Chapter 6.54
BUSINESS AND OCCUPATION TAX
Sections:
6.54.040 Exercise of revenue license power.
6.54.080 Definitions.
6.54.120 Persons subject to license fee.
6.54.160 Business located outside city.
6.54.200 Exemptions.
6.54.240 Business license required.
6.54.260 Application review.
6.54.280 Records to be kept.
6.54.320 Payment of license fees.
6.54.340 Collection of fees.
6.54.360 Overpayment.
6.54.400 Failure to make application.
6.54.440 Appeals to city council.
6.54.480 City manager to make rules.
6.54.520 Mailing of notices.
6.54.560 False applications, etc.
6.54.600 License fee additional to others.
6.54.640 Tax constitutes debt.
6.54.680 Limitation of actions.
6.54.720 Penalty for violations.
6.54.760 Severability.
6.54.040 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city of Ellensburg to license for revenue. [Ord. 2372 § 1, 1958.]
6.54.080 Definitions.
In construing the provisions of this chapter, save when otherwise declared or clearly apparent from the context, the following definitions shall be applied:
“Business” includes all activities, occupations, trades, pursuits or professions located and/or engaged in within the city, with the object of gain, benefit, or advantage to the taxpayer, or to another person or class, directly or indirectly.
“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 shall include all persons who are self-employed.
“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.
“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.
“Solicitor” includes, unless otherwise herein provided, any person who engages in merchandising any goods, wares, commodities, books, periodicals or services or solicits contributions of goods or monies, by going from house to house, place to place or street to street or by telephone.
“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.
“Temporary Kittitas County Fair merchant” includes any person who engages in a temporary business, either direct or indirect retail sales for a six-day period immediately preceding and including Labor Day of each year within the perimeter fence of the Kittitas County Fair, and who does not hold a permanent license to do business within the city of Ellensburg.
“Temporary merchant” includes any person who engages in a temporary business for less than 90 consecutive days within any 12-month period selling and delivering goods, wares and merchandise and who in furtherance of such purpose hires, leases, uses or occupies any building, structure, parking lot or area, motor vehicle, tent, railroad boxcar, public room in hotels, motels, lodging houses, apartments, shops or other fixed location for the exhibition and sale of such goods, wares and merchandise.
“Year” means the 12 months ending June 30th. [Ord. 3425 § 1, 1984; Ord. 2372 § 2, 1958.]
6.54.120 Persons subject to license fee.
On and after the effective date of the ordinance codified in this chapter, there is hereby levied upon and shall be collected from every person engaging in business in the city an annual license fee or tax for the privilege of engaging in business activities at each location. The license fee shall be measured by the number of employees of each business employed during the 12-month period immediately preceding the year for which the license fee is payable as follows:
A. For every person employing zero to five employees: $30.00 per year;
B. For every person employing six to 12 employees: $65.00 per year;
C. For every person employing 13 to 25 employees: $120.00 per year;
D. For every person employing 26 to 50 employees: $150.00 per year;
E. For every person employing 51 or more employees: $200.00 per year;
F. A home occupation, as defined in the zoning ordinance: a fee of $10.00 per year;
G. A temporary merchant’s license not to exceed 90 days within any 12-month period: a fee of $25.00 for each 30-day period;
H. A solicitor’s license not to exceed 30 days: a fee of $10.00 per solicitor;
I. A temporary Kittitas County Fair merchant license not to exceed six days immediately preceding and including Labor Day each year: a fee of $10.00. This fee is to be collected by the Kittitas County Fair acting as agent for the city of Ellensburg. The Kittitas County Fair will remit fees collected to the city of Ellensburg by warrant, accompanied by a listing of temporary Kittitas County Fair merchants and their addresses.
Employees working more than 1,600 hours, including legal holidays and vacation time, during the 12-month period immediately preceding the year for which the license fee is payable shall be considered permanent. Employees working 1,600 hours or less, including legal holidays and vacation time, shall be considered temporary employees.
