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ORD 82-01 LICENSING AND TAXATION OF CERTAIN BUSINESSES OI~.DINANCE NO. 82-01 AN ORDINANCE OF THE CITY OF WINSLOW, WASHINGTON PROVIDING FOR THE LICENSING AND TAXATION OF CERTAIN BUSINESSES AND OCCUPATIONS AND REPEALING ORDINANCES 75-1, 75-8, 79-2, 79-11 AND 81-28. THE CITY COUNCIL OF THE CITY OF WINSLOW DO ORDAIN AS FOLLOWS: Section 1. Exercise of revenue license powers The provisions of this ordinance are an exercise of the power of the city to license for revenue purposes and an exercise of its police powers. Section 2. Definitions In construing the provisions of this ordinance, save when otherwise declared or clearly apparent from context, the following definitions shall be applied: A. "Business" includes all activities engaged in with the object of gain, benefit or advantage to the licensee or to another person or class, directly or indirectly. B. "Engage in business" or "engaging in business activities" 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 them- selves out to the public as conducting such business. C. "Gross income" 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 other expense whatsoever paid or accrued and without any deduction on account of losses. - 1 - Ordinance No. 82- 91 Page Two "Person" means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co- partnership, joint venture, club, company, joint stock company, business trust, corporation, associ- ation, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, except nonprofit corporations or associations chartered as such by the state. Words in the singular number shall include the plural and plural shall include the singular. Words in one gender shall include all other genders. Section 3. Business - Subject to tax On or after the effective date of this ordinance, there is levied upon and shall be collected from and paid, as provided in this ordinance, by every person, on account and for the privilege of engaging in business activities within the city, an annual license fee and occupation tax per calendar year, or any portion thereof, in a sum equal to the amounts set forth as follows: A. Class 1. Privately owned parking lots within the City of Winslow which charge a fee for parking: The annual license fee shall be $3.00. In addition to the annual license fee a B & O tax shall be imposed and paid equal to four percent (4%) of the gross income received by each business during the previous calendar year. Of this total sum, a sum equal to .04% of the gross income received by each business during the previous calendar year or previous quarter shall be deposited in the Current Expense Fund of the City of Winslow in accordance with the provisions of Section 15A herein. The balance of such sum shall be deposited in the Street Fund of the City of Winslow in accordance with the provisions of Section 15B. B. Class 2. Publicly owned parking lots within the City of Winslow which charge a fee for parking: A B & O tax shall be imposed upon and paid equal to four percent (4%) of the gross income received by such businesses during the previous calendar year or previous quarter. These funds shall be deposited in the Street Fund of the City of Winslow in accordance with the provisions of Section 15B. - 2 - Ordinance No. 8f2-01 Page Three C. Class 3. All other businesses located within the City of Winslow: The annual license fee shall be $3.00. In addition to the annual license fee a B & O tax shall be imposed and paid equal to .04% of the gross income received by each such business during the previous calendar year or previous quarter. These funds shall be deposited in the Current Expense Fund of the City of Winslow in accordance with the provisions of Section 15A. D. Class 4. Businesses located outside the City of Winslow. Businesses located outside the corporate limits of the City of Winslow which make regular retail sales and deliveries or engage in the sale of consumer services within the City of Winslow shall pay an annual license fee of $20.00. These funds shall be deposited in the Current Expense Fund of the City of Winslow in accordance with the provisions of Section 15A. Section 4. Exemptions The following sources of income shall not be included in determining the gross income: A. Liquor, as that term is defined in RCW 66.04.010 (16); B. Insurance business upon which a tax based on gross premiums is paid to the state; provided, that the provisions of this subsection shall not exempt insurance brokers; C.Agricultural business according to the provisions of RCW 82.04.330; D. Employment in the capacity of employee or servant, as distinguished from that of an independent contractor; E. The gross proceeds derived from the sale of real estate; provided that this exemption shall not be construed to allow a deduction of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest, or