Chapter 3.24
LICENSE AND OCCUPATION TAXES
Sections:
3.24.030 Occupation license – Required.
3.24.040 Occupation license – Application.
3.24.060 Occupations subject to tax – Amount.
3.24.070 Interstate, foreign and governmental transactions.
3.24.080 Taxpayer to keep books and records.
3.24.090 Confidentiality of applications.
3.24.110 Refund of overpayment.
3.24.120 Liability for failure to pay when due.
3.24.130 Unlawful acts designated.
3.24.010 Authority.
The provisions of this chapter shall be deemed as an exercise of the power of the city to license for revenue. (Ord. 269 § 1, 1955)
3.24.020 Definitions.
In constructing this chapter, except 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 (including all sums earned or charged which are collected) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments however designated, derived wholly within the city (exclude receipts or proceeds from the use or sale of personal property constituting plant or equipment not sold in the ordinary course of trade or any interest therein, and proceeds and receipts from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or shares of stock and the like) and without any deductions on account of the property sold, the cost of materials used, labor costs, interest paid, or any expense whatsoever, and without any deduction on account of losses.
B. “Person” or “persons” means person or persons of either sex, firms, copartnership, corporations, municipal corporations and other associations of natural persons, whether acting by themselves or by servants, agents, or employees.
C. “Taxpayer” means any persons liable to the license fee or tax imposed by this chapter.
D. “Tax year” or “taxable year” means the calendar year commencing on January 1st and ending on the last day of December, or, in place thereof, the taxpayer’s fiscal year when permission is obtained from the city council to use the same as his tax period. (Ord. 269 § 2, 1955)
3.24.030 Occupation license – Required.
A. After the first day of January, 1956, 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 first having obtained, and being the holder of, a valid and subsisting license so to do, to be known as an occupation license.
B. Any taxpayer who engages in, or carries on, any business subject to tax hereunder without first obtaining his occupation license so to do 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 a license. (Ord. 269 § 3, 1955)
3.24.040 Occupation license – Application.
A. On or before the fifteenth day of February of each tax year, and commencing on or before the fifteenth day of February of 1956, every taxpayer shall apply to the city clerk/treasurer for an occupation license upon blanks or forms to be prepared and provided by him requesting such information as may be necessary to enable him to arrive at the lawful amount of the fee or tax. The taxpayer shall fill in such form giving the information required and shall sign the same by affidavit swearing or affirming 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 bank draft, certified check, or United States money order, payable to the city clerk/treasurer, or by cash, in the amount of the tax or fee required by the provisions hereof. (Ord. 269 § 7, 1955)
3.24.050 Taxation year.
A. All occupation licenses shall be for the tax year for which issued and shall expire at the end of such tax year.
B. Such occupation license and the fee or tax therefor, imposed hereby, shall be for the year commencing on the first day of January and ending on the last day of December of each year; provided, however, that if the taxpayer in carrying on his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the consent of the city council, 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 his method of keeping the books of the business. (Ord. 269 § 4, 1955)
3.24.060 Occupations subject to tax – Amount.
There are levied and shall be collected by the city annual license fees or occupation taxes from the person on account of the business activities and in the amounts to be determined by the rates against gross income, as follows:
A. Upon every person engaged in or carrying on a telephone business, a fee or tax equal to six percent per annum of the total gross income from local service revenues in the city during the fiscal year next proceeding the tax year for which the license is required. Local service revenue shall include local service revenues from business and residence subscribers service and from semi-public service including such revenues from main stations, private branch exchange system, order currents and other subscriber stations, whether the charge is based on a flat rate or a measured rate. It shall include local service revenues from mileage charges and auxiliary equipment in connection with such subscriber’s service, and also revenues from directory listings of extra names and alternate call numbers in alphabetical sections of directories. It shall also include local service revenues from cellular phone services or similar communications including transfer for hire via wireless radio communications which are not subject to regulation by the Washington Utility and Transportation Commission;
B. Upon every person engaged in or carrying on the business of selling or furnishing electric light and power, or either, a fee or tax equal to six percent per annum of the total gross income from such business in the city during his fiscal year next preceding the tax year for which business is required; provided, however, that in determining his gross income, such person may exclude from his gross income any and all income derived from the sale of merchandise in the retail trade;
C. Upon every person engaged in or carrying on the business of selling or furnishing manufactured gas or natural gas a fee or tax equal to six percent of the total income from such business in the city during his fiscal year next preceding the tax year for which the license is required; provided, however, that in determining his gross income, such person may exclude all income derived from the sale of merchandise in the retail trade. (Ord. 965 § 2, 2002; Ord. 945 § 2, 2000; Ord. 677 § 2, 1990; Ord. 488 § 1, 1982; Ord. 378 § 1, 1972; Ord. 269 § 5, 1955)
3.24.070 Interstate, foreign and governmental transactions.
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 for business done for the United States and the state of Washington, or their officers or agents and any amount or amounts paid by the taxpayer to the United States and the state of Washington, the city or to any political subdivision of said state, as excise taxes levied or imposed upon the sale or distribution of property or services, or as an occupation tax. (Ord. 269 § 6, 1955)
3.24.080 Taxpayer to keep books and records.
Each taxpayer shall keep books or records reflecting the amount of his gross income and such books or records shall at reasonable times be open to the inspection of the city clerk/treasurer, or agent, for verification of the taxpayer’s return or application. (Ord. 269 § 9, 1955)
3.24.090 Confidentiality of applications.
The applications 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, attorney, clerk/treasurer, or his agent, and members of the council. (Ord. 269 § 10, 1955)
3.24.100 Right of inspection.
If any taxpayer fails to apply for a license or make his return, or if the city clerk/treasurer is dissatisfied with any return, said officer, or agent, may enter the premises of such taxpayers at any reasonable time to inspect his books and records, and may examine any person under oath administered by him or his agent, touching the matters inquired into, or said officer, or agent, may fix a time for the investigation of the correctness of the return, and may issue a subpoena to the taxpayer, or any person, to attend upon such investigation and there testify under oath administered by such officer, or 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 for the investigation. (Ord. 269 § 11, 1955)
3.24.110 Refund of overpayment.
If the city clerk/treasurer, upon investigation or upon checking return, finds the fee or tax, or any of them, paid to him 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 the fee or tax is less than required, he shall send a statement to the taxpayer showing the balance due, and such taxpayer paying less than the required amount shall within 10 days pay the balance due. (Ord. 269 § 12, 1955)
3.24.120 Liability for failure to pay when due.
If any taxpayer fails to apply for a license, or make his return, or to pay the fee or tax therefor, or any part thereof, within three days after the same shall become due, the city clerk/treasurer shall ascertain the amount of the fee or tax and shall notify such taxpayer thereof, who shall be liable therefor in any suit or action by the city for collection thereof. (Ord. 269 § 13, 1955)
3.24.130 Unlawful acts designated.
It is unlawful for any person liable to tax or fee hereunder to fail or refuse to make application or return for a license, or to neglect or refuse 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 representation in, or in connection with, any such application or return, or in any manner to fail to comply with the provisions hereof, or in any manner to hinder or delay the city clerk/treasurer or any of its officers in carrying out the provisions of this chapter. (Ord. 269 § 14, 1955)