TITLE 5
LICENSING AND TAXATION

Chapters:

5.01 Business and Occupation Tax

5.02 Gambling Tax

5.03 Leasehold Excise Tax

5.04 Business Licenses

5.05 Electrical Energy, Gas, Garbage, Solid Waste, Water, and Telephone Tax

5.06 Real Estate Excise Tax

5.07 Sales and Use Tax

5.08 Contractor Licenses

5.09 Amusement Machines and Amusement Centers

5.10 Hotel/Motel Tax

5.11 Funds

5.12 Lodging Tax Advisory Committee

5.13 Administrative Provisions for Business and Occupation Taxes

5.14 Competitive Cable Franchise Application

Chapter 5.01
Business and Occupation Tax

Sections:

5.01.010 Purpose.

5.01.020 Exercise of revenue license power.

5.01.030 Administrative provisions.

5.01.040 Definitions.

5.01.050 Imposition of the tax--Tax or fee levied.

5.01.060 Doing business with the City.

5.01.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes.

5.01.080 Deductions to prevent multiple taxation of manufacturing activities and, prior to January 1, 2008, transactions involving more than one city with an eligible gross receipts tax.

5.01.090 Assignment of gross income derived from intangibles.

5.01.100 Allocation and apportionment of income when activities take place in more than one jurisdiction.

5.01.110 Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction.

5.01.120 Exemptions.

5.01.130 Deductions.

5.01.140 Tax part of overhead.

5.01.150 Severability clause.

5.01.010 Purpose.

  The purpose of adopting this chapter is to comply with the provisions of Chapter 35.102 RCW in order to provide uniformity in the provisions and administration of the City’s business and occupation tax.  (Ord. 07-850 § 1).

5.01.020 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.  The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules.  The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code.  (Ord. 04-781 § 3; Ord. 07-850 § 1.  Formerly 5.01.010).

5.01.030 Administrative provisions.

  The administrative provisions contained in Chapter 5.13 DMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein.  (Ord. 04-781 § 4; Ord. 07-850 § 1.  Formerly 5.01.020).

5.01.040 Definitions.

  In construing the provisions of this chapter, the following definitions shall be applied.  Words in the singular number shall include the plural, and the plural shall include the singular.

(a) “Business” means and 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.

(b) “Business and occupation tax” or “gross receipts tax” means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business.

(c) “Commercial or industrial use” means the following uses of products, including by-products, by the extractor or manufacturer thereof:

(1) Any use as a consumer; and

(2) The manufacturing of articles, substances or commodities.

(d) “Delivery” means the transfer of possession of tangible personal property between the seller and the buyer or the buyer’s representative.  Delivery to an employee of a buyer is considered delivery to the buyer.  Transfer of possession of tangible personal property occurs when the buyer or the buyer’s representative first takes physical control of the property or exercises dominion and control over the property.  “Dominion and control” means the buyer has the ability to put the property to the buyer’s own purposes.  It means the buyer or buyer’s representatives has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract.  A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself.  A buyer’s representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property.  Neither a shipping company nor a seller can serve as a buyer’s representative.  It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property.  Delivery terms and other provisions of the Uniform Commercial Code (RCW Title 62A) do not determine when or where delivery of tangible personal property occurs for purposes of taxation.

(e) “Eligible gross receipts tax” means a tax which:

(1) Is imposed on the act or privilege of engaging in business activities within DMC 5.01.050; and

(2) Is measured by the gross volume of business in terms of gross receipts and is not an income tax or value added tax; and

(3) Is not, pursuant to law or custom, separately stated from the sales price; and

(4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and

(5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or any other non-local jurisdiction above the county level.

(f) “Engaging in Business.”

(1) “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.

(2) This definition sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the City without having to register and obtain a business license or pay City business and occupation taxes.  The activities listed in this definition are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection (f)(1) of this section.  If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law.

(3) Without being all-inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license:

(A) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City;

(B) Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the City;

(C) Soliciting sales;

(D) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance;

(E) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf;

(F) Installing, constructing, or supervising installation or construction of real or tangible personal property;

(G) Soliciting, negotiating, or approving franchise, license, or other similar agreements;

(H) Collecting current or delinquent accounts;

(I) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials;

(J) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property;

(K) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians;

(L) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings;

(M) Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers;

(N) Investigating, resolving, or otherwise assisting in resolving customer complaints;

(O) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place;

(P) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf; or

(Q) Accepting or executing a contract with the City, irrespective of whether goods or services are delivered within or without the City, or whether the person’s office or place of business is within or without the City.

(4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license and pay tax:

(A) Meeting with suppliers of goods and services as a customer;

(B) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions;

(C) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf;

(D) Renting tangible or intangible property as a customer when the property is not used in the City;

(E) Attending, but not participating in, a “trade show” or “multiple vendor events.” Persons participating at a trade show shall review the City’s trade show or multiple vendor event ordinances;

(F) Conducting advertising through the mail; or

(G) Soliciting sales by phone from a location outside the City.

(5) A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license; provided, that it engages in no other business activities in the City.  Such activities do not include those in subsection (4) of this section.

(6) The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the tax under the law and the Constitutions of the United States and the State of Washington.  Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts.

(g) “Extracting” is the activity engaged in by an extractor and is reportable under the extracting classification.

(h) “Extractor” means every person who from the person’s 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, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products.  “Extractor” does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer.

(i) “Extractor for hire” means a person who performs under contract necessary labor or mechanical services for an extractor.

(j) “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.

(k) “Gross proceeds of sales” means the value proceeding or accruing from the sale of tangible personal property 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.

(l) “Manufacturing” means the activity conducted by a manufacturer and is reported under the manufacturing classification.

(m) “Manufacturer,” “To Manufacture.”

(1) “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 the person’s own materials or ingredients any products.  When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than 20 percent of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire, and not a manufacturer.

(2) “To manufacture” means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include:

(A) The production of special made or custom made articles;

(B) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician;

(C) Crushing and/or blending of rock, sand, stone, gravel, or ore; and

(D) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables.

“To manufacture” shall not include the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser.

(n) “Person” means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, 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.

(o) “Retailing” means the activity of engaging in making sales at retail and is reported under the retailing classification.

(p) “Retail service” means and shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities:

(1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers.  “Amusement and recreation services” also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance.  The term “amusement and recreation services” does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons;

(2) Abstract, title insurance, and escrow services;

(3) Credit bureau services;

(4) Automobile parking and storage garage services;

(5) Landscape maintenance and horticultural services but excluding (A) horticultural services provided to farmers and (B) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility;

(6) Service charges associated with tickets to professional sporting events;

(7) The following personal services:  physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services; and

(8) The renting or leasing of tangible personal property to consumers and the rental of equipment with an operator.

(q) “Sale,” “Casual or Isolated Sale.”

(1) “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,” “retail sale,” or “retail service.” It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any 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 also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not.

(2) “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 on a routine or continuous basis.

(r) “Sale at Retail,” “Retail Sale.”

(1) “Sale at retail” or “retail sale” means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who:

(A) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or

(B) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or

(C) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or 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 being produced for sale; or

(D) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or

(E) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065.  The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a “sale at retail” or “retail sale” even though such property is resold or utilized as provided in (A), (B), (C), (D), or (E) of this subsection following such use.

(F) Purchases for the purpose of satisfying the person’s obligations under an extended warranty as defined in subsection (r)(7) of this section, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person.