similar financial charges resulting from or relating to, real estate transaction; - 3 - Ordinance No. 82 - 01 Page Four F.The gross proceeds derived from the rental of real estate; G. The gross income derived from the sale of motor vehicle fuels; H. The gross income which is subject to tax by any other city; I. The gross income of any business which is subject to tax as a utility under Ordinance 81-38. Section 5. Audit Procedures The City Clerk/Treasurer shall have the right to demand proof of the gross income of the business which proof shall be satisfied on a prima facie basis upon supplying to the City Clerk/Treasurer the last previous excise tax return or returns filed with the State Department of Revenue. Section 6. License Required.- Issuance A. The license fee required by this ordinance is due on January 1 and shall be considered delinquent if it is not paid by January 31. B. The business license referred to in this ordinance shall expire on December 31st in the year issued and a new license shall be required for each year. C. Applications for the licenses shall be made to and issued by the City Clerk/Treasurer on forms provided by the Clerk/Treasurer, on which shall be stated the residence of the applicant, the nature of the business or business activitiy in which the applicant desires to engage and the place where it is proposed to be conducted. If the Clerk/Treasurer finds the application to be correct, the license shall be issued upon payment of the required fee. Section 7. License - Nontransferable The license issued hereunder shall be personal and non-transferable, and shall at all times be conspicuously posted in the place of business for which it is issued. Where a place of business is changed, the licensee shall return the license to the City Clerk/Treasurer and a new license shall be issued for the new place of business without charge for said transfer. No person to whom a license has been issued pursuant to this chapter shall permit or allow any other person to operate any business under or display that license; nor shall such other person operate under or display such license. - 4 - Ordinance No. 812-01 Page Five Section 8. License - Revocation Any license issued pursuant to this ordinance may be revoked by the city, for a cause, in the event the holder thereof is convicted by a court of competent jurisdiction of violating any other ordinances of the city or laws of the state or fails to pay the annual license fee and/or B & O tax together with any penalties due thereon within six months after said sum is due and owing. No revocation of license shall be made unless the Winslow Hearing Examiner has held an administrative public hearing pursuant to Section 7 of Ordinance 76-19 as amended. The licensee shall be given at least twenty days' notice of the public hearing in writing by mailing to the address listed on the license application. Following the public hearing and revocation, and upon proof satisfactory to the hearing examiner that (1) the licensee has been convicted of a violation of a city ordinance, a law of the state, or has failed to pay the annual license fee and/or B & O tax or any penalties due thereon, and (2) that the business license should be revoked, the licensee shall cease doing business within the city. An appeal pursuant to the procedures set forth in paragraph 7 (a) of Ordinance 76-19, as amended, shall stay revocation of the business license until a final decision has been rendered. Section 9. License - ~re than one location In case business is transacted at two or more separate places by one person within the city, a separate license shall be secured and displayed for each place in which business is transacted in the city. Section 10. License - Fee Additional To Others The license fee and B & 0 tax levied in this ordinance shall be in addition to any license fee or tax imposed or levied under any law or other ordinance of the city, except as otherwise expressly provided in this chapter. - 5 - Ordinance No. 82 - 01 Page Six ~ection 11. Confidentiality of Applications The applications made to the city pursuant to this ordinance shall not be made public, nor shall they be subject to the inspection of any person except the Mayor, City Clerk/Treasurer, City Attorney, and members of the City Council, and it is unlawful for any person to make public or to inform any other person as to the contents of any information contained therein or to permit inspection of any application except as authorized in this section. Section 12. Payment of Tax The tax imposed by this ordinance shall be due and payable in one annual installment, based on the gross income, less exemptions, received by each business during the previous calendar year, on or before the 15th day in January of the following year, except that those businesses' with