Chapter 5.52
OCCUPATION TAXES—GENERAL

Sections:

5.52.010    Exercise of revenue license power.

5.52.020    Definitions.

5.52.025    Financial institutions—License fee imposed.

5.52.030    Persons subject to license—Fees.

5.52.040    Business located outside city.

5.52.050    Exemptions.

5.52.060    Business license required.

5.52.070    Business license regulations and procedures.

5.52.080    Employment records.

5.52.090    Payment of license fees—Penalty.

5.52.100    Over or under payment of license fee.

5.52.110    Failure to make application.

5.52.120    Appeals—Notice—Subpoena power.

5.52.130    Code administration manager to make additional rules.

5.52.140    Mailing of notices—Failure to receive.

5.52.150    False applications, testimony, etc.

5.52.160    License fee additional to others.

5.52.170    Tax constitutes debt.

5.52.180    Severability.

5.52.190    Time limit on action to collect.

5.52.010 Exercise of revenue license power.

The provisions of this chapter shall be deemed an exercise of the power of the city of Yakima to license for revenue. (Ord. B-2014 § 1, 1957).

5.52.020 Definitions.

In construing the provisions of this chapter, save when otherwise declared or clearly apparent from the context, the following definitions shall be applied:

(a)    “Year” means calendar year.

(b)    “Person” means any individual, firm, copartnership, company, corporation, association, receiver, assignee, trustee in bankruptcy, trust, estate, joint venture, club, joint-stock company, business trust, society, or any group of individuals acting as a unit.

(c)    “Business” includes all activities, occupations, trades, pursuits or professions located and/or engaged in within the city of Yakima, with the object of gain, benefit or advantage to the taxpayer, or to another person or class, directly or indirectly. Each business location shall be deemed a separate business.

(d)    Engaging in Business.

(1)    The term “engaging in business” means commencing, conducting, or continuing in any business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators hold themselves out to the public as conducting such business.

(2)    This section sets forth examples of activities that constitute engaging in business in the city, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the city without having to pay a business license fee. The activities listed in this section are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection (d)(1) of this section. If an activity is not listed, whether it constitutes engaging in business in the city shall be determined by considering all the facts and circumstances and applicable law.

(3)    Without being all-inclusive, any one of the following activities conducted within the city by a person, or its employees, agent, representative, independent contractor, broker or another acting on its behalf, constitutes engaging in business and requires a person to register and obtain a business license:

(i)    Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the city.

(ii)    Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.

(iii)    Soliciting sales.

(iv)    Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.

(v)    Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf.

(vi)    Installing, constructing, or supervising installation or construction of real or tangible personal property.

(vii)    Soliciting, negotiating, or approving franchise, license or other similar agreements.

(viii)    Collecting current or delinquent accounts.

(ix)    Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.

(x)    Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services, including the listing of homes and managing real property.

(xi)    Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.

(xii)    Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.

(xiii)    Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the city, acting on behalf, or for customers or potential customers.

(xiv)    Investigating, resolving, or otherwise assisting in resolving customer complaints.

(xv)    In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place.

(xvi)    Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.

(4)    If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf, engages in no other activities in or with the city but for the following, it need not register and obtain a business license:

(i)    Meeting with suppliers of goods and services as a customer.

(ii)    Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.

(iii)    Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting.

(iv)    Renting tangible or intangible property as a customer when the property is not used in the city.

(v)    Attending, but not participating in, a trade show or multiple vendor events. Persons participating at a trade show shall review the city’s trade show or multiple vendor event ordinances, where applicable.

(vi)    Conducting advertising through the mail.

(vii)    Soliciting sales by phone from a location outside the city.

(5)    A seller located outside the city merely delivering goods into the city by means of common carrier is not required to register and obtain a business license; provided, that it engages in no other business activities in the city. Such activities do not include those in subsection (d)(4) of this section. The city expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the license fee under the law and the Constitutions of the United States and the state of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts.

(e)    “Employee” means any person employed at any business location within the city and/or any person furnishing or performing services within the city, and in addition includes all persons who are self-employed.

(f)    “Taxpayer” includes any person who engages in business or who is required to have a business license hereunder, or who is liable for any license fee or tax hereunder, or who performs any act, for which a license fee or tax is imposed by this chapter.

