HomeMy WebLinkAbout2459 Renaming PTMC Chapter 5.04 Business Licenses as Business and Occupation TaxOrdinance No. 2459
AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING AND
RENAMING PORT TOWNSEND MUNICIPAL CODE CHAPTER 5.04, BUSINESS
LICENSES TO READ CHAPTER 5.04, BUSINESS AND OCCUPATION TAX
NOW, THEREFORE, the City Council of the City of Port Townsend, in regular session
assembled, does ordain as follows:
Section 1. Chapter 5.04, BUSINESS LICENSES of the PTMC is hereby renamed
BUSINESS AND OCCUPATION TAX, and shall be codified by the City's Code Reviser with
all sections amended to read as follows:
Chapter 5.04
BUS~S A~ OCC~ATION TAX
Sections:
5.04.010
5.04.020
5.04.200
5.04.210
5.04.220
5.04.230
5.04.235
5.04.240
5.04.250
5.04.260
5.04.280
5.04.290
5.04.300
5.04.310
5.04.320
5.04.330
5.04.340
5.04.350
5.04.360
5.04.370
5.04.380
Exercise of revenue power.
Definitions.
Enumeration of persons subject to tax - Amount.
Taxable as to each activity.
Determination of values.
Apportionment - Persons rendering services inside and outside city.
Same offices within and without the city.
Sales by consignee, bailee, factor or auctioneer.
Exemptions.
Deductions allowed in computing tieease-fees taxes.
Quarterly payments of b-,:r,:lncr,; l~ccn~oe fcc business and occupation tax.
Form of pPayment of liccn~oc fcc; business and occupation tax.
Books of account.
Final payment public work contract - License fees to be paid first.
Extension of time- Penalties.
Sale or transfer of business.
Applications and returns confidential.
Over or underpayment of tax.
Failure to make return.
Appeals to the city council.
Gter-g Treasurer to make rules.
5.04.390
5.04.400
5.04.410
5.04.420
5.04.430
5.04.440
~ C~A AdA
~ [~A AA~
5.04.450
Mailing of notices.
False returns.
~.,,,,,': ..... ,~ ~c~,.~ Tax additional to others.
Tax constitutes debt.
Application to city's business activities.
Revocation of business license.
~'~"' ~' .... :^~*':^~ Vi latio Pe alfies
~ .....~j ~,,~ ,...,..,,,,.,..~ ..... o ns - n .
5.04.010 Exercise of revenue power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license
for revenue· (Ord. 2459 §1, 1995; Ord. 1553 § 1, 1968).
5.04.020 Definitions.
In construing the provisions of this chapter, save when otherwise declared or clearly apparent
from the context, the following definitions shall be applied:
A. "Tax year" or "taxable year" means either the calendar year, or the taxpayer's fiscal
year when permission is obtained from the city eter4~ treasurer o use a fiscal year in lieu of
the calendar year.
B. "Person" or "company" herein used interchangeably, means any individual, receiver,
assignee, trustee in bankruptcy, trust, estate, finn, copartnership, joint venture, club,
company, joint stock company, business trust, municipal corporation, corporation,
association, society, or any group of individuals acting as a unit, whether mutual,
cooperative, fraternal, nonprofit or otherwise and the United States or any instrumentality
thereof.
C. "Sale" means any transfer of the ownership of, title to, or possession of property for a
valuable consideration and includes any activity classified as a "sale at retail" or "retail sale"
under subsection D of this section. It includes conditional sales contracts, leases with option
to purchase and any other contract under which possession of the property is given to the
purchaser but title is retained by the vendor as security for the payment of the purchase
price. It shall also be construed to include the furnishing of food, drink, or meals for
compensation whether consumed upon the premises or not.
The term "casual or isolated sale" means a sale made by a person who is not engaged in the
business of selling the type of property involved.
D. "Sale at retail" or "retail sale" means the definition given the terms in Section
82.04.050 RCW, Business and Occupation Tax, as now or later amended, which is
inco reference. ,,,,,,j o,,,, .,. ~,,~,.,.,~ ~ ..... pfc, u,,.~ ...... ~, ~-.~.,~
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E. "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property
and any sale of or charge made for labor and services rendered in respect to real or personal
property, which is not a sale at retail.
F. "Gross proc. eeds of sales" means the value proceeding or accruing from the sale of
tangible personal property and/or for services rendered without any deduction on account of
the cost of property sold, the cost of materials used, labor costs, interest, discount paid,
delivery costs, taxes, or any other expense whatsoever paid or accrued and without any
deduction on account of losses.
