Chapter 5.04
BUSINESS AND OCCUPATION TAX

Sections:

I. General Provisions

5.04.005    Applicability of chapter.

5.04.010    Purpose.

5.04.020    Rules and regulations – Interpretations of chapter.

II. Definitions

5.04.030    Definitions generally.

5.04.040    Business.

5.04.050    By-product.

5.04.060    Cash discount.

5.04.070    Commercial or industrial use.

5.04.080    Consumer.

5.04.090    Director.

5.04.100    Engaging in business.

5.04.110    Extractor.

5.04.120    Gross income of the business.

5.04.130    Gross proceeds of sale.

5.04.140    License payer – Taxpayer.

5.04.150    Manufacturer.

5.04.160    Person – Company.

5.04.170    Quarterly period.

5.04.180    Retail store or outlet.

5.04.190    Sale at retail – Retail sale.

5.04.200    Sale at wholesale – Wholesale sale.

5.04.210    Sale – Casual or isolated sale.

5.04.220    Successor.

5.04.230    Tax year – Taxable year.

5.04.240    To manufacture.

5.04.250    Tuition fee.

5.04.260    Value proceedings – Accruing.

5.04.262    Competitive telephone service.

III. Business and Occupational License

5.04.270    Required.

5.04.280    Fees.

5.04.290    Nontransferable – Term.

5.04.300    Separate licenses and certificates required when.

5.04.310    Numbering.

5.04.320    Change of location.

5.04.330    Registration required for engaging in business.

5.04.340    Each vending machine or similar mechanical device considered separate place of business.

5.04.350    Temporary business – Estimate of gross income – Deposit.

5.04.360    Failure to obtain current business license – Penalty.

IV. License Schedule – Rate and Measure of Tax

5.04.370    Levied.

5.04.380    Banking.

5.04.390    Buyer and wholesale seller of grains.

5.04.400    Extractors.

5.04.410    Manufacturer.

5.04.420    Printing and contractors.

5.04.430    Radio and television.

5.04.440    Retail sales.

5.04.450    Wholesale sales.

5.04.460    Other business or service activities.

5.04.470    Public utilities.

V. General Tax Regulations

5.04.480    Multiple activities taxable.

5.04.490    Taxes not to be passed on.

5.04.500    Value of products – How determined.

5.04.510    Business within and without city – Apportionment.

5.04.520    Sellers within scope of chapter – Burden of proof.

VI. Exemptions – Deductions

5.04.530    Exemptions from chapter.

5.04.540    Deductions allowed in computing tax – Enumerated.

VII. License Fees

5.04.550    Quarterly period payment – Returns.

5.04.560    Additional to others fees – Exception.

5.04.570    Payment by uncertified check – Extension of time for payment.

5.04.580    Delinquent payment – Penalty.

5.04.590    Failure or refusal to pay – Notice – Limitation on time to collect or correct.

5.04.600    To constitute debt to city – Collection.

5.04.610    Length of time records to be preserved – Out-of-state concerns.

VIII. Records

5.04.620    Returns confidential – Inspection limited.

IX. Overpayment or Underpayment of Fees

5.04.630    Underpayment of fee – Notice – Penalty for nonpayment.

5.04.640    Overpayment of fee – Credit to be given – Refunds at end of year.

5.04.650    Refunds of erroneous payment of tax and funds due under judgment.

5.04.660    Appeals from amount of fee assessed – Procedure.

X. Notices

5.04.670    Notices required under chapter – Method – Failure to receive – Effect.

XI. Violations

5.04.680    False applications, returns and testimony.

5.04.690    Penalty.

I. General Provisions

5.04.005 Applicability of chapter.

All of the provisions of this chapter shall be applicable to all of the business activities described herein occurring prior to January 1, 2005. (Ord. 2913 § 1, 2004).

5.04.010 Purpose.

The provisions of this chapter shall be deemed an exercise of the power of the city, as provided in Chapter 35A.11 RCW, to license and/or tax for revenue, the privilege of engaging in business in the city. For the purpose of this chapter, the terms “license” and “tax” shall be synonymous. (Ord. 1575 § 1, 1972).

5.04.020 Rules and regulations – Interpretations of chapter.

In the administration of this chapter and the interpretation of the provisions thereof, the city clerk shall be guided by the rules and regulations as published and interpreted by the excise tax division of the Department of Revenue of the state insofar as the same pertain to and are not inconsistent with the provisions and requirements of this chapter, and with the rules and regulations as made and adopted by resolution of the city council from time to time. (Ord. 1575 § 27, 1972).

II. Definitions

5.04.030 Definitions generally.

In construing the provisions of this chapter, save when otherwise declared or clearly apparent from the context, the definitions in this article shall be applied. (Ord. 1575 § 2, 1972).

5.04.040 Business.

“Business” includes all activities engaged in with the object of gain, benefit or advantage to the taxpayer or to another person or class, directly or indirectly. (Ord. 1575 § 2(14), 1972).

5.04.050 By-product.

“By-product” means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities and which has a market value, without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. (Ord. 1575 § 2(22), 1972).