a gross income exceeding $50,000 quarterly may chose to pay the tax imposed by this ordinance in four quarterly installments payable on or before the 15th day of the month next suceeding the end of the quarterly period in which the tax accrued. These quarterly periods are as follows: First Quarter - Second Quarter - Third Quarter - Fourth Quarter - January, February, March April, May, June July, August, September October, November, December The first payment made hereunder shall be made by April 15 for the three month period ending the last day of March. On or before said due date the taxpayer shall file with the clerk a written return, upon such form and setting forth such information as the clerk shall reasonably require, together with the payment of the amount of the tax. If payment of any tax due is not received by the city by the last day of the month in which the tax becomes due, such payment shall be considered delinquent. Section 13. Partial Year Operation Whenever a taxpayer commences to engage in business during any calendar year, his first return and the tax shall be based upon and cover the portion of the calendar year during which he is engaged in business. If a taxpayer ceases to engage in business in any calendar year the taxpayer shall provide the Clerk/Treasurer with a forwarding address and shall pay any tax due within 30 days following the cessation of business. - 6 - Ordinance No. 82- 01 Page Seven Section 14. Collection The licenses and taxes required under this ordinance, 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. Any judgment entered in favor of the city shall include recovery by the city of all court costs including attorney's fees. Section 15. City Clerk/Treasurer - Duties The City Clerk/Treasurer shall keep full and accurate records of all funds received under the provisions of this ordinance. Upon receipt of any license fee, tax or penalties collected under the provisions of this ordinance the City Clerk/Treasurer shall deposit the same as follows: A. The following sums assessed under Section 3 of this ordinance shall be deposited in the Current Expense Fund of the City of Winslow. 1. All license fees and penalties collected under the provisions of this ordinance. 2. Taxes paid by Class 1 taxpayers on .04% of their gross income. 3. Taxes paid by Class 3 taxpayers. B. The following sums assessed under Section 3 of this ordinance shall be deposited in the Street Fund of the City of Winslow: 1. Taxes paid by Class 1 taxpayers on four percent (4%) of their gross income less .04%. 2. Taxes paid by Class 2 taxpayers. Section 16. Appeal Procedure Any person aggrieved by the amount of the fee or tax found by the clerk/treasurer to be required under the provisions of this ordinance may appeal to the City Council from such determination by filing a written notice of appeal with the City Clerk/Treasurer within twenty days from the time such person was given notice of such amount. The City Council shall, as soon as practicable, fix a time and place for the hearing of such amDeal, notice of which shall be given to the appellant by certilfied mail at least five days prior to the time of the hearing. - 7 - Ordinance No. 82-01 Page Eight Section 17. Civil Penalty In the event any person fails to pay the license and/or tax imposed by this ordinance, a civil penalty shall be imposed as follows: Ten percent of the delinquent license fee and/or tax multiplied by the number of months delinquent. A fraction of a month shall be deemed a full month. In the event that a delinquency penalty has been wrongfully collected, the same shall be refunded by the Clerk/Treasurer Section 18. Violation - Penalty A. It shall be a violation of this ordinance for any person subject to license or tax hereunder to fail or refuse to secure the license required or to pay the fee or tax as required, or for any person to make any false or fraudulent application or representation in connection with application for any such license. B. Any person violating any of the provisions of this ordinance, upon conviction thereof, shall be punished by a fine of not more than five hundred dollars or by imprisonment for not more than six months, or by both such fine and imprisonment. Each such person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of this ordinance is committed, continued or permitted by any such person and he is punishable accordingly. Section 18. Repealer Ordinances 75-1, 75-8, 79-2, 79-11 and 81-28 are hereby repealed. Section 20. Effective Date This ordinance shall take effect five (5) days after posting it in a manner provided by law. - 8 - Ordinance No. 82- 01 Page Nine Passed by the City Council of Winslow, this of ~/~~-~ ~y , 1982. day ALICE B. TA~RESEY, May~~O' ATTEST: Donna ~a~ Buxton Clerk/Treasurer APPROVED AS TO FORM: Thomas Mo Walsh City Attorney SEAL - 9 -