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G. "Gross income" of the business means the value proceeding or accruing by reason of
the transaction of the business engaged in and includes gross proceeds of sales, compensation
for the rendition of services, gains realized from trading in stocks, bonds or other evidences
of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other
emoluments however designated, all without any deduction on account of the cost of tangible
property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes
or any other expense whatsoever paid or accrued and without any deduction on account of
losses.
H. "Value proceeding or accruing" means the consideration, whether money, credits,
rights or other property expressed in terms of money, actually received or accrued. The term
shall be applied, in each case, on a cash receipts or accrual basis according to which method
of accounting is regularly employed in keeping the books of the taxpayer. The city clerk
treasurer may provide by regulation that the value proceeding or accruing from sales on the
installment plan under conditional contracts of sale may be reported as of the dates when due
payments become due.
I. "Extractor" means every person who from his own land or from the land of another
under a right or license granted by lease or contract, either directly or by contracting with
others for the necessary labor or mechanical services, for sale or for commercial or industrial
use mines, quarries, takes or produces coal, natural gas, ore, stone, sand, gravel, clay,
mineral or other natural resource product, or fells, cuts or takes timber or other natural
products, or takes, cultivates, or raises fish, shell fish, or other sea or inland water foods or
products; it does not include persons performing under the contract the necessary labor or
mechanical services for others.
J. "Manufacturer" means every person who, either directly or by contracting with others
for the necessary labor or mechanical services, manufactures for sale or for commercial or
industrial use from his own materials or ingredients any articles, substances or commodities.
When the owner of equipment or facilities furnishes, or sells to the customer prior to
manufacture, all or a portion of the materials that become a part or whole of the
manufactured article, the city clerk treasurer shall prescribe equitable rules for determining
tax liability.
K. "To manufacture" embraces all activities of a commercial or industrial nature wherein
labor or skill is applied, by hand or machinery to materials so that as a result thereof a new,
different or useful article of tangible personal property or substance of trade or commerce is
produced and shall include the production or fabrication of special made or custom made
articles.
L. "Commercial or industrial use" means the following use of products, including
by-products, by the extractor or manufacturer thereof:
1. Any use as a consumer; and
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2. The manufacturing of articles, substances or commodities from extracted products,
including by-products.
M. "Business" includes all activities engaged in with the object of gain, benefit or
advantage to the taxpayer or to another person or class, directly or indirectly.
N. "Engaging in business" means commencing, conducting or continuing in business and
also the exercise of corporate or franchise powers as well as liquidating a business when the
liquidators thereof hold themselves out to the public as conducting such business.
O. "Cash discount" means a deduction from the invoice price of goods or charge for
services which is allowed if the bill is paid on or before a specified date.
P. "Tuition fee" shall be construed to include library, laboratory, health service and other
special fees, and amount charged for room and board by an educational institution when the
property or service for which such charges are made is furnished exclusively to the students
or faculty of such institution; provided, that the term, "educational institution" as used
herein, means only those institutions created or generally accredited as such by the state and
offering to students an educational program of a general academic nature or those institutions
which are not operated for profit and which are privately endowed under a deed of trust to
offer instructions in trade, industry and agriculture, but not including specialty schools,
business colleges, other trade schools or similar institutions.
Q. "Successor" means any person who shall, through direct or mesne conveyance,
purchase or succeed to the business, or portion thereof, or the whole or any part of the stock
of goods, wares, merchandise or fixtures, or any interest therein of a taxpayer quitting,
selling out, exchanging or otherwise disposing of his business. Any person obligated to fulfill
the terms of a contract shall be deemed a successor to any contractor defaulting in the
performance of any contract as to which such person is a surety or guarantor.
R. "Consumer" means the following:
1. Any person who purchases, acquires, owns, holds or uses any article of tangible
personal property other than for the purposes of resale as tangible personal property in the
regular course of business or for the purpose of consuming such property or a new
substance, of which such property becomes an ingredient or component or is a chemical used
in processing, when the primary purpose of such chemical is to create a chemical reaction
directly through contact with an ingredient of a new article produced for sale;
2. Any person engaged in the business of rendering professional or personal services
to persons (as distinguished from services rendered to property of persons) and who are
taxable under PTMC f~Al30g 5.04.200C;
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3. Any person engaged in the business of contracting for the building, repairing or
improving of any publicly owned street, place, road, highway, bridge or trestle which is used
or to be used primarily for foot or vehicular traffic, in respect, however, only to tangible
personal property used or consumed in such business;
4. Any person who is an owner, lessee or has the right of possession to or an
easement in real or personal property which is being constructed, repaired, improved,
cleaned, imprinted or otherwise altered by a person engaged in business, excluding only the
United States of America, the state of Washington and its political subdivisions in respect to
labor and services rendered to their real property which is used or held for public road
purposes.