(g)    “Business Licensing Service” or “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the city of Yakima. (Ord. 2020-006 § 11, 2020: Ord. 2018-035 § 1, 2018: Ord. 2837 § 1, 1985: Ord. B-2014 § 2, 1947).

5.52.025 Financial institutions—License fee imposed.

Commencing July 1, 1974, there is levied upon and shall be collected from every national bank, state bank, trust company, mutual savings and loan association and every other financial institution engaged in business in the city, an annual license and license fee or tax for the act or privilege of engaging in business, as provided for in this chapter. The license fee is measured by the number of employees of each such business employed during the period immediately preceding the period for which the license fee is payable according to the schedule and provisions of YMC 5.52.030. (Ord. 2020-006 § 12, 2020: Ord. 1627 § 1, 1974).

5.52.030 Persons subject to license—Fees.

Commencing January 1, 1988, there is levied upon and shall be collected from every person engaging in business in the city a business license and annual license fee or tax amount for the privilege of engaging in business activities. Such license fee is measured by the number of employees of each business employed during the period immediately preceding the period for which the license fee is payable. These annual fees shall be set forth in the city of Yakima master fee schedule adopted by city council via resolution. The fee is per calendar year or portion thereof.

Employees working more than one thousand six hundred hours, including legal holidays and vacation time, during the twelve-month period immediately preceding the period for which the license fee is payable are considered full-time employees; employees working one thousand six hundred hours or less, including legal holidays and vacation time, are considered part-time employees.

In determining the license fee to be paid hereunder by each business the total number of employees must be computed by adding together the number of full-time employees and the number of part-time employees. The latter figure of part-time employees is to be computed by dividing total man hours, including legal holidays and vacation time, worked by all part-time employees, by one thousand six hundred. When computing the number of part-time employees, fractions of less than one-half should be rounded down to the next lower whole number, and fractions of one-half and greater should be rounded up to the next higher whole number. (Ord. 2022-040 § 17, 2022; Ord. 2020-006 § 13, 2020: Ord. 3060 § 1, 1987: Ord. 2836 § 1, 1985: Ord. 2565 § 1, 1981: Ord. 2473 § 1, 1980: Ord. 1877 § 1, 1975: Ord. 1269 § 1, 1970: Ord. 1194 § 1, 1979: Ord. B-2014 § 3, 1957).

5.52.040 Business located outside city.

(1)    Threshold Exemption. For purposes of the license by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than twelve thousand dollars and who does not maintain a place of business within the city shall submit a business license registration to the director or designee but shall not pay a city business license fee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit.

(2)    As to businesses located outside the city of Yakima and furnishing or performing services within the city that are not exempt under subsection (1) of this section, the license fee or tax herein shall be measured by the number of employees of such business who perform any part of their duties within the city according to the schedule and provisions of YMC 5.52.030. (Ord. 2020-006 § 14, 2020: Ord. 2018-035 § 2, 2018: Ord. B-20l4 § 4, 1957).

5.52.050 Exemptions.

In addition to the exemptions outlined in YMC 5.52.020(d)(4), the provisions of this chapter shall not apply to:

(a)    Any person providing a franchised utility service subject to the license, fee, or tax imposed under YMC 5.50.050 or 5.50.055 or franchised passenger transportation companies, unless stated otherwise in the franchise agreement;

(b)    Fraternal benefit societies as defined by RCW 48.36.010; fraternal mutual property insurers as defined by RCW 48.36.410; and nonprofit corporations organized under or existing by virtue of Chapter 24.03 of the Revised Code of Washington if such nonprofit corporations provide in their bylaws for the assessment of each member of a fixed sum to be held by the corporation to be paid as death benefits on the death of a member for the purpose of assisting widows, orphans or other persons dependent on a deceased member;

(c)    Any religious society, association or corporation, through the operation of any hospital, clinic, resort or other institution devoted exclusively to the care or healing of human beings; provided, that no exemption is granted where the income therefrom inures to the benefit of any physician, surgeon, stockholder or individual by virtue of ownership or control of such hospital, clinic, resort or other institution;

(d)    Any instrumentality of the United States, state of Washington, or political subdivision thereof;

(e)    Any farmer, gardener, or other person who sells, delivers or peddles any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm product or edibles (but not edibles that include cannabis) raised, caught, produced or manufactured by such person within the state of Washington;

(f)    Any person, who is the holder of a valid permit under YMC 8.52.070, engaged in the business of curb number painting and who devotes no more than six hundred hours per year to said business;

(g)    Newsboys engaged in the sale or delivery of newspapers and magazines or periodicals to the reading public;

(h)    Any blind person engaged in business activities in the city;

(i)    Any person, firm or corporation which the city is prohibited from taxing under the laws of the United States or of the state of Washington;

(j)    Any person meeting the following threshold exemption:

For purposes of the license by this chapter, any sole proprietorship without full- or part-time employees whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than twelve thousand dollars must submit a business license registration to the director or designee but is not be required to pay the license fee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit.