5.04.060 Cash discount.

“Cash discount” means a deduction from the invoice price of goods or charge for services which is allowed if the bill is paid on or before the specified date. (Ord. 1575 § 2(16), 1972).

5.04.070 Commercial or industrial use.

“Commercial or industrial use” means the following uses of products, including by-products, by the extractor or manufacturer thereof:

(1) Any use as a consumer; and

(2) The manufacturing of articles, substances or commodities. (Ord. 1575 § 2(13), 1972).

5.04.080 Consumer.

“Consumer” means the following:

(1) Any person who purchases, acquires, owns, holds, or uses any article of tangible personal property irrespective of the nature of his business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than for the purpose:

(a) Of resale as tangible personal property in the regular course of business, or

(b) Of incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers, or

 

(c) Of consuming such property in producing for sale a new article of tangible personal property or a new substance, of which such property becomes an ingredient or component or as a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale;

(2) Any person engaged in any business activity taxable under LMC 5.04.460;

(3) Any person engaged in the business of contracting for the building, repairing or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind as defined in LMC 5.04.420, in respect to tangible personal property when such person incorporates such property as an ingredient or component of such publicly owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel or trestle by installing, placing or spreading the property in or upon the right-of-way of such street, place, road, highway, easement, bridge, tunnel or trestle or in or upon the site of such mass public transportation terminal or parking facility;

(4) Any person who is an owner, lessee or has the right of possession to or an easement in real or personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business, excluding only the United States and municipal corporations or political subdivisions of the state in respect to labor and services rendered to their real property which is used or held for public road purposes. Nothing contained in this or any other subsection of this definition shall be construed to modify any other definition of “consumer”. (Ord. 1575 § 2(21), 1972).

5.04.090 Director.

“Director” means the director of finance of the city. For purposes of this chapter, whenever a duty is be performed by the “city clerk” or a document is required to be filed with the “city clerk” such duty may be performed by or such document may be filed with the “director”, the city clerk or their deputies in their absence. (Ord. 2762 § 1, 2000; Ord. 2552 § 1, 1994; Ord. 1575 § 2(1), 1972).

5.04.100 Engaging in business.

“Engaging in business” means commencing, conducting or continuing in business and also the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. The ownership, operation, maintenance or commercial use of an antenna by a wireless communications service provider (as defined in LMC 16.75.020) shall be deemed to be engaging in business. (Ord. 2659 § 6, 1997; Ord. 1575 § 2(15), 1972).

5.04.110 Extractor.

“Extractor” means every person who, from his own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource produce, or fells, cuts or takes timber, Christmas trees, or other natural products, or takes, cultivates or raises fish, shellfish or other sea or inland water foods or products. It does not include persons performing under contact the necessary labor or mechanical services for others. (Ord. 1575 § 2(10), 1972).

5.04.120 Gross income of the business.

“Gross income of the business” means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes or any other expense whatever paid or accrued and without any deduction on account of losses. (Ord. 1575 § 2(8), 1972).

5.04.130 Gross proceeds of sale.

“Gross proceeds of sale” means the value proceeding or accruing from the sale of tangible personal property and/or for services rendered without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. (Ord. 1575 § 2(7), 1972).

5.04.140 License payer – Taxpayer.

“License payer” or “taxpayer” shall be construed to be synonymous and shall include any individual, group of individuals, corporation or association required to have a registration certificate and business license hereunder, or liable for any license fee or tax, or for the collection of any license fee or tax hereunder, or who is engaged in any business, or who performs any act, for which a license fee or tax is imposed by this chapter. (Ord. 1575 § 2(19), 1972).

5.04.150 Manufacturer.

“Manufacturer” means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial use from his own materials or ingredients any articles, substances or commodities. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, all or a portion of the materials that become a part or whole of the manufactured article, the director shall prescribe equitable rules for determining tax liability. (Ord. l575 § 2(11), 1972).

5.04.160 Person – Company.

“Person” or “company,” herein used interchangeably, means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the state, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the United States or any instrumentality thereof. (Ord. 1575 § 2(3), 1972).

5.04.170 Quarterly period.

“Quarterly period” means the quarters of a calendar year, divided as follows: from January through March, from April through June, from July through September, and from October through December. (Ord. 1575 § 2(20), 1972).

5.04.180 Retail store or outlet.

“Retail store or outlet” does not mean a device or apparatus through which sales are activated by coin deposits but the phrase shall include automats or business establishments retailing diversified goods primarily through the use of such devices or apparatus. (Ord. 1575 § 2(23), 1972).

5.04.190 Sale at retail – Retail sale.

(1) “Sale at retail” or “retail sale” means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their businesses and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers other than a sale to a person who:

(a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or

(b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or

(c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or

(d) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in LMC 5.04.262.

(2) The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a “sale at retail” or as provided in (1), (2), or (3) above following such use. The term also means every sale of tangible personal property to persons engaged in any business which is taxable under LMC 5.04.420 and 5.04.460.