In determining the license fee to be paid hereunder by each business, the total number of employees shall be computed by adding together the number of permanent employees and the number of temporary employees, the latter figure to be computed by dividing total man hours, including legal holidays and vacation time, worked by all temporary employees, by 1,600. [Ord. 3425 § 2, 1984; Ord. 3239 § 2, 1979; Ord. 2751 § 1, 1968; Ord. 2372 § 3, 1958.]
6.54.160 Business located outside city.
As to businesses located outside the city and furnishing or performing services within the city, any 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. [Ord. 2372 § 4, 1958.]
6.54.200 Exemptions.
The provisions of this chapter shall not apply to:
A. Telephone and television cable businesses for which a license is required by special ordinance;
B. Fraternal benefit societies, as defined in RCW 48.36A.010; fraternal mutual property insurers, as defined in RCW 48.36A.390; and beneficiary corporations or societies organized under and existing by virtue of RCW 24.16.010 through 24.16.148, inclusive, if such corporations or societies provide in their bylaws for the payment of death benefits as authorized in RCW 24.16.100;
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 shall sell, deliver or peddle any fruits, vegetables, berries, butter, eggs, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured by such person within the state of Washington. [Ord. 3239 § 3, 1979; Ord. 3027 § 5, 1974; Ord. 2971 § 1, 1973; Ord. 2372 § 5, 1958.]
6.54.240 Business license required.
On and after the effective date of the ordinance codified in this chapter, no person shall engage in any business or activity in the city 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 a “business license,” issued under the provisions of this chapter, as hereinafter provided, and without paying the license fee or tax imposed by this chapter, which license fee or tax shall accompany the application for the license.
The license shall expire at the end of the tax year for which it is issued, and a new license shall be required for each year. The application for a license shall be made to the city clerk, on forms provided by said officer, which application shall set forth the name of the applicant, his residence, place of business, the nature of the business, the number of employees, and the amount of the license fee prescribed by this chapter, and shall be accompanied by that license fee.
Every license granted under this chapter shall be posted in a conspicuous place in the place of business of the licensee. Any license issued under and by virtue of the provisions of this chapter shall be nontransferable except upon application and payment of a transfer fee of $2.50. In case business is transacted at two or more separate places, the taxpayer shall license each place separately. Each license shall be numbered, shall show the name, place and character of business of the licensee, and such other information as the city clerk shall deem necessary.
All license fees and penalties herein provided for shall be paid by bank draft, certified check, cashier’s check, personal check, or money order, or in cash. If payment be made by 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, nor shall acceptance of such check or draft by the clerk be an acquittance or discharge of the tax or fee unless and until the check or draft is honored.
The clerk is authorized, but not required, to mail taxpayers forms for application for licenses, but failure of the taxpayer to receive any such forms shall 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.
If any person required by the terms and provisions of this chapter to pay a license fee for a period fails or refuses to do so, he shall not be granted a license for the current period until the delinquent license fee, together with penalties, has been paid in full. [Ord. 3239 § 4, 1979; Ord. 2751 § 2, 1968; Ord. 2372 § 6, 1958.]
6.54.260 Application review.
Prior to issuance of all new licenses or license transfers authorized by this chapter, the applications shall be submitted for review. All application reviews shall be completed within five working days from the day of submittal. The city clerk shall notify the applicant of approval, denial or further requirements to be met. Application review shall be as follows:
A. Permanent and Temporary Merchant Licenses and Transfers. All permanent and temporary merchant licenses and license transfers shall be referred for zoning ordinance compliance, location approval and compliance with other city ordinances to the building official, fire marshal and police department.
B. Renewals of Permanent Licenses. No review shall be required for zoning, building, fire or police unless a location change has been made, in which case the application will be referred for review as outlined in subsection (A) of this section.