Notwithstanding the provisions of subsections (b) and (c) of this section, businesses granted an exemption from federal taxes under 26 U.S.C. Section 501(c), other than religious, educational, or charitable organizations engaged solely in their respective religious, educational or charitable activities, must obtain a city business license as provided for under this chapter, but are exempt from paying the city business license fee therefor, provided the business includes proof of such federal tax exemption along with the business license application. (Ord. 2020-006 § 15, 2020: Ord. 2018-035 § 3, 2018: Ord. 93-72 § 1, 1993: Ord. 3272 § 2, 1990: Ord. 1627 § 2, 1974: Ord. B-2055, 1957: Ord. B-2014 § 5, 1957).

5.52.060 Business license required.

No person may engage in any business or activity in the city of Yakima for which a license is imposed by this chapter without first having obtained and being the holder of such a valid and subsisting license so to do, to be known as a business license issued under the provisions of this chapter, and without paying the license fee or tax imposed therefor by this chapter. (Ord. 2020-006 § 16, 2020: Ord. B-2014 § 6, 1957).

5.52.070 Business license regulations and procedures.

A.    Whenever there is a change in ownership of a business, the business license previously issued to the withdrawing owner or owners is considered cancelled. The new owner or owners must apply and obtain their own business license as provided for in this chapter prior to commencing activities in the city through the acquired business.

B.    The business license required by this chapter expires on the date established by the Business Licensing Service (BLS), and must be renewed on or before that date to continue engaging in business in the city. The application for a license is made through the BLS, and must include all information required for all licenses requested, as well as all fees due for all licenses, including the application handling fee required by RCW 19.02.075.

C.    Every license granted under this chapter must be posted in a conspicuous place at the business for which it was issued. Any license issued under the provisions of this chapter is personal and nontransferable. In case business is transacted at two or more separate places by one taxpayer, a separate license for each place at which business is transacted with the public is required. If two or more persons each conduct a separate business at the same physical location, each such person must obtain their own license for their respective business, as provided for under this chapter. Each license will be numbered, and show the name, place, and expiration of the license.

D.    The code administration division is authorized, but not required, to cause to be mailed to taxpayers forms for applications or renewals for licenses, but in any case failure of the taxpayer to receive any such forms does not excuse the taxpayer from making application for and securing the license required and payment of the license fee or tax when and as due hereunder.

E.    If any person required by the terms and provisions of this chapter to pay a license fee for any period shall fail or refuse to do so, he shall not be granted a license for the current period until such delinquent license fee, together with penalties, has been paid in full.

F.    Renewal of the license is made through the Business Licensing Service on or before the license expiration. The renewal application must include all information required to renew all licenses subject for renewal, as well as all fees due for all licenses, including the renewal handling fee required by RCW 19.02.075.

G.    The term of the city license and the respective city fee amount due may be prorated as necessary to accommodate synchronizing the license expiration with the expiration of the business account established by the Business Licensing Service.

H.    Failure to complete the renewal by the license expiration will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due.

I.    Failure to complete the license renewal within one hundred twenty days after the license expiration will result in the cancellation of the license and will require submitting a new application for license as provided for in this chapter in order to continue to conduct business in the city. (Ord. 2020-006 § 17, 2020: Ord. 1201 § 1, 1970: Ord. B-2055, 1957: Ord. B-2014 § 6A, 1957).

5.52.080 Employment records.

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 employment records as may be necessary to determine the amount of any license fee for which he may be liable under the provisions of this chapter; and such records shall be open for examination at any time by the city manager, or his duly authorized agent. In the case of an out of state person or concern which does not keep the necessary books or records within the city of Yakima, it shall be sufficient if it produces within the city such books and records as shall be required by the city manager, or bears the cost of examination by an agent authorized or designated by the city manager at the place where such books and records are kept, (Ord. B-20l4 § 7, 1957).