(3) The term “sale at retail” or “retail sale” includes the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:

(a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin operated laundry facilities when such facilities are situated in an apartment house, hotel, motel, rooming house, trailer camp or tourist camp for the exclusive use of the tenants thereof, and excluding services rendered in respect to live animals, birds and insects;

(b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;

(c) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term “janitorial services” shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term “janitorial services” does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting;

(d) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under Chapter 82.16 RCW;

(e) The sale of and charge made for the furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same;

(f) The sale of or charge made for tangible personal property, labor and services to persons taxable under (1), (2), (3), (4), and (5) above when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a “sale at retail” or “retail sale” even though such property, labor and services may be resold after such use or consumption. Nothing contained in this paragraph shall be construed to modify the first paragraph of this section and nothing contained in the first paragraph of this section shall be construed to modify this paragraph.

(4) The term “sale at retail” or “retail sale” includes the sale of or charge made for personal business or professional services, including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities:

(a) Amusement and recreation businesses including but not limited to golf, pool, billiards, skating, bowling, ski lifts and tows and others;

(b) Abstract, title insurance and escrow businesses;

(c) Credit bureau businesses;

(d) Automobile parking and storage garage businesses.

(5) The term also includes the renting or leasing of tangible personal property to consumers.

(6) The term shall not include the sale of or charge made for labor and service rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind, nor shall it include sales of feed, seed, fertilizer, and spray materials to persons for the purpose of producing for sale any agricultural product whatsoever, including milk, eggs, wool, fur, meat, honey, or other substances obtained from animals, birds, or insects but only when such production and subsequent sale are exempt from tax under LMC 5.04.530(3), nor shall it include sales of chemical sprays or washes to persons for the purpose of post-harvest treatment of fruit for the prevention of scald, fungus, mold or decay.

(7) The term shall also include the providing of competitive telephone service. (Ord. 2062 § 1, 1981; Ord. 1575 § 2(5), 1972).

5.04.200 Sale at wholesale – Wholesale sale.

“Sale at wholesale” or “wholesale sale” means any sale of tangible personal property which is not a sale at retail and means any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property, if such charge is expressly defined as a retail sale by LMC 5.04.190 when rendered to or for consumers; provided, that the term “real or personal property” as used in this section shall not include any natural products named in LMC 5.04.110. (Ord. 1575 § 2(6), 1972).

5.04.210 Sale – Casual or isolated sale.

(1) “Sale” means any transfer of the ownership of, title to, or possession of property for a valuable consideration and includes any activity classified as a “sale at retail” or “retail sale” under LMC 5.40.190. It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not.

(2) “Casual or isolated sale” means a sale made by a person who is not engaged in the business of selling the type of property involved. (Ord. 1575 § 2(4), 1972).

5.04.220 Successor.

“Successor” means any person who, through direct or mesne conveyance, purchases or succeeds to the business, or portion thereof, or the whole or any part of the stock of goods, wares, merchandise or fixtures or any interest therein of a taxpayer quitting, selling out, exchanging or otherwise disposing of his business. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. (Ord. 1575 § 2(18), 1972).

5.04.230 Tax year – Taxable year.

“Tax year” or “taxable year” means the calendar year. (Ord. 1575 § 2(2), 1972).

5.04.240 To manufacture.

“To manufacture” embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and includes the production of fabrication of special made or custom made articles. (Ord. 1575 § 2(12), 1972).

5.04.250 Tuition fee.

“Tuition fee” includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. “Educational institution,” as used in this section, means only those institutions created or generally accredited as such by the state and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. (Ord. 1575 § 2(17), 1972).

5.04.260 Value proceedings – Accruing.

“Value proceedings” or “accruing” means the consideration, whether money, credits, rights or other property expressed in terms of money, actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. The director may provide by regulation that the value proceeding or accruing from sales on the installment plan under conditional contracts of sale may be reported as of the dates when the payments become due. (Ord. 1575 § 2(9), 1972).

5.04.262 Competitive telephone 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. (Ord. 2062 § 4, 1981).

III. Business and Occupational License

5.04.270 Required.

Every person who is subject to the provisions of this chapter shall on or before the twenty-fifth day of January of each calendar year or before engaging in any business or performing any act for which a license fee is required, apply for and obtain from the director a registration certificate and business license for each calendar year or portion thereof. (Ord. 1575 § 3(1), 1972).

5.04.280 Fees.

The fees for the registration certificate and business license shall be as provided in LMC 5.03.070. The fees shall be paid before any registration certificate and license is issued. (Ord. 3116 § 1, 2009; Ord. 3074 § 1, 2008; Ord. 2437 § 1, 1990; Ord. 1575 § 3(2), 1972).

5.04.290 Nontransferable – Term.

The registration certificate and license shall be personal and nontransferable, and shall be valid until the end of the year for which issued or as long as the license payer shall continue in business and pay the license fee required to the city under the provisions of this chapter, whichever event shall terminate first. (Ord. 1575 § 3(3), 1972).

5.04.300 Separate licenses and certificates required when.

In case business is transacted at two or more separate places by one license payer, a separate registration certificate and license for each place at which business is transacted with the public shall be required, but for such additional certificates and licenses, no license fee shall be required. (Ord. 1575 § 3(4), 1972).

