Chapter 5.12
OCCUPATION LICENSE
Sections:
5.12.010 Exercise of revenue license power.
5.12.020 Definitions.
5.12.030 License required.
5.12.040 Tax year.
5.12.050 Occupations subject to tax – Amount.
5.12.060 Exceptions and deductions.
5.12.070 Application requirements.
5.12.080 Tax – Monthly payment.
5.12.090 Tax – Payment when business commences during tax year.
5.12.100 Monthly payments – License prerequisite.
5.12.110 Sale or transfer of business.
5.12.120 Account keeping by taxpayer – Returns confidential.
5.12.130 Investigation of returns by clerk- treasurer.
5.12.140 Audit required – Cost.
5.12.150 Overpayment or underpayment of tax.
5.12.160 Remedy for nonpayment of tax.
5.12.170 Appeal hearing procedure.
5.12.180 City council to make and enforce rules.
5.12.190 License – Posting required – Unlawful use prohibited.
5.12.200 Prohibited acts.
5.12.010 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. (Ord. 184 § 1, 1950).
5.12.020 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 proceeding or accruing from the sale of tangible property or service, and receipts by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of notes, bonds, mortgages, or other evidences of indebtedness, or stock and the like) and without any dedication on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid or any expense whatsoever, and without any deduction on account of losses.
B. “Person” or “persons” means persons of either sex, firms, copartnerships, corporations and other associations of natural persons whether acting by themselves or by servants, agents or employees.
C. “Taxpayer” means any person liable to the license fee or tax imposed by this chapter.
D. “Tax year” or “taxable year” means the year commencing August 1st and ending on the last day of July of the next year, or, in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk-treasurer to use the same as the tax period.
E. “Telephone” means every primary station and excludes extensions. (Ord. 184 § 2, 1950).
5.12.030 License required.
A. After the taking effect of the ordinance codified in this chapter no person shall engage in or carry on any business, occupation, pursuit or privilege for which a license fee or tax is imposed by this chapter without having first obtained, and being holder of, a valid and subsisting license to do so, to be known as an occupation license.
B. Any person engaging in or carrying on more than one such business, occupation, pursuit or privilege shall pay the license tax so imposed upon each of the same.
C. Any taxpayer who engages in or carries on any business subject to tax under this chapter without having his occupation license to do so shall be 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 his license to do so. (Ord. 184 § 3, 1950).
5.12.040 Tax year.
All occupation licenses shall be for the tax year for which issued and shall expire at the end of such tax year. Such occupation license and the fee or tax therefor imposed by this chapter shall be for the year commencing August 1st and ending on the last day of July of the following year; provided, however, that if the taxpayer in transacting his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the assent of the city clerk-treasurer obtain his license for the period of his current fiscal year, which shall be deemed his tax year, and pay the fee or tax computed upon his gross income made during his fiscal year (next preceding his tax year) covering his accounting period as shown by the method of keeping the books of the business. (Ord. 184 § 4, 1950).
5.12.050 Occupations subject to tax – Amount.
There are levied upon and shall be collected from the persons on account of the business activities annual license fees or occupation taxes in the amounts to be determined by the application of the rates against gross incomes as follows:
A. 1. From and after January 1, 1992, upon every person, firm or corporation engaged in or carrying on a telephone business a tax equal to six percent of the total gross operating revenues, including revenues from intra-state tolls; provided, that the city shall not impose the fee or tax on that portion of network telephone service, as defined in RCW 82.04.065, which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intra-state toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale, derived from the operation of such businesses within the city. Gross operating revenues for this purpose shall not include 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 subsection.
2. “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 competitive telephone service, nor the providing of cable television service.
3. “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.
4. This amount will be paid to the city annually during the month of July of each year commencing in 1992.
B. Upon every person engaged in or carrying on the business of selling or furnishing electric light and power and electrical energy, a fee or tax equal to six percent of the total gross income from such business in the city during the calendar or fiscal year of the taxpayer next preceding the full tax year for which the license is required. (Ord. 1004 § 1, 2004; Ord. 906 § 10, 1999; Ord. 777 §§ 1, 2, 1991; Ord. 694 §§ 1, 2, 1987; Ord. 679 §§ 1, 2, 1985; Ord. 660 §§ 1, 2, 1984; Ord. 635 §§ 1, 2, 1983; Ord. 621 §§ 1, 2, 1982; Ord. 602 § 1, 1981; Ord. 575 §§ 1, 2, 1980; Ord. 454 § 2, 1972; Ord. 359 § 1, 1966; Ord. 184 § 5, 1950).