(2) “Sale at retail” or “retail sale” also means every sale of tangible personal property to persons engaged in any business activity which is taxable under DMC 5.01.050(a)(7).

(3) “Sale at retail” or “retail sale” shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:

(A) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;

(B) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;

(C) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner;

(D) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term “janitorial services” shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery.  The term “janitorial services” does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting;

(E) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under Chapter 82.16 RCW;

(F) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same.  For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same;

(G) The sale of or charge made for tangible personal property, labor and services to persons taxable under (A), (B), (C), (D), (E), and (F) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a “sale at retail” or “retail sale” even though such property, labor and services may be resold after such use or consumption.  Nothing contained in this subsection shall be construed to modify subsection (1) of this definition and nothing contained in subsection (1) of this definition shall be construed to modify this subsection.

(4) “Sale at retail” or “retail sale” shall also include the providing of competitive telephone service to consumers.

(5) “Sale at retail” or “retail sale” shall also include the sale of canned software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user, but shall not include custom software or the customization of canned software.

(6) “Sale at retail” or “retail sale” shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the State, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind (public road construction).

(7) “Sale at retail” or “retail sale” shall also include the sale of or charge made for an extended warranty to a consumer.  For purposes of this subsection, “extended warranty” means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events.  The term “extended warranty” does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement.

(8) “Sale at retail” or “retail sale” shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to Chapter 35.82 RCW, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting).

(9) “Sale at retail” or “retail sale” shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority.  Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development.  (This should be reported under the service and other classification.)

(10) “Sale at retail” or “retail sale” shall not include the sale of or charge made for labor and services rendered for environmental remedial action.  (This should be reported under the service and other classification.)

(s) “Sale at wholesale” or “wholesale sale” means any sale of tangible personal property which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers.  “Sale at wholesale” also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715.

(t) “Services” means any activity that does not fall within one of the other tax classifications of the City.

(u) “Taxpayer” means any “person,” as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter.

(v) “Value proceeding or accruing” means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is 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.

(w) “Value of Products.”

(1) 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.

(2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and 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; the value shall correspond as nearly as possible to the gross proceeds from sales in this State 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.  In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis.  In such cases, there shall be included every item of cost attributable to the particular article or articles extracted or manufactured, including direct and indirect overhead costs.  The Director may prescribe rules for the purpose of ascertaining such values.

(3) Notwithstanding subsection (2) of this definition, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (A) the retail selling price of such new or improved product when first offered for sale; or (B) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale.

(x) “Wholesaling” means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification.  (Ord. 04-781 § 5; Ord. 07-850 § 1.  Formerly 5.01.030).

5.01.050 Imposition of the tax--Tax or fee levied.

(a) Except as provided in subsection (b) of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the City, whether the person’s office or place of business is within or without the City.  The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows:

(1) Upon every person engaging within the City in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted within the City for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent.  The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City;

(2) Upon every person engaging within the City in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured within the City, multiplied by the rate of one-tenth of one percent.  The measure of the tax is the value of the products, including by-products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City;

(3) Upon every person engaging within the City in the business of making sales at wholesale; as to such persons, 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 one-tenth of one percent;

(4) Upon every person engaging within the City in the business of making sales at retail; as to such persons, 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 one-tenth of one percent;

(5) Upon every person engaging within the City in the business of (A) printing, (B) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (C) publishing newspapers, magazines and periodicals, (D) extracting for hire, and (E) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent;

(6) Upon every person engaging within the City in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent; and

(7) Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent.  This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service.

(b) The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be, from all activities conducted within the City during any calendar year is equal to or less than $20,000, or is equal to or less than $5,000 during any quarter if on a quarterly reporting basis.  (Ord. 04-781 § 6; Ord. 05-792 § 1; Ord. 07-850 § 1.  Formerly 5.01.040).

5.01.060 Doing business with the City.

  Except where such a tax is otherwise levied and collected by the City from such person, there is hereby levied a tax on the privilege of accepting or executing a contract with the City.  Such tax shall be levied and collected whether goods or services are delivered within or without the City and whether or not such person has an office or place of business within or without the City.

As to such persons the amount of tax shall be equal to the gross contract price multiplied by the rate under DMC 5.01.050 that would otherwise apply if the sale or service were taxable pursuant to that section.  (Ord. 04-781 § 7; Ord. 07-850 § 1.  Formerly 5.01.050).

5.01.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes.

(a) Persons who engage in business activities that are within the purview of two or more subsections of DMC 5.01.050 shall be taxable under each applicable subsection.

(b) Notwithstanding anything to the contrary herein, if imposition of the City’s tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City’s tax, and still apply the City tax to as much of the taxpayer’s activities as may be subject to the City’s taxing authority.

(c) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied.

(d) Credit for Persons That Sell in the City Products That They Extract or Manufacture.  Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (1) with respect to the manufacturing of the products sold in the City, and (2) with respect to the extracting of the products, or the ingredients used in the products, sold in the City.  The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products.

(e) Credit for Persons That Manufacture Products in the City Using Ingredients They Extract.  Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City.  The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products.

(f) Credit for Persons That Sell Within the City Products That They Print, or Publish and Print.  Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City.  The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products.  (Ord. 04-781 § 8; Ord. 07-850 § 1.  Formerly 5.01.060).

5.01.080 Deductions to prevent multiple taxation of manufacturing activities and, prior to January 1, 2008, transactions involving more than one city with an eligible gross receipts tax.

(a) Amounts Subject to an Eligible Gross Receipts Tax in Another City That Also Maintains Nexus Over the Same Activity.  A taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction may be entitled to a deduction as follows:

(1) A taxpayer that has paid an eligible gross receipts tax, with respect to a sale of goods or services, to a jurisdiction in which the goods are delivered or the services are provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City.

(2) Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill shall assign those gross receipts to the jurisdiction where the person is domiciled (its headquarters is located).

(3) A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City.

(b) Person Manufacturing Products Within and Without.  A person manufacturing products within the City using products manufactured by the same person outside the City may deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products.  (Ord. 04-781 § 9; Ord. 07-850 § 1.  Formerly 5.01.070).

5.01.090 Assignment of gross income derived from intangibles.

  Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located).  (Ord. 04-781 § 10; Ord. 07-850 § 1.  Formerly 5.01.080).

5.01.100 Allocation and apportionment of income when activities take place in more than one jurisdiction.

  Effective January 1, 2008, gross income, other than persons subject to the provisions of Chapter 82.14A RCW, shall be allocated and apportioned as follows:

(a) Gross income derived from all activities other than those taxed as service or royalties under DMC 5.01.050(a)(7) shall be allocated to the location where the activity takes place.

(b) In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs.

(c) Gross income derived from activities taxed as services and other activities taxed under DMC 5.01.050(a)(7) shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two.

(1) The payroll factor is a fraction, the numerator of which is the total amount paid in the City during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.  Compensation is paid in the City if:

(A) The individual is primarily assigned within the City;

(B) The individual is not primarily assigned to any place of business for the tax period and the employee performs 50 percent or more of his or her service for the tax period in the City; or

(C) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform 50 percent or more of his or her service in any city and the employee resides in the City.

(2) The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the City during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period.  Service income is in the City if:

(A) The customer location is in the City; or

(B) The income-producing activity is performed in more than one location and a greater proportion of the service-income-producing activity is performed in the City than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or

(C) The service-income-producing activity is performed within the City, and the taxpayer is not taxable in the customer location.