5.04.310 Numbering.

Each certificate and license shall be numbered and shall show the name, residence and place and character of business of the license payer, and such other information as the director shall deem necessary, and shall be posted in a conspicuous place at the place of business of the license payer for which it is issued. (Ord. 1575 § 3(5), 1972).

5.04.320 Change of location.

Where a place of business of the license payer is changed, the license payer must return to the director the existing certificate and license and a new certificate and license will be issued for the new place of business free of charge. (Ord. 1575 § 3(6), 1972).

5.04.330 Registration required for engaging in business.

No person shall engage in any business for which a license is required hereunder, without being registered and licensed in compliance with the provisions of LMC 5.04.270 through 5.04.360. (Ord. 1575 § 3(7), 1972).

5.04.340 Each vending machine or similar mechanical device considered separate place of business.

Each vending machine or similar mechanical device, except where used in conducting a public utility business, shall be considered a separate place of business and it is unlawful for any person to operate such machine or permit the same to be operated on his premises unless a certificate of registration and license has been obtained and is conspicuously displayed upon such machine, or for any person upon making application for a certificate of registration and license to fail or refuse to give any information requested by the director, or to give false information with intent to conceal the true name or address of the owner or operator of such machine. (Ord. 1575 § 3(8), 1972).

5.04.350 Temporary business – Estimate of gross income – Deposit.

Any taxpayer making application for a business license whose business is of a temporary nature shall be required, at the time of making application, to make an estimate of the gross income of the business expected to be received for the three calendar months immediately following his application. Prior to the issuance of a business license, such taxpayer shall be required to pay a tax deposit equal to the amount of tax payable as based upon such estimate of gross income of the taxpayer’s business, and shall also pay the license fee. If circumstances should result that the taxpayer should not qualify for the payment of any tax under this chapter, the amount of the tax deposit will be refunded upon approval of the director. Furthermore, if the business should qualify for a tax higher than the tax deposit previously paid, the amount of such tax deposit will be deducted from the total tax required. (Ord. 2182 § 1, 1984; Ord. 1575 § 3(9), 1972).

5.04.360 Failure to obtain current business license – Penalty.

A penalty of $2.00 per month, or any fraction thereof, shall be assessed after the last day of January on all persons or companies who have not obtained their current business licenses. (Ord. 1575 § 3(10), 1972).

IV. License Schedule – Rate and
Measure of Tax

5.04.370 Levied.

There is levied upon and there shall be collected from every person as hereinafter provided, for the act or privilege of engaging in business activities within the city, whether his office or place of business be within and/or without the city, in addition to a business license fee, an occupation tax sometimes herein referred to as the “tax,” in amounts to be determined by application of rates given against value of products, gross proceeds of sales or gross income of business, as the case may be, for the three calendar months next preceding the beginning of each quarterly period, as follows in LMC 5.04.380 through 5.04.470. (Ord. 1575 § 4, 1972).

5.04.380 Banking.

From and after July 1, 1972, upon every person engaged within this city in the business of a national bank, state bank, trust company, mutual savings bank, building and loan associations, savings and loan associations and other financial institutions, the amount of the tax shall be equal to the gross income of the business multiplied by the rate of one-fifth of one percent. Small loan companies shall be taxed under the provisions of LMC 5.04.460. (Ord. 1575 § 4(7), 1972).

5.04.390 Buyer and wholesale seller of grains.

Upon every person engaging in this city in the business of buying wheat, oats, corn and barley, but not including any manufactured or processed products thereof, and selling the same at wholesale, the tax herein imposed shall be equal to the gross proceeds derived from such sales multiplied by the rate of one-hundredth of one percent. (Ord. 1575 § 4(5), 1972).

5.04.400 Extractors.

Upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted for sale or for commercial or industrial use multiplied by the rate of one-tenth of one percent. The measure of tax is the value of the products so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the city. (Ord. 2402 § 1, 1990; Ord. 1575 § 4 (1), 1972).

5.04.410 Manufacturer.

Upon every person engaging within the city in business as a manufacturer; as to such person, the amount of the tax with respect to such business shall be equal to the value of the products, including by-products manufactured, multiplied by the rate of one-tenth of one percent. The measure of the tax is the value of the products, including by-products manufactured, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the city. (Ord. 2402 § 2, 1990; Ord. 1575 § 4(2), 1972).

5.04.420 Printing and contractors.

Upon every person engaging in this city in the business of:

(1) Printing and publishing periodicals or magazines; or

(2) Building, repairing or improving any publicly owned street, place, road, highway, bridge or trestle which is used, or to be used, primarily for foot or vehicular traffic, the tax herein imposed on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent; or

(3) Printing and publishing newspapers, the tax herein imposed on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent. (Ord. 1575 § 4(6), 1972).

5.04.430 Radio and television.

Upon every person engaging within this city in the business of radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof, by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station’s total audience as measured by the 100 microvolt signal strength and delivery by wire, if any; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-fifth of one percent. (Ord. 1575 § 4(8), 1972).

