Chapter 5.04
BUSINESS AND OCCUPATION TAX
Sections:
5.04.010 Statutory authorization.
5.04.020 Definitions.
5.04.030 License required.
5.04.040 Exemptions.
5.04.050 Tax imposed.
5.04.060 Payment.
5.04.070 Payment – AHMC 5.04.050(A) through (E) – When due.
5.04.080 Payment – AHMC 5.04.050(F) – When due.
5.04.090 Deductions.
5.04.100 Records to be kept.
5.04.110 Excess payment – Credit – Refund.
5.04.120 Annexation copies.
5.04.130 Penalty.
5.04.010 Statutory authorization.
The provisions of this chapter shall be deemed to be an exercise of the power of the City to license for revenue as provided for in RCW Title 35A. (Ord. C-025 § 2, 1982)
5.04.020 Definitions.
For the purposes of this chapter the following words and phrases shall be defined as follows:
A. “Business” includes all kinds of vocations, occupations, professions, enterprises, establishments, and all other kinds of activities and matters, together with all devices, machines, vehicles and appurtenances used therein, any of which are conducted for private profit or benefit, either directly or indirectly, on any premises in the City.
B. “City” means the City of Airway Heights, Washington.
C. “Engage in business” means to commence, conduct or continue in business and also to exercise corporate or franchise powers as well as to liquidate a business when the liquidators thereof hold themselves out to the public as conducting such business.
D. “Person,” “company” or “firm,” used interchangeably in this chapter, means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise.
E. “Temporary business” means the sale of goods or services sold by a business being operated in the City for (1) 30 days or less, or (2) less than 48 hours, or operating out of a vehicle, truck trailer, or other mobile unit. (Ord. C-206 § 1, 1990; Ord. C-120-2 § 2, 1986; Ord. C-120 § 2, 1986; Ord. C-025 § 1, 1982)
5.04.030 License required.
After October 1, 1982, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by AHMC 5.04.050 without first having obtained, and being the holder of, a license to do so, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the Clerk-Treasurer for such license upon such forms as the Clerk-Treasurer shall prescribe, giving such information as the Clerk-Treasurer shall deem reasonably necessary to enable said Clerk-Treasurer’s Office to administer and enforce this chapter; said Clerk-Treasurer shall thereupon issue such license to the applicant. This requirement shall not apply to any person, firm, or corporation holding a validly issued license issued by the City pursuant to this title during the effective period of such previously issued license, provided no license issued pursuant to any prior authority may be renewed except as herein provided. Such occupation license shall be personal and nontransferable and shall be valid as long as the licensee shall continue in said business and shall comply with this chapter. (Ord. C-025 § 3, 1982)
5.04.040 Exemptions.
The following entities and activities shall be exempt from the provisions of this chapter:
A. The City of Airway Heights, Washington, the state of Washington, and the United States;
B. Deliverers of bread and other bakery products, milk, dairy and poultry products, who maintain their business over regular routes;
C. Deliverers of newspapers and periodicals;
D. Deliverers to and persons soliciting orders from retail establishments for the delivery and sale of goods, wares and merchandise to retailers for resale;
E. Persons soliciting orders to be filled by shipment of goods in interstate commerce;
F. Any person or organization conducting a nonprofit enterprise when the enterprise is operated without private profit, for a public, charitable, educational, literary, fraternal or religious purpose;
G. The casual sale of items of personal property where the person conducting such sale is not regularly engaged in the business of selling items of personal property;
H. The rental of a single-family dwelling. This exemption shall not apply to a person operating a mobile home park;
I. The mere delivery in the City of any property purchased or acquired in good faith from such person at his regular place of business outside the City, provided the delivery of natural or bottled gas, oil, wood, coal, and electricity within the City shall not be excluded. (Ord. C-025 § 4, 1982)
5.04.050 Tax imposed.
From and after October 1, 1982, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the City the tax for the privilege of so doing business as hereinafter defined:
A. Upon any telephone business there shall be levied a tax equal to six percent of the total gross operating revenues derived from the operation of such business within the City. Gross operating revenues for this purpose shall not include gross charges which are passed on to the subscribers by a telephone company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter.
“Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or providing telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, or similar communication or transmission system. It includes cooperative or farmer line telephone companies or associations operating an exchange. “Telephone business” does not include the providing of cable television service. “Competitive telephone service” means the providing by any person of telephone equipment, apparatus, or service, other than toll service, which is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.
B. There is levied a tax on the sale, delivery or distribution of electricity and electrical energy and for the privilege of carrying on said business, such tax to be equal to six percent of the total gross operating revenue derived from sales of such electricity to ultimate users within the City; provided, however, that there shall not be any tax levied for the installation charges of electrical units.
C. There is levied a tax on the sale of natural, manufactured, or mixed gas, fuel oil, furnace oil, coal, wood, and all other fuels for residential, commercial or industrial consumption and for the privilege of carrying on said business, such tax to be equal to six percent of gross operating revenues from the sales of such within the limits of the City.
D. There is levied a tax on the sale of garbage collection service and for the privilege of carrying on said business; such tax to be equal to 10 percent of gross operating revenues from such sales. Notwithstanding any other provision herein, and whether or not the City shall collect the garbage, this tax shall apply and may be collected by the provider and from each person, firm or corporation paying for garbage collection service at the time of payment.
