Chapter 3.24
OCCUPATIONAL LICENSE TAX
Sections:
3.24.010 Exercise of revenue license power.
3.24.050 Persons, businesses subject to tax rates.
3.24.060 Exceptions and deductions.
3.24.070 Application for license or renewal--Procedure--Fee.
3.24.080 Payment of tax--Monthly and quarterly installments.
3.24.090 Payment of tax--Business not conducted for full previous year.
3.24.100 Payment of tax--Installments--Procurement of license and payment of minimum fee required.
3.24.110 Sale or transfer of business--Tax liability.
3.24.130 Investigation authority.
3.24.140 Overpayment or underpayment of tax.
3.24.150 Nonpayment of tax--City action.
3.24.160 Appeal to city council--Procedure--Persons required to appear.
3.24.170 Clerk to make rules--Powers and duties.
3.24.180 License--Posting required--Unlawful use.
3.24.190 Unlawful acts designated.
3.24.200 Severability of provisions.
3.24.210 Violation a misdemeanor.
3.24.010 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. 596 §1, 1976).
3.24.020 Definitions.
In construing the provisions of this chapter, save when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
"Cable system" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term does not include (A) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (B) a facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control, or management, unless such facility or facilities uses any public right-of-way; (C) a facility of a common carrier which is subject, in whole or in part, to the provisions of Section 3.24.050 of this chapter, except that such facility shall be considered a cable system (other than for purposes of 47 USC 541(C)) to the extent such facility is used in the transmission of video programming directly to subscribers; or (D) any facilities of any electric utility used solely for operating its electric utility system.
"Charges for mobile telecommunications services" means any charge for, or associated with, the provision of commercial mobile radio service, as defined in Section 20.3, Title 47 C.F.R., as in effect on June 1, 1999, or any charge for, or associated with, a service provided as an adjunct to a commercial mobile radio service, regardless of whether individual transmissions originate or terminate within the licensed service area of the mobile telecommunications service provider.
"Clerk" means the person serving as city clerk-treasurer.
"Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made.
"Customer" means: (a) The person or entity that contracts with the home service provider for mobile telecommunications services; or (b) the end user of the mobile telecommunications service, if the end user of mobile telecommunications services is not the contracting party, but this subsection (b) applies only for the purpose of determining the place of primary use. The term does not include a seller of mobile telecommunications service, or a serving carrier under an arrangement to serve the customer outside the home service provider’s licensed service area.
"Designated data base provider" means a person, entity, agency, or association representing all the political subdivisions of the state that is:
1. Responsible for providing an electronic data base prescribed in 4 U.S.C. Sec. 119(a) if the state has not provided an electronic data base; and
2. Approved by municipal and county associations of the state whose responsibility it would otherwise be to provide a data base prescribed by 4 U.S.C. Secs. 116 through 126.
"Enhanced zip code" means a United States postal zip code of nine or more digits.
"Gross income" means revenues received by the utility of business from operations or sales within the city, less net uncollectibles. Gross income of gas utilities shall include revenues from the use, rental or lease of operating facilities of the utility, other than residential-type space and water heating equipment. Gross revenues shall not include proceeds from the sale of bonds, mortgages or other evidences of indebtedness, securities or stocks, sales at wholesale by one utility to another when the purchaser is not the ultimate consumer, revenue from joint pole use, or revenue paid directly by the United States of America or any of its agencies.
"Home service provider" means the facilities-based carrier or reseller with whom the customer contracts for the provision of mobile telecommunications services.
"Licensed service area" means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.
"Light and power business" means the business of operating a plant or system for the generation, production, or distribution of electrical energy for hire or sale at retail, whether municipally or privately owned.
"Mobile telecommunications service" means commercial mobile radio service, as defined in Section 20.3, Title 47 C.F.R. as in effect on June 1, 1999.
"Mobile telecommunications service provider" means a home service provider or a serving carrier.
"Network telephone service" means the providing by any person of access to a telephone network, telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" includes the provision of transmission to and from the site of an internet provider via a telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. "Network telephone service" does not include the providing of competitive telephone service, the providing of cable television service, the providing of broadcast services by radio or television stations, nor the provision of internet service as defined in RCW 82.04.297, including the reception of dial-in connection, provided at the site of the inter-net service provider.
"Person or persons" means persons of either sex, firms, copartnerships, corporations, joint ventures, limited liability companies, and other associations of natural persons, whether acting by themselves or by servants, agents or employees.
"Place of primary use" means the street address representative of where the customer’s use of the mobile telecommunications service primarily occurs, which must be:
1. The residential street address or the primary business street address of the customer; and
2. Within the licensed service area of the home service provider.
"Prepaid telephone calling service" means the right to purchase exclusively telecommunications services that must be paid for in advance, that enables the origination of calls using an access number, authorization code, or both, whether manually or electronically dialed, if the remaining amount of units of service that have been prepaid is known by the provider of the prepaid service on a continuous basis.