5.04.440 Retail sales.

Upon every person engaging within the city in the business of making sales at retail; as to such person, the amount of the tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard for the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent. (Ord. 2402 § 3, 1990; Ord. 1575 § 4(4), 1972).

5.04.450 Wholesale sales.

Upon every person, except persons taxable under LMC 5.40.390, engaging within the city in the business of making sales at wholesale; as to such persons the amount of the tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of one-tenth of one percent. (Ord. 2402 § 4, 1990; Ord. 1575 § 4(3), 1972).

5.04.460 Other business or service activities.

Upon every person engaging within this city in any business activity other than or in addition to those enumerated in LMC 5.04.380 through 5.04.450, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-fifth of one percent. This section includes, among others, and without limiting the scope thereof (whether or not title to material used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service. (Ord. 1575 § 4(9), 1972).

5.04.470 Public utilities.

(1) Upon every person engaging within this city in any one or more of the businesses hereinafter mentioned, as to such person the license fee shall be a tax equal to the gross operating revenue of the business multiplied by the rate set out after the business as follows:

(a) The business of selling or furnishing water for hire, seven percent;

(b) The business of selling or furnishing or distributing electrical energy within the city, exclusive of the revenue derived from the sale of electrical energy for the purpose of resale, six and five-tenths percent; provided, however, to encourage the location of new manufacturing industries within the city and the expansion of existing manufacturing industries therein, thereby increasing the ultimate revenue to the city, the tax shall not apply to that portion of any monthly billing in excess of $1,000 charged to any person or company using electrical energy primarily for manufacturing purposes;

(c) Upon any telephone business there shall be levied a tax equal to seven and four-tenths percent of the total gross operating revenue derived from the operation of such businesses within the city;

(d) The business of selling or furnishing sanitary sewer service, seven percent;

(e) The business of selling or furnishing a garbage or refuse collection service, seven percent;

(f) The business of selling or furnishing or distributing natural gas, six and five-tenths percent; provided, however, to encourage the location of new manufacturing industries within the city and the expansion of existing manufacturing industries therein, thereby increasing the ultimate revenue to the city, the tax shall not apply to that portion of any monthly billing in excess of $1,000 charged to any person or company using natural gas primarily for manufacturing purposes;

(g) The business of selling or furnishing or distributing television by way of coaxial cable within the city, six percent;

(h) The business of conducting wireless communications service, as defined in Chapter 16.75 LMC, by wireless communications service providers that are regulated by Chapter 80.36 RCW, six percent;

(i) The business of selling or furnishing storm water utility services, seven percent.

(2) Public Utilities Reduction.

(a) The tax herein provided under subsections (1)(b) and (1)(f) shall be reduced, however, annually by one-tenth of one percent until the rate reaches six percent, as required by law.

(b) The tax herein provided under subsection (1)(c) shall be reduced, however, annually by four-tenths of one percent until the rate reaches six percent, as required by law.

(3) “Telephone business” means the business of providing access to local telephone network, local telephone network switching service, toll service, or client telephone services, or providing telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or a 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.

(4) “Gross operating revenue” means the value proceeding or accruing from the performance of the particular system or transportation business involved, including operations incidental thereto, but without any deduction or account of the cost of the commodity furnished or sold, the cost of material used, labor costs, interest, discount, delivery cost, taxes or any other expense whatsoever, paid or accrued and without any deduction on account of losses. (Ord. 2843 § 1, 2002; Ord. 2659 § 7, 1997; Ord. 2280 § 1, 1987; Ord. 2227 § 1, 1985; Ord. 2196 § 1, 1984; Ord. 2150 § 1, 1983; Ord. 2106 § 1, 1983; Ord. 2099 § 1, 1982; Ord. 2062 §§ 2, 3, 1981; Ord. 1999 § 1, 1980; Ord. 1717 § 1, 1974; Ord. 1575 § 4(10), 1972).

V. General Tax Regulations

5.04.480 Multiple activities taxable.

Every person engaging in activities which are within the purview of the provisions of two or more sections of LMC 5.04.380 through 5.04.470 shall be taxable under each section applicable to the activities engaged in, and shall be required to pay a license fee under each schedule applicable to the business engaged in; provided, however, that persons taxable under LMC 5.04.400 or 5.04.410 shall not be taxable under LMC 5.04.450 with respect to the making of sales at wholesale of products extracted or manufactured within the city by such persons. (Ord. 1575 § 5, 1972).

5.04.490 Taxes not to be passed on.

It is not the purpose of this article that the license fees levied in this chapter upon persons engaging in business shall be construed as taxes upon the purchasers or customers, but it is the intention that such license fees shall be levied upon, and collectible from, the persons engaging in the business activities herein designated and that such license fees shall constitute a part of the operating overhead of such persons engaging in business; provided, however, that this section shall not apply to any public utility upon which a tax or license fee is imposed by LMC 5.04.470. (Ord. 1717 § 1, 1974; Ord. 1575 § 6, 1972).