(3) If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer’s business activity in the City or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer’s business activity, that one of the following methods by used jointly by the cities to allocate or apportion gross income, if reasonable:

(A) Separate accounting;

(B) The use of a single factor;

(C) The inclusion of one or more additional factors that will fairly represent the taxpayer’s business activity in the City; or

(D) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.

(d) The definitions in this subsection apply throughout this section.

(1) “Apportionable income” means the gross income of the business taxable under the service classifications of a city’s gross receipts tax, including income received from activities outside the City if the income would be taxable under the service classification if received from activities within the City, less any exemptions or deductions available.

(2) “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual’s gross income under the Federal Internal Revenue Code.

(3) “Individual” means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer.

(4) “Customer location” means the City or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place.

(5) “Primarily assigned” means the business location of the taxpayer where the individual performs his or her duties.

(6) “Service-taxable income” or “service income” means gross income of the business subject to tax under either the service or royalty classification.

(7) “Tax period” means the calendar year during which tax liability is accrued.  If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year.

(8) “Taxable in the customer location” means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so.

(e) Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable.  (Ord. 07-850 § 1).

5.01.110 Allocation and apportionment of printing and publishing income when activities
take place in more than one jurisdiction.

  Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this State from which the taxpayer’s business is directed or managed.  As used in this section, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.281(1) by the Department of Revenue.  (Ord. 07-850 § 1).

5.01.120 Exemptions.

  The following exemptions shall apply to this chapter:

(a) Public Utilities.  This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 5.05 DMC.

(b) Investments--Dividends from Subsidiary Corporations.  This chapter shall not apply to 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, and also amounts derived as dividends by a parent from its subsidiary corporations.

(c) Employees.

(1) This chapter shall not apply to any person in respect to the person’s employment in the capacity as an employee or servant as distinguished from that of an independent contractor.  For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended.

(2) A booth renter is an independent contractor for purposes of this chapter.

(d) Amounts Derived from Sale of Real Estate.  This chapter shall not apply to gross proceeds derived from the sale of real estate.  This, however, shall not be construed to allow an exemption 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 transactions.  This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of 30 days or longer.

(e) Mortgage Brokers’ Third-Party Provider Services Trust Accounts.  This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions.

(f) Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle Fuel.  This chapter shall not apply to the manufacturing, selling, or distributing of motor vehicle fuel, as the term “motor vehicle fuel” is defined in RCW 82.36.010 and exempt under RCW 82.36.440; provided, that any fuel not subjected to the State fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter.

(g) Amounts Derived from Liquor, and the Sale or Distribution of Liquor.  This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120.

(h) Casual and Isolated Sales.  This chapter shall not apply to the gross proceeds derived from casual or isolated sales.

(i) Accommodation Sales.  This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article, and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within 14 days to reimburse in kind a previous accommodation sale by the buyer to the seller.

(j) Taxes Collected as Trust Funds.  This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax.  (Ord. 04-781 § 11; Ord. 07-850 § 1.  Formerly 5.01.090).

5.01.130 Deductions.

  In computing the license fee or tax, there may be deducted from the measure of tax the following items:

(a) Receipts from Tangible Personal Property Delivered Outside the State.  In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer’s representative at a location outside the State of Washington.

(b) Cash Discount Taken by Purchaser.  In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser.  This deduction is not allowed in arriving at the taxable amount under the extracting 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 “value of product” provisions.

(c) Credit Losses of Accrual Basis Taxpayers.  In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis.

(d) Constitutional Prohibitions.  In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States.

(e) Receipts From the Sale of Tangible Personal Property and Retail Services Delivered Outside the City but Within Washington.  Effective January 1, 2008, amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property delivered to the buyer or the buyer’s representative outside the City but within the State of Washington may be deducted from the measure of tax under the retailing, retail services, or wholesaling classification.

(f) Professional Employer Services.  In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers’ compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement.  (Ord. 04-781 § 12; Ord. 07-850 § 1.  Formerly 5.01.100).

5.01.140 Tax part of overhead.

  It is not the intent of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons.  (Ord. 04-781 § 13; Ord. 07-850 § 1.  Formerly 5.01.110).

5.01.150 Severability clause

  If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected.  (Ord. 07-850 § 1).

Chapter 5.02
Gambling Tax

Sections:

5.02.010 Tax imposed.

5.02.020 Administration.

5.02.030 Incorporation of State law and county resolutions.

5.02.010 Tax imposed.

(a) There is hereby levied a tax upon the gross revenue of bingo, raffles and amusement games, which shall be imposed upon and collected from bona fide charitable and nonprofit organizations duly licensed by Pierce County to conduct such activities in the City of DuPont.

(b) The rate of tax imposed by the preceding subparagraph shall be five (5%) percent of the first $50,000.00 of gross annual revenue and ten (10%) percent of any amount of gross annual revenue over $50,000.00 received by a bona fide charitable or nonprofit organization conducting such activity.  Bona fide charitable or nonprofit organizations conducting such activities no more than once each calendar year and earning less than $10,000.00 gross annual revenue therefrom shall be exempt from taxation under this chapter, but shall nonetheless file the declaration of intent required by Pierce County Resolution No. 16845.

5.02.020 Administration.

  Collection and administration of the tax herein imposed shall be by Pierce County pursuant to Pierce County Resolutions No. 16845 and 16846.

5.02.030 Incorporation of State law and county resolutions.

  Chapter 218, Laws of Washington, 1973, 1st Extraordinary Session, and Pierce County Resolutions No. 16845 and 16846 (to the extent they are not inconsistent with sections 5.02.010 and 5.02.020 hereof) are incorporated in total by reference herein.  (Ord. 139, Feb. 13th, 1974).

Chapter 5.03
Leasehold Excise Tax

Sections:

5.03.010 Tax imposed.

5.03.020 Rate.

5.03.030 Administration.

5.03.040 Exemptions.

5.03.050 Consent to inspection of records.

5.03.060 Authority of Mayor.

5.03.070 Severability.

5.03.010 Tax imposed.

  There is hereby levied and shall be collected a leasehold excise tax on and after April 1, 1976 upon the act or privilege of occupying or using publicly owned real or personal property within the City of DuPont through a “leasehold interest” as defined by Section 2, Chapter 21, Laws of 1975-76, Second Extraordinary Session (hereafter “the State act”).  The tax shall be paid, collected, and remitted to the department of revenue of the State of Washington at the time and in the manner prescribed by Section 5 of the State act.

5.03.020 Rate.

  The rate of the tax imposed by section 5.03.010 shall be four (4%) percent of the taxable rent (as defined by Section 2 of the State act); provided, that the following credits shall be allowed in determining the tax payable:

(a) With respect to a leasehold interest arising out of any lease or agreement, the terms of which were binding on the lessee prior to July 1, 1970, where such lease or agreement has not been renegotiated (as defined in Section 2 of the State act) since that date, and excluding from such credit (1) any leasehold interest arising out of any lease of property covered by the provisions of Revised Code of Washington 28B.20.394 and (2) any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:

With respect to taxes due in calendar year 1976, a credit equal to eighty (80%) percent of the tax produced by the above rate;

With respect to taxes due in calendar year 1977, a credit equal to sixty (60%) percent of the tax produced by the above rate;

With respect to taxes due in calendar year 1978, a credit equal to forty (40%) percent of the tax produced at the above rate;

With respect to taxes due in calendar year 1979, a credit equal to twenty (20%) percent of the tax produced by the above rate.

