Chapter 5.04
ELECTRIC LIGHT BUSINESS AND OCCUPATION TAX
Sections:
5.04.010 Exercise of revenue license power.
5.04.030 Occupation license required.
5.04.070 Exceptions and deductions.
5.04.080 Application or return for license.
5.04.090 Sale or transfer of business.
5.04.100 Income records – Returns.
5.04.110 Investigation of returns.
5.04.120 Over or under payment of tax.
5.04.130 Failure to pay tax – Liability.
5.04.140 Appeals to city council.
5.04.150 Finance director to make rules.
5.04.160 Licenses posted – Nontransferable.
5.04.010 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. 705 § 1, 1962).
5.04.020 Definitions.
In construing the provisions of this chapter, except when otherwise plainly declared or clearly apparent from the context, the following definitions shall apply:
(1) “Gross income” is the value preceding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stock and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses, but allowing a deduction for the amount of credit losses sustained by the taxpayer during the period covered.
(2) “Taxpayer” is any person liable to the license fee or tax imposed by this chapter.
(3) “Tax period or taxable period” are the quarters ending on March 31st, June 30th, September 30th, and December 31st. (Ord. 705 § 2, 1962).
5.04.030 Occupation license required.
(1) No person shall engage in or carry on any business, occupation, pursuit or privilege for which a license fee or tax is imposed by this chapter without having first obtained and being the holder of, a valid and subsisting license known as an occupation license.
(2) Any taxpayer who engages in or carries on any business subject to the tax imposed by this chapter without having his occupation license is guilty of a violation of this chapter for each day during which the business is engaged in or carried on, and any taxpayer who fails or refuses to pay the license fee or tax on any part thereof on or before the due date shall be deemed to be operating without a license. (Ord. 705 § 3, 1962).
5.04.040 License period.
All occupation licenses shall be for the calendar year for which issued and shall expire at the end of that year. (Ord. 705 § 4, 1962).
5.04.050 Payment of tax.
Effective November 1, 1982, the tax due under this chapter shall be paid quarterly during the year, to be based upon gross income received during each quarter ending March 31st, June 30th, September 30th and December 31st. The tax shall be an amount of six percent of the gross income from the business of the taxpayer in the city during the previous quarter, and shall be due within 45 days after the end of the quarter. (Ord. 1196 § 1, 1982; Ord. 962, 1975; Ord. 705 § 5, 1962).
5.04.060 Levy of tax.
There is levied an annual occupation tax, which shall be collected quarterly, against the persons, on account of the business activities, and in the amounts to be determined by the application of the rates against gross income, as follows:
Upon every person engaged in or carrying on the business of selling or furnishing electric light and power, a fee or tax equal to six percent of the total gross income from such business in the city during the quarter next preceding the tax year for which the license is required. (Ord. 017-23 § 1 (Exh. A); Ord. 1196 § 2, 1982; Ord. 962, 1975; Ord. 705 § 6, 1962).
5.04.070 Exceptions and deductions.
(1) There is excepted and deducted from the total gross income upon which the license fee or tax is computed that amount derived from transactions in interstate or foreign commerce, and any amount paid by the taxpayer to the United States, the state or the city, as excise taxes levied or imposed upon the sale or distribution of property or services, and further, the amount of credit losses actually sustained by the taxpayer for the period covered. 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.
(2) Any person subject to the payment of a license fee or tax under the provisions of any ordinance of the city, other than this chapter, on account of engaging in any activity for which they are liable to tax under this chapter may deduct the amount of such fee or tax imposed by this chapter on account of such activity, but such person shall nevertheless, in the manner herein provided for, apply for and procure an occupation license. (Ord. 017-23 § 1 (Exh. A); Ord. 705 § 7, 1962).
5.04.080 Application or return for license.
(1) On or before the first day of each year, every taxpayer shall apply to the city finance director for an occupation license upon blanks or forms of returns to be prepared and provided by them, requesting such information as may be necessary to enable them to arrive at the lawful amount of the fee or tax. The taxpayer shall write in a legible manner in 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 given is full and true and that they know the same to be so.
(2) Every such application or return shall be filed not later than 45 days after the last day of each year.