5.04.500 Value of products – How determined.

(1) The value of products, including by-products, extracted or manufactured shall be determined by the gross proceeds derived from the sale thereof, whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture or sale of such products or by-products by the seller, except:

(a) Where such products, including by-products, are extracted or manufactured for commercial or industrial use;

(b) Where such products, including by-products, are shipped, transported out of the city, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale.

(2) In the above cases the value shall correspond as nearly as possible to the gross proceeds from sales in this city of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture or sale of such products. The director shall prescribe uniform and equitable rules for the purpose of ascertaining such values. (Ord. 1575 § 7, 1972).

5.04.510 Business within and without city – Apportionment.

(1) Any person rendering services and maintaining places of business both within and without this city shall, for the purpose of computing tax liability under this section, apportion to this city that portion of his gross income which is derived from services rendered within this city. Where such apportionment cannot be accurately made by separate accounting methods, the taxpayer shall apportion to this city that portion of this total income which the cost of doing business within the city bears to the total cost of doing business both within and without the city.

(2) Persons maintaining an office, plant, warehouse or other business establishment which is partly within and partly outside the city shall be taxable on the value of products, gross proceeds of sale or gross income of the business attributable to business within the city as ascertained by the director and the taxpayer after consideration of the facts. (Ord. 1575 § 8, 1972).

5.04.520 Sellers within scope of chapter – Burden of proof.

(1) Every consignee, bailee, factor or auctioneer having either actual or constructive possession of tangible personal property, or having possession of the documents of title thereto, with power to sell such tangible personal property in his or its own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter; and further, the consignor, bailer, principal or owner shall be deemed a seller of such property to the consignee, bailee, factor or auctioneer.

(2) The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as a broker or agent in promoting sales for a principal. Such claim will be allowed only when the taxpayer’s account records are kept in such manner as a director shall by general regulation provide. (Ord. 1575 § 9, 1972).

VI. Exemptions – Deductions

5.04.530 Exemptions from chapter.

The provisions of this chapter shall not apply to:

(1) Any person in respect to a specific business activity herein enumerated and for which a tax liability is specifically imposed by other ordinances of the city, and amendments thereto or re-enactments thereof, the specific purpose of which is to regulate and/or tax the following enumerated activities:

(a) Admission tax,

(b) Taxicab business,

(c) Auctions and closing-out sales (jewelry),

(d) Pool or billiard tables,

(e) Carnivals, street fairs and circuses,

(f) Dances and dance halls,

(g) Music for hire,

(h) Skill games;

(2) Any person in respect to insurance business upon which a tax based on gross premiums is paid to the state; provided, however, that the provisions of this subsection shall not exempt any person engaging in the business representing any insurance company, whether as general or local agent or acting as broker for such company; and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor;

(3) Any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured and sold by any farmer or gardener;

(4) Any persons in respect to the business of conducting boxing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Commission;

(5) Any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the State Horse Racing Commission;

(6) Any person in respect to his employment in the capacity of an employee or servant as distinguished from that of an independent contractor;

(7) Fraternal benefit societies or fraternal fire insurance associations, as described in RCW Title 48; nor to beneficiary corporations or societies organized under and existing by virtue of RCW Title 24, if such beneficiary corporations or societies provide in their bylaws for the payment of death benefits. Exemption is limited, however, to gross income from premiums, fees, assessments, dues or other charges directly attributable to the insurance or death benefits provided by such societies, associations or corporations;

(8) Amounts derived as compensation for services rendered or to be rendered to patients by a hospital, as defined in Chapter 70.41 RCW, devoted to the care of human beings with respect to the prevention or treatment of disease, sickness or suffering, when such hospital is operated by the United States or any of its instrumentalities, or by the state, or any of its political subdivisions;

(9) Amounts derived as compensation for services rendered to patients by a hospital, as defined in Chapter 70.41 RCW, which is operated as a nonprofit corporation, nursing homes and homes for unwed mothers operated as religious or charitable organizations, but only if no part of the net earnings received by such an institution inures, directly or indirectly, to any person other than the institution entitled to exemption hereunder. In no event shall any such exemption be allowed, unless the hospital building is entitled to exemption from taxation under property tax laws of the state;

(10) Amounts derived from the lease, rental or sale of real estate; provided, however, that nothing herein shall be construed to allow a deduction or exemption of amounts derived from engaging in any business wherein a mere license to use or enjoy real property is granted, or to allow a deduction or exemption of amounts received as commission from the sale or rental of real estate;

(11) Credit unions organized under the laws of the state or the United States;

(12) The business of manufacturing, selling or distributing motor vehicle fuel, as that term is defined in Chapter 82.36 RCW;

(13) Liquor as defined by state law;

(14) Gross sales or gross income received by nonprofit organizations from the operation of “sheltered work shops.” The term “sheltered work shops,” as used herein, shall be deemed to have the same meaning as set forth in RCW 82.04.385, as the same now exists or may hereafter be amended;

(15) Amounts or value paid or contributed to any political subdivision of the state, or municipal or quasi-municipal corporation of the state, representing payments of special assessments or installments thereof and interests and penalties thereon, charges in lieu of assessments, or any other charges, payments or contributions representing a share of the cost of capital facilities constructed or to be constructed or for the retirement of obligations and payment of interest thereon issued for capital purposes. Service charges shall not be included in this exception even though used wholly or in part for capital purposes;

(16) Any person in respect to a business conducted only from a temporary booth or shelter, pursuant to a permit issued in accordance with Resolution No. 1409 of the City of Longview, and for the duration of such permit only. (Ord. 2466 § 1, 1991; Ord. 2365 § 1, 1989; Ord. 1575 § 10, 1972).