(b) With respect to a product lease (as defined by Section 2 of the State act), a credit of thirty-three (33%) percent of the tax produced by the above rate.

5.03.030 Administration.

  The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the State act.

5.03.040 Exemptions.

  Leasehold interests exempted by Section 13 of the State act as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to section 5.03.010 of this chapter.

5.03.050 Consent to inspection of records.

  The City hereby consents to the inspection of such records as are necessary to qualify the City for inspection of records of the department of revenue pursuant to Revised Code of Washington 72.32.330.

5.03.060 Authority of Mayor.

  The Mayor is authorized to execute a contract with the department of revenue of the State of Washington for the administration and collection of the tax imposed by section 5.03.010; provided, that the City Attorney shall first approve the form and content of said contract.

5.03.070 Severability.

  If any provision of this chapter, or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.  (Ord. 175, April 11th, 1976).

Chapter 5.04
Business Licenses

Sections:

Article I. Generally

5.04.010 Licenses and fees.

Article II. Adult Entertainment

5.04.020 Purpose.

5.04.030 Definitions.

5.04.040 Permitted only in the industrial zone.

5.04.050 Sexually oriented business permit.

5.04.060 Personnel licenses.

5.04.070 Appeals of permit or license denials.

5.04.080 Suspension or revocation of permits or licenses.

5.04.090 Adult cabarets.

5.04.100 Adult arcades.

5.04.110 Video stores other than sexually oriented businesses.

5.04.120 Adult bookstores not “adult arcades.”

5.04.130 Exterior depictions of nudity prohibited.

5.04.140 Parking and exterior lighting.

5.04.150 Only one sexually oriented business per building.

5.04.160 Hours of operation.

5.04.170 Recordkeeping.

5.04.180 Inspections.

5.04.190 Exemptions for modeling.

5.04.200 Public nuisance, moral nuisance, injunctions.

5.04.210 Limitation of liability.

5.04.220 Violation--Penalty.

Article I. Generally

5.04.010 Licenses and fees.

  Every person, corporation, partnership, or other organization conducting business in the City of DuPont shall, before commencing such business in the City, obtain from the City Clerk a license and pay the fee therefor in accordance with the following schedule:

Cabaret	$100.00	per year or
	5.00	for a single 24 hours
Peddling or hawking	15.00	per year
Selling used automobiles	25.00	per year
Wrecking automobiles	50.00	per year
Home occupations with annual gross revenues of less than $10,000	20.00	per year
Other businesses	50.00	per year

Provided, that all licenses shall expire at midnight on the thirty-first day of December of each year, unless earlier revoked as herein provided, and if application be made at any time after January 1st of any year, license shall be issued only to and including December 31st, and the fee shall be the same as for an entire year.

The term “cabaret” as used in this chapter means any establishment licensed for the sale of beer, wine or other alcoholic liquor, where entertainment or music other than by phonograph, radio or television is provided, or where dancing by patrons is permitted.

The term “home occupation” as used in this chapter is defined in DMC 25.10.080.  (Ord. 138, Feb. 13th, 1974; Ord. 03-732 § 1; Ord. 03-737 § 1; Ord. 04-769 § 1).

Article II. Adult Entertainment

5.04.020 Purpose.

 It is the purpose of this chapter to regulate sexually oriented businesses and related activities to promote health, safety, morals, and general welfare of the citizens of the City of DuPont, and to establish reasonable and uniform regulations to prevent the deleterious location of sexually oriented businesses within the City.  The provisions of this chapter have neither the purpose nor effect of imposing a limitation or restriction on the content of any communicative materials, including sexually oriented materials.  Similarly, it is not the intent nor effect of this chapter to restrict or deny access by adults to sexually oriented materials protected by the State or federal constitutions, or to deny access by the distributors and exhibitors of sexually oriented entertainment to their intended market.  Neither is it the intent nor effect of this chapter to condone or legitimize the distribution of obscene materials.  (Ord. 97-564 § 1).

5.04.030 Definitions.

 See Chapter 25.220 DMC.

5.04.040 Permitted only in the industrial zone.

 Except as provided in DMC 5.04.120 (adult bookstores not meeting the definition of “adult arcade”), sexually oriented businesses as defined herein may only locate within those portions of the industrial zone (as established in the industrial zone section of this title) at least 100 feet distant from all existing residences, residential zones, public parks, churches, other religious facilities, schools, and businesses deriving at least 50 percent of their revenues from the patronage of persons under 18 years of age.  Such distance shall be measured in a straight line from the nearest property line of the proposed sexually oriented business site to the nearest property line of the other stated uses.  (Ord. 97-564 § 3).

5.04.050 Sexually oriented business permit.

(a) No sexually oriented business shall operate without a valid, nontransferable sexually oriented business permit.  Possession of other State or City permits or licenses shall not exempt any business from this requirement.  Sexually oriented business permits are good only for the business name, location, and other particulars specified on the permit.  No entertainer, employee, or operator shall knowingly work for or perform any service directly related to the operation of a sexually oriented business lacking a valid sexually oriented business permit.

(b) The administrator is responsible for granting, denying, revoking, renewing, suspending, and canceling sexually oriented business permits and other licenses required by this adult entertainment chapter and for ascertaining whether such requested sexually oriented business or license complies with all applicable requirements.

(c) Any person desiring to operate a sexually oriented business shall file with the administrator an original and two copies of a sworn permit application on a form supplied by the City, containing the following information:

(1) If the applicant is:

(A) An individual, he/she shall state their legal name and any aliases or previous married names and submit satisfactory proof that he/she is at least 18 years of age;

(B) A partnership, the partnership shall state its complete name, and the names of all partners, and include their dates of birth, and partnership agreement, if applicable;

(C) A corporation, the corporation shall state its complete name, the date of its incorporation, evidence that the corporation is in good standing under the laws of Washington, the names and capacity of all officers, directors and shareholders, the name of the registered corporate agent, and the address of the registered office for service of process.

(2) Every individual, partner, officer, director, or shareholder party to the application shall submit, as part of the application:

(A) Their mailing address and residential address;

(B) An affidavit attesting to their identity and relationship to the corporation;

(C) A complete set of fingerprints, utilizing fingerprint forms as prescribed by the chief of police;

(D) Two two-inch-by-two-inch black and white full-face photographs of themselves taken within the preceding six months.  The photographs shall be provided at the applicant’s expense.  The permit or license, when issued, shall have affixed to it one such photograph;

(E) Their driver’s license numbers, Social Security numbers, and State or federal tax identification numbers.

(3) The application shall divulge whether any individual, partner, officer, director, or shareholder party to the application:

(A) Has been convicted of a specified criminal act as defined herein within the previous two years and, if so, shall state the specified criminal act involved and the date and place of conviction;

(B) Has had a previous permit or license under this chapter or other similar ordinances from another City or county denied, suspended, or revoked, including the name and location of the sexually oriented business for which the permit or license was denied, suspended, or revoked, and the date;

(C) Holds any other permits and/or licenses under this chapter or other similar ordinance of any other City or county and, if so, the names and locations of such other permitted businesses.

