Title 3
FINANCE*

Chapters:

3.08 Excise Tax on Occupying or Using Publicly Owned Real or Personal Property

3.10 Excise Tax on Sale or Furnishing of Lodgings

3.11 Excise Tax on Sale of Real Property

3.12 Park Properties/Facilities and Recreational Services Reserve Fund

3.14 Cumulative Reserve Art Fund

3.16 Payroll and Claims Funds

3.20 Sewer Fund

3.24 Local Improvements – Guaranty Fund

3.28 Local Improvements – Financing

3.30 Reimbursement Agreements

3.32 Suspense Fund

3.36 Equipment Rental Fund

3.38 Equipment Rental Reserve Fund

3.40 Sales or Use Tax

3.41 Utility Taxes

3.42 Additional Sales and Use Tax

3.43 Admissions Tax

3.44 Advance Travel Expense Revolving Fund

3.50 Capital Development Fund

3.51 Program Development Fund

3.52 Federal Shared Revenue Fund

3.53 Revenue Stabilization Fund

3.56 Transportation Fund

3.57 ITS Program Fund

3.60 Fiscal and Cremation Agent

3.64 Print Shop Revolving Fund

3.68 Central Stores Revolving Fund

3.72 Cumulative Reserve Aid Car Fund

3.76 Cumulative Reserve Visual Aids Program Fund

3.80 Cumulative Reserve Fund for Self-Insurance

3.82 Multiple-Unit Housing Property Tax Exemption

3.84 Real Property Excise Tax Fund

3.85 Emergency Medical Service Property Tax Fund

3.86 Local Government Investment Pool

3.90 Interfund Loans

3.92 Payment of Claims

3.93 Donations of Property to City

3.94 Police Investigation Fund

3.95 Drug Enforcement Fund

3.96 Petty Cash Fund

3.97 Golf Course Fund

3.98 Business Park Rental Fund

3.99 Purchasing Imprest Fund

3.100 Narcotics Enforcement Revolving Account

3.102 Tree Fund

3.104 Fees and Charges

*For statutory requirements on maintenance of separate funds, see RCW 35.37.010.

Chapter 3.08
EXCISE TAX ON OCCUPYING OR
USING PUBLICLY OWNED REAL OR PERSONAL PROPERTY

Sections:

3.08.010 Imposition of tax.

3.08.020 Rate of tax.

3.08.030 Administration and collection.

3.08.040 Exemptions.

3.08.050 Inspection of records.

3.08.060 Contract with Department of Revenue.

3.08.070 Violations – Penalties.

3.08.010 Imposition of tax.

There is hereby levied and shall be collected a leasehold excise tax on and after January 1, 1990, upon the act or privilege of occupying or using publicly owned real or personal property within the city of Lynnwood through a “leasehold interest” as the same is defined by Chapter 82.29A RCW. 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 Chapter 82.29A RCW. (Ord. 1751 § 1, 1990)

3.08.020 Rate of tax.

The rate of tax imposed by LMC 3.08.010 shall be four percent of the taxable rent, as the same is defined by Chapter 82.29A RCW. (Ord. 1751 § 2, 1990)

3.08.030 Administration and collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of Chapter 82.29A RCW. (Ord. 1751 § 3, 1990)

3.08.040 Exemptions.

Leasehold interests exempted by RCW 82.29A.130, as it now exists or may hereafter be amended, shall be exempt from the tax imposed pursuant to LMC 3.08.010. (Ord. 1751 § 4, 1990)

3.08.050 Inspection of records.

The city 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 RCW 82.32.330. (Ord. 1751 § 5, 1990)

3.08.060 Contract with Department of Revenue.

The mayor is hereby authorized to execute a contract with the Department of Revenue with the state of Washington for the administration and collection of the tax imposed by LMC 3.08.010; provided, that the city attorney shall first approve the form and content of said contract. (Ord. 1751 § 6, 1990)

3.08.070 Violations – Penalties.

Any taxpayer holding a leasehold interest subject to the tax imposed hereunder who violates or fails to comply with the provisions of this chapter, shall be guilty of a misdemeanor. Upon conviction thereof, such taxpayer shall be punished by a fine not to exceed $500.00. (Ord. 1751 § 7, 1990)

Chapter 3.10
EXCISE TAX ON SALE OR FURNISHING OF LODGINGS

Sections:

3.10.010 Imposition – Amount – Statutory authority.

3.10.020 Definitions adopted by reference.

3.10.030 Administration and collection.

3.10.040 Fund created – Source and expenditure of monies.

3.10.050 Violation – Penalty.

3.10.010 Imposition – Amount – Statutory authority.

In imposition of a special excise tax for the purposes set forth in Chapter 34, Laws of 1973 Second Executive Session, being RCW 67.28.120, the city council of Lynnwood, being the legislative and governing body of said city, does hereby impose and levy a special excise tax of two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp and the granting of any similar license to use real property as distinguished from renting or leasing real property; provided, that 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 property and not a mere license to use or enjoy the same. (Ord. 972 § 1, 1978)

3.10.020 Definitions adopted by reference.

The definitions of the terms “selling price,” “seller,” “buyer,” “consumer” and all other definitions are now contained in RCW 82.08.010 and subsequent amendments thereto, as those definitions may have application to the tax imposed by this chapter, are hereby adopted by this reference as the definitions for the tax herein levied. (Ord. 972 § 2, 1978)

3.10.030 Administration and collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with the following:

A. The Department of Revenue of the state is hereby designated as the agent of the city of Lynnwood for the purposes of collection and administration.

B. The administrative provisions contained in RCW 82.08.070, and those administrative provisions contained in Chapter 82.32 RCW, shall apply with respect to administration and collection of the tax by the Department of Revenue.

C. All rules and regulations adopted by the Department of Revenue for the administration of Chapter 82.08 RCW are hereby adopted.

D. The State Department of Revenue is hereby empowered, on behalf of the city of Lynnwood, to prescribe such special forms and reporting procedures as the Department of Revenue may deem necessary. (Ord. 972 § 3, 1978)

3.10.040 Fund created – Source and expenditure of monies.

There is created a special fund in the treasury of the city to be known as the “public stadium facilities and/or convention center facilities fund.” All taxes levied and collected under the provisions of this chapter shall be credited to said fund. Such taxes shall be levied and used only for the purpose of paying all or any part of the cost of acquisition, construction or operation of said facilities, or to pay or secure the payment of all or any portion of general obligation bonds or revenue bonds issued for such purpose or purposes as specified in Chapter 34, Laws of 1973, 2nd Executive Session, or for any purpose permitted by Chapter 67.28 RCW. Until withdrawn for use, the monies accumulated in such fund may be invested in interest-bearing securities by the treasurer of the city in any manner authorized by law. (Ord. 972 § 4, 1978)

3.10.050 Violation – Penalty.

A. It is unlawful for any person, firm or corporation to violate or fail to comply with any of the provisions of this chapter. Every person shall be punished by a fine of not more than $300.00 or by imprisonment for not more than 90 days, or by both such fine and imprisonment.