C. Home Occupation Licenses. All new home occupation license applications shall be referred for compliance with zoning ordinance requirements, location approval and review as outlined in subsection (A) of this section.
D. Solicitor Licenses. All solicitor licenses shall be referred to the police department for review and approval. [Ord. 4566 § 24, 2010; Ord. 3425 § 4, 1984.]
6.54.280 Records to be kept.
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 council, or its 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, 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 said city council at the place where such books and records are kept. [Ord. 2372 § 7, 1958.]
6.54.320 Payment of license fees.
Each annual license fee herein provided for shall become due and payable on the first day of July of each year as to any business taxable hereunder and in existence on said date. As to any business commenced during any year, the annual license fee for the balance of that year shall be prorated for the remainder of the tax year with a minimum fee of $5.00, which fee shall be due and payable on the first day that business is transacted or carried on. Failure to pay the license fee within 30 days after the day on which it is due and payable shall render the taxpayer subject to a penalty of $10.00. [Ord. 4414 § 1, 2005; Ord. 2751 § 3, 1968; Ord. 2372 § 8, 1958.]
6.54.340 Collection of fees.
The city shall have the power to institute suit or action in any court of competent jurisdiction for the purpose of collecting any license fees that are due and payable. Costs of such legal action shall be payable by the license applicant in addition to the license fees payable if the city’s suit is successful. [Ord. 3425 § 6, 1984.]
6.54.360 Overpayment.
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 finance director/treasurer upon the current expense fund. [Ord. 4414 § 2, 2005; Ord. 2372 § 9, 1958.]
6.54.400 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 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. 2372 § 10, 1958.]
6.54.440 Appeals to city council.
Any applicant aggrieved by the amount of the fee or tax found by the clerk to be required under the provisions of this chapter or any applicant denied a license or whose license is revoked 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 or of denial or revocation. The council shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not more than 20 days after the filing of notice of appeal, and shall cause a notice of the time and place thereof to be mailed to the appellant. At such hearing the appellant 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 or make a finding on the denial or revocation and the city clerk shall immediately notify the appellant thereof by mail. The ascertained amount, together with costs of the appeal, if appellant is unsuccessful therein, must be paid within three days after such notice is given.
The mayor may, by subpoena, require the attendance thereat of any person, and may also require him 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 mayor or chairman appointed by him in charge of the hearing or appeal as to any matter required of him pertinent to the appeal, and it is unlawful for him to fail or refuse so to do. [Ord. 3425 § 5, 1984; Ord. 2372 § 11, 1958.]
6.54.480 City manager to make rules.
The city manager shall have the power, and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with 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 regulation; provided, however, nothing contained herein shall be construed to grant to the city manager the authority to set or change the amount of any rates, taxes, or fees covered by this chapter. [Ord. 3404 § 1, 1983; Ord. 2372 § 12, 1958.]
6.54.520 Mailing of notices.
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 limit set by the provisions of this chapter. [Ord. 2372 § 13, 1958.]
6.54.560 False applications, 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 hereto, 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 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. 2372 § 14, 1958.]
6.54.600 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 of any other ordinance of the city of Ellensburg except as herein otherwise expressly provided. [Ord. 2372 § 15, 1958.]
6.54.640 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 Ellensburg 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. 2372 § 16, 1958.]
6.54.680 Limitation of actions.
The collection of any license fee and penalty and the corrections of any tax may be made by the clerk at any time within four years after the close of the year for which required. [Ord. 2372 § 19, 1958.]
6.54.720 Penalty for violations.
Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the city manager pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $100.00 or by imprisonment in the city jail for a term not exceeding 30 days, or by both such fine and imprisonment, which penalty shall be in addition to any other penalties provided for herein.
Any taxpayer who engaged in, or carried on, any business subject to a tax hereunder without having his business 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 having his license so to do. [Ord. 2372 § 17, 1958.]
6.54.760 Severability.
If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. [Ord. 2372 § 18, 1958.]