5.12.060 Exceptions and deductions.
A. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed, and before the computation of the tax, 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, or the city, as excise taxes levied or imposed upon the sale or distribution of property or services.
B. 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.
C. Any person subject to the payment of a license fee or tax under the provisions of any ordinance of the city, other than the ordinance codified in this chapter, on account of engaging in any activity for which he is liable to tax under this chapter, may deduct the amount of such fee or tax imposed by this chapter on account of such activity, except when the tax imposed by this chapter is paid by the customer, but such person shall nevertheless, in the manner provided for in this chapter, apply for and procure an occupation license. (Ord. 184 § 6, 1950).
5.12.070 Application requirements.
A. On or before the first day of each tax year, every taxpayer shall apply to the city clerk-treasurer for an occupation license upon blanks or forms of return to be prepared and provided by the clerk-treasurer, requesting such information as may be necessary to enable the clerk-treasurer to arrive at the lawful amount of the fee or tax. The taxpayer shall, in a legible manner, write in such blank or form of return the information required and shall sign the same by affidavit at the foot thereof, shall swear or affirm that the information therein given is full and true and that he knows the same to be so.
B. Every such application or return shall be accompanied by a remittance by bank draft, certified check, cashier’s check or money order, payable to the city clerk-treasurer, or in cash, in the amount of the tax or fee or installment thereof required by the provisions of this chapter, and such return and payment shall be made on or before the tenth day of such tax year.
C. If the applicant is a partnership, the application or return must be made by one of the partners; if a corporation, by one of the officers thereof; if a foreign corporation, copartnership or nonresident individual, by the resident agent or local manager of said corporation, copartnership or individual. (Ord. 184 § 7, 1950).
5.12.080 Tax – Monthly payment.
Where the amount of the license fee or tax is based upon gross income, the taxpayer may pay his fee or tax in equal monthly installments (or may pay any multiple thereof) during the life of his license, each such installment to be paid on or before the tenth day of the month and to be for one-twelfth of the minimum annual license tax (or any multiple thereof), and at the end of the year, the taxpayer shall make a complete return and pay the overplus if any is found to be due. (Ord. 184 § 8, 1950).
5.12.090 Tax – Payment when business commences during tax year.
A. When a business occupation or pursuit subject to tax upon gross income has not been carried on for the full calendar or fiscal year next preceding the tax year for which the license is required, the license fee or tax shall be paid in monthly installments, during the life of the license, on or before the tenth day of the month, and shall be based upon the gross income for the month next preceding that in which payment is due. In such cases, the taxpayers shall make monthly returns similar to the annual returns provided for in SLMC 5.12.080, on or before the tenth day of the month, under oath or affirmation covering the business of the previous month.
B. In all other cases where a person commences during any tax year to engage in any business, occupation, pursuit or privilege, he shall be entitled to a license for the remainder of such tax year for the required fee, apportioned to the ratio of said remainder to a full tax year, at the minimum rate. (Ord. 184 § 9, 1950).
5.12.100 Monthly payments – License prerequisite.
In any sense where the taxpayer pays his license fee or tax monthly, he shall nevertheless first procure his occupation license in the manner required in this chapter before commencing or continuing in business and shall pay the minimum fee or tax therefor, which shall be credited against future installments. (Ord. 184 § 10, 1950).
5.12.110 Sale or transfer of business.
Upon the sale or transfer during any tax year of a business on account of which a fee or tax is required by this chapter, the purchaser or transferree shall, if the fee or tax has not been paid in full for said year, be responsible for its payment for that portion of said year during which he carried on such business. (Ord. 184 § 11, 1950).
5.12.120 Account keeping by taxpayer – Returns confidential.
A. It shall be the duty of each taxpayer paying taxes upon his 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 gross income, which account shall always be open to the inspection of the city clerk-treasurer or his duly authorized agent, and from which the officer or his agent may verify the return made by the taxpayer.