B. Every firm or corporation convicted of a violation of any provision of this chapter shall be punished by a fine of not more than $300.00. (Ord. 972 § 5, 1978)

Chapter 3.11
EXCISE TAX ON SALE OF REAL PROPERTY

Sections:

Article I. Real Estate Excise Tax

3.11.010 Imposition of tax.

3.11.020 Rate of tax.

3.11.030 Compliance with statutory authority.

3.11.040 Administration and collection.

Article II. Additional Real Estate Excise Tax

3.11.050 Additional real estate tax.

3.11.060 Deposit in capital projects fund.

Article I. Real Estate Excise Tax

3.11.010 Imposition of tax.

There is imposed an excise tax on each sale of real property within the city of Lynnwood. Taxes imposed under this section shall be collected from persons who are taxable by the state under Chapter 82.45 RCW upon the occurrence of any taxable event within the city. (Ord. 1255 § 1, 1982)

3.11.020 Rate of tax.

The rate of tax imposed by LMC 3.11.010 shall be one-quarter of one percent of the selling price of the real property. (Ord. 1255 § 2, 1982)

3.11.030 Compliance with statutory authority.

Taxes imposed by the ordinance codified in this section shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under Chapter 82.45 RCW. (Ord. 1255 § 3, 1982)

3.11.040 Administration and collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with RCW 82.46.030 through 82.46.060* as now or hereafter amended. (Ord. 1255 § 4, 1982)

*Ordinance references Washington Session Laws.

Article II. Additional Real Estate Excise Tax

3.11.050 Additional real estate tax.

A. In accordance with and as authorized by RCW 82.46.035(2), there is hereby levied and imposed an additional excise tax on each sale of real property within the corporate limits of the city of Lynnwood at a rate of one-quarter of one percent of the selling price of said real property.

B. The additional excise tax imposed hereunder shall be collected from those persons who are taxable by the state of Washington under Chapter 82.45 RCW upon the occurrence of any taxable event within the corporate limits of the city.

C. The imposition, administration and collection of the excise tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state of Washington under Chapters 82.45 and 82.46 RCW. (Ord. 2612 § 1, 2006)

3.11.060 Deposit in capital projects fund.

All proceeds of the excise tax collected hereunder shall be deposited into Fund 331, Real Estate Excise Tax. Monies in said fund shall be accumulated from year to year, and may be expended at such times as the city council shall direct for purposes of making capital projects specified in a capital facilities plan element of the city of Lynnwood comprehensive plan in accordance with uses prescribed in Chapter 82.46 RCW. (Ord. 2612 § 2, 2006)

Chapter 3.12
PARK PROPERTIES/FACILITIES AND RECREATIONAL SERVICES RESERVE FUND

Sections:

3.12.010 Created.

3.12.020 Source of monies.

3.12.030 Use of monies.

3.12.010 Created.

There is created and established a cumulative reserve fund to be known as the “park properties/facilities and recreational services reserve fund.” (Ord. 1554 § 1, 1986; Ord. 101 § 1, 1961)

3.12.020 Source of monies.

Into the aforesaid fund there shall be placed any donations, gifts or contributions from persons or organizations wishing to participate in the acquisition and development of park and recreational facilities and recreation programs, together with whatever other sums may be transferred from other city funds or may be levied for such purpose from time-to-time hereafter. (Ord. 1554 § 2, 1986; Ord. 101 § 2, 1961)

3.12.030 Use of monies.

Monies placed in the aforementioned fund shall be used for the purposes of acquiring and developing park and recreation facilities and special recreation programs for the city of Lynnwood and may be expended at such times and in such amounts as the city council may from time-to-time determine. (Ord. 1554 § 3, 1986; Ord. 101 § 3, 1961)

Chapter 3.14
CUMULATIVE RESERVE ART FUND*

Sections:

3.14.010 Purpose.

3.14.020 Definitions.

3.14.030 Appropriations from municipal construction projects for works of art.

3.14.040 Additional contributions to cumulative reserve art fund.

3.14.050 Administration of art fund.

3.14.060 Severability.

*Prior legislation: Ord. 675.

3.14.010 Purpose.

The city of Lynnwood has determined that it is a benefit to the community to provide increased access to public art and to enhance the visual aesthetics of the community. Public art provides a stimulating environment for the building/site users and fosters community pride and identity. Public art also assists in creating an environment attractive to tourists, thereby playing a crucial role in the development of Lynnwood as a tourism destination. In harmony with this, it is the policy of the city to provide for acquisition, commissioning and display of works of art in public places of the city. (Ord. 2652 § 1, 2006; Ord. 1745 § 1, 1990)

3.14.020 Definitions.

A. “Art fund” means the city of Lynnwood cumulative reserve art fund.

B. “City” means the city of Lynnwood.

C. “Commission” means the Lynnwood arts commission.

D. “Public art” means capital acquisitions of works of art by the city of Lynnwood or art commissioned or purchased through joint projects between the city and other entities public or private.

E. “Municipal construction project” means any capital project paid for wholly or in part by the city of Lynnwood to construct or remodel any building, park, parking facility, or any portion thereof, within the limits of the city of Lynnwood except for utilities, streets, sidewalks, walkways, tenant improvements, and furnishings.

F. “Total project cost” means the total amount of funds appropriated for the project per construction bid award or negotiated construction contract award; provided, that the following shall be excluded when calculating the total project cost:

1. The amount received from a source of funds for construction projects which precludes expenditures for works of art or cultural projects;

2. The amount of funding provided by the following sources:

a. Revenue bonds;

b. Community development block grants;

c. Other federal, state or local grants;

d. LID projects, unless specifically authorized in the LID process;

3. Any subsequent change orders for that project;

4. Sales tax or any other tax on the construction bid amount or negotiated construction contract award. (Ord. 2652 § 2, 2006; Ord. 1745 § 2, 1990)

3.14.030 Appropriations from municipal construction projects for works of art.

A. Authorizations and/or appropriations for municipal construction projects shall include an amount equal to one percent of the total project cost, which shall be deposited in the art fund at the time of contract award. That amount shall not be modified because of subsequent change orders.

B. The amount deposited in the art fund from appropriations for municipal construction projects shall not exceed $33,000 for any single construction project. (Ord. 2652 § 3, 2006; Ord. 1745 § 3, 1990)

3.14.040 Additional contributions to cumulative reserve art fund.

A. To maintain a minimum annual contribution of $15,000 to the art fund, the city administration and the city council will budget revenue, up to $15,000 annually, to make up the difference of revenue received from appropriations for municipal construction projects; provided, however, that revenue is available for that purpose.

B. Provided, further, that special projects exceeding the maximum annual contributions and art fund balance may be funded as approved by the city council. (Ord. 2652 § 4, 2006; Ord. 1745 § 4, 1990)

3.14.050 Administration of art fund.

The commission’s procedures for recommending and obtaining authorization for expenditures from the art fund for acquisitions of public art shall comply with the city’s policy procedure for public art acquisition. (Ord. 2652 § 5, 2006; Ord. 1745 § 5, 1990)

3.14.060 Severability.

If any section, subsection, sentence, clause, phrase or word of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause, phrase or word of this chapter. (Ord. 2652 § 6, 2006; Ord. 1745 § 6, 1990)

Chapter 3.16
PAYROLL AND CLAIMS FUNDS

Sections:

3.16.010 Payroll fund created – Use.

3.16.020 Claims fund created – Use.

3.16.030 Transference of funds.

3.16.040 Authority to draw warrants.

3.16.010 Payroll fund created – Use.

There is hereby created a payroll fund into which monies may be placed from time-to-time as directed by the legislative authority from any funds available and upon which warrants may be drawn and cashed for the purpose of paying any monies due city employees for salaries and wages. (Ord. 144 § 1, 1963)

3.16.020 Claims fund created – Use.

There is hereby created a claims fund into which may be paid monies from time-to-time from any funds which are available and upon which warrants may be issued and paid in payment of claims against the city or town for any purpose. (Ord. 144 § 2, 1963)

3.16.030 Transference of funds.

The city treasurer is authorized to transfer into these funds all sums budgeted for said payroll and claims purposes in other funds as required. (Ord. 144 § 3, 1963)

3.16.040 Authority to draw warrants.

The city clerk is authorized to draw warrants upon the payroll and claims funds. (Ord. 144 § 4, 1963)