5.04.540 Deductions allowed in computing tax – Enumerated.

In computing the license fee or tax there may be deducted from the measure of the tax the following items:

(1) Amounts derived by persons, other than those engaging in banking, loan, security, or other financial business, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations;

(2) Amounts derived from bona fide initiation fees, dues, contributions, donations, tuition fees and endowment funds. The provisions of this paragraph shall not be construed to exempt to any person, association or society from tax liability upon selling tangible personal property or upon providing facilities or services for which a special charge is made to members or others; provided, that dues which are for, or graduated upon, the amount of service rendered by the recipient thereof are not permitted as a deduction hereunder;

(3) The amount of cash discount actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extra active and/or manufacturing classifications with respect to articles produced or manufactured, the reported values of which for the purpose of this tax have been computed according to the provisions of LMC 5.04.500;

(4) The amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis;

(5) Amounts derived from business which the city is prohibited from taxing under the constitution or laws of the state or the Constitution or Laws of the United States;

(6) Amounts derived from the sale of commodities to persons in the same public service business as the seller, for resale as such within this city. This deduction is allowed only with respect to water distribution and light and power businesses which furnish water and/or electrical energy in the performance of public business;

(7) Subcontractors, as defined by the ordinances of the city, may deduct amounts received from a building contractor as the subcontractor’s portion of the consideration due for goods and services furnished jointly by both the contractor and subcontractor; provided, that the contractor shall withhold and pay to the city the amount of the taxes otherwise due from the subcontractor under this article; and provided further, that the subcontractor shall show on the reverse side of his bimonthly returns as required hereinafter, in detail, the name of and amounts received from each contractor on each separate contract;

(8) Amounts derived by a political subdivision of the state from another political subdivision of the state as compensation for services which are within the purview of LMC 5.04.460;

(9) Municipal sewerage utilities and other public corporations imposing and collecting fees or charges for sewer service may deduct from the measure of the tax amounts paid to another municipal corporation or governmental agency for sewerage interception, treatment or disposal. (Ord. 1575 § 11, 1972).

VII. License Fees

5.04.550 Quarterly period payment – Returns.

(1) The license fee or tax imposed by this chapter, except the $10.00 required to accompany the application for the certificate, shall be due and payable in quarterly installments, and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the quarterly period in which the tax accrued, that is April 15th, July 15th, October 15th, and January 15th of each year. 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 director. The taxpayer shall be required to affirm that the information on the return is true and in full.

(2) Whenever a person engages in one or more business activities and the value of products, gross proceeds of sales, or gross income of the taxable business from all classifications is less than $1,000 for a quarterly period, such taxpayer will be required to file the return but not be required to pay the business and occupation due on said quarterly return. (Ord. 1575 § 12, 1972).

5.04.560 Additional to others fees – Exception.

The license fee and 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 except as herein otherwise expressly provided. (Ord. 1575 § 13, 1972).

5.04.570 Payment by uncertified check – Extension of time for payment.

(1) The license fee or tax payable hereunder shall, at the time the return is required to be filed hereunder, be paid to the city by bank draft, certified check, cashier’s check, personal check, money order, or in cash. If payment is made by bank draft or check, the tax or fee shall not be deemed paid unless the check or draft is honored in the usual course of business. A service fee of $2.00 shall be assessed for all bank drafts or checks which are dishonored or resumed because of insufficient funds. The acceptance of any sum by the city shall not be an acquittance or discharge of the tax or fee due unless the amount of the payment is in full. The return shall be presented to the director who shall endorse thereon the date and amount of payment received by him and file the same.

(2) The director is authorized, but not required, to mail to taxpayers forms for applications for registration certificates and forms for returns, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from making application for and securing the registration certificate, making returns, and payment of the license fee or tax, when and as due hereunder.

(3) The director for good cause shown may extend the time for making and filing any return required under this chapter, and may grant such reasonable additional time within which to make and file such returns as he may deem proper; provided, however, that no extension shall be in excess of 30 days. (Ord. 1575 § 14, 1972).

5.04.580 Delinquent payment – Penalty.

If payment of any fee or tax due under this chapter is not received by the director on or before the last day of the month in which the tax becomes due, or within an extension of time as may be approved by the director under LMC 5.04.570, there shall be added a penalty equal to 10 percent of the amount due or $1.00 (whichever is greater) for each month or fraction thereof. (Ord. 1575 § 15, 1972).