S. "City" means Port Townsend, a municipal corporation. "In this city" or "within this
city" as used herein includes all federal areas lying within the exterior boundaries of the city
of Port Townsend.
T. "By-product" means any additional products, other than the principal or intended
product, which results from extracting or manufacturing activities and which has a market
value, without regard to whether or not such additional product was an expected or intended
result of the extracting or manufacturing activities.
U. "Taxpayer" includes any individual, group of individuals, corporation or association
required to have a business license hereunder, or liable for any license fee or tax, or for the
collection of any license fee or tax hereunder, or who engages in-any business, or who
performs any act, for which a license fee or tax is imposed by this chapter.
V. Words in the singular number shall include the plural, and the plural shall include the
singular. Words in one gender shall include all other genders.
W. "Quarterly period" means a that three-month period ~'~:-~: .....
~,~,~'~^",,.,,.. of each ouarter_ of every calendar year.
X._ "Other services and activities" shall be construed to mean the same as the term
"selected business activities" as contained in 82,04,055, RCW, as now or later amended,
which is incorporated by reference.
~ Y. "C-te~ Treasurer" means the city ~ treasurer of the city of Port Townsend, a
municipal corporation, or his or her designee. The provisions of this chapter shall be
administered and enforced by the city treasurer except as otherwise provided by state statute..
(Ord. 2459 § 1, 1995; Ord. 1553 § 2, 1968).
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5.04,200 Enumeration of persons subject to tax - Amount.
A business & Occupation tax is levied upon and shall be collected from every person for the
act and privilege of engaging in business activities within the city, The tax shall be paid
quarterly, in amounts tO be determined by the application of rates given against gross
prOceeds of sale, or gross income of business, as the case may be. as follows:
A. Upon every person engaging within this city in the business of making sales at
wholesale or retail, the amount of tax with respect to such business shall be equal to the
gross proceeds of such sales of the business without regard to the place of delivery of
articles, commodities, or merchandise sold, multiplied by the rate of .0014;
B. Upon every person engaging within this city in the business of:
1. Printing and of publication of newspapers, periodicals or magazines,
2. Building, repairing or improving any publicly owned street, place, road, highway,
bridge or trestle which is used, or to be used, primarily for foot or vehicular traffic or any
purpose~;.~,~ '... ..... o,.,.." ....... ~.~,.,..~ the amount of tax on such business shall be equal to the gross
income of the business multiplied by the rate of .0014;
C. Upon every person engaging within this city in any business activity other than or in
addition to those eaamemted set forth in subsections A and B above, ~'~ · ..... ~' ....... the
amount of tax c,n"~W"''' ......... ~'~ O"~['k .,....~..~.~':":"^~ shall be equal to the gross income of the business
multiplied by the rate of .....'~-'~'~ ~" ~-~ 002
~.,,, ............. percent. .
This subsection also includes, without limitation, ......
v ................ ; .......... , ............................ ~, ..... ;, persons enga in the
business of rendering "services and other activities"
.... -,..,- - ,,~ ~, -~,..w, .... ,,~ ~, ...~.^~,,~ ~ deft ed in this chapte (0 d
...... ~. ......... x,, ................. j as n
r. r .
2459 § __, ]995; Ord. ]92,5 § 1, ]9~2; Ord. ]553 § 3,
5.04.210 Taxable as to each activity.
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Every person engaging in the activities which are within the purview of the provisions of the
Port Townsend Municipal Code .................. ~.~ n D r, r~ ~...~ ~: ~.., x: ..c D~sr,
~ shall be taxable under each paragraph applicable to the activities engaged in;
provided, however, that persons taxable under paragraph C of that section shall not be
taxable under paragraphs A or B of that section with respect to making sales at retail or
wholesale of products extracted or manufactured within the city by such persons. (Ord. 2459
§ 1, 1995; Ord. 1553 § 4, 1968).
