Chapter 5.04
BUSINESS AND OCCUPATION LICENSES*
Sections:
5.04.010 Definitions.
5.04.020 Exercise of revenue license power.
5.04.030 Business license – Required.
5.04.040 Business license – Expiration – Application.
5.04.050 Business license – Contents – Methods of paying fees.
5.04.060 Business license – Posting – Nontransferability.
5.04.070 Business license – Clerk-treasurer to mail application forms to taxpayers.
5.04.080 Business license – Payment of fees required.
5.04.090 License fee – Required – Determination of amount.
5.04.100 License fee – Businesses located outside city.
5.04.110 Exemptions.
5.04.120 License fee – Keeping of books and records.
5.04.130 License fee – Due and payable when – Penalty for delinquency.
5.04.140 License fee – Procedure for overpayment or underpayment.
5.04.150 License fee – Failure to pay – Clerk to notify taxpayer of amount.
5.04.160 License fee – Additional to other fees or taxes.
5.04.170 License fee – Appeals to city council.
5.04.180 Mailing of notices.
5.04.190 Nonpayment of fees, false application, failure to respond to subpoena, etc., prohibited.
5.04.200 Unpaid fees to constitute debt to city.
5.04.210 Time limit on collection of fee, penalty or corrections of tax.
5.04.220 Violation – Penalty.
*Prior legislation: Ord. 132.
5.04.010 Definitions.
In construing the provisions of this chapter, except when otherwise declared or clearly apparent from the context, the following definitions shall be applied:
(1) “Business” means 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.
(2) “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.
(3) “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.
(4) “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.
(5) “Taxpayer” includes any person who engages in business or who is required to have a business license under this chapter, or who is liable for any license fee or tax under this chapter, or who performs any act for which a license fee or tax is imposed by this chapter.
(6) “Year” means the 12 months ending December 31st. (Ord. 152 § 2, 1969).
5.04.020 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. (Ord. 152 § 1, 1969).
5.04.030 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 which shall accompany the application for the license. (Ord. 152 § 6, 1969).
5.04.040 Business license – Expiration – Application.
A business 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-treasurer on forms provided by said officer, which application shall set forth the name of 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. (Ord. 152 § 6, 1969).
5.04.050 Business license – Contents – Methods of paying fees.
In case business is transacted at two or more separate places, the taxpayer may elect whether to license each place separately or to operate all places under a single license. 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-treasurer shall deem necessary. All license fees and penalties provided for in this chapter shall be paid by bank draft, certified check, cashier's check, personal check, or money order, or in cash. If payment is 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 any such check or draft by the clerk-treasurer be an acquittance or discharge of the tax or fee unless and until said check or draft is honored. (Ord. 152 § 6, 1969).
5.04.060 Business license – Posting – Nontransferability.
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. (Ord. 152 § 6, 1969).
5.04.070 Business license – Clerk-treasurer to mail application forms to taxpayers.
The clerk-treasurer is authorized, but not required, to mail to taxpayers forms for applications 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 under this chapter. (Ord. 152 § 6, 1969).
5.04.080 Business license – Payment of fees required.
If any person required by the terms and provisions of this chapter to pay a license fee for any period fails or refuses 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. (Ord. 152 § 6, 1969).
5.04.090 License fee – Required – Determination of amount.
(1) 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 of Kittitas an annual license fee or tax for the privilege of engaging in business activities. Such 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 one to two employees or owner-operated businesses, $25.00 per annum or any part thereof;
(b) For every person employing three to four employees, $50.00 per annum or any part thereof;
(c) For every person employing five to six employees, $75.00 per annum or any part thereof;
(d) For every person employing seven or more employees, $100.00 per annum or any part thereof.
(2) 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 due and 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 the total man hours, including legal holidays and vacation time, worked by all temporary employees, by 1,600. (Ord. 462 § 1, 1992; Ord. 152 § 3, 1969).
5.04.100 License fee – Businesses located outside city.
As to businesses located outside the city and furnishing or performing services within the city, the license fee or tax required by this chapter shall be measured by the number of employees of such business who perform any part of their duties within the city. (Ord. 152 § 4, 1969).
5.04.110 Exemptions.
The provisions of this chapter shall not apply to:
(1) Telephone and television cable businesses for which a license is required by special ordinance;
(2) 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;
(3) Peddlers, solicitors, and itinerant and temporary merchants (to be covered by separate ordinances);
(4) Auctioneers licensed under another ordinance;
(5) Any instrumentality of the United States, the state, or political subdivision thereof;
(6) Any farmer, gardener or other person who sells, delivers or peddles any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured by such person within the state;
(7) Any theater, fair, circus, carnival or rodeo for which license is required by special ordinance. (Ord. 152 § 5, 1969).
5.04.120 License fee – Keeping of books and 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 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 the city council at the place where such books and records are kept. (Ord. 152 § 7, 1969).
5.04.130 License fee – Due and payable when – Penalty for delinquency.
Each annual license fee provided for in this chapter shall become due and payable on the first day of January each year as to any business taxable under this chapter 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 penalty of five percent of the amount of the 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 25 percent of the amount of such license fee in any event. (Ord. 152 § 8, 1969).
5.04.140 License fee – Procedure for overpayment or underpayment.
If the city clerk-treasurer, 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 clerk-treasurer upon the current expense fund. If the clerk-treasurer 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. 152 § 9, 1969).
5.04.150 License fee – Failure to pay – Clerk to notify taxpayer of amount.
If any taxpayer fails, neglects or refuses to file his application and to pay any license fee or tax as and when required in this chapter, the clerk-treasurer 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. 152 § 10, 1969).
5.04.160 License fee – Additional to other fees or taxes.
The license fee and tax levied by this chapter shall be additional to any license fee or tax imposed or levied under the law of any other ordinance of the city except as otherwise expressly provided in this chapter. (Ord. 152 § 14, 1969).
5.04.170 License fee – Appeals to city council.
(1) Any taxpayer aggrieved by the amount of the fee or tax found by the clerk-treasurer 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-treasurer 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 shall be not more than 20 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 in his own behalf. The city council shall thereupon ascertain the correct amount of the fee or tax by resolution and the city clerk-treasurer shall immediately notify the appellant thereof 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 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 by the mayor or chairman appointed by him in charge of the hearing on appeal, as to any matter required of him pertinent to the appeal, and it is unlawful for him to fail or refuse so to do. (Ord. 152 § 11, 1969).
5.04.180 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-treasurer, or if no such address is shown, to such address as the city clerk-treasurer 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. 152 § 12, 1969).
5.04.190 Nonpayment of fees, false application, failure to respond to subpoena, etc., prohibited.
It is unlawful for any person liable to a license fee or tax under this chapter 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 to this chapter, 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. 152 § 13, 1969).
5.04.200 Unpaid fees to constitute debt to city.
Any license fee or tax due and unpaid under this chapter, and all 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. 152 § 15, 1969).
5.04.210 Time limit on collection of fee, penalty or corrections of tax.
The collection of any license fee and penalty and the corrections of any tax may be made by the clerk-treasurer at any time within four years after the close of the year for which required. (Ord. 152 § 18, 1969).
5.04.220 Violation – Penalty.
Violations of this chapter shall be punished by a civil fine not to exceed $500.00. (Ord. 02-677 § 1; Ord. 279 Att. A § 2, 1978; Ord. 152 § 16, 1969).