(4) The application shall also contain:

(A) The specific type of proposed business;

(B) The location of the proposed business, including a legal description of the property, street address, and telephone number(s), if any; and

(C) In the case of an adult cabaret, a sketch or diagram showing conformance with that portion of this chapter relating to adult cabarets, and a statement of total floor space occupied by the business.

(5) The applicant shall pay a nonrefundable application processing fee of $200.00 or as otherwise stipulated in DMC Title 2 at the time of filing.  Annual fees shall also be required if the application is approved.

(6) The application form for licenses and permits issued under this chapter shall contain a provision providing that under penalty of perjury the applicant verifies that the information contained therein is true to the best of their knowledge.

(d) Applicants for permits and licenses under this chapter shall have a continuing duty to promptly supplement application information required in the event that said information changes in any way from what is stated on the application.  The failure to comply with said continuing duty within 30 days from the date of such change by supplementing the application on file with the administrator shall be grounds for suspension of a permit and license.

(e) In the event the administrator determines or learns at any time that the applicant has improperly completed the application for a proposed sexually oriented business permit or license, he/she shall promptly notify the applicant of such fact and allow the applicant 10 days to properly complete the application.  The time period for granting or denying a permit shall be stayed while the applicant properly completes the application.

(f) Applicants must be qualified according to the provisions of this chapter, must have a current City business license, and the premises must be inspected and found to be in compliance with health, fire, and building codes of the City.

(g) Upon receipt of an application properly filed with the administrator and upon payment of the nonrefundable application fee, the administrator shall immediately stamp the application as received and send photocopies of the application to other City departments or other agencies responsible for enforcement of health, fire, and building codes and laws.  Within 50 working days of receipt of the application by the administrator, said departments and agencies shall investigate the application and recommend approval or disapproval.  A department or agency shall recommend disapproval of an application if it finds that the proposed sexually oriented business will violate any provision of any statute, code, ordinance, regulation or other law in effect in the City, and shall cite the same.

(h) The administrator shall grant or deny an application for a permit within 60 days from the date of its proper filing, failure in which shall constitute approval of the permit, unless and until the administrator notifies the applicant of a denial of the application and states the reason(s) for that denial.

(i) The permit, if granted, shall state on its face the name of the person or persons to whom it is granted, the expiration date, and the address of the sexually oriented business.  The permit shall be posted in a conspicuous place at or near the entrance to the sexually oriented business.

(j) The administrator shall grant the application unless an applicant:

(1) Is under 18 years of age;

(2) Is overdue on his/her payment to the City of taxes, fees, fines, or penalties assessed against him/her or imposed upon him/her in relation to a sexually oriented business;

(3) Has failed to provide required application or has provided false information on the application form; or

(4) Has failed to comply with any provision or requirement of this chapter.

(k) Each valid sexually oriented business permit shall be subject to an annual fee, the purpose of which is to offset the cost of administering this chapter.  Unless otherwise stipulated in DMC Title 2, the annual fee for adult cabarets shall be $500.00, and the annual fee for all other types of sexually oriented businesses shall be $300.00.  Nonpayment of annual fee on the annual due date shall render the permit immediately null and void.  (Ord. 97-564 § 4).

5.04.060 Personnel licenses.

(a) Adult Cabaret Manager or Entertainer License.  No person shall manage or entertain at an adult cabaret until at least 14 days after having obtained a nontransferable adult cabaret manager or entertainer license from the administrator.  The process and information requirements shall be the same as that for sexually oriented business permits, except that the nonrefundable processing fee shall be $125.00, and the annual license fee shall be $300.00 or, in both cases, as otherwise stipulated in DMC Title 2.  The purpose of the fees is to offset the cost of administering this chapter.  Nonpayment of annual fee on the annual due date shall render the license immediately null and void.  The license of the manager on duty shall be prominently posted during business hours.  Entertainers’ licenses shall be posted in their work areas in a manner readily available for public inspection.  No one under 18 years of age may hold an adult cabaret manager’s or entertainer’s license.

(b) Model or Escort License.  No person shall work as a model at a nude or semi-nude model studio or as an escort as defined herein until at least 14 days after having obtained a nontransferable model or escort license from the administrator.  The process and information requirements shall be the same as that for sexually oriented business permits, except that the nonrefundable processing fee shall be $125.00 and the annual license fee shall be $200.00 or, in both cases, as otherwise stipulated in DMC Title 2.  The purpose of the fees is to offset the cost of administering this chapter.  Nonpayment of annual fee on the annual due date shall render the license immediately null and void.  No one under 18 years of age may hold a model or escort license.  Models and escorts shall post their licenses in their work areas so that the licenses are readily available for public inspection.  (Ord. 97-564 § 5).

5.04.070 Appeals of permit or license denials.

(a) When the administrator refuses to grant a license or permit, he/she shall notify the applicant in writing, describing the reasons therefor, and shall inform the applicant of his right to appeal to the City Council within 10 days of the date of the written notice by filing a written appeal with the administrator containing a statement of the specific reasons and the relief requested.

(b) Within 10 days of receiving a timely appeal, the administrator shall forward the administrative record of the permitting or licensing decision to the City Council.

(c) The City Council shall review the administrative record at the next regularly scheduled meeting for which proper notice can be given.  The administrator shall notify the applicant in writing of the date and time of the meeting.

(d) The applicant and administrator shall be given an opportunity to argue the merits of the appeal before the City Council.  Oral argument by each party shall be limited to the administrative record before the Council.  New evidence shall not be presented.

(e) The City Council shall uphold the administrator’s decision unless it finds the decision is not supported by substantial evidence in the administrative record.  The applicant shall bear the burden of proof.

(f) The City Council shall issue a written decision within 10 days of hearing the appeal.  The Council may uphold the administrator’s decision, overrule the administrator’s decision, or remand the matter to the administrator for further review.  The administrator shall complete said further review within 30 days of receiving the remand.

(g) Appeal to the City Council shall constitute final administrative review.  (Ord. 97-564 § 6).

5.04.080 Suspension or revocation of permits or licenses.

(a) Whenever the administrator has found that any violation of this chapter has occurred, he or she shall:

(1) Suspend the applicable permit or license for 30 days upon the first violation;

(2) Suspend the applicable permit or license for 90 days upon the second violation;

(3) Revoke the applicable permit or license for one year upon the third or any subsequent violation, or at any time that the permittee or licensee knowingly makes any false or misleading statements to the City.  Application for a new license may be made following the expiration of the applicable revocation period.

(b) The suspension or revocation shall be immediately effective unless a stay thereof is specifically requested in the written request for a hearing.

(c) The administrator shall promptly issue to the permittee or licensee a notice of violation and suspension or revocation (“Notice”) including:

(1) Name(s) of person(s) involved;

(2) Description of the violation(s), including date and provision violated;

(3) Description of the administrative action taken;

(4) Rights of appeal as set forth above.

(d) The notice shall be served either personally or by mailing a copy by certified mail, postage prepaid, return receipt requested, to the permittee or licensee at his or her last known address.  Proof of personal service shall be made at the time of service by a written declaration under penalty of perjury executed by the person effecting the service, declaring the time, date and the manner by which service was made.

(e) The permittee or licensee may, within 10 days of personal service of notice, or 15 days of mailing of the notice, file with the administrator a written request for hearing specifying the reason(s) for the appeal.

(f) The administrator shall have the burden to prove, by a preponderance of the evidence, that the identified violation(s) occurred.

(g) In all other respects, the appeal procedure shall be the same as that of appealing a permit or license denial.