5.04.220 Determination of values.
The value of products, including by-products, extracted or manufactured shall be determined
by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at
retail, to which shall be added all subsidies and bonuses received from the purchaser or from
any other person with respect to the extraction, manufacture, or sale of such products or
by-products by the seller, except:
A. Where such products, including by-products, are extracted or manufactured for
commercial or industrial use;
B. Where such products, including by-products, are shipped, transported or transferred
out of the city or to another person, without prior sale or are sold under circumstances such
that the gross proceeds from the sale are not indicative of the true value of the subject matter
of the sale.
In the above cases, the value shall correspond as nearly as possible to the gross proceeds
from the sales in this city of similar products of like quality and character, and in similar
quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by
the purchaser or by any third person with respect to the extraction, manufacture, or sale of
such products. The city clerk treasurer shall prescribe uniform and equitable rules for the
purpose of ascertaining such values. (Ord. 2459 § J__, 1995; Ord. 1553 § 5, 1968),
Taxes - Apportionment - Persons rendering services inside and outside city.
A. Persons engaging in the business of rendering services, both within and without
the city, or partially without and partially within the city, and maintaining an office or place
of business within the city and not elsewhere, shall be taxable on the gross income from the
business without regard to the place where the services are rendered.
B. Persons engaged in the business of rendering services without the city, having an
office both inside and outside the city, shall be taxable on the gross income from the business
rendered outside the city which is administered and/or processed in any way through an
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office located within the city. A credit shall be given to a taxpayer as to gross income subject
to occupational tax of another city for services rendered outside the city and within another
city.
C. Persons who render services both inside and outside of the city and who maintain an
office or place of business both inside the city and outside the city, or who have no off'ice or
other place of business within the city, shall have the option, for Purposes of limiting their
tax liability to the city under this chapter, of apportioning to the city that portion of gross
income derived from services rendered within the city. If the person cannot readily
determine the portion of gross income derived from services rendered within the city, the
person shall apportion to the city that portion of total income which the cost of rendering
~ervices within the city bears to the. total cost of rendering services both inside and outside of
the city.
(Ord. 2459 § 1, 1995.)
5.04.235 Same offices within and without the city.
A__ Persons maintaining an office, plant, warehouse or other business establishment which
is partly within and partly outside of the city, shall be taxable on the value of products, gross
proceeds of the sale, or gross income of the business attributable to business within the city,
ascertained ~ either:
1. By a segregation of business within the business outside the city, shown and
supported by separate accounting records, or
2. If such segregation cannot be practicably made, by an apportionment to the city of
that part of the total value of products, gross proceeds of sales, or gross income of the
business derived from business both within and outside the city:
a. In the proportion that the cost of doing business within the city bears to the cost
of doing business both within and outside the city, or
b. When the use of such apportionment factor is impractical or inequitable, by a
fair and equitable apportionment of such values, proceeds~ or income between business
within the city and business outside the city upon such basis, comparable in character to that
prescribed in (a) above, as shall be agreed upon by the clerk treasurer and the taxpayer after
consideration of the facts. (Ord. 2459 § 1, 1995; Ord. 1553 § 6, 1968).
5.04.240 Sales by consignee, bailee, factor or auctioneer.
Every consignee, bailee, factor or auctioneer having either actual or constructive possession
of tangible personal property, or having possession of the documents of title thereto, with
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power to sell such tangible personal property in his/her or its own name and actually so
selling, shall be deemed the seller of such tangible personal property within the meaning of
this chapter; and further, the consignee, bailor, principal or owner shall be deemed a seller
of such property to the consignee, bail.ee, factor or auctioneer.
The burden shall be on the taxpayer in every case to establish the fact that such taxpayer is
not engaged in the business of selling tangible personal property but is acting merely as
broker or agent in promoting sales for a principal;' such claim will be allowed only when the
taxpayer's account records are kept in such a manner as the clerk treasurer shall by general
regulation provide. (Ord. 2459 § 1, 1995; Ord. 1553 § 7, 1968).
5.04.250 Exemptions.
A. The provisions of this chapter shall not apply to any sale or activity which is exempt
from taxation under the Washington State sales tax, or is specifically made exempt by state
law.
B. The tax under this chapter shall only be imposed if the gross income of the person
exceeds $900.00 in any quarter.
(Ord. 2459 § 1, 1995; Ord. 1925 § 2, 1982; Ord. 1553 § 8, 1968).