"Reseller" means a provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service. "Reseller" does not include a serving carrier with whom a home service provider arranges for the services to its customers outside the home service provider’s licensed service area.
"Serving carrier" means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider’s or reseller’s licensed service area.
"Tax year" or "taxable year" means the year commencing January 1st and ending on the last day of December of the same year or, in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk-treasurer to use the same as the tax period.
"Taxing jurisdiction" means the city to the extent it has the authority to impose a tax, charge, or fee upon the services covered under the definitions set forth within this section.
"Taxpayer" means any person liable to the licensing requirements and license fees or taxes imposed by this chapter.
"Telephone business" means the business of providing network telephone service, as defined in this section. It includes cooperative or farmer line telephone companies or associations operating an exchange.
"Telephone service" means competitive telephone service or network telephone service, or both, as defined in this section.
"Utility" means any entity, whether public and private, which is in the business of operating and/or provides to customers within the corporate limits storm water, solid waste pick up and disposal, sewerage, water service, telephone service, selling or furnishing natural or manufactured gas for domestic or industrial consumption, cable vision, or light and power. (Ord. 1050 §§1, 3(part), 7, 2004; Ord. 745 §1, 1982: Ord. 596 §2, 1976).
3.24.030 Occupational license required--Each day a separate violation--Failure to pay tax deemed operating without license.
A. After September 1, 1976, no person shall engage in or carry on any businesses, occupations, pursuits or privileges specified in Section 3.24.050 without having first obtained and being the holder of a valid and subsisting license to do so, to be known as an "occupational license;" provided that, as to those certain businesses covered by Section 3.24.050, the required date shall be October 1, 1976.
Any person engaging in, or carrying on, more than one such business, occupation, pursuit or privilege shall pay the license tax so imposed upon each of the same.
B. Any person who engages in, or carries on, any business subject to licensing and taxing under this chapter without having his occupational 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.
C. Any taxpayer who fails to 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. 604 §1, 1976: Ord. 596 §3, 1976).
3.24.040 License tax year.
All occupation licenses shall be for the tax year for which issued and shall expire at the end of such tax year.
Such occupation license and the fee or tax hereby imposed shall be for the year commencing January 1st and ending on the last day of December of the same year; provided, however, that if the taxpayer in transacting his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the assent of the city clerk-treasurer, obtain his license for the period of his current fiscal year, which shall be deemed his tax year, and pay the fee or tax computed upon his gross income made during his fiscal year (next preceding his tax year) covering his accounting period as shown by the method of keeping the books of the business. (Ord. 596 §4, 1976).
3.24.050 Persons, businesses subject to tax rates.
There is levied and there shall be collected from the following persons doing business within the city a tax in the amount to be determined by the application of the rates against gross revenue as follows:
A. Upon every person engaged in providing a telephone service, as defined in Section 3.24.020, a tax determined as follows, such tax calculation to be subject to the provisions of and such restrictions as may from time to time be set forth in RCW 35A.82.060:
1. As to all telephone service other than mobile telecommunications service, a tax equal to six percent of the total gross proceeds of sales calculated in the manner required by RCW 82.04.530, as now existing or hereafter amended or succeeded;
2. As to all mobile telecommunications service, a tax equal to six percent of the total gross proceeds of sales calculated in the manner required by RCW 82.04.535, as now existing or hereafter amended or succeeded. For purposes of this chapter, mobile telecommunications services are deemed to have occurred at the location established pursuant to RCW 82.08.066, as that section may be hereafter amended or succeeded, it being the intent to be consistent with the Mobile Telecommunications Sourcing Act, P.L. 106-252, 4 U.S.C. Sections 116 through 126.
B. Upon every person engaged in or carrying on the business of selling or furnishing natural or manufactured gas for domestic or industrial consumption, a tax equal to six percent of the total gross revenue derived from such business in the city.
C. Upon every person engaged in or carrying on the light and power business, a tax equal to six percent of the total gross revenue derived from such business in the city.
D. Upon every person engaged in or carrying on the operation of a cable system (1) pursuant to a franchise granted by the city, a tax equal to one percent of the total gross revenue derived from such business in the city or (2) without a franchise granted by the city, the lesser of a tax of (a) six percent or (b) the maximum amount allowed by federal law, rule, or regulation of the total gross revenue derived from such business in the city.
E. A public utility engaged in the furnishing of water or sanitary sewer service to the city and its inhabitants, commercial and business enterprises, or other outlets of its services is taxed six percent of its gross income derived within the city, which shall be paid by such utility into the treasury of the city on a monthly basis.