(h) Either party may seek judicial review of a final decision of the City Council as provided by law.  (Ord. 97-564 § 7).

5.04.090 Adult cabarets.

(a) Sexually oriented adult entertainment shall be performed on a stage or platform separated from all patron seating areas in the following ways:

(1) At least 24 inches in elevation above;

(2) Separated by a distance of at least 10 feet horizontally; and

(3) Having a continuous railing at least three feet in height, extending from the floor, and located at least 10 feet from all points of the stage or platform.

(b) No employee or entertainer shall appear nude or semi-nude on any part of the premises open to view of members of the public, except on or in the above-described stage or platform.

(c) No patron or customer shall go into or upon the above-described stage or platform while sexually oriented entertainment is being performed.

(d) All parts of the premises open to patrons shall be lit so that all objects are plainly visible at all times, and so that on any a program, menu, or list printed in 8-point type will be readable.

(e) A licensed manager other than an entertainer shall be on duty at an adult cabaret during all business hours.  The manager shall verify that any entertainer who works or appears within the premises possesses a valid and posted entertainer’s license.

(f) No member of the public or employee or entertainer shall allow, encourage, or knowingly permit any person upon the premises to touch, caress, or fondle the breasts, buttocks, anus, pubic area, or genitals of any other person.

(g) No member of the public or employee or entertainer shall allow, encourage, or permit physical contact between an employee or entertainer and any member of the public, which contact is intended to arouse or excite sexual desires.

(h) No employee or entertainer shall perform acts of or acts which simulate sexual intercourse, masturbation, bestiality, sodomy, oral copulation, flagellation, or any sexual acts which are prohibited by law, or which simulate the touching, caressing, or fondling of the breasts, buttocks, pubic area, or genitals, nor shall any employee or entertainer use artificial devices or inanimate objects to depict any of said prohibited activities.

(i) No entertainer of an adult cabaret shall be visible from any public place outside the premises during the actual or apparent hours of his or her employment or performance on the premises.

(j) No entertainer employed or otherwise working at an adult cabaret shall solicit, demand, accept, or receive any gratuity or other payment from a patron, customer, or member of the public.

(k) No customer or patron of an adult cabaret shall give or otherwise provide an entertainer with a gratuity or other payment.

(l) Signs in lettering at least three-quarters inch high shall be conspicuously displayed in the public area of the establishment stating the following:

This adult cabaret is regulated by the City of DuPont.  Entertainers are not permitted to:

Engage in any type of sexual conduct;
Appear nude or semi-nude, except on stage;
Dance or model where patrons are congregated;
Solicit, demand, accept, or receive any gratuity or other payment from a patron.

(m) At any adult cabaret featuring live performances involving the exposure of “specified anatomical areas” or “specified sexual activities,” admission shall be restricted to persons 18 years of age or older.  (Ord. 97-564 § 8).

5.04.100 Adult arcades.

 All adult arcades and adult bookstores having facilities for customers’ viewing of depictions of human nudity and/or sexual conduct of any nature, including depictions of specified sexual activities, shall comply with the following regulations:

(a) The viewing areas within the sexually oriented viewing booth shall be visible from a continuous main aisle and shall not be obscured by any curtain, door, wall or other enclosure.  “Viewing area” means the area where a patron or customer would ordinarily be positioned while watching a film, video or other viewing device.

(b) The permittee shall not allow any doors to public areas on the premises to be locked during business hours.

(c) Sexually oriented adult viewing booths shall be lit so that all objects are plainly visible at all times, and so that on any a program, menu, or list printed in 8-point type will be readable.

(d) The permittee shall not permit more than one person to occupy an adult arcade station or viewing booth at any time and shall conspicuously post public notices to this effect.

(e) There must be at least one employee on duty and situated in the public room adjacent to the adult arcade stations or viewing booths at all times that any patron, member, or customer is on the premises.

(f) There must be permanently posted and maintained in at least two conspicuous locations on the interior of every adult arcade premises a sign, the letters of which shall be on a contrasting background and no smaller than three-quarters inch high, stating substantially the following:  “Occupancy of any station or viewing booth is at all times limited to one person.  There may be no acts of lewd or obscene conduct in the stations or viewing booths or on the premises.  Violators are subject to criminal prosecution.”

(g) The direct view into the adult arcade viewing booths or stations from the adjacent public room must remain unobstructed by any doors, walls, merchandise, display racks or other materials at all times.

(h) No patron, member, or customer shall be permitted to any area of the premises which has not been designated for the public.

(i) No adult arcade viewing booth or station may be occupied by more than one person at any time.

(j) There shall be no acts of lewd or obscene conduct in the adult arcade stations or viewing booths or on the premises.

(k) No person may operate, conspire to operate, or maintain any system or device for warning patrons or customers that police officers or fire or building inspectors are approaching.

(l) No person under 18 years of age, whether patron, member, customer, agent, employee, or independent contractor, shall enter an adult arcade booth.

(m) Restrooms may not contain video reproduction equipment.

(n) No steps or risers are allowed in any adult arcade viewing booth or station.

(o) No adult arcade station or viewing booth shall have more than one stool-type seat.  In order to prevent obscuring the occupant of an adult arcade station or viewing booth from view, no stool for seating therein shall have any back or sides.  The seat cannot be positioned behind the doorway so that the occupant sits with his or her back to the door.

(p) All ventilation devices between the adult arcade viewing booths must be covered by a permanently affixed ventilation cover.  Ventilation holes may only be located one foot from the top of the viewing booth walls or one foot from the bottom of the viewing booth walls.  There may not be any other holes or openings between the viewing booths.  (Ord. 97-564 § 9).

5.04.110 Video stores other than sexually oriented businesses.

 Video stores, one percent to 20 percent of the stock-in-trade or revenues of which comes from the rental, sale, or distribution of films, motion pictures, video cassettes, slides, or other visual representations which depict or describe specified sexual activities or specified anatomical areas, shall be subject to the following regulations:

(a) All such items described above shall be physically segregated and closed off from other portions of the store such that these items are not visible or accessible from other portions of the store.

(b) No advertising for such items shall be posted or otherwise visible, except where such items are authorized for display.

(c) Signs readable at a distance of 20 feet shall be posted at the entrance to the area where such items are displayed stating that persons under the age of 18 are not allowed.

(d) The manager or attendant shall take reasonable steps to ensure that persons under 18 years of age do not access the age-restricted area, and shall check identification of persons appearing to be 18 or under to insure that such items are not rented or sold to them.

(e) Rental or sale of obscene material (as defined by State law) or material harmful to minors (as defined by State law) to persons under 18 years of age is prohibited.  (Ord. 97-564 § 10).

5.04.120 Adult bookstores not “adult arcades.

” In addition to locating in the industry zone, an adult bookstore not meeting the definition of “adult arcade” may locate in the commercial or mixed use zones, as established in the chapters of this title so titled; provided said adult bookstore is at least 1,200 feet distant from any other adult bookstore, and at least 600 feet distant from any existing church or school.  Such distances shall be measured in a straight line from the nearest property line of proposed adult bookstore location to the nearest property line of the other stated use.  (Ord. 97-564 § 11).

5.04.130 Exterior depictions of nudity prohibited.

 The facades, exteriors, and signs of sexually oriented businesses shall not depict nude or semi-nude males or females.  (Ord. 97-564 § 12).