5.04.590 Failure or refusal to pay – Notice – Limitation on time to collect or correct.

(1) If the taxpayer fails, neglects or refuses to make his return as and when required herein, the director is authorized to determine the amount of the 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, with penalty.

(2) The collection of any license fee and/or penalty, and the corrections of any license fee may be made by the director at any time within four years after the close of the year for which required. (Ord. 1575 § 16, 1972).

5.04.600 To constitute debt to city – Collection.

Any license fee or tax due and unpaid under this chapter, and all interest and 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. (Ord. 1575 § 17, 1972).

VIII. Records

5.04.610 Length of time records to be preserved – Out-of-state concerns.

(1) It shall be the duty of every person liable for any license fee provided for by this chapter, to keep and preserve for a period of five years such suitable records as may be necessary to determine the amount of any license fee for which he may be liable hereunder; and all books, records and invoices shall be open for examination at any time by the city council, or its duly authorized agent.

(2) In the case of an out-of-state person or concern which does not keep the necessary books or records within the city, it shall be sufficient if it produces within the city such books and records as shall be required by the city council, or bears the cost of examination by an agent authorized or designated by the city council, at the place where such books and records are kept. (Ord. 1575 § 18, 1972).

5.04.620 Returns confidential – Inspection limited.

Applications and returns made to the director pursuant to this chapter shall not be made public nor shall they be subject to the inspection of any person except the mayor, city manager, city attorney, director, or the authorized agents thereof. Applications and returns may also be made available to the proper officer with the Internal Revenue Service of the United States. Such information also may be made available on a reciprocal basis to the proper officer of the tax department of any state, city, town or county for official purposes. It is unlawful for any person to make public or to inform any other person, except as herein provided, as to the contents of any tax return submitted. (Ord. 1575 § 19, 1972).

IX. Overpayment or Underpayment of Fees

5.04.630 Underpayment of fee – Notice – Penalty for nonpayment.

If, upon examination of any return, or from other information obtained by the director, it appears that a tax or penalty has not been paid in full, the director shall notify the taxpayer by mail of the additional amount and the same becomes due and payable within 10 days from the date of such notice. If payment is not received by the director by the date specified in the notice, the director shall add a penalty as provided under LMC 5.04.580. (Ord. 1575 § 20, 1972).

5.04.640 Overpayment of fee – Credit to be given – Refunds at end of year.

If, upon the examination of any return, it appears that a license fee has been paid in excess of that properly due, the city clerk shall inform the license payer by mail and the amount of such excess shall be credited against any license fee or installment thereof then due or to become due from the license payer under any other subsequent return for the same year, and any balance of such excess at the end of such year, or upon the filing of a final return upon ceasing business, shall be refunded upon request of the license payer by means of vouchers approved by the city council and by the issuance of warrants drawn upon and payable from the general fund of the city. (Ord. 1575 § 21, 1972).

5.04.650 Refunds of erroneous payment of tax and funds due under judgment.

(1) Any money paid to the city through error and not in payment of any license fee due hereunder, upon request of the person by whom such payment was made, shall be refunded as provided in LMC 5.04.640. Such requests for refunds must be filed with the city clerk within the time limits set forth in RCW 4.16.080(3).

(2) Any judgment for which a recovery is granted by any court of competent jurisdiction, not appealed from, for license fee interest, penalties and costs in a suit by any license payer shall be paid in like manner upon filing with the city clerk of a certified copy of the order of judgment of the court. (Ord. 2381 § 1, 1989; Ord. 2217 § 1, 1985; Ord. 1575 § 22, 1972).

5.04.660 Appeals from amount of fee assessed – Procedure.

(1) Any taxpayer aggrieved by the amount of the fee or tax found by the director 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 director within five days from the time such taxpayer was given notice of such amount. The director shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall not be more than 20 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 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 director shall immediately notify the appellant thereof by mail, which amount, together with costs of the appeal, if appellant is unsuccessful therein, must be paid within three days after such notice is given.

(2) The city manager may require the taxpayer so aggrieved to produce any pertinent books and records substantiating his claim. (Ord. 1575 § 23, 1972).

X. Notices

5.04.670 Notices required under chapter – Method – Failure to receive – Effect.

Any notice required by this chapter to be mailed to any taxpayer shall be sent by ordinary mail, addressed to the address of the taxpayer as shown by the records of the city clerk, or if no such address is shown, to such address as the city clerk is able to ascertain by reasonable effort. Failure of the taxpayer to receive any such mailed notice shall not release the taxpayer from any tax or any penalties thereon, nor shall such failure operate to extend any time limits set by the provisions of this chapter. (Ord. 1575 § 24, 1972).

XI. Violations

5.04.680 False applications, returns and testimony.

It is unlawful for any person liable for tax hereunder to fail or refuse to secure the license, to make the returns as and when required or 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 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 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. (Ord. 1575 § 25, 1972).

5.04.690 Penalty.

(1) Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the director is guilty of a misdemeanor.

(2) Any taxpayer who engages in, or carries on, any business subject to a tax hereunder without having his “registration certificate” 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 his license so to do. (Ord. 1575 § 26, 1972).