F. Any person providing solid waste pickup and disposal service within the city shall be charged a six percent tax upon the gross revenue generated from provision of that utility service within the city. (Ord. 1134 §1, 2014: Ord. 1124 §1, 2013: Ord. 1103 §1, 2010: Ord. 1080 §1, 2007: Ord. 1050 §§2, 3(part), 2004).
3.24.060 Exceptions and deductions.
A. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state of Washington, or the city of Elma, as excise taxes levied or imposed upon the sale or distribution of property or services.
B. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed all bad debts for services incurred, rendered or charged for during the tax year. Debts shall be deemed bad and uncollectible when the same have been written off the books of the taxpayer.
C. Nothing in this chapter shall be construed as requiring a license, or the payment of a license fee or tax, or the doing of any act, which would constitute an unlawful burden or interference in violation of the Constitution or laws of the United States, or which would not be consistent with the Constitution or laws of the state of Washington. (Ord. 596 §6, 1976).
3.24.070 Application for license or renewal--Procedure--Fee.
A. On or before September 1, 1976, and thereafter on or before the first day of each tax year, every person subject to licensing under this chapter shall apply to the city clerk-treasurer for an occupation license upon blanks or forms of return to be prepared and provided by the city clerk-treasurer requesting such information as may be necessary to enable him to arrive at the lawful amount of the license fee or tax, except as to those businesses specified in subsection A4 of Section 3.24.050, who shall apply on or before October 1, 1976. The taxpayer shall, in a legible manner, write on such blank or form of return the information required and shall sign the same and, by affidavit at the foot thereof, shall swear or affirm that the information therein given is full and true and that he knows the same to be so.
B. Every such application or return shall be accompanied by a remittance by bank draft, certified check, cashier’s check or money order, payable to the city clerk-treasurer, or in cash, in the amount of ten dollars as a license fee or tax.
C. If the applicant is a partnership, the application or return must be made by one of the partners; if a corporation, by one of the officers thereof; if a foreign corporation, copartnership or nonresident individual, by the resident agent or local manager of said corporation, copartnership or individual. (Ord. 604 §3, 1976: Ord. 596 §7, 1976).
3.24.080 Payment of tax--Monthly and quarterly installments.
Where the amount of the license tax is based upon gross income, the taxpayer may pay his tax in equal monthly installments during the life of his license, each such installment to be paid on or before the tenth day of the month; provided that, at his option, the taxpayer may pay his fee or tax in four equal installments during the life of his license, each such installment to be paid on or before the first day of March, the first day of June, the first day of September, and the first day of December, respectively. (Ord. 596 §8, 1976).
3.24.090 Payment of tax--Business not conducted for full previous year.
Where a business, occupation or pursuit subject to tax upon gross income has not been carried on for the full calendar year or fiscal year next preceding the tax year for which license is required, the license tax shall be paid monthly in installments during the life of the license on or before the tenth day of the month next preceding that in which payment is due. In such cases the taxpayer shall make monthly returns similar to the annual returns provided for in this chapter on or before the tenth day of the month, under oath or affirmation, covering the business of the previous month.
In all other cases where a person commences during any tax year to engage in any business, occupation, pursuit or privilege, he shall be entitled to a license fee for the remainder of such tax year for the required fee apportioned in the ratios of said remainder to a full tax year. (Ord. 596 §9, 1976).
3.24.100 Payment of tax--Installments--Procurement of license and payment of minimum fee required.
In any case where the taxpayer pays his license tax monthly or quarterly he shall nevertheless first procure his occupation license in the manner required by this chapter before commencing or continuing in business, and shall pay the minimum fee or tax therefor, which shall be credited against future installments. (Ord. 596 §10, 1976).
3.24.110 Sale or transfer of business--Tax liability.
Upon the sale or transfer during any tax year of a business on account of which a fee or tax is hereby required, the purchaser or transferee, if the fee or tax has not been paid in full for said year, shall be responsible for its payment for that portion of said year during which he carries on such business. (Ord. 596 §11, 1976).
3.24.120 Record-keeping duty--Records open to inspection by city officials--Confidentiality of returns--Exceptions.
A. It shall be the duty of each taxpayer taxed upon his gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his gross income, which account shall always be open to the inspection of the city clerk-treasurer or his duly authorized agent, and from which said officer or his agent may verify the return made by the taxpayer.
B. The applications, statements or returns made to the city clerk-treasurer pursuant to this chapter shall not be made public, nor shall they be subject to inspection of any person except the mayor, city attorney, the city clerk-treasurer or his authorized agent, and members of the city council. (Ord. 596 §12, 1976).