5.04.140 Parking and exterior lighting.

(a) All on-site parking areas and premises entries of sexually oriented businesses shall be illuminated from dusk until one hour past the business’s closing time sufficiently to illuminate and make visible the parking surface, walkways, and entries.

(b) All parking shall be visible from the fronting street.

(c) Access to the exterior rear of the building shall be denied to any persons other than employees and public officials during the performance of their respective duties and tasks.  (Ord. 97-564 § 13).

5.04.150 Only one sexually oriented business per building.

 No more than one sexually oriented business shall operate in the same building, and no nonsexually oriented business shall operate in the same building in which a sexually oriented business operates.  (Ord. 97-564 § 14).

5.04.160 Hours of operation.

 No sexually oriented business, except adult motels, shall be conducted, operated, or otherwise open to the public between the hours of 2:00 a.m. and 11:30 a.m.  (Ord. 97-564 § 15).

5.04.170 Recordkeeping.

(a) Within 30 days following the end of each calendar quarter, each sexually oriented business permittee shall file with the administrator a verified report showing the permittee’s gross receipts and amounts paid to entertainers, models, or escorts, if applicable, for the preceding calendar year.

(b) Each sexually oriented business permittee shall maintain and retain for a period of two years beyond the last date of employment the full name, date of birth, address, age and drivers license number of all persons employed or otherwise retained as entertainers, models, and escorts by the permittee.  (Ord. 97-564 § 16).

5.04.180 Inspections.

(a) All records required to be kept pursuant to this chapter shall be open to inspection by the administrator during the hours when the premises are open for business upon two days’ written notice to the permittee.  The purpose of such inspection shall be to determine if the records meet the requirements of this chapter.

(b) Sexually oriented businesses shall, as a condition of receiving a sexually oriented business permit, be open to inspection by the administrator during its business hours.  The purpose of such inspection shall be to determine if the business is operated in accordance with this chapter.  Unannounced inspections are necessary to insure compliance.  (Ord. 97-564 § 17).

5.04.190 Exemptions for modeling.

(a) It is a defense to prosecution under this chapter that a person appearing in a state of nudity or semi-nudity did so in a modeling class operated by a state-licensed or state-supported school, college, or university, or a private school or college from which credits are transferable to a state-licensed or state-supported college, junior college, or university.

(b) It is a defense to prosecution under this chapter that a person appearing in a state of semi-nudity was modeling clothing or lingerie in a full-service restaurant where no consideration was charged, directly or indirectly, and the model did not expose specified anatomical areas.  (Ord. 97-564 § 18).

5.04.200 Public nuisance, moral nuisance, injunctions.

(a) Sexually oriented businesses in violation of this chapter shall be deemed a public nuisance, which, in addition to all other remedies, may be abated by injunctive relief.

(b) Chapter 7.48 RCW pertaining to moral nuisances is hereby adopted by reference.  (Ord. 97-564 § 19).

5.04.210 Limitation of liability.

 Nothing in this chapter is intended to create a cause of action or provide the basis for a claim against the City, its officials, or employees for the performance or the failure to perform a duty or obligation running to a specific individual(s).  Any duty or obligation created herein is intended to be a general duty or obligation running in favor of the general public.  (Ord. 97-564 § 20).

5.04.220 Violation--Penalty.

 Any person violating any provision(s) of this chapter shall be guilty of a gross misdemeanor.  Any person convicted of such a violation shall be punished by a fine of not more than $5,000 or a jail term of not more than one year, or both.  Each such person is guilty of a separate misdemeanor for each and every day which any violation of this chapter is committed, continued, or permitted by any such person and said person shall be punished accordingly.  Any persons violating any of the provisions of this chapter shall also be subjected to license suspension or revocation as set forth herein.  (Ord. 97-564 § 21).

Chapter 5.05
Electrical Energy, Gas, Garbage, Solid Waste, Water, and Telephone Tax

Sections:

5.05.010 Rate of tax.

5.05.020 Definitions.

5.05.030 Quarterly payment.

5.05.040 Method of payment.

5.05.050 Allocation of income--Cellular telephone service.

5.05.060 Records.

5.05.070 Failure to pay.

5.05.080 Sale or transfer of business.

5.05.090 Application and returns confidential.

5.05.100 Over and under payment of tax.

5.05.110 Appeals to City Council.

5.05.120 Mayor to make rules.

5.05.130 Mailing of notices.

5.05.140 False or fraudulent returns.

5.05.150 Utility tax and the business and occupation tax.

5.05.160 Violation--Penalties.

5.05.010 Rate of tax.

  There is levied upon, and shall be collected from, every person or corporation engaged in the business of providing light and power service, natural gas service, telephone service, garbage and solid waste collection and disposal service, storm water and surface water service, water distribution service, sewer service and cellular telephone service, an annual tax, from and after the effective date of the ordinance codified in this section, for the privilege of conducting such business, equal to six percent of the total gross revenues received from the operation of such businesses within the corporate limits of the City of DuPont.  (Ord. 644 § 1, 1999; Ord. 98-622 § 1).

5.05.020 Definitions.

  In construing the provisions of this chapter, except when otherwise declared or clearly apparent from the context, the following shall be applied:

(a) “Cellular telephone service” is 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 (WUTC).  This includes other wireless radio communications technology which accomplishes a purpose similar to cellular mobile service.

(b) “Competitive telephone service” means the providing, by a person or corporation, of telephone 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 may be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.  Transmission of communication through cellular telephone is classified as “telephone business” under subsection (c) of this section rather than “competitive telephone service.”

(c) “Telephone service” means the business of providing access to a local telephone network, local telephone network switching service, toll service, cellular telephone service, coin telephone services, telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system.  It includes cooperative or farmer line telephone companies or associations operating an exchange.  Telephone business does not include the providing of competitive telephone service, the providing of cable television service nor the providing of broadcast services by radio or television stations.

(d)  “Garbage and solid waste collection and disposal service” means the business of operating a system for the collection and/or disposal of garbage and solid waste or disposal of garbage and solid waste or refuse.

(e) “Natural gas distribution service” means the business of operating a plant or system for the production or distribution for hire or sale of gas, whether manufactured or natural.

(f) “Light and power service” means the business of operating a plant or system for the generation, production, or distribution of electrical energy for hire or sale.

(g) “Storm and surface water service” means the furnishing of services in the management and control of stormwater and surface water and the construction or furnishing of stormwater facilities.

(h) “Water distribution service” means the business of operating a plant or system for the distribution of water for hire or sale.

(i) “Gross revenue” means the value proceeding or accruing from the performance of the particular public utility service involved within the City, including operations incidental thereto, but without any deduction on account of the cost of the commodity interest, discounts, delivery costs, taxes, or any other expense whatsoever, paid or accrued and without any deduction on account of losses; provided, that gross revenue of a light and power business means those amounts or value accruing to a taxpayer from the last distribution of electrical energy which is a taxable event within this state; and, provided further, that gross revenue of a cellular telephone service shall mean gross subscriber revenues.

(j) “Person” or “company,” herein used interchangeably, means any individual, firm, partnership, corporation, trust, association, governmental unit, or municipal corporation.

(k) “Public utility service” means any garbage and solid waste collection and disposal business, natural gas business, light and power business, telephone business, water distribution business, cellular telephone service, or stormwater and surface water service as define in this section operated by any person, private or public.

(l) “Reporting quarterly” shall mean a three-month period beginning the first day of the following months:  January, April, July, and October.  (Ord. 98-622 § 2).