Chapter 3.20
SEWER FUND

Sections:

3.20.010 Sewer fund created – Use.

3.20.010 Sewer fund created – Use.

There is hereby created in the treasury of the city of Lynnwood a special fund to be known as the “sewer fund.” Any and all revenues derived from the sale of by-products of the treatment plant or from any other source for rental, use or services rendered by the sewer system shall be paid into such fund. Payments out of said fund may be made by the city treasurer on a voucher system, approved by the city council in the same manner as payment from the general fund and for such purposes as the city council shall from time-to-time approve. (Ord. 152, 1963; Ord. 147 § 17.01, 1963)

Chapter 3.24
LOCAL IMPROVEMENTS –
GUARANTY FUND*

Sections:

3.24.010 Maintenance and operation of the guaranty fund – General.

3.24.020 Minimum balance prescribed for the guaranty fund.

3.24.030 Use of guaranty fund to pay local improvement district obligations.

3.24.040 Use of guaranty fund to pay arbitrage rebate.

3.24.050 Ordinance supersedes Ordinance No. 85.

3.24.010 Maintenance and operation of the guaranty fund – General.

The city shall maintain and operate its guaranty fund in accordance with the laws contained in Chapter 35.54 RCW and such other laws that specifically or generally apply to the guaranty fund, as the same may be amended from time-to-time. Obligations guaranteed by the guaranty fund shall include, in addition to those obligations referred to in Chapter 35.54 RCW, obligations issued under Chapter 39.50 RCW in anticipation of the issuance of local improvement district bonds. (Ord. 2263 § 1, 1999 – Superseding Ord. 85 § 1, 1961)

3.24.020 Minimum balance prescribed for the guaranty fund.

The city shall maintain a balance in the guaranty fund during each calendar year that is at least equal to five percent of the principal amount of outstanding local improvement district bonds, warrants, notes and other obligations guaranteed by the guaranty fund. Should that balance fall below the required five percent, the city covenants to restore the balance on the guaranty fund to the required amount during the next fiscal year of the city, subject only to the limitations of RCW 35.54.060. Notwithstanding the foregoing, the city council may, with respect to the obligations issued on account of any local improvement district, require by ordinance that the minimum balance in the guaranty fund on account of such obligations be greater than is required by the first sentence of this section. (Ord. 2263 § 2, 1999 – Superseding Ord. 85 § 2, 1961)

3.24.030 Use of guaranty fund to pay local improvement district obligations.

Supplementing Chapter 35.54 RCW and to prevent an anticipated default, if, prior to an interest payment date of obligations secured by the guaranty fund, the city finance director (or other city official then responsible for overseeing the city’s funds and accounts) determines that there is insufficient money in the local improvement fund or other fund or account established to pay debt service on those obligations to pay the interest or principal and interest scheduled to come due on that interest payment date, then the city finance director (or other city official then responsible for overseeing the city’s funds and accounts) shall withdraw from the guaranty fund and apply an amount sufficient to pay that deficiency on that interest payment date. To the extent the amount available in the guaranty fund on such interest payment date is not sufficient to cure the deficiency, the city finance director (or other city official then responsible for overseeing the city’s funds and accounts) shall issue interest-bearing warrants drawn on the guaranty fund as prescribed by statute. (Ord. 2263 § 3, 1999 – Superseding Ord. 85 § 3, 1961)

3.24.040 Use of guaranty fund to pay arbitrage rebate.

To the extent that the city is required by Section 148 of the Internal Revenue Code of 1986, as amended, or any successor federal law, to make arbitrage rebate payments to the U.S. Treasury on account of the investment of the guaranty fund, such payments may be made from amounts on deposit in the guaranty fund. The city may establish subaccounts within the guaranty fund from time-to-time, if necessary or desirable for purposes of accounting for the investment of money therein. (Ord. 2263 § 4, 1999 – Superseding Ord. 85 § 4, 1961)

3.24.050 Ordinance supersedes Ordinance No. 85.

The ordinance codified in this chapter shall supersede Ordinance No. 85, but shall not deprive any owner of a local improvement district obligation heretofore issued of any rights vested under Ordinance No. 85. (Ord. 2263 § 4, 1999 – Superseding Ord. 85 § 4, 1961)

Chapter 3.28
LOCAL IMPROVEMENTS – FINANCING

Sections:

3.28.010 Procedure for levying assessments.

3.28.020 Petition and resolution procedures for initiating improvements.

3.28.030 Establishing district – Designating area to be assessed.

3.28.040 Methods for making improvements.

3.28.050 Costs to be assessed.

3.28.060 Providing for bond issuance.

3.28.070 Selling bonds.

3.28.080 Drawing warrants – Priority of claims.

3.28.090 Collection of assessments – Publication of collection notice.

3.28.100 Paying installments and interest.

3.28.110 Bond issuance on unpaid assessments.

3.28.115 Commencement of foreclosure proceedings.

3.28.116 Foreclosure procedure.

3.28.117 Alternative foreclosure procedure.

3.28.120 Form of bonds and coupons – Register.

3.28.130 Application of chapter.

3.28.140 Hearing examiners in local improvement district assessment proceedings.

3.28.010 Procedure for levying assessments.

Whenever the city council shall provide for making local improvements and for paying the whole or any portion of the cost and expense thereof by levying and collecting special assessments on property especially benefited, the proceedings therefor shall be in accordance with the provisions of an act of the legislature of the state of Washington, entitled “An Act Relating to Local Improvements in Cities and Towns and Repealing Certain Acts and Parts of Acts,” approved March 17, 1911, and acts amendatory thereof (being Chapters 35.43, 35.44, 35.45, 35.49, 35.50 and 35.53 RCW), and the provisions of this chapter and ordinances amendatory thereof. (Ord. 84 § 1, 1961)

3.28.020 Petition and resolution procedures for initiating improvements.

A. Any such improvement may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance.

B. In case the improvement is initiated by petition, such petition shall be presented to and filed with the city clerk, or such other officer as may be designated by the city council. The city engineer shall thereupon examine such petition, determine the sufficiency thereof and ascertain if the facts therein stated are true. And he shall cause an estimate of the cost and expense of such improvement to be made and shall transmit it to the city council, together with all papers and information in his possession regarding it, together with his recommendations thereon and a description of the boundaries of the district and a statement of the proportionate amount of the cost and expense of such improvement which shall be borne by property within the proposed assessment district, and a statement of the actual valuation of the real estate, including 25 percent of the actual valuation of the improvements in such proposed district according to the valuation last placed upon it for purposes of general taxation, together with all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest. And, in case the said petition is sufficient, the city engineer shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be specially benefited thereby and the estimated amount of the cost and expense of such improvement to be borne by each lot, tract or parcel of property; provided, that no such diagram shall be required where such estimates are on file in the office of the city engineer, or other designated city office, together with a detailed copy of the preliminary assessment roll and the plans and assessment maps of the proposed improvement.

C. The city council may initiate such improvement directly by resolution declaring its intention to order such improvement and setting forth the nature and territorial extent thereof and notifying all persons who may desire to object thereto to appear and present such objections at a meeting of the city council, or a committee thereof, at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper of the city, or, if there is no official newspaper, in a newspaper of general circulation within the city, and the date of hearing thereon shall be at least 15 days after the date of the first publication of the same. The city engineer shall submit to the city council, at or prior to the date fixed for such hearing, the same data and information required to be submitted in the case of a petition.

D. Notice of hearing upon such resolution shall be given by mail at least 15 days before the day fixed for hearing to the owners or reputed owners of all lots, tracts and parcels of land or other property to be specially benefited by the proposed improvement, as shown on the rolls of the county treasurer, directed to the address thereon shown. The notice shall set forth the nature of the proposed improvement, the estimated cost, and the estimated benefits of the particular lot, tract, or parcel.