5.04.260 Deductions allowed in computing 1:~c, cr.~oe fc~a taxes.
In computing the ~ tax there may be deducted from the measure of tax the
following items:
A. Amounts derived by persons, other than those engaging in banking, loan, security or
other financial businesses, from investments or the use of money as such;
B. Amounts derived from bona fide initiation fees, dues, contributions, donations, tuition
fees and endowment funds. The provisions of this paragraph shall not be construed to exempt
any persons, association or society from tax liability upon selling tangible personal property
or upon providing facilities or services for which a special charge is made to members of
others; provided that dues which are for, or graduated upon, the amount of service rendered
by the recipient "' .... ': are not permitted as a deduction" ...... '~-'
C. The amount of cash discount actually taken by the purchaser. This deduction is not
allowed in arriving at the taxable amount under the extractive and/or manufacturing
classifications with respect to articles produced or manufactured the reported values of
which, for the purposes of this tax, have been computed according to the provisions of
PTMC 5.04.220;
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D. The amount of credit losses actually sustained by taxpayers whose regular books of
account are kept upon an accrual basis;
E. Amounts derived by any person as compensation for the receiving, washing, sorting
and packing of fresh perishable horticultural products and the material and supplies used
therein when performed for the person exempted in PTMC 5.04.250, either as agent or as
independent contractor;
F. Amounts derived from business which the city is prohibited from taxing under the
Constitution or laws of the state or the Constitution or laws of the United States;
G. Amounts derived as compensation for services rendered or to be rendered to patients
by a hospital or other institution devoted to the care of human beings with respect to the
prevention or treatment of disease, sickness or suffering, when such hospital or other
institution is operated by the United States of America or any of its instrumentalities, or by
the state of Washington, or any of its political subdivisions;
H.. Amounts derived as compensation for services rendered to patients by a hospital or
other institution which is organized as a nonprofit corporation devoted to the care of human
beings with respect to the prevention or treatment of disease, sickness or suffering; provided,
that no part of the net earnings received by such an institution shall inure, directly or
indirectly, to any person other than the institution entitled to deduction t~~; provided
further, that in no event shall any such deduction be allowed, unless the hospital building is
entitled to exemption from taxation under the property tax laws of this state, and unless the
superintendent or other proper officer of the institution shall, under oath, make annual
reports to the State Board of Health of its receipts and disbursements during the preceding
year, specifying in detail the sources from which receipts have been derived and the subject
to which disbursements have been applied, and shall furnish in the report full and complete
vital statistics for the use and information of the State Board of Health.
(Ord. 2459 § 1, 1995; Ord. 1553 § 9, 1968).
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1, 1995; Ord. 19~ ~ 1, 1981; Ord. 1553 ~ 10, 1968).
5.04.280 Quarterly payments of ................... business and occupation taX.
A The i posed by this chapter "'~ ~ ~ r, tw, ..... :.~a +^
1: ..... 4~ .... t l':':':':':':':':~{m ......
.......... +~ .... 1:~,:~. ~. +K:~ 1: ..... sh~l be due ~d payable in queerly ins~lments,
~d -~-:*~ .... '~-~-- ~" ~ payment made on or before the fin~ day of the month .....
o,~":-~.,, following_ the end of the queerly ~fi~ in which the m accrue. The
rzm~t*~ payment sh~ ~ made as ~erz[naftcr provid~ in this chapter ~d sh~l be
a~omp~i~ by a return on a form to be provid~ ~d prescfib~ by the ~msurer. To
the return the ~payer sh~l ~ r~uir~ to sw~ or affirm that the infomafion therein given
is hll ~d ~e ~d that the mpayer ~ows the ~me to be so.
B. Annual Return. Whenever the total tax for which any person is liable under this
chapter does not exceed the sum of $25.00 during the calendar year, an annual return may be
made upon written request and subject to the approval of the city clerk treasurer.
C. Partial Periods. Whenever a tanpay~ person commences to engage in business during
any quarterly period, his the first taxi ' ' return ,~..~-a ,u^,.,..,.,...~,.1: ..... .,.,.~' .... ... *~",,.. shall be based upon
and cover the portion of the quarterly period which he or she is engaged in business.
(Ord. 2459 § 1, 1995; Ord. 2398 § 1, 1994; Ord. 2159 § 1, 1989; Ord. 1553 § 11, 1968).
