Chapter 3.24
BUSINESS AND OCCUPATION TAX*

Sections:

3.24.010    City power.

3.24.020    Required.

3.24.030    Levied.

3.24.040    Definitions.

3.24.050    Payable when.

3.24.060    Exemptions.

3.24.070    Records--Requirements.

3.24.080    Delinquent tax.

3.24.090    Refund--Underpayment.

3.24.100    Annexation.

3.24.110    Promulgation of rules and regulations.

3.24.010 City power.

The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue.  (Ord. 903 §1, 1991)

3.24.020 Required.

After January 1, 1991, no person, firm or corporation may engage in or carry on any business, occupation, act or privilege for which a tax is imposed by Sections 3.24.030 or 3.24.040 without first having obtained, and being the holder of a license so to do, to be known as a business and occupation license.

Each such person, firm or corporation must promptly apply to the city clerk/treasurer for such license upon such forms as the clerk/treasurer shall prescribe, giving such information as the clerk/treasurer shall deem reasonably necessary to enable said clerk/treasurer to administer and enforce this chapter; and, upon acceptance of such application by the clerk/treasurer, said clerk/treasurer shall thereupon issue such license to the applicant.  Such business and occupation license shall be personal and nontransferable and shall be valid as long as the license shall continue in said business and comply with this chapter.  (Ord. 903 §2, 1991)

*    Prior ordinance history: Ords. 331, 513, 721 and 799.

3.24.030 Levied.

From and after January 1, 1991, there is levied upon, and shall be collected from, every person, firm or corporation, including the city, engaged in carrying on the following business or services, provided the following are within or partly within the corporation of the city a tax for the privilege of doing so as hereinafter defined, to wit:

A.  Upon any telephone business, business providing and/or distributing electrical power, business providing and distributing natural gas, business engaged in the providing of cable television services, and the providing of water and sewer services within the limits of the city there is levied a tax equal to six percent of the total gross operating revenue derived from operations within the city limits.  Gross operating revenues for this purpose do not include charges which are passed on to the subscribers, users or recipients of such services by the person, corporation or entity providing such service to compensate for the cost of the tax imposed by this chapter, but shall include all fees for the connecting and disconnecting of services or similar fees.

B.  Any business upon which a tax is imposed shall be credited with any franchise fee or other charge for carrying on business within the city which has previously been imposed upon such business.

C.  In addition to the tax imposed by Section 3.24.030A, for the period from January 1, 1995 through December 31, 1997 there is levied upon, and shall be collected from every person, firm or corporation conducting an electrical energy, natural gas or telephone business, a tax equal to three percent of the total gross operating revenue derived from said operations within the city limits.  Gross operating revenues for this purpose do not include charges to customers of such services to compensate for the cost of the tax imposed by this paragraph.  The revenue generated by this tax shall be allocated to the fire department in fund 001-316.40.00.  (Ord. 977 §1, 1994; Ord. 948 §1, 1993; Ord. 903 §3(part), 1991)

3.24.040 Definitions.

“Cellular telephone service” means a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission.  This includes cellular mobile service.  The definition of “cellular mobile service” includes other wireless radio communications services such as specialized mobile radio, personal communications services, and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service.

“Competitive telephone service” means the providing by any person of telephone equipment, apparatus, or service other than toll service, which is of a type which can be provided by persons that are not subject to regulations as telephone companies under Title 80 RCW and for which a separate charge is made.

“Telephone business” means the business of providing access to a local telephone network, local telephone switching service, toll service, cellular telephone service, coin-operated telephone service, or providing telephonic, video, data or similar communication or transmission system for hire, via a local telephone network, toll line or channel, or similar communication or transmission system.  “Telephone business” does not include the providing of competitive telephone service or cable television service.  (Ord. 1010 §1, 1996: Ord. 903 §3(part), 1991)

3.24.050 Payable when.

The tax imposed by this chapter shall be due and payable monthly and remittance shall be made on or before the thirtieth day of the month next succeeding the end of the month in which the tax accrued.  On or before each due date, taxpayer shall file with the city clerk/treasurer a written return, upon such form and setting forth such information as the city clerk/ treasurer shall reasonably require, together with the payment of the tax.  (Ord. 903 §4, 1991)

3.24.060 Exemptions.

In computing said tax, there shall be deducted from said gross operating revenues the following items:

A.  The amount of credit losses and uncollectible actually sustained by the taxpayer;

B.  Amounts derived from any business which the city is prohibited from taxing under the constitution of the United States or laws of the state of Washington; and

C.  Amounts derived by the taxpayer from the city.  (Ord. 903 §5, 1991)

3.24.070 Records--Requirements.

Each taxpayer shall keep records reflecting the amount of his said gross operating revenue, and such records shall be open at all reasonable times to the inspection of the city clerk/treasurer, or designated representative, for verification of said tax returns or for the fixing of the tax of a taxpayer who shall fail to make such returns.  (Ord. 903 §6, 1991)

3.24.080 Delinquent tax.

If any person, firm or corporation subject to this chapter shall fail to pay any tax required by this chapter within thirty days after due date thereof, there shall be added to such tax a penalty of five percent of the amount of the tax due, and any tax due under this chapter and unpaid and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies.  (Ord. 903 §7, 1991)

3.24.090 Refund--Underpayment.

Any money paid to the city in error or otherwise not in payment of the tax imposed hereby or in excess of such tax shall, upon request of the taxpayer, be credited against any tax due or to come due from such taxpayer hereunder or upon the taxpayer’s ceasing to do business in the city be refunded to the taxpayer.  (Ord. 903 §8, 1991)

3.24.100 Annexation.

Whenever the boundaries of said city are extended by annexation, all persons, firms or corporations subject to this chapter will be provided copies of all annexation ordinances by the city.  (Ord. 903 §9, 1991)

3.24.110 Promulgation of rules and regulations.

The city is authorized to adopt, publish and enforce from time to time, such rules and regulations for the proper administration of this chapter as shall be necessary, and it is a violation of the chapter to violate or fail to comply with any such rule or regulation lawfully promulgated hereunder.  (Ord. 903 §11, 1991)