(3) 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. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 8, 1962).
5.04.090 Sale or transfer of business.
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 shall, if the fee or tax has not been paid in full for the year, be responsible for its payment for that portion of the year during which they carried on such business. (Ord. 017-23 § 1 (Exh. A); Ord. 705 § 9, 1962).
5.04.100 Income records – Returns.
(1) It shall be the duty of each taxpayer taxed upon their gross income to keep and enter in a proper book or set of books or records an account accurately reflecting the amount of their gross income, which account shall always be open to the inspection of the city finance director or their duly authorized agent, and from which the officer or their agent may verify the return made by the taxpayer.
(2) The applications, statements or returns made to the city finance director pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of any person except the mayor, the city attorney, the city finance director or their authorized agent, and members of the city council. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 10, 1962).
5.04.110 Investigation of returns.
If any taxpayer fails to apply for a license or make their return, or if the city finance director is dissatisfied with the correctness of the statements made in the application or return of any taxpayer, the finance director or their authorized agent may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting their books or records of account in order to ascertain the amount of the fee or tax or to determine the correctness of such statements, as the case may be. The finance director or their authorized agent may examine any person under oath administered by them, touching the matters inquired into, or they may fix a time 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 the finance director or their agent, in regard to the matters inquired into and may, by subpoena, require them or any person to bring with them such books, records and papers as may be necessary. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 11, 1962).
5.04.120 Over or under payment of tax.
If the city finance director upon investigation or upon checking returns finds that the fee or tax paid on any of them is more than the amount required of the taxpayer, they shall refund the amount overpaid by a check upon the general fund. If the city finance director finds that the fee or tax paid is less than required, they shall send a statement to the taxpayer showing the balance due, who shall within 30 days pay the amount shown thereon. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 12, 1962).
5.04.130 Failure to pay tax – Liability.
If any taxpayer fails to apply for a license, or to make their return or to pay the fee or tax or any part thereof within 30 days after the tax is due, the city finance director shall ascertain the amount of the fee or tax or installment due and shall notify the taxpayer who shall be liable therefor in any suit or action by the city for the collection of the tax. The city finance director shall also notify the city attorney in writing of the name of the delinquent taxpayer and the amount due from them and the city attorney shall, with the assistance of the city finance director, collect the same by any appropriate means or by suit or action in the name of the city. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 13, 1962).
5.04.140 Appeals to city council.
(1) Any taxpayer aggrieved by the amount of the fee or tax found by the city finance 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 city clerk within 30 days from the time the taxpayer was given notice of the amount. The clerk shall, as soon as practicable, fix a time and place for the hearing of the appeal, which time shall be not more than 10 days after the filing of the notice of appeal, and they shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence in their own behalf. The city council shall thereupon ascertain the correct amount of the fee or tax by resolution and the city clerk shall immediately notify the appellant. The amount of the tax, together with costs of the appeal if appellant is unsuccessful therein, must be paid within 30 days after such notice is given.
(2) The mayor may, by subpoena, require the attendance of any person at the hearing of the appeal and may also require them to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place stated therein 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 them pertinent to the appeal, and it shall be unlawful for them to fail or refuse to do so. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 14, 1962).
5.04.150 Finance director to make rules.
The city finance director shall have the power and it shall be their duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions thereof. It shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 017-23 §§ 1, 4 (Exh. A); Ord. 705 § 15, 1962).
5.04.160 Licenses posted – Nontransferable.
(1) All licenses issued pursuant to the provisions of this chapter shall be kept posted by the licensee in a conspicuous place in their principal place of business in the city.
(2) No persons to whom a license has been issued pursuant to this chapter shall allow any other person chargeable with a separate license to operate under or display their license, nor shall such other person operate under or display such license. (Ord. 017-23 § 1 (Exh. A); Ord. 705 § 16, 1962).
5.04.170 False returns, etc.
It shall be unlawful for any person liable to tax hereunder to fail or refuse to make application or return for a license or to pay the fee or tax or installment when due, or for any person to make any false or fraudulent application or return or any false statement of representation in, or in connection with, any such application or return. It shall be unlawful for any person 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. 705 § 17, 1962).