5.04.290 Form of pPayment of .......... business and occupation tax.
A The l:~ccn;c. *' .... tax ..... k~ u ......a~. payment shall ~' ,u~ ,:~ ,.~ .~, .... :~
..... :.~a ,~ ~.~ ~,~a ~ ...... .4°.. be paid to the city treasurer 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 c,r fcc shall not be deemed paid unless the check or draft is honored in the
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usual course of business; nor shall the acceptance of any sum by the treasurer be an
acquittance or discharge of the tax ~ due unless the amount of the payment is in the full
and actualamount due ..........,.,.,.~,.,,, ,.
~1~1. '~shall mail to taxpayer:
B. Forms. The ..... treasurer: ....a.^..:__., u..,
forms c ..... ~:~,:_~ ,,_. 4: ....... a c .... for returns, but failure of the taxpayer to receive
any such forms shall not excuse the taxpayer from '"~":'
,: .......... :.~a making the returnsr and paying ment-o~ the ~ tax~ when ~...a due
.u.,~.,.,,.,,,.~"~-, provided that. in the event that the treasurer fails to timely mail forms for
returns, no penalties for nonpayment shall commence until 30 days following the actual date
of mailing. (Ord. 2459 § 1, 1995; Ord. 1553 § 12, 1968).
5.04.300 Books of account.
It is the duty of every person liable for the payment of any fee or tax imposed by this chapter
to keep and preserve for the period of three years such books and records as will accurately
reflect the amount of his or her gross income, gross proceeds of sale or value of products, as
the case may be, and from which can be determined the amount of any f^~ or tax for which
he or she may be liable under the provisions of this chapter; and all books, records,
invoices, inventories and stocks of goods, wares and merchandise shall be open for
examination at all reasonable times by the clerk treasurer or his or her duly authorized
agent.
(Ord. 2459 § 1, 1995; Ord. 1553 § 13, 1968).
5.04.310 Final payment public work contract - License fees to be paid first.
The clcrk treasurer, before issuing any warrant making final payment to any person
performing any public work contract for the city, require such person to pay in full all
license fees or taxes due under the ordinance codified herein from such person on account of
such contract, or otherwise. (Ord. 2459 81, 1995; Ord. 1553 § 14, 1968).
5.04.320 Extension of time - Penalties.
A. The eter-t~treasurer for good cause shown may extend the time for making and filing
any return as required under this chapter, and may grant such reasonable additional time
within which to file such return as the clerk/treasurer may deem proper; provided, that any
extension in excess of 30 days shall be conditioned upon payment,~,t~{: ,aa~.~x~..o~.l ...... ~' ~a~c x.~aa~*~ ,,~o_xl~14~ ~.~,~C
..,u:~u ,u ....~. ...... a.,. alty bsecfi 10
......................... a pen as set forth in su on B be w.
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B_ Penalties. If tax return and/or payment are not received on the due date a penalty
must be included as follows: If one to 30 days are delinquent, 10 percent of the tax with a
minimum penalty of $1.00. If 31 to 60 days delinquent, 15 percent of the tax with a
minimum penalty of $2.00. If 61 or more days delinquent, 20 percent of the tax with a
minimum penalty of $3.00. (Ord. 2459 § 1, 1995; Ord. 2398 § 2, 1994; Ord. 1553 § 15,
1968).
5.04.330 Sale or transfer of business.
Upon the sale or transfer during any quarterly period of a business on account of which a
l:~c, cng¢ fcc'or tax is hereby required, the purchaser or transferee shall, if the f^~ c,r tax has
not been paid in full for the quarterly period, be responsible for the payment of the fee or tax
for that portion of the quarterly period during which he or she carried on such business.
(Ord. 2459 § 1, 1995; Ord. 1553 § 16, 1968).
5.04.340 Applications and returns confidential.
The n~:~+;~
,,vt, ......... and returns made to the e-ler-k treasurer pursuant to this chapter shall not be
made public, nor shall they be subject to the inspection of any person except the mayor, city
attorney, city eter-k treasurer or the clcrk'a treasurer's authorized agent, members of the city
council, the chief of police and the chief of police's authorized agents and any federal, state
or local duly commissioned law enforcement agent upon certification that such information is
required as part of a criminal investigation; and it is unlawful for any person to make public
or to inform any other person as to the contents of any information continued in or to permit
inspection of any application or returns except as required by an ongoing criminal
investigation or prosecution or as otherwise authorized by this section. (Ord. 2459 § 1, 1995;
Ord. 2360 § 1, 1993; Ord. 1553 § 17, 1968).