B. The applications, statements or returns made to the city clerk-treasurer pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of any person except the mayor, the city attorney, the city clerk-treasurer, or his authorized agent, and members of the city council. (Ord. 184 § 12, 1950).
5.12.130 Investigation of returns by clerk- treasurer.
If any taxpayer fails to apply for license or make a return, or if the city clerk-treasurer is dissatisfied as to the correctness of the statements made in the application or return of any taxpayer, said officer, or his authorized agent, may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his 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 said officer, or his agent, touching the matters inquired into, or said officer, 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 testify, under oath administered by said officer, 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. (Ord. 184 § 13, 1950).
5.12.140 Audit required – Cost.
Upon the failure or refusal of the taxpayer to furnish the information called for by the city clerk-treasurer or if the books and records of the taxpayer are complicated or do not readily disclose the information required for making a complete or satisfactory return without the assistance of a skilled accountant, then the city clerk-treasurer may in his discretion employ a skilled accountant, and such clerical assistance as is necessary to make an audit of the books and records of the taxpayer, and such expenses shall be collected from the taxpayer in the manner provided for the collection of the license or tax. (Ord. 184 § 14, 1950).
5.12.150 Overpayment or underpayment of tax.
If the city clerk-treasurer upon investigation or upon checking returns, finds that the fee or tax paid or 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 city clerk-treasurer finds that the fee or tax paid is less than required, he shall send a statement to the taxpayer showing the balance due, who shall, within three days, pay the amount shown thereon. (Ord. 184 § 15, 1950).
5.12.160 Remedy for nonpayment of tax.
If any taxpayer fails to apply for a license or make his return, or to pay the fee or tax therefor, or the cost of any audit required by the city clerk-treasurer, or any part thereof, within three days after the same has become due, the city clerk-treasurer shall ascertain the amount of the fee or tax or installment thereof and/or the cost of the audit due, and shall notify such taxpayer thereof, who shall be liable therefor in any suit or action by the city for the collection thereof. The city clerk-treasurer shall also notify the city attorney in writing of the name of such delinquent taxpayer and the amount due from him, and said officer shall, with the assistance of the city clerk-treasurer, collect the same by any appropriate means or by suit or action in the name of the city. (Ord. 184 § 16, 1950).
5.12.170 Appeal hearing procedure.
A. All taxpayers aggrieved by the amount of the fee or tax found by the city clerk-treasurer 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-treasurer within five days from the time such taxpayer was given notice of such amount. The clerk-treasurer shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not more than 10 days after filing of the notice of appeal, and he shall cause a notice of the time and place thereof to be delivered or 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-treasurer shall immediately notify the appellant thereof, which amount, together with costs of appeal if the appellant is unsuccessful therein, must be paid within three days after such notice is given.
B. The mayor of the city, or any councilman of the city may, by subpoena, require the attendance of any person at the appeal hearing, and may also require him to produce any pertinent books and records. Any person served with subpoena shall appear at the time and place stated in the subpoena and produce the books and records required, if any, and shall testify truthfully, under oath administered by the mayor or by any member of the city council in charge of the hearing on appeal, as to any matter required of him pertinent to the appeal, and it is unlawful for him to fail or refuse to do so. (Ord. 184 § 17, 1950).
5.12.180 City council to make and enforce rules.
The city council shall have the power, and it shall be its 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 shall be unlawful for any taxpayer to violate or fail to comply with any such rule or regulation. (Ord. 184 § 18, 1950).
5.12.190 License – Posting required – Unlawful use prohibited.
A. All licenses issued pursuant to the provisions of this chapter shall be kept posted by the licensee in a conspicuous place in his principal place of business in the city.
B. No persons to whom a license has been issued pursuant to this chapter shall suffer or allow any other person chargeable with a separate license to operate under or display such license. (Ord. 184 § 19, 1950).
5.12.200 Prohibited acts.
It is unlawful for any person liable to tax under this chapter to fail or refuse to make applications for return for license or to fail or refuse to pay the fee or tax or installment thereof 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 to this chapter, or to testify falsely upon an 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 or auditors in carrying out the provisions of this chapter. (Ord. 184 § 20, 1950).