5.52.090 Payment of license fees—Penalty.

A.    The city license fee herein provided for is due and payable with the application for the license, which is required to be submitted prior to commencing business in the city, or with renewal of the license, which is required to be submitted on or before the expiration date of the license.

B.    Failure to pay the initial city license application fee within thirty days after commencing business in the city makes the taxpayer subject to a city-imposed penalty of five percent of the amount of the city license fee for the first month of delinquency; and an additional penalty of five percent for each succeeding month of delinquency, but not exceeding a total penalty of twenty-five percent of the amount of such license fee in any event. Such delinquent application penalty is assessed by and payable directly to the city. (Ord. 2020-006 § 18, 2020: Ord. 2473 § 2, 1980: Ord 1201 § 2, 1970: Ord. B-20l4 § 8, 1957).

5.52.100 Over or under payment of license fee.

If the city clerk upon investigation or upon checking applications finds that the fee or tax paid on any of them is more than the amount required of the taxpayer, he shall return the amount overpaid by a check issued by the city treasurer upon the current expense fund. If the clerk finds that the fee or tax paid is less than required, he shall mail a statement to the taxpayer showing the balance due, who shall within three days pay the amount shown thereon. (Ord. B-2014 § 9, 1957).

5.52.110 Failure to make application.

If any taxpayer fails, neglects or refuses to file his application and to pay any license fee or tax as and when required herein, the clerk is authorized to determine the amount of the license fee or tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon become the license fee or tax and be immediately due and payable. (Ord. B-2014 § 10, 1957).

5.52.120 Appeals—Notice—Subpoena power.

Any taxpayer aggrieved by the amount of the fee or tax found by the code administration manager or his or her designee to be required under the provisions of this chapter may appeal to the city council from such findings by filing a written notice of appeal with the city clerk within five days from the time such taxpayer was given notice of such amount. The council shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time should be not more than twenty days after the filing of the notice of appeal, and 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 on their own behalf. The city council will thereupon ascertain the correct amount of the fee or tax by resolution and the city clerk will 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.

The code administration manager may, by subpoena, require the attendance thereat of any person, and may also require him or her to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the city manager or chairman appointed by him or her in charge of the hearing on appeal as to any matter required of him pertinent to the appeal, and it shall be unlawful for him or her to fail or refuse so to do. (Ord. 2020-006 § 19, 2020: Ord. B-2014 § 11, 1957).

5.52.130 Code administration manager to make additional rules.

The code administration manager shall have the power, and it shall be his or her duty, from time to time, to adopt, publish and enforce policies and rules not inconsistent with this chapter or with the law for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or policy. (Ord. 2020-006 § 20, 2020: Ord. B-2014 § 12, 1957).

5.52.140 Mailing of notices—Failure to receive.

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, or, if the city has no records, the records of the county assessor’s office, or if no such address is shown, to such address as the administrative official 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, fee or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 2020-006 § 21, 2020: Ord. B-2014 § 13, 1957).

5.52.150 False applications, testimony, etc.

It shall be unlawful for any person liable to license fee or tax hereunder to fail or refuse to secure the license or to pay the fee or tax when due, or for any person to make any false or fraudulent application or any false statement or representation, in or in connection with any such application, 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 thereto, or to testify falsely upon any investigation of the correctness of any fee or tax, or upon the hearing of any fee or tax, or upon 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. B-2014 § 14, 1957).

5.52.160 License fee additional to others.

The license fee and tax herein levied shall be additional to any license fee or tax imposed or levied under the law or any other ordinance of the city of Yakima except as herein otherwise expressly provided. (Ord. B-2014 § 15, 1957).

5.52.170 Tax constitutes debt.

Any license fee or tax due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the city of Yakima and may be collected by court proceeding in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. B-2014 § 16, 1957).

5.52.180 Severability.

If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions and sections of this ordinance not expressly so held to be void or unconstitutional shall continue in full force and effect. (Ord. B-2014 § 18, 1957).

5.52.190 Time limit on action to collect.

The collection of any license fee and penalty and the corrections of any tax may be made by the administrative official at any time within four years after the close of the period for which required. (Ord. 2020-006 § 22, 2020: Ord. B-2014 § 19, 1957).