business in the city, except those excluded pursuant to LCMC 5.04.020, shall pay the following annual occupation tax:
A. One hundred dollars for business entities having three workers or less (workers include employees, owners, partners and corporation officers); and
B. An additional $10.00 for each additional person or employee over three. (Ord. 2001-11 § 2; Ord. 91-17 § 5; Ord. 84-4 § 3; Ord. 77-10 § 4(3))
5.04.080 Occupation tax – When due.
The annual occupation tax shall be paid during the month of January of said calendar year unless the business entity commences business after January 31st of any calendar year, in which case the business entity shall procure a permit and pay the tax before commencing business. (Ord. 77-10 § 4(4))
5.04.090 Occupation tax – Late payment.
A. In case of late payment of the tax, as provided for in this section, there will be an additional charge for such delinquencies as follows:
1. February 1st through February 28th (29th), five percent of occupation tax;
2. March 1st through March 31st, 10 percent of occupation tax in addition to the five percent penalty imposed in subsection (A)(1) of this section;
3. After March 31st, the late payment charge will be 15 percent plus an additional one percent for each day thereafter.
B. In addition to the late payment charge, which is merely a penalty for late payment, any business entity, sole proprietor, partner, executive director or officer of any business entity that is doing business in the city without obtaining an occupation tax permit, or refuses to pay such tax and late charges after April 1st of said calendar year, after it is due, shall be in violation of this chapter and subject to the penalty provisions of LCMC 5.04.160. Each day’s operation of such business shall be considered a separate violation of this chapter. (Ord. 91-17 § 6; Ord. 84-4 § 4; Ord. 77-10 § 4(4)(b) – (c))
5.04.100 Occupation tax – Determination of number of employees.
A. The occupation tax imposed by this chapter is a tax on the number of persons employed by any one business entity, no matter how many businesses, business locations or types of businesses are carried on by the one business entity. Only one occupation tax permit is required for each business entity defined in this chapter. However, each business entity must pay a tax based upon the total number of persons employed by it, no matter where those persons are employed, within the city.
B. In arriving at the number of persons carrying on a business, profession, trade, occupation or pursuit for gain, there shall be considered the proprietors or partners thereof and all persons employed in such by said proprietors or partners. The number of persons employed and to be considered for the purposes of the annual occupation tax shall be the monthly average number of persons employed during the prior calendar year. If such is carried on by a corporation, all officers and employees of such corporation who devote the principal part of their time to such business, profession, occupation, trade or pursuit shall be considered. Any business entity doing business in the city, but whose principal place of business is outside the city, shall pay a tax only on those persons employed by it within the city.
C. Where a business entity is of a type that utilizes sales persons or service providers that are associated with the business but not necessarily employees, which business requires the possession and display of a license, an occupation tax of $10.00 per license displayed for each license belonging to an individual who is not an employee, shall be imposed in addition to the taxes calculated pursuant to LCMC 5.04.070.
D. Where a business entity is of the type that rents out booths or tables, each such booth or table rented shall be deemed to be the equivalent of two additional employees and each such entity shall pay an annual occupation tax of $20.00 per booth or table, in addition to the taxes calculated pursuant to LCMC 5.04.070.
E. In determining the monthly average number of persons employed by a business entity, every applicant for a new permit, or for a renewal, must submit a copy of its State of Oregon Accident Insurance Fund (S.A.I.F.) reports or private insurance carrier reports, for purposes of workers’ compensation, for the prior calendar year. A new business shall declare the number of persons to be actively engaged or employed by the business.
F. The applicant shall allow the city manager or his/her designate to, at any reasonable time and place, inspect the building, premises, books, papers and accounting records of the business entity to determine the number of persons employed and actively engaged in the business conducted by the business entity. (Ord. 2001-11 § 2; Ord. 91-17 § 7; Ord. 77-10 § 4(6))
5.04.110 Permit – Issuance.
The city manager or his designate shall issue an occupation tax permit when a proper application has been made and payment of the required tax has been received. Every business entity shall keep and retain such permit and shall post the same in some conspicuous place at the principal place of business in the city, and shall exhibit the same to the city manager or his designate upon demand. (Ord. 2001-11 § 2; Ord. 77-10 § 4(7))
5.04.120 Permit – Transferability.
No transfer or assignment of any permit issued under this chapter shall be valid or permitted, except that whenever any business is sold or transferred in whole for which a permit has been paid, the purchaser thereof shall not be required to obtain another permit for the balance of the calendar year, but will be required to pay an additional tax if the business entity will employ more persons than the prior business entity did in the same business. Nothing contained in this section shall be taken or construed as vesting any right in any permit as a contract obligation on the part of the city, and any tax may be increased or decreased by the city in any and all instances at any time by the city. (Ord. 77-10 § 4(5))