E. The city council may, by ordinance, authorize the making of any such improvement and, in case of an improvement initiated by resolution of the city council, such ordinance may be passed on at any time after the date of the hearing specified in the resolution. (Ord. 84 § 2, 1961)

3.28.030 Establishing district – Designating area to be assessed.

Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefited shall establish a local improvement district to be known as “Local Improvement District No. __,” which shall embrace as nearly as practicable all the property specially benefited by the improvement.

Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal, or proximate to the street, avenue, lane, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of 90 feet back from the marginal lines thereof or to the centerline of the blocks facing or abutting thereon, whichever is greater (in the case of unpolluted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extend beyond the boundaries as above set forth, the council may create an enlarged district to include as nearly as practicable all the property to be specially benefited by the improvement. The petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to local improvement districts generally, except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to the property specially benefited shall be charged to the property lying between the termini of the proposed improvement and extending back from the marginal lines thereof to the middle of the block (or 90 feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided, further, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the aforesaid termini and zone method, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard to the zone and termini method. (Ord. 84 § 3, 1961)

3.28.040 Methods for making improvements.

All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefited, shall be made either by the city itself or by contract upon competitive bids in the manner provided by law. The city council shall determine whether such local improvement shall be done by contract or by the city itself. (Ord. 84 § 4, 1961)

3.28.050 Costs to be assessed.

The cost and expense of any such improvement, or such portion thereof as the city council may determine to be assessed, shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 84 § 5, 1961)

3.28.060 Providing for bond issuance.

The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. (Ord. 84 § 6, 1961)

3.28.070 Selling bonds.

Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue to do so, in the manner prescribed therein, and at not less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof. (Ord. 84 § 7, 1961)

3.28.080 Drawing warrants – Priority of claims.

The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per annum and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by ordinance.

All warrants against any local improvement fund sold by the city or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims and liens against the improvement fund against which they are drawn prior and superior to any right, lien or claim of any surety upon the bond or bonds given to the city by or for the contractor to secure the performance of his contract or to secure the payment of persons who have performed work thereon, furnished materials therefor, or provisions and supplies for the carrying on of the work. (Ord. 84 § 8, 1961)

3.28.090 Collection of assessments – Publication of collection notice.

All assessments for local improvements shall be collected by the city treasurer and shall be kept in a separate fund to be known as “Local Improvement Fund, District No. __,” and shall be used for no other purpose than the redemption of warrants drawn upon and bonds issued against the fund to provide payment for the cost and expense of the improvement.

As soon as the assessment roll has been placed in the hands of the city treasurer for collection, he shall publish a notice in the official newspaper of the city for 10 consecutive daily or two consecutive weekly issues, or if there is no official newspaper, in a newspaper of general circulation within the city, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest or costs. (Ord. 84 § 9, 1961)

3.28.100 Paying installments and interest.

In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land, or other property, or any portion thereof, may be paid during the 30-day period allowed for the payment of assessments without penalty or interest and that thereafter the sum remaining unpaid may be paid in equal annual installments. The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvement are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal. The first installment shall become due and payable during the 30-day period succeeding a date one year after the date of first publication of the treasurer’s notice, as provided in LMC 3.28.090, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remains unpaid after the first 30-day period herein provided for, interest upon the whole unpaid sum shall be charged at the rate to be fixed by ordinance and each year thereafter one of the installments, together with interest due upon the whole of the unpaid balance, shall be collected. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable shall thereupon become delinquent. All delinquent installments shall be subject to a charge for interest at the rate fixed in the ordinance levying the assessments and to an additional charge of 12 percent penalty levied upon both principal and interest due on such installment or installments. (Ord. 2232 § 1, 1999; Ord. 543 § 2, 1970; Ord. 84 § 10, 1961)

3.28.110 Bond issuance on unpaid assessments.

In case the improvement is made on the bond installment plan, the city treasurer shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the roll and shall specify in the report the amount remaining unpaid upon the roll. The city council may then, or at a subsequent meeting, by ordinance, direct the mayor and city clerk to issue the bonds on the local improvement district established by the ordinance ordering the improvement, in an amount equal to the amount remaining unpaid on the assessment. The ordinance shall specify the denomination of the bonds which, except for bond numbered “one,” shall be in multiples of $100.00 each. (Ord. 84 § 11, 1961)

3.28.115 Commencement of foreclosure proceedings.

Proceedings to foreclose local improvement assessment liens shall be commenced on or before November 1st of any year in which two installments of any local improvement assessment are delinquent as of January 1st of that year, or the final installment thereof has been delinquent for more than one year. (Ord. 520 § 1, 1969)

3.28.116 Foreclosure procedure.

Upon failure to pay any installment which is due on any local improvement assessment the entire assessment shall become due and payable and the collection thereof may be enforced by foreclosure; provided, that the payment of all delinquent installments together with interest, penalty, and costs at any time before entry of judgment in foreclosure shall extend the time of payment on the remainder of the assessments as if there had been no delinquency or foreclosure. Where foreclosure of two installments of the same assessment on any lot, tract, or parcel is sought, the city treasurer shall cause such lot, tract, or parcel to be dismissed from the action, if the installment, first delinquent together with interest, penalty, costs, and charges is paid at any time before sale. (Ord. 520 § 2, 1969)

3.28.117 Alternative foreclosure procedure.

The alternative method of foreclosing local improvement assessment liens specified in RCW 35.50.220 through 35.50.270 is authorized and may be used in any case where the city shall deem this method expedient. (Ord. 520 § 3, 1969)

3.28.120 Form of bonds and coupons – Register.

All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this chapter, may be in substantially the following form:

No.______ $_____

United States of America

State of Washington

Local Improvement Bond

City of Lynnwood Local Improvement District No. ___

N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., § 35.45.070 of which reads as follows:

“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the City or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the Local Improvement Guaranty Fund of such City or town, and the City or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the City or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.”

The City of Lynnwood, a municipal corporation of the State of Washington, hereby promises to pay to ____________ or bearer __________ Dollars ($____) in lawful money of the United States, with interest thereon at the rate of ___% per annum, payable annually out of the fund established by Ordinance No. ___ of said City, and known as “Local Improvement Fund, District No. __,” and not otherwise, except from the guaranty fund, as herein provided. Both principal of and interest on this bond are payable at the Office of the City Treasurer of said City.

A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the City Treasurer.

This bond is payable on the ___ day of _____, 19 __, but is subject to call by the City Treasurer of said City whenever there shall be sufficient money in said local improvement fund to pay the same and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series. The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the City Treasurer by publishing the same once in the official newspaper, or, if there is no official newspaper, in a newspaper of general circulation within the City, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.

The City Council of said City, as the agent of said Local Improvement District No. __, established by Ordinance No. __, has caused this bond to be issued in the name of said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in part payment of so much of the cost and expense of the improvement of ______________ under said Ordinance No. ___ as is levied and assessed against the property included in said Local Improvement District No. ___ and benefited by said improvement and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Improvement Guaranty Fund of the City of Lynnwood for the payment of either the principal of or interest on this bond.

This bond is one of a series of ___ bonds aggregating in all the principal of ______ Dollars ($____), all of which bonds are subject to the same terms and conditions as herein expressed.

In Witness Whereof, the City of Lynnwood has caused these presents to be signed by its Mayor and attested by its City Clerk and sealed with its corporate seal this ___ day of __________, 19__.

