Chapter 5.04
LICENSES--GENERALLY1
Sections:
5.04.010 Exercise of revenue license power.
5.04.030 Persons subject to tax--Tax payment periods.
5.04.040 Persons subject to tax--Rate.
5.04.050 More than one business.
5.04.070 Due date for tax return--Payment.
5.04.080 Exceptions--Deductions.
5.04.160 Recordkeeping--Returns confidential.
5.04.170 Investigation of returns.
5.04.190 Overpayment or deficiency.
5.04.200 Clerk to ascertain tax.
5.04.210 Failure to comply deemed unlawful.
5.04.240 Appeal on amount of tax.
5.04.250 City clerk to make rules.
5.04.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. (Prior code §4.04.010).
5.04.020 Definitions.
In construing the provisions of this chapter, save when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. "Gross income" means the value resulting or accruing from the sale of tangible property or service, and receipts, (including all sums earned or charged whether received or not) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated and derived from business activities conducted within the corporate limits of the city (excluding receipts or proceeds from the use or sale of real property or any interest therein and proceeds from the sale of notes, bonds, mortgages, or other evidence of indebtedness or stocks and the like) and without any deduction on account of the cost of the property sold, and the cost of materials used, labor costs, interests, or any expenses whatsoever; provided, however, that only-the gross income attributable to those taxable services or commodities as are hereinafter specifically set forth shall be subject to the tax provided herein and any taxpayer deriving income from the sale of any other tangible property or services and receipts not so specifically set forth herein in Section 5.04.030 may exclude the income from gross income as defined.
B. "Person" or "persons" means persons of either sex, firms, copartnerships, corporations, public utility districts, municipal corporations or departments thereof, public or private utilities, water companies or districts, and other associations, whether acting by themselves or by servants, agents or employees.
C. "Taxpayers" means any person liable to the license fee or tax imposed by this chapter.
D. "Tax year" or "taxable year" means the year commencing January 1st, and ending on the last day of December of the year, or, in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk to use the same as the tax period (Prior code §4.04.020).
5.04.030 Persons subject to tax--Tax payment periods.
On and after the first day of January, 1966, there is levied upon and shall be collected from, and paid as hereinafter provided, by every person on account of transacting or carrying on of business and for the privilege of engaging in business activities within the city limits an occupation tax sometimes herein referred as "tax" against gross income of business as defined in Section 5.04.020 for the three calendar months next preceding the beginning of each quarterly period. The 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
(Prior code §4.04.030).
5.04.040 Persons subject to tax--Rate.
The tax herein provided shall be computed at the rate of six percent of the gross income derived from each of the following occupations or business activities conducted within the corporate limits of the city.
Those persons subject to the payment of the tax at the rate are as follows:
A. Upon every person engaged in or carrying on a business of selling or furnishing electric light and power;
B. Upon every person engaged in or carrying on a business of selling or furnishing natural gas;
C. Upon every person engaged in or carrying on a telephone business, which shall include any wireless telecommunications service;
D. Upon every person engaged in or carrying on a business of collecting and disposing of garbage;
E. 1. There is levied upon and payable monthly a utility tax upon every sewer and water customer of the city of Colfax, which utility tax shall be computed at the rate of six percent of the total of each respective monthly combined sewer and water billing;
2. All utility taxes will be charged against the premises for which the service was provided. All utility taxes when the same become delinquent and unpaid and all penalties thereon shall be a lien against the premises to which the same has been furnished and charged, and the lien shall be enforced by shutting off the water from the premises until such utility tax is paid in full;
F. Upon every person engaged in or carrying on a business of selling or furnishing CATV services with respect to only the basic charge for in-home cable services. This tax shall not apply to any Internet services nor other services provided through the CATV network. (Ord. 1480 §2, 2000; Ord. 1473 §1, 2000; Ord. 1460 §1, 1999; Ord. 1434 §1, 1998; Ord. 1124 §§1--3, 1982; Ord. 1104 §1, 1981; Ord. 1086 §§1, 2, 3, 1981; Ord. 1074 §1, 1980; prior code §4.04.040).
5.04.050 More than one business.
Any person engaged in or carrying on more than one such business, occupation, pursuit, or privilege shall pay the tax so imposed for each of the same. (Prior code §4.04.050).
5.04.060 Failure to pay tax.
Any taxpayer who engages in or carries on any business subject to the tax hereunder, and/or who fails or refuses to pay the tax or any part thereof on or before the due date shall be operating in violation of this chapter. (Prior code §4.04.060).
5.04.070 Due date for tax return--Payment.
A. The tax impose by this chapter, except the annual license fee required to accompany the application for the license, shall be due and payable in monthly installments and remittance shall be made on or before the thirtieth day of the next succeeding month. The remittance shall be made as hereinafter provided and shall be accompanied by a return on a form to be provided and prescribed by the city clerk. To the return the taxpayer shall be required to swear or affirm that the information therein given is full and true and that the taxpayer knows the same to be so. Whenever the total tax for which any person is liable under this chapter does not exceed the sum of fifty dollars for any monthly period, an annual return may be made upon written request and subject to the approval of the city clerk.
B. In lieu of the monthly payment of the tax herein provided, the taxpayer may, when permission is obtained from the city clerk, pay the tax on a quarterly basis.
C. Whenever a taxpayer commences to engage in business during any particular month, his first return and tax shall be based upon and cover the portion of that month during which he initially engaged in business. (Ord. 1073 §2, 1980: prior code §4.04.070).