5.05.030 Quarterly payment.

  The taxes imposed hereunder shall be due and payable to the City in quarterly installments and remittance therefor shall be made on or before the last day of the month next succeeding the end of the quarterly period in which the tax accrued, that is, on October 31st, January 31st, April 30th, and July 31st of each year.  The remittance shall be made as hereinafter provided and shall be accompanied by a return on a form to be provided and prescribed by the Mayor or his designee.  To the return the taxpayer shall be required to swear or affirm that the information therein given is full and true and that the taxpayer knows the same to be so.  (Ord. 98-622 § 3).

5.05.040 Method of payment.

  The taxes imposed hereunder shall be paid to the City by bank draft, certified check, cashier’s check, personal check or money order, wire transfer, or in cash.  If payment is made by draft or check, the tax shall not be deemed paid unless the check or draft is honored in the usual course of business; nor shall the acceptance of any such by the City be an acquaintance or discharge of the tax unless the amount of the payment is in the full and actual amount due.  The return shall be presented to the Mayor or his designee who shall endorse thereupon the date and amount of payment by him/her and file the same.

The Mayor or his designee is authorized, but not required, to mail to taxpayers forms for returns, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from making returns, when and as due hereunder.  (Ord. 98-622 § 4).

5.05.050 Allocation of income--Cellular telephone service.

(a) The tax levied herein shall apply to subscriber revenues from customers whose principal service address is within the City of DuPont, Washington, for that telephone service from telephones without a fixed location.

(b) It shall be presumed that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.

(c) When the service is provided while a subscriber is outside the subscribers normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of call, or to the location of the mail cellular switching office that switched the call.  (Ord. 98-622 § 5).

5.05.060 Records.

Records shall be kept in the same manner as required by the DMC 5.01.150.  (Ord. 98-622 § 6).

5.05.070 Failure to pay.

  Penalty provisions shall be consistent with the penalty provisions of the DMC 5.01.180.  (Ord. 98-622 § 7).

5.05.080 Sale or transfer of business.

  Upon the sale or transfer during any quarterly period of business on account of which a tax is hereby required, the purchaser or transferee shall, if the tax has not been paid in full for said quarterly period, be responsible for the payment of the tax for that portion of the quarterly period during which he carries on such business.  (Ord. 98-622 § 8).

5.05.090 Application and returns confidential.

  Applications and returns shall be kept in the same manner as required by the DMC 5.01.200.  (Ord. 98-622 § 9).

5.05.100 Over or under payment of tax.

  Any over or under payment of tax shall be handled in the same manner as required by DMC 5.01.210 and 5.01.220.  (Ord. 98-622 § 10).

5.05.110 Appeals to City Council.

  Any appeals shall be handled in the same manner as provided in the DMC 5.01.240.  (Ord. 98-622 § 11).

5.05.120 Mayor to make rules.

  The Mayor shall have the power and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter for the purpose of carrying out the provisions hereof, and it shall be unlawful to violate or fail to comply with any such rule or regulation.  (Ord. 98-622 § 12).

5.05.130 Mailing of notices.

  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 Mayor’s designee or if no such address is shown, to such address as the Mayor or his designee is able to ascertain by reasonable effort.  Failure of the taxpayer to receive such mailed notice shall not release the taxpayer from any tax or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter.  (Ord. 98-622 § 13).

5.05.140 False or fraudulent returns.

  It shall be unlawful for any person liable to tax hereunder to fail or refuse to make the returns as and when required, or to pay the tax when due, or for any person to make any false or fraudulent return or any false statement or representation in, or in connection with, any such return, or to aid or abet another in any attempt to evade payment of the 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. 98-622 § 14).

5.05.150 Utility tax and the business and occupation tax.

  Any taxpayer who is subject to and pays the tax hereunder shall not be subject to any business and occupation tax with the City of DuPont.  (Ord. 98-622 § 15).

5.05.160 Violation--Penalties.

  Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the Mayor or his designee pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00, or by imprisonment in jail for a term not exceeding 90 days, or by both such fine and imprisonment.  (Ord. 98-622 § 16).

Chapter 5.06
Real Estate Excise Tax

Sections:

5.06.010 Imposition.

5.06.012 Additional tax--One-quarter percent.

5.06.015 Additional tax--Municipal capital improvements fund.

5.06.020 Taxable events.

5.06.030 Consistency with State tax.

5.06.040 Distribution of tax proceeds and limiting the use thereof.

5.06.050 Seller’s obligation.

5.06.060 Lien provisions.

5.06.070 Notation of payment.

5.06.080 Date payable.

5.06.090 Excessive and improper payments.

5.06.100 Severability.

5.06.010 Imposition.

  There is hereby imposed a tax of one-quarter of one percent of the selling price on each sale of real property within the corporate limits of this City.  (Ord. 287 § 1, Aug. 11th, 1982).

5.06.012 Additional tax--One-quarter percent.

(a) Pursuant to the authority contained in RCW 82.46.035(2), there is hereby imposed an additional tax of one-quarter of one percent of the selling price in each sale of real property within the City.

(b) The tax imposed herein shall be collected from persons who are taxable by the State of Washington under Chapter 82.45 RCW and Chapter 458-61 WAC upon the occurrence of any taxable event within the City.

(c) The tax imposed herein shall comply with all applicable rules, regulations, and laws regarding real estate excise taxes pursuant to Chapter 82.45 RCW and Chapter 458-61 WAC, to the extent that they are not inconsistent with this section.

(d) Revenues generated by the tax imposed herein shall be placed in a separate account, and shall be expended only for the purposes enumerated in RCW 82.46.035.

(e) The tax imposed herein shall be enforceable in any manner authorized by law, and the amount thereof and any interest or penalty thereon shall be a specific lien on each piece of real property sold from the time of sale until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages.

(f) The taxes imposed herein shall be paid to and collected by the Pierce County Treasurer, who shall act as agent for the City in collecting such tax.  The Pierce County Treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales.  A receipt issued by the Pierce County Treasurer for payment of the tax imposed herein shall be evidence of satisfaction of the lien imposed in subsection (e) of this section and may be recorded in the manner prescribed for recording satisfactions of mortgages.  No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the Pierce County Auditor for filing or recording until the tax is paid and the stamp affixed thereto.  In case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of that fact is made on the instrument by the Pierce County Treasurer.

(g) The tax unpaid herein shall be due and payable immediately at the time of sale, and if not so paid within thirty days thereafter, shall bear interest at the rate of one percent per month from the time of sale until the date of payment.

(h) If, on written application by a taxpayer to the Pierce County Treasurer for a refund, it appears that a tax has been paid in excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess amount or improper payment shall be refunded by the County Treasurer to the taxpayer; provided, that no refund shall be made unless the State has first authorized the refund of an excessive amount or an improper amount paid, unless such improper amount was paid as a result of a miscalculation.  Any refund made shall be withheld from the next monthly distribution to the City.  (Ord. 510 §§ 1--8, Feb. 28th, 1995).

5.06.015 Additional tax--Municipal capital improvements fund.

(a) Pursuant to the authority contained in RCW 82.46.035(1), a real estate excise tax of.0025 of the selling price is hereby imposed on each sale of real property in the corporate limits of the City of DuPont.

(b) The remaining proceeds of the tax hereby imposed shall be placed in a municipal capital improvements fund.  No monies shall be w