5.04.130 Permit – Revocation.
Any permit issued pursuant to the provisions of this chapter may be revoked by the city after a hearing thereon before the city council and good cause having been shown. Good cause shall have been shown when it appears that the permit holder has violated any provision of this chapter and failed to comply with an order of the municipal court. Good cause shall not, however, be restricted as defined in this section. (Ord. 77-10 § 7)
5.04.140 Liquor licenses.
Any business entity required to have the city’s approval as a condition of its liquor license by the Oregon Liquor Control Commission shall pay a fee with its application in an amount to be set by resolution of the city council. This application fee is a charge to cover the processing of the application and is in addition to the occupation tax required in this chapter. Any business entity required to have a liquor license shall also be subject to the city occupation tax and be required to obtain such a permit. (Ord. 2001-11 § 2; Ord. 88-10 § 1; Ord. 77-10 § 6)
5.04.150 Permit for temporary display of merchandise outside.
A. Temporary Permits.
1. A permit may be issued to a business entity with an existing valid business occupation tax permit or to a tax-exempt organization for the temporary display and sale of merchandise outside to allow the limited display of merchandise which is temporary and does not conflict with the zoning district regulations where such activity is located.
2. Any such temporary permit shall clearly set forth the conditions under which the letter of permit is granted and shall clearly indicate the time period for which the permit is issued. No such temporary permit may be issued for a period in excess of 72 hours and such temporary permit is not transferable to any other business entity.
3. The application fee for such a temporary permit shall be $25.00. Tax-exempt organizations shall be exempt from payment of this fee.
B. Seasonal Permits.
1. A permit may be issued to a business entity or tax-exempt organization for the temporary display and sale of merchandise outside to allow the limited display of merchandise which is seasonal in nature and does not conflict with the zoning district regulations where such activity is located.
2. Seasonal permits shall clearly set forth the conditions under which the letter of permit is granted and shall clearly indicate the time period for which the permit is issued. Such permits can be issued during two seasonal periods of the year. A summer seasonal permit can be issued for a period of time not to exceed 14 days prior to July 5th of each year. If the summer seasonal permit is requested in order to sell fireworks, the applicant shall provide proof to the city that they have received a permit from the State Fire Marshal for sale of fireworks prior to issuance of a summer seasonal permit by the city. If the applicant fails to meet the conditions of the permit issued by the State Fire Marshal, the seasonal permit issued by the city will be summarily revoked. A winter seasonal permit may be issued for a period of time not to exceed six weeks prior to December 26th of any year. Such seasonal permit is not transferable to any other business entity or tax-exempt organization.
3. The application fee for such a seasonal permit shall be $25.00. Tax-exempt organizations shall be exempt from payment of this fee.
C. Temporary structures, activities or uses may be permitted as necessary to provide for storage and use of supplies and equipment, display of merchandise or to provide for temporary sales offices for uses permitted in the zoning district.
D. Reasonable conditions may be imposed by the city manager, or designate, in connection with approval of the permit for temporary display and sale of merchandise to minimize potential impact of the proposed use to other uses in the vicinity. No temporary or seasonal permits will be issued for display and sale of merchandise on publicly owned property, except for property used by a business entity lessee of publicly owned property in accord with the lease terms, or public right-of-way.
E. No more than two temporary or seasonal permits may be issued to a single business entity within any 12-consecutive-month period of time.
F. Application for a temporary or seasonal permit to display merchandise outside must be made at least five days before the effective date of the permit. (Ord. 2001-11 § 2; Ord. 94-04 § 2; Ord. 91-17 § 8; Ord. 84-4 § 2; Ord. 77-10 § 2(1)(d))
5.04.160 Violations – Penalties – Alternative remedies.
A. Violations.
1. Each day that any person conducts any business in violation of the provisions of this chapter shall be deemed a separate offense.
2. Any violation of this chapter is the responsibility not only of the business entity, but also of the partners, executive director, officers and manager.
3. If a business entity is doing business in the city and this chapter is being violated and the business principals are not located in the city, the person doing business shall be responsible for any chapter violations as well as the business entity itself.
B. Civil Infraction. In addition to the monetary late payment charges imposed pursuant to LCMC 5.04.090, any person or business entity that violates any of the provisions of this chapter may be punished under the provisions of the city’s civil infraction ordinance (Chapter 1.16 LCMC). Any violation of this chapter shall be classified as a Class B infraction. (Ord. 91-17 § 9; Ord. 88-10 § 2; Ord. 77-10 § 8)