3.24.130 Investigation authority.
If any taxpayer fails to apply for license or make his return, or if the city clerk-treasurer is dissatisfied as to the correctness of the statements made in the application or return of any taxpayer, said officer, or his authorized agent, may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his books or records of account to ascertain the amount of the fee or tax or to determine the correctness of such statements, as the case may be, and may examine any person, under oath administered by said officer or his agent, touching the matters inquired into, or said officer, or his authorized agent, may fix a time and place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer, or any other person, to attend upon such investigation and there testify, under oath administered by said officer, or his agent, in regard to the matters inquired into, and may, by subpoena, require him, or any person, to bring with him such books, records and papers as may be necessary. (Ord. 596 §13, 1976).
3.24.140 Overpayment or underpayment of tax.
If the city clerk-treasurer upon investigation or upon checking a return, finds that the fee or tax paid is more than the amount required of the taxpayer, he shall refund the amount overpaid by a warrant upon the general fund. If the city clerk-treasurer finds that the fee or tax paid-is less than required, he shall send a statement to the taxpayer showing the balance due. Said taxpayer shall, within ten days, pay the amount shown thereon. (Ord. 596 §14, 1976).
3.24.150 Nonpayment of tax--City action.
If any taxpayer fails to apply for a license or make his return, or to pay the fee or tax therefor, or any part thereof, within thirty days after the same has become due, there shall be added to such tax or fee a penalty of twenty-five percent of the amount of such tax or fee due and unpaid. Any tax due under this section and unpaid and all penalties thereon shall constitute a debt to the city and the city clerk-treasurer shall ascertain the amount of the fee or tax, or installment thereof, due and shall notify such taxpayer thereof, who shall be liable therefor in any suit or action by the city for the collection thereof. The city clerk-treasurer shall also notify the city attorney, in writing, of the name of such delinquent taxpayer and the amount due from him, and said officer, with the assistance of the city clerk-treasurer, shall collect the same by any appropriate means or by suit or action in the name of the city. (Ord. 745 §3, 1982: Ord. 596 §15, 1976).
3.24.160 Appeal to city council--Procedure--Persons required to appear.
A. Any taxpayer aggrieved by the amount of the fee or tax found by the city 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 clerk shall, as soon as practicable, fix a time and place for hearing of such appeal, which time shall not be more than ten days after the filing of the notice of appeal, and he shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing, the taxpayer or his representative 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. This amount, together with the costs of the appeal, if appellant is unsuccessful therein, must be paid within ten days after such notice is given.
B. The mayor of the city may, by subpoena, require the attendance at such hearing 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, as to any matter required of him pertinent to the appeal, and it shall be unlawful for him to fail or refuse to do so. (Ord. 596 §16, 1976).
3.24.170 Clerk to make rules--Powers and duties.
A. The clerk-treasurer shall have the authority to develop and issue such rules and regulations as may be necessary to administer the provisions of this chapter. Any such rule or regulation shall be submitted in writing to the council no less than thirty calendar days prior to its anticipated effective date. If during that period the council either rejects or suspends the effective date, the rule or regulation shall not go into effect until approval by the council. In the event of no action by the council, the regulation shall go into effect upon the date set by the clerk-treasurer: provided that, the clerk-treasurer may propose and the council may authorize an effective date earlier than the thirty days otherwise required.
B. Such rules and regulations issued by the clerk-treasurer as go into effect shall be kept on file in the office of the clerk-treasurer or at such other location within the city’s offices as the clerk-treasurer may authorize. They shall be available to the public upon request. (Ord. 1050 §§3(part), 5, 2004).
3.24.175 Variances.
In enacting Sections 1 through 3 of the ordinance codified in this chapter, it is the intention of the city to reserve the right to fully exercise. the authority granted to it by RCW 35A.82, including RCW 35A.82.060 and Chapter 67, Laws of 2002, including but not limited, to Sections 11 through 15 inclusive. In so doing, the city may enter into such agreements with the state, other municipal corporations, or the government of the United States of America as may facilitate such exercise. (Ord. 1050 §6, 2004).
3.24.180 License--Posting required--Unlawful use.
A. All licenses issued pursuant to the provisions of this chapter shall be kept posted by the licensee in a conspicuous place in his principal place of business in city.
B. No person to whom a license has been issued pursuant to this chapter, shall suffer or allow any other person chargeable with a separate license to operate under or display his license nor shall such other person operate under or display such license. (Ord. 596 §18, 1976).
3.24.190 Unlawful acts designated.
It shall be unlawful for any person liable to tax under this chapter to fail or refuse to make application or return for a license, or to pay the fee or tax or installment thereof when due; or for any person to name 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 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 a return 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. 596 §19, 1976).
3.24.200 Severability of provisions.
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. 596 §20, 1976).
3.24.210 Violation a misdemeanor.
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 clerk-treasurer pursuant thereto shall be deemed guilty of a misdemeanor. (Ord. 596 §21, 1976).