5.04.080 Exceptions--Deductions.
A. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state of Washington, as excise taxes levied or imposed upon the sale or distribution of property or service.
B. There shall be deducted from the total gross income upon which the tax is computed all bad debts for services incurred. Debts shall be deemed bad and uncollectible when the same have been written off the books of the taxpayer. In the event debts are subsequently collected, the income shall be reported in the return for the quarter in which the debts are collected and at the rate prevailing in the tax year when collected.
C. There shall be excepted and deducted from the total gross income upon which the tax is computed all cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
D. Nothing in this chapter shall be construed as requiring a license, or the payment of a license fee or tax, or the doing of any act which would constitute an unlawful burden or interference in violation of the Constitution or laws of the United States or which would not be consistent with the Constitution or laws of the state of Washington. (Ord. 1398 §1, 1996; prior code §4.04.080).
5.04.150 Payment of tax.
The tax shall be paid at the time the tax return is filed with the city clerk to the city treasurer by bank draft, certified check, cashier's check, personal check or money order or in cash. If payment is made by draft or check, the tax shall not be deemed paid until 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 due unless the amount of payment is in full and is the actual amount due. (Prior code §4.04.150).
5.04.160 Recordkeeping--Returns confidential.
It shall be the duty of each taxpayer taxed upon his or its gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his or its gross income, which account shall always be open at the principal place of business to the inspection of the city clerk, or his duly authorized agent, and from which the officer or his agent may verify the return made by the taxpayer. The records shall be preserved for a period of three years. The applications, statements or returns made to the city clerk pursuant to this chapter, shall not be made public, nor shall they be subject to inspection of any person except the mayor, city attorney, city clerk, or his authorized agent, and members of the city council. (Prior code §4.04.160).
5.04.170 Investigation of returns.
If any taxpayer fails to apply for occupation license or make his return, or if the city clerk is dissatisfied as to the correctness of the statements made in the application or return of any taxpayer, the clerk, or his authorized agent, may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his or its books or records of account to ascertain the amount of the fee or tax or to determine the correctness of such statements, as the case may be, and may examine any person under oath administered by the clerk, or his agent, touching the matters inquired into, or the clerk, or his authorized agent, may fix a time and place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer, or any other person, to attend upon such investigation and there testify, under oath administered by the clerk, or his agent, in regard to the matters inquired into and may, by subpoena, require him, or any person, to bring with him such books, records and papers as may be necessary. (Prior code §4.04.170).
5.04.180 Sale during quarter.
Upon the sale or transfer during a quarterly period of a business on account of which a tax is required by this chapter, the purchaser or transferee shall, if the tax has not been paid in full for quarterly period, be responsible for the payment of the tax for that portion of the quarterly period during which he or it carries on such business. (Prior code §4.04.180).
5.04.190 Overpayment or deficiency.
If the city clerk upon investigation or upon checking returns finds that the tax paid on any of them is more than the amount required of the taxpayer, he shall refund the amount overpaid by a warrant upon the general fund. If the clerk finds that the tax is less than required, he shall mail a statement to the taxpayer showing the balance due, who shall within ten days pay the amount shown thereon to the city treasurer. (Prior code §4.04.190).
5.04.200 Clerk to ascertain tax.
If any taxpayer fails, neglects or refuses to make his return as and when required in this chapter, the city clerk is authorized to determine the amount of tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon become the tax and be immediately due and payable. (Prior code §4.04.200).
5.04.210 Failure to comply deemed unlawful.
It is unlawful for any person liable to tax hereunder to fail or refuse to secure the license, to make the returns when required, or to pay the license fee or tax when due, or for any person to make any false or fraudulent application, or return any false statement, or return or any false statement or representation in, or in connection with, any application or return, or to aid or abet another 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 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 chapter. (Prior code §4.04.210).
5.04.220 Tax not exclusive.
The license fee or 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. (Prior code §4.04.220).
5.04.230 Collection of tax.
Any license fee or tax due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Prior code §4.04.230).
5.04.240 Appeal on amount of tax.
Any taxpayer aggrieved by the amount of the tax found by the clerk to be required under the provisions of this chapter 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 ten 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 the hearing the taxpayer shall be entitled to be heard and to introduce evidence in his or its own behalf. The city council shall thereupon ascertain the correct amount of the 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 to the city treasurer within ten days after the notice is given.
The mayor may, by subpoena, require the attendance thereat of any person, and may also require him to produce any permanent books or 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 matter required of him pertinent to the appeal, and it is unlawful for him to fail or refuse to so do. (Prior code §4.04.240).
5.04.250 City 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 chapter or with law for the purpose of carrying out the provisions thereof, and it is unlawful to violate or fail to comply with, any such rule or regulation. (Prior code §4.04.250).
5.04.260 Violation--Penalty.
Any person violating or failing to comply with any of the provisions of this chapter, or any lawful rule or regulation adopted by the clerk pursuant thereto upon conviction thereof, shall be punished by a fine in any sum not to exceed five hundred dollars or by imprisonment in the city jail for a term not exceeding six months, or by both such fine and imprisonment.
Any taxpayer who engages in, or carries on, any business subject to a tax hereunder without having his occupation license to do so is guilty of a violation of this chapter 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 a license to do so. (Prior code §4.04.260).
For statutory provisions authorizing regulatory and revenue powers to third class cities, see RCW 35.24.290(7).