5.04.350 Over or underpayment of tax.
If the city clerk treasurer upon investigation or upon checking returns finds that the fcc or tax
paid on an item is more than the amount required of the taxpayer, he or she shall refund the
amount overpaid by a warrant upon the general fund if the amount overpaid exceeds $10.00;
otherwise, the amount overpaid shall remain as a credit tO the subsequent tax quarter. If the
clerk treasurer finds that the fcc or tax paid is less than required, he or she shall mail a
statement to the taxpayer showing the balance due, who shall within t~rcc 10 days pay the
amount shown thereon. (Ord. 2459 § 1, 1995; Ord. 1553 § 18, 1968).
5.04'.360 Failure to make return.
If any taxpayer fails, neglects or refuses to make his or her return as and when required
herein the eter-k treasurer is authorized to determine the amount of the tax payable, and by
mail to notify such taxpayer of the amount so determined. The amount so fixed shall
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thereupon become the tax and be immediately due and payable. (Ord. 2459 § 1, 1995; Ord.
1553 § 19, 1968).
5.04.370 Appeals to the city council.
A.. 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
finding by filing a written notice of appeal with the city clerk treasurer within five 25 days
from the time such taxpayer was given notice of such amount and upon paying a $25.00
a_~veal filing fee. The ~ treasurer shall, as soon as practicable, fix a time and place for
the hearing of such appeal, which time shall be not more than 10 days after the filing of the
notice of appeal, and he 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 or her own behalf. The city council shall thereupon ascertain the correct
amount of the fee or tax by written findings and conclusions by rc~lut:.c,n and the city clerk
treasurer shall~......,~..,,,,~.j:---~'~:~'^~-- notify the appellant thereof by mail, which amount, together with
costs of the appeal, if appellant is unsuccessful therein, must be paid within thr~ 10 days
after such notice is given.
B__ The mayor or the chairman of any committee of the city council before which the
appeal is to be heard, 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 chairman
in charge of the hearing on appeal as to any matter required of him or her pertinent to the
appeal, and it is unlawful for ~2m such person to fail or refuse so to do.
C. Any decision, finding or ruling made pursuant to this chapter shall be final at the time
the final order or decision is issued in written form, and no action to set aside or modify the
final order or decision shall be brought in superior Court or other tribunal unless the action
shall be filed within 30 days from the effective date of such decision, finding or ruling.
(Ord. 2459 § 1, 1995; Ord. 1553 § 20, 1968).
5.04.380 Clerk Treasurer to make rules.
The ~ treasurer shall have the power, and it shall be his or her 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 hcrc2,f and it is unlawful to violate or fail
to comply with any such rule or regulation. (Ord.' 2459 § 1, 1995; Ord. 1553 § 21, 1968).
5.04.390 Mailing of notices.
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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 ~ treasurer,
or if no such address is shown, to such address as the 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, except as provided in Section 5.04.290.
nor shall such failure operate to extend any time limit set by the provisions of this chapter.
(Ord. 2459 § __, 1995; Ord. 1553 § 22, 1968).
5.04.400 False returns.
It is unlawful for any person liable to tax hereunder to fail or refuse to accure
make the returns as and when required or to pay the f~ or tax when due, or for any person
to make any false or fraudulent ~--~:~':
· -t-v .......... return or any false statement or representation
in, or in connection with, any such,-vv--,~-,---..~u~" .... ,,~ return, or to aid or abet another in any
attempt to evade payment of the f~ c,r tax, or any part thereof, or for any person to fail to
appear and/or testify in response to subpoena issued purauant ~erctc, under this chapter, or to
testify falsely upon any investigation of the correctness of a return, or upon the hearing of
any appeal, or in any manner whatsoever to hinder or delay the city or any of its officers in
carrying out the provisions of this chapter. (Ord. 2459 § 1, 1995; Ord. 1553 § 23, 1968).
5.04.410 ~,~,,~,.o,.: ..... ~'~.,.~ Tax additional to others.
The li~n~oe fcz ~g business and occupation tax ~crzln imposed and levied by this chapter.
is additional to any license fee or tax imposed or levied under any law or any other
ordinance of
............. , .......... v,- cc,~t,~rafic, n, the city._ except as ........ otherwise
exPressly provided. (Ord. 2459 § 1, 1995; Ord. 1553 § 24, 1968).