City of Lynnwood, Washington

By______________________

Mayor

Attest:

_____________________

City Clerk

There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of said bonds, which coupons shall be substantially in the following form:

On the day ___ of _______, 19__, the City of Lynnwood, State of Washington, promises to pay to the bearer at the Office of the City Treasurer __________ Dollars ($_____), being (six)(twelve) months’ interest due that day on Bond No. ____ of the bonds of Local Improvement District No. ____, and not otherwise; provided, that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be called for payment before maturity hereof, then this coupon shall be void.

City of Lynnwood, Washington

By______________________

Mayor

Attest:

_____________________

City Clerk

The city treasurer shall keep in his office a register of all such bonds in which he shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the term of payment. (Ord. 84 § 12, 1961)

3.28.130 Application of chapter.

The laws of the state of Washington and the provisions of this chapter shall be applicable to all local improvements and proceedings therein initiated by petition or resolution subsequent to July 13, 1961, including Local Improvement District No. 1961-1, and all proceedings and the manner of the collection and enforcement of all assessments in such proceedings shall be in compliance therewith. (Ord. 84 § 14, 1961)

3.28.140 Hearing examiners in local improvement district assessment proceedings.

A. As authorized by RCW 35.44.070, the city council hereby provides for delegating to the hearing examiner appointed under this section, whenever directed by majority vote of the city council, the duty of conducting public hearings for the purpose of considering final assessment rolls and making recommendations regarding the individual assessments upon property within local improvement districts or utility local improvement districts, and the hearing examiner is directed to conduct such hearings and make such recommendations when thus authorized by the city council.

B. All objections to the confirmation of the assessment roll shall be in writing and identify the property that is the subject of the objection, be signed by the owners and clearly state the grounds of the objection. Objections not made within the time and in the manner prescribed and as required by law shall be conclusively presumed to have been waived.

C. The hearing examiner shall conduct the hearing to be commenced at the time and place designated by the city council, cause an adequate record to be made of the proceedings, and make written findings, conclusions and recommendations to the city council following the completion of such hearings, which may be continued and recontinued as provided by law whenever deemed proper by the hearing examiner, and the city council shall either adopt or reject the recommendations of the hearing examiner.

D. The recommendations of the hearing examiner shall be that the city council correct, revise, lower, change or modify the roll or any part thereof, or set aside the roll in order for the assessment to be made de novo, or that the city council adopt or correct the roll or take other action on the roll as may be found appropriate, including confirmation of the roll without change. The recommendations of the hearing examiner shall be filed with the finance director and all persons whose names appear on the assessment roll shall receive mailed written notification of their recommended assessments.

E. Any persons who shall have timely filed proper written objections to their assessments, and participated in the hearing, may appeal the decision and recommendations of the hearing examiner to the city council by filing written notice of such appeal with the finance director within 10 calendar days after the date of mailing of notification of the hearing examiner’s decision.

F. The appeal shall be based exclusively upon the record made before the hearing examiner and shall be considered by the city council at a public meeting of which notice shall be mailed to all appellants at least 10 calendar days in advance of such consideration by the city council. No new evidence may be presented. Arguments on appeal shall be either oral or written as the city council may order.

G. The city council shall adopt or reject the recommendations of the hearing examiner at a public meeting, after considering any appeals, and shall act by ordinance in confirming the final assessment roll.

H. Appeals from a decision of the city council regarding any assessment may be made to the superior court within the time and in the manner provided by law.

I. The procedures set forth in this section are independent of and alternative to any other hearing or review processes heretofore or hereafter established by the city, and shall govern the conduct and review of final assessment hearings conducted before hearing examiners and related proceedings when authorized by the city council. (Ord. 2228 § 1, 1999)

Chapter 3.30
REIMBURSEMENT AGREEMENTS

Sections:

3.30.010 Application authorized – Purpose – Term.

3.30.020 Rights and nonliability of city.

3.30.030 Application requirements.

3.30.040 Eligibility of applicants.

3.30.050 Procedures for reimbursement agreements.

3.30.090 Severability.

3.30.010 Application authorized – Purpose – Term.

Any developer utilizing private funds to install infrastructure (street, water, or sewer (sanitary and/or storm)) improvements and appurtenances may apply to the city to establish a latecomer agreement for recovery of a prorated share of the cost of constructing said public improvement from other properties that will later derive a benefit from said improvements. No reimbursement agreement/latecomers’ agreement shall extend from a period longer than 15 years from the date of final acceptance by the city unless a longer period is allowed pursuant to RCW 35.72.020 or 35.91.020. The city council shall have discretion to authorize or not to authorize latecomer agreements on a case-by-case basis. (Ord. 2629 § 1, 2006)

3.30.020 Rights and nonliability of city.

The city reserves the right to refuse to enter into any latecomer agreement or to reject any application therefor. All applications for latecomers’ agreements shall be made on the basis that the applicant releases and waives any claims for any liability of the city in establishment and enforcement of latecomer agreements. The city shall not be responsible for locating any beneficiary or survivor entitled to benefits by or through latecomer agreements.

3.30.030 Application requirements.

All applications for latecomer agreements shall be on forms approved and established by the public works director.

3.30.040 Eligibility of applicants.

In order to be eligible for processing of latecomer agreements, applicants for latecomer agreements shall be in compliance with all city ordinances, rules, and regulations.

3.30.050 Procedures for reimbursement agreements.

A. If a reimbursement agreement is requested, the property owner shall submit project plans and a site plan, map or diagram of the proposed benefited area prepared by a licensed professional engineer, ownership reports on properties within the proposed benefited areas, a cost estimate for the project based upon the plans of a civil engineer from which reimbursable costs shall be estimated, and such other information as the city may require.

B. Property owners requesting a reimbursement agreement shall submit, along with the application, a nonrefundable payment in the amount of $3,000 and $300.00 per parcel in the proposed benefited area to be applied to the city’s legal, engineering and administrative costs (including but not limited to staff time, and costs for title reports, appraisers, or other costs) associated with preparing the reimbursement agreement, which costs shall be included as reimbursable costs in the reimbursement agreement; provided, that whenever city engineering, legal, and administrative costs exceed the payment required herein, the city shall not process the application until such costs have been paid in full.

C. The public works director will formulate an assessment reimbursement area (benefit area) based upon a determination of which parcels did not contribute to the original cost of such infrastructure improvement and which connect to or specially benefit from such infrastructure.

D. The public works director based on information submitted by the owner will estimate pro rata share of costs. The public works director may require engineering costs or construction bids to be provided.

E. The public works director, in the public works director’s discretion, may utilize the application fee to pay the costs of an appraiser to be retained by the city to assist the public works director in formulating an assessment reimbursement area.

F. The preliminary determination of area boundaries and assessments, along with a description of the property owner’s rights and options, shall be forwarded by first class mail to the property owners of record as shown on the records of the Snohomish County assessor within the proposed assessment area. A hearing shall be held before the city council, notice of which shall be given to all affected property owners at least 20 days in advance of the council meeting. At the hearing, the city council determines whether to accept, reject, or modify the proposed reimbursement agreement. If the city council accepts, it shall establish the reimbursement area; provided, that the city council may only increase the reimbursement area upon new notice to the owners of the affected property.

G. Prior to commencing construction of the project, the owner shall submit three competitive construction bids on forms provided by the public works department based upon city-approved plans to the city. Upon completion of the project, a reasonable pro rata share of project costs shall be established by the city, which shall then notify owners of the benefited properties of the amount of reimbursement connection charges against their property and the date the reimbursement agreement shall be presented to the city council for public hearing. On the date scheduled, the city council shall hear from affected parties and thereafter set the terms of the reimbursement agreement and maximum amount and terms of reimbursement from affected properties. The decision of the city council shall be final and determinative.