E. There is levied a tax on the sale of water and for the privilege of carrying on said business, such tax to be equal to 10 percent of gross operating revenues from such sales. Notwithstanding any other provision herein, and whether or not the City shall provide the water, this tax shall apply and may be collected by the provider and from each person, firm and corporation paying for water at the time of payment.
F. There is levied a tax upon the conduct of every other business or occupation and for the privilege of carrying on such business or occupation not within the jurisdiction limits of the City; such tax shall be $50.00 per calendar year or any part thereof.
G. There is levied a tax upon the conduct of every other business or occupation, and for the privilege of carrying on such business or occupation when a business employs one to nine full-time (40 hours per week) employees, such tax shall be $50.00 per calendar year or any part thereof; when a business employs 10 and over full-time (40 hours per week) employees, such tax shall be $100.00 per calendar year or any part thereof.
H. There is levied a tax upon the conduct of every temporary business or occupation for the privilege of carrying on such business or occupation the sum of $10.00.
I. There is levied a tax upon the conduct of every business requiring a 30-day business permit, for the privilege of carrying on such business or occupation, the sum of $25.00.
J. There is levied a tax on the business of the operation and sale of services for sewer utilities and for the privilege of carrying on the business, such tax to be equal to 15 percent of the total gross revenue derived from sale of sewer services within the City; provided, however, that no tax shall be levied on connection charges in relation to connection to said sewer system. (Ord. C-262 § 1, 1992; Ord. C-246 § 1, 1991; Ord. C-206 § 2, 1990; Ord. C-120-2 § 3, 1986; Ord. C-120 § 3, 1986; Ord. C-106 § 1, 1986; Ord. C-079 § 1, 1984; Ord. C-073 § 1, 1984; Ord. C-056 § 1, 1983; Ord. C-025 § 5, 1982)
5.04.060 Payment.
The tax imposed by AHMC 5.04.050(A) through (E) shall be due and payable in quarterly installments and remittance shall be made on or before the thirtieth day of the month next succeeding the end of the quarterly period in which the tax accrued and such quarterly periods are as follows:
First Quarter – January, February, March.
Second Quarter – April, May, June.
Third Quarter – July, August, September.
Fourth Quarter – October, November, December. (Ord. C-025 § 6, 1982)
5.04.070 Payment – AHMC 5.04.050(A) through (E) – When due.
The first payment made under the provisions of AHMC 5.04.050(A) through (E) shall be made by January 30, 1982, for the three-month period ending December 31, 1982. On or before said due date the taxpayer shall file with the City Clerk-Treasurer a written return upon such form and setting forth such information as the Clerk-Treasurer shall reasonably require, together with the payment of the amount of the tax. (Ord. C-025 § 7, 1982)
5.04.080 Payment – AHMC 5.04.050(F) – When due.
The tax imposed by AHMC 5.04.050(F) shall be paid at the time of commencement of business for the year in which business commences and annually on or before the fifteenth day of January of each year. (Ord. C-025 § 8, 1982)
5.04.090 Deductions.
In computing the tax, except under AHMC 5.04.050(F), there shall be deducted from said gross operating revenues the following items:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. Amounts derived from transactions in interstate or foreign commerce or from any business which the City is prohibited from taxing under the Constitution of the United States or the state of Washington;
C. Amounts derived by the taxpayer from the City. (Ord. C-025 § 9, 1982)
5.04.100 Records to be kept.
Each taxpayer taxable under the provisions of AHMC 5.04.050(A) through (E) shall keep records reflecting the amount of his said gross operating revenues, and such records shall be open at all reasonable times to the inspection of the City Clerk-Treasurer or his duly authorized subordinates, for verification of said tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns. (Ord. C-025 § 10, 1982)
5.04.110 Excess payment – Credit – Refund.
Any money paid to the City through error or otherwise not in payment of the tax imposed or in excess of such tax shall, upon request of the taxpayer, be credited against any tax due or to become due from such taxpayer, hereunder, or upon the taxpayer’s ceasing to do business in the City be refunded to the taxpayer. (Ord. C-025 § 12, 1982)
5.04.120 Annexation copies.
Whenever the boundaries of the City are extended by annexation, all persons, firms and corporations subject to this chapter shall be provided copies of all annexation ordinances by the City. (Ord. C-025 § 13, 1982)
5.04.130 Penalty.
If any person, firm or corporation subject to the payment of the tax under AHMC 5.04.050 shall fail to pay any tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax. If the tax referred to herein remains unpaid for 60 days from the date it is due, there shall be added to such tax an additional penalty of 10 percent of the amount due. Any tax due under this chapter and unpaid, and all penalties thereon, shall constitute a debt to the City and may be collected by court proceedings, which remedy shall be in addition to all other remedies. Willful failure to pay any tax required under the provisions of this chapter shall be a misdemeanor. Any person, firm or corporation incurring a penalty for failure to pay the business license tax, which penalty is adjudged against the person, firm or corporation in court proceedings for collection penalty who thereafter does not pay the unpaid penalties assessed or any subsequent tax or penalty due, shall be deemed to have willfully failed to pay the tax required. All sums due the City shall accrue interest at the rate of 12 percent per annum. (Ord. C-390, 1998; Ord. C-120-2, 1986; Ord. C-120, 1986)