5.04.420 Tax constitutes debt.
Any.,~,..~ ~: ..... .,~' .... ,,. tax due and unpaid under this chapter, and all penalties 'h,.,,~.,..,., ..... shall
constitute a debt to Port Townsend, a municipal corporation, 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. The right of recovery by the city from the taxpayer
for any tax provided ~¢rcunder this chapter shall be outlawed after the expiration of three
years and the right of recovery against the city because of overpayment of tax by any
taxpayer shall be outlawed after the expiration of three years after which time the taxpayer
shall have no right to recovery against the city. (Ord. 2459 § 1, 1995; Ord. 1553 § 25,
1968).
5.04.430 Application to city's business activities.
Whenever Port Townsend, a municipal corporation, through any department or division shall
engage in any business activity which if engaged in by any person would under this chapter
16
~ "-": ....': .......'~ by ity
require ................... the payment of a 1: .....
........... tax such person, the c
depart di i i g gi b i fi ity hall
mentor vsonen a nginsuch us ness ac v s
· *' .....': .... '~ ' '~' ..................... :-~'~ ~' ...... '~- make returns and
~om tbe ~nds of such dep~ment or division ~y the business
.... ~ ............ as r~uir~ by this ch~uter. (Ord. 2459 ~ 1, 1~5; Ord. 1553 ~ 26,
5.04.440 Revocation of business license.
The ~ treasurer may revoke the business license issued to any taxpayer under Chapter
5.08, PTMC who is in default in any tax payment ,,,^c ,-,J .... ,,~,,,o,~': ..... ,,~' .... ,,, '~",~, ,,,~,~,,,,~,~,, ~' ...... ~- or
who fails to comply with any of the provisions of this chapter. Notice of such revocation
shall be mailed to the taxpayer by the clcrk treasurer, and on and after the date thereof any
such taxpayer who continues to engage in business shall be deemed to be operating without a
license and shall be subject to any or all penalties herein provided in this chapter. (Ord. 2459
§ 1, 1995; Ord. 1553 § 27, 1968).
v, ..... ut
,,.,,.,.,, ...... ., ......................... j, .....be,.,... and .... and c,f no effect
......... ,pncr .......................... any
(Ord. 2459 ~ 1, 1995; Ord. 20~ ~ 1, 1987).
(Ord. 2459 { 1, 1995; Ord. 2059 { 5, 1986)
17
.... ~ '~ ~' ..... ': ..... :*~'~"' ~'~":-~ *':' ': ..... '~ '~^ '" (Ord 2459 § 1 1995; Ord 1553
28, 1968).
5,04.450 Violations - Penalties.
Any person who is found to have violated any term or provision of this chaPter or who
falls to comply with a lawful rule, order, regulation or decision of the treasurer or city
council under this chapter shall be guilty of a civil infraction.
For the first such infraction, the civil penalty shall be in the amount of $200,00.
For the second infraction by the same person within a period of two years, the penalty
shall be $400.00.
Upon the third violation within a period of two years, such violation shall constitute a
misdemeanor, and be punishable upon conviction by a fine in any sum not tO exceed
$500.00. or by imprisonment for a term not exceeding 90 days, or by both fine and
imprisonment,
Any civil penalties under this chapter may be collected in a civil action in any court of
competenfjurisdiction. The city may also seek injunctive relief in superior court to restrain
any violations of the provisions of this chapter.
Prior to any person being charged with a violation, the city shall mail written notice of
the alleged violation to the person at the address shown on the license, giving the person five
days to cure the violation. Upon failure to cure, a citation or c0mplalnt may issue.
(Ord. 2459 §1, 1995.)
Section 2. Severability. If any clause, sentence, paragraph, section or part of this
Ordinance or its application to any person or circumstance is held to be invalid or
unconstitutional by a court of competent jurisdiction, such order or judgment shall not affect
the validity or constitutionality of the remainder of any part of this Ordinance. To this end,
18
the provisions of each clause, sentence, paragraph, section or part of this law are declared
severable.
This ordinance shall be in full force and effect five days after the date of its passage,
approval, and publication in the manner provided by law.
Read for the first, second, and third times
Port Townsend, Washington, at a regular
the City Council of the City of
held this 15th day of May, 1995.
Attest:
./ 19lichael Ilildt, Acting City Clerk
Tln~y tL.~/l~1 Attorney
05/16/95~CA~Or~{5-O4B&O.doe}
J M. Clise, Mayor
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