H. The latecomer agreements must be recorded in the Snohomish County auditor’s office within 30 days of the final execution of the agreement. It shall be the sole responsibility of the latecomer applicant to record said agreement.

I. Once recorded, the latecomer agreement shall be binding on owners of record within the assessment area who are not party to the agreement. (Ord. 2629 § 2, 2006; Ord. 2147 § 1, 1997)

3.30.090 Severability.

If any section, subsection, sentence, clause phrase, or word of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause, phrase, or work of the ordinance codified in this chapter. (Ord. 2147 § 2, 1998)

Chapter 3.32
SUSPENSE FUND

Sections:

3.32.010 Created.

3.32.010 Created.

There is created and established a suspense fund of the city of Lynnwood, into which shall be deposited all receipts to be held in trust for the account of third persons. (Ord. 207 § 1, 1964)

Chapter 3.36
EQUIPMENT RENTAL FUND

Sections:

3.36.010 Fund established.

3.36.020 Rental – Disposition of monies.

3.36.030 Administrator.

3.36.040 Monthly departmental charges – Transfers.

3.36.050 Transfer of equipment.

3.36.060 Rental rates.

3.36.010 Fund established.

There is created and established a special fund to be known and designated as the “equipment rental fund,” to be used as a revolving fund to be expended for salaries, wages and operations required for the repair, replacement, purchase and operation of motor vehicles equipment, and for the purchase of all equipment, materials and supplies to be used in the administration and operation of the fund. (Ord. 690 § 1, 1973; Ord. 224 § 1, 1964)

3.36.020 Rental – Disposition of monies.

Any such equipment may be rented for the use of the various offices and departments of the city or same may be rented by the city to other governmental agencies in accordance with the reciprocal equipment use agreement then in force with such agency. All proceeds or payments received from the sale or rental of any such property shall be placed into the equipment rental fund and all disbursements for purchases or payment of rentals for any such property shall likewise be made from monies available in the fund. (Ord. 690 § 2, 1973; Ord. 224 § 2, 1964)

3.36.030 Administrator.

The mayor, or whomever he designates, is designated to administer the operations of the equipment rental fund to determine the terms of any such rental or purchase and to compute the charges for rentals to be paid for the use of any such property by any department or office. (Ord. 224 § 3, 1964)

3.36.040 Monthly departmental charges – Transfers.

There shall be paid monthly into the equipment rental fund, out of monies available to the department using any equipment, reasonable rental charges fixed by the city council, and monies in the fund shall be retained therein from year-to-year as long as the city council desires to do so. (Ord. 690 § 3, 1973; Ord. 224 § 4, 1964)

3.36.050 Transfer of equipment.

The following equipment, as described in LMC 3.36.060, is transferred to the equipment rental fund; except that equipment from the sewer department shall be purchased by the equipment rental fund and be paid for as hereinafter described. The fair value of this sewer equipment as of December 31, 1964, is established at $6,390. (Ord. 224 § 5, 1964)

3.36.060 Rental rates.

The rental rates for equipment shall be established from time-to-time by passage of a resolution by the city council. Copies of the resolution shall be available at the city clerk’s office upon request. The rates stated in the resolution shall determine the rates until passage of a resolution revising or amending the current schedule. (Ord. 787 § 1, 1975)

Chapter 3.38
EQUIPMENT RENTAL RESERVE FUND

Sections:

3.38.010 Created.

3.38.020 Disposition of monies.

3.38.010 Created.

There is established and created a special revolving fund to be known as the “equipment rental reserve fund,” pursuant to RCW 35.21.088 for the purpose of accumulating funds for equipment purchases. The city council may determine from time-to-time what monies shall be placed and kept in said revolving fund. (Ord. 1375 § 1, 1983)

3.38.020 Disposition of monies.

The portion of rental fees pertaining to depreciation shall be placed into said funds together with new equipment contributions for the purpose of purchasing equipment. The balance of rental fees charged shall be received in the operating fund previously established by Ordinance No. 224, as codified in Chapter 3.36 LMC. (Ord. 1375 § 2, 1983)

Chapter 3.40
SALES OR USE TAX

Sections:

3.40.010 Imposition.

3.40.020 Rate.

3.40.030 Administration.

3.40.040 Inspection of records.

3.40.050 Contract with state.

3.40.060 Failure or refusal to collect.

3.40.010 Imposition.

There is imposed a sales or use tax, as the case may be, upon every taxable event, as defined in LMC 3.40.030, within the city. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. (Ord. 555 § 1, 1970)

3.40.020 Rate.

The rate of the tax imposed by LMC 3.40.010 shall be one-half of one percent of the selling price or value of the article used, as the case may be; provided, however, that during such period as there is in effect a sales or use tax imposed by Snohomish County, the rate of tax imposed by this chapter shall be four hundred twenty-five/one-thousandths of one percent. (Ord. 555 § 2, 1970)

3.40.030 Administration.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050. (Ord. 555 § 3, 1970)

3.40.040 Inspection of records.

The city 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 RCW 82.32.330. (Ord. 555 § 4, 1970)

3.40.050 Contract with state.

The mayor is authorized to enter into a contract with the Department of Revenue for administration of this tax. (Ord. 555 § 5, 1970)

3.40.060 Failure or refusal to collect.

Any seller who fails or refuses to collect the tax as required with the intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any tax due under this chapter shall be guilty of a misdemeanor and shall be punished by a fine not to exceed $300.00, or by imprisonment not to exceed 90 days, or by both such fine and imprisonment. (Ord. 555 § 6, 1970)

Chapter 3.41
UTILITY TAXES

Sections:

3.41.010 Purpose.

3.41.020 Definitions.

3.41.030 Businesses subject to tax.

3.41.040 Exceptions and deductions from gross income.

3.41.050 Quarterly returns and payment.

3.41.060 Allocation of income for cellular telephone service.

3.41.070 Books and records – Inspection and confidentiality.

3.41.080 Investigation of returns.

3.41.090 Over or under payment.

3.41.100 Failure to make return.

3.41.110 Appeal to city council.

3.41.120 Rules and regulations.

3.41.130 Unlawful acts.

3.41.140 Penalty for violation.

3.41.150 Rate change.

3.41.010 Purpose.

The provisions of this chapter shall be deemed to be an exercise of the power of the city of Lynnwood to license for revenue, as authorized by RCW 35.21.865 and 35A.82.020, and other applicable state law. (Ord. 2645 § 1, 2006)

3.41.020 Definitions.

Where used in this chapter, the following words and terms shall have the meanings as defined in this section, unless, from the context, a more limited or different meaning is clearly defined or apparent:

A. “Cellular telephone service” means a one- or two-way telecommunications system used to transmit voice and/or data-based signals or content 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 cellular mobile service, pager services, specialized mobile radio (SMR), personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service, including paging. Cellular telephone service shall not include competitive telephone service.

B. “Director” shall mean the director of administrative services or designee.

C. “Gross income” means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not) by reason of the investment of capital of the business engaged in, including rentals, royalties, fees or other emoluments, receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages or other evidences of indebtedness or stock and the like and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, taxes, or any expense whatsoever, and without any deduction on account of losses.

D. “Person” or “persons” means natural persons of either gender, firms, copartnerships, corporations, municipal corporations, and other associations of natural persons whether acting by themselves or by servants, agents or employees.

E. “Pager service” means service provided by means of an electronic device which has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission.

F. “Taxpayer” means any person liable for the license fee or taxes imposed by this chapter.

G. “Tax year” or “taxable year” means the 12-month period commencing January 1st and ending December 31st of the same year. (Ord. 2645 § 1, 2006)

3.41.030 Businesses subject to tax.

There is hereby levied upon all persons engaged in business activities taxable under this chapter a tax in the amounts to be determined by the application of the respective rates against gross income of such taxpayer. Taxpayers engaged in or carrying on the business shall be charged with collection of the tax as a condition of doing business, and the tax shall be levied thereafter upon their subscribers at the rate set forth below.

A. Upon every person engaged in or carrying on a telephone business, as defined in RCW 82.04.065, as said statute presently exists or is hereafter amended, a tax equal to three percent of the total gross income, including revenues for intrastate toll, derived from the operation of such business within the city. To the extent permitted by applicable federal and Washington State law, any telecommunications services provided by a cable operator (as defined in 47 U.S.C. Section 522(5)) or other persons over cable television facilities owned or controlled by a cable operator shall be taxable hereunder.

B. Upon every person engaged in or carrying on the sale of cellular telephone service, a tax equal to three percent of the total gross income derived from the operation of such business within the city.

C. Upon every person engaged in the business of operating or providing pager service, a tax equal to three percent of the total gross income derived from the operation of such business within the city. (Ord. 2645 § 1, 2006)

3.41.040 Exceptions and deductions from gross income.

There shall be excluded from the total gross income upon which the utility tax is computed the following:

A. Revenues derived from transactions in interstate or foreign commerce, or from business done for the United States and the state of Washington, or their officers or agents or any amounts paid by the taxpayer to the United States and the state, the city or to any political subdivision of the state, as excise taxes levied or imposed upon the sale or distribution of property or services, or as a utility tax.

B. That portion of gross income derived from charges to another telecommunications company, as defined in RCW 80.40.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate service.

C. Charges incurred by a taxpayer engaging in a telephone business and paid to a telecommunications company, as defined in RCW 80.40.010, for telephone service that the taxpayer purchases for the purpose of resale.

D. Adjustments made to a billing or to a customer account or a telecommunications company accrual account in order to reverse a billing or a charge that has been made as a result of third party fraud or other crime and was not properly a debt of a customer.

E. Cash discounts and credit losses actually sustained by a taxpayer on an accrual basis. (Ord. 2645 § 1, 2006)

3.41.050 Quarterly returns and payment.

A. On or before the fifteenth day following the end of each calendar quarter (i.e., April 15th, July 15th, October 15th, and January 15th), each taxpayer shall remit payment for the preceding quarter’s utility tax, accompanied by a quarterly statement showing the manner in which the quarterly payment is calculated. The quarterly statement shall be upon a form provided by the director and shall contain such information as may be necessary to enable the director to arrive at the lawful amount of the tax. The taxpayer shall, in a legible manner, provide all information required by the director on such returns, shall sign the same, and by affidavit shall swear or affirm that the information therein given is full and true and that the taxpayer knows the same to be so.

B. Quarterly returns shall be accompanied by a remittance by bank draft, certified check, cashier’s check or money order, payable to the city of Lynnwood, or in cash, in the amount of the fee or tax owed, including delinquencies and installments.

C. Payment made by draft or check shall not be deemed a payment of the fee or tax unless and until the same has been honored in the usual course of business, nor shall acceptance of any such check or draft operate as an acquittance or discharge of the fee or tax unless and until the check or draft is honored.

D. If the applicant is a partnership, returns must be made by one of the partners; if a corporation, by one of the officers thereof; if a foreign corporation, copartnership or nonresident individual, by the resident agent or local manager of said corporation, copartnership or individual. (Ord. 2645 § 1, 2006)

3.41.060 Allocation of income for cellular telephone service.

A. Service Address. Payments by a customer for the telephone service from telephones without a fixed location (e.g., cellular telephone service) shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies.

B. Presumption. There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.

C. Roaming Phones. When service is provided while a subscriber is roaming outside the subscriber’s 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 the call, or to the location of the main cellular switching office that switched the call.

D. Dispute Resolution. If there is a dispute among one or more other cities, and/or the taxpayer, as to the service address of a customer who is receiving cellular telephone services, and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the city and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). The taxpayer shall have no further liability with respect to additional taxes on the disputed revenues, but will charge his or her billing records for future revenues to comport with the settlement facilitated by AWC.

E. Authority of Director. The director is authorized to represent the city in negotiations with other cities for the proper allocation of cellular telephone service taxes imposed pursuant to this chapter. (Ord. 2645 § 1, 2006)

3.41.070 Books and records – Inspection and confidentiality.

A. It is the duty of each taxpayer to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of its gross income, which account shall be open to inspection by the director, or his or her designee at a reasonable time, and from which said officer the director or his or her designee may verify returns made by the taxpayer.

B. To the extent permitted by Chapter 42.17 RCW and other applicable statutes, the applications, statements or returns made to the director pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of any person except the mayor, the city attorney, the director, or his or her authorized agent and members of the city council. (Ord. 2645 § 1, 2006)

3.41.080 Investigation of returns.

If any taxpayer fails to apply for a license or make his or her return, or if the director is dissatisfied as to the correctness of the statements made in the application or return of any taxpayer, the director, or his or her designee, may: (A) enter the premises of such taxpayer at any reasonable time for the purpose of inspecting and auditing the taxpayer’s books or records to ascertain the amount of the fee or tax or to determine the correctness of such statements, as the case may be; (B) may examine any person under oath administered by the director, or his or her designee, touching the matters inquired into; or (C) fix a time and place for an investigation of the correctness of the return, and issue a subpoena to the taxpayer, or any other person, to attend such investigation and testify, under oath administered by the director, or his or her agent, in regard to the matters inquired into and may, by subpoena, require him or her, or any person, to bring with him or her such books, records and papers as may be necessary. In the event that any such audit reveals an underpayment of 10 percent or more, the taxpayer shall, in addition to the penalties provided by this chapter, be responsible for all of the costs associated with the audit, including, but not limited to, staff time and overhead, accounting fees, professional service fees, and attorneys’ fees. (Ord. 2645 § 1, 2006)

3.41.090 Over or under payment.

A. Overpayment. If the director, upon investigation or upon checking returns, finds that the fee or tax paid by a taxpayer is more than the amount required of the taxpayer, he or she shall return the amount overpaid, upon the written request of the taxpayer. Any refund request not submitted within three years of the alleged overpayment shall be forever barred.

B. Underpayment. If the director finds that the fee or tax paid by a taxpayer is less than required, he or she shall send a statement to the taxpayer showing the balance due, together with a penalty of 10 percent of the amount due, and the taxpayer shall, within 10 days, pay the amount shown thereon. If payment is not received by the director by the due date specified in the notice, the director shall add a penalty of an additional 25 percent of the amount of the additional tax found due. In the event that the balance due, including all penalties, is not paid in full within 30 days from the date specified, the penalty shall be increased by 15 percent of the amount due and the total amount due shall accrue interest at the rate of 12 percent per annum. If the director finds that all, or any part of, the deficiency resulted from an intent to evade the tax payable hereunder, a penalty of 50 percent of the additional tax found to be due shall be added and the amounts due, including penalties, shall accrue interest at the rate of 12 percent per annum from the date the tax became due and the date payment is actually made. (Ord. 2645 § 1, 2006)

3.41.100 Failure to make return.

If any taxpayer fails to make a return or pay the fees or taxes therefor, or any part thereof, the director shall ascertain the amount of the fee or tax or installment thereof due and shall notify the taxpayer thereof, who shall be liable therefor in any suit or action by the city for the collection thereof. In the event that any taxes imposed by this chapter remain unpaid, the director may refer such claims to a collection agency or to the city attorney for collection. If referred to the city attorney for collection, the city attorney shall, with the assistance of the director, collect the same by any appropriate means or by suit or action in the name of the city. In the event that the city prevails on any claim that a taxpayer is in noncompliance with the terms of this chapter, the city shall be entitled to an award of its reasonable attorneys’ fees and other professional expenses associated with prosecuting the action. (Ord. 2645 § 1, 2006)

3.41.110 Appeal to city council.

A. Any taxpayer aggrieved by the amount of the fee, tax, or penalty found by the director to be required under the provisions of this chapter, may appeal to the city council from such finding by filing a written notice of appeal with the director within five days from the time such taxpayer was given notice of such amount and paying an appeal fee in accordance with the city’s current fee schedule as may be amended from time to time. The city clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not more than 30 days after the filing of the notice of appeal, and the city clerk shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing the taxpayer shall be entitled to be heard and to introduce evidence on his or her own behalf. The city council shall thereupon ascertain the correct amount of the fee, tax, or penalty by resolution and the director shall immediately notify the appellant thereof, which amount, together with costs of the appeal including outside legal, accounting, and other expenses, if the appellant is unsuccessful therein, must be paid within 10 days after such notice is given.

B. The city council may direct that the appeal hearing provided by subsection (A) of this section be conducted by a hearing officer appointed by the city for that purpose. In such case, the hearing officer shall conduct an evidentiary hearing as provided in subsection (A) of this section and forward findings, conclusions, and a recommendation to the city council for final action. Unless otherwise agreed to by the parties, the hearing officer shall convene the hearing within 30 days of the matter being referred by the city council and shall enter his or her written findings, conclusions, and recommendation within 15 days following conclusion of the hearing. Upon receipt of the hearing officer’s findings, conclusions, and recommendation, the city council shall either adopt the same as their own decision, conduct their own hearing and adopt new findings and conclusions, or remand the matter to the hearing officer for further review.

C. Any judicial appeal of the city council’s final determination of such an appeal shall be filed and served within 21 days of the date of the city council’s final vote on the matter, and the taxpayer shall be responsible for payment of the costs associated with producing the city’s administrative record therein. (Ord. 2645 § 1, 2006)

3.41.120 Rules and regulations.

The director shall have the power to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with applicable law for the purpose of carrying out the provisions of this chapter, and it is unlawful for any person or taxpayer to violate or fail to comply with any such rule or regulation. (Ord. 2645 § 1, 2006)

3.41.130 Unlawful acts.

It is unlawful: (A) for any person liable for taxes or fees hereunder to fail or refuse to file returns, or to pay any fee or tax or installment thereof when due; (B) for any person to make any false or fraudulent return or any false statement or representation in, or in connection with, any return; (C) to aid or abet another in any attempt to evade payment of the fee or tax, or any part thereof; (D) for any person to fail to appeal and/or testify in response to subpoena issued pursuant hereto; (E) to testify falsely upon any investigation of the correctness of a return, or upon the hearing of any appeal; or (F) in any manner to hinder or delay the city or any of its officers in carrying out the provisions of this chapter. (Ord. 2645 § 1, 2006)

3.41.140 Penalty for violation.

Any person violating any of the provisions or failing to comply with any of the requirements of this chapter shall, in addition to being liable for the monetary penalties set forth herein, be guilty of a misdemeanor and upon conviction of such violation or failure be punished by a fine of not more than $5,000 or by imprisonment not to exceed 90 days or by both such fine and imprisonment. (Ord. 2645 § 1, 2006)

3.41.150 Rate change.

No change in the rate of tax upon persons engaging in providing services taxable under this chapter shall apply to business activities occurring before the effective date of the change, and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than 60 days following the enactment of the ordinance establishing the change. The director, or his or her designee, shall send to each taxpayer a copy of any ordinance changing the rate of tax upon taxable services promptly upon its enactment. (Ord. 2645 § 1, 2006)

Chapter 3.42
ADDITIONAL SALES AND USE TAX

Sections:

3.42.010 Additional sales and use tax imposed.

3.42.020 Rate of tax.

3.42.030 Effective date of imposition.

3.42.040 Initiative challenge to imposition of tax.

3.42.050 Administration and collection.

3.42.060 Violation – Penalty.

3.42.010 Additional sales and use tax imposed.

In addition to the sales and use tax imposed within the city of Lynnwood by Ordinance No. 555, codified in Chapter 3.40 LMC, there is imposed an additional sales and use tax as the case may be upon every taxable event within the city of Lynnwood. The additional tax shall be imposed upon and collected from those persons from whom the state sales and use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. (Ord. 1254 § 1, 1982)

3.42.020 Rate of tax.

The rate of the additional sales and use tax imposed by LMC 3.42.010 shall be one-half of one percent of the selling price or value of the article used as the case may be; provided, that, in the event Snohomish County imposes an additional sales and use tax at a rate equal to or greater than the additional sales and use tax imposed by the city, then Snohomish County shall receive 15 percent of this additional city tax; provided further, that in the event Snohomish County shall impose an additional sales and use tax at a rate which is less than the rate imposed in this chapter by the city then Snohomish County shall receive that amount of revenues from the city’s additional tax equal to 15 percent of the rate of tax imposed by Snohomish County; all as authorized by RCW 82.14.030.* (Ord. 1254 § 2, 1982)

*Ordinance references Washington Session Laws.

3.42.030 Effective date of imposition.

The date of imposition of this additional sales and use tax shall be July 1, 1982. (Ord. 1254 § 3, 1982)

3.42.040 Initiative challenge to imposition of tax.

The citizens of Lynnwood may subject the additional sales and use tax imposed by this chapter to a vote of approval or rejection by the voters by properly filing a valid initiative petition with sufficient qualified signatures within 30 days of final passage of the ordinance codified in this chapter. This special initiative procedure shall conform to the requirements and procedures for initiative petitions provided for in RCW 35A.11.100. (Ord. 1363 § 1, 1983; Ord. 1254 § 4, 1982)

3.42.050 Administration and collection.

The administration and collection of the tax imposed by the ordinance codified in this chapter shall be in accordance with RCW 82.14.050 and 82.14.060. (Ord. 1254 § 5, 1982)

3.42.060 Violation – Penalty.

Any seller who fails or refuses to collect the tax as required with the intent to violate the provisions of the ordinance codified in this chapter or to gain some advantage or benefit either direct or indirect, and any buyer who refuses to pay any tax due under the ordinance codified in this chapter shall be guilty of a misdemeanor and shall be punished by a fine not to exceed $500.00 or by imprisonment not to exceed 90 days or by both such fine and imprisonment. (Ord. 1254 § 6, 1982)

Chapter 3.43
ADMISSIONS TAX

Sections:

3.43.010 Definitions.

3.43.020 Certificate of registration.

3.43.030 Tax levied.

3.43.040 Business license required.

3.43.050 Exemptions.

3.43.060 Counting number of admissions.

3.43.070 Printing admission charges.

3.43.075 Unlawful sales of tickets in excess of price.

3.43.080 Posting admission charge.

3.43.090 Tickets sold elsewhere than regular ticket office.

3.43.100 Collection and remittance.

3.43.110 Penalty for late payment.

3.43.120 Transient business remittance.

3.43.130 Applications and returns confidential.

3.43.140 Sporting events and places.

3.43.150 Ticket sale outlet.

3.43.160 Overpayment of admissions tax.

3.43.170 Inspection of records.

3.43.180 Violator – Violations.

3.43.190 Penalty for violation.

3.43.010 Definitions.

A. “Admissions charge,” in addition to this usual and ordinary meaning, includes but is not limited in meaning to:

1. A charge for season tickets or subscriptions;

2. Required “donation”;

3. A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;

4. A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;

5. A charge made for rental or use of equipment or facilities for purposes of recreation or amusement; if the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge;

6. Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile;

7. Admission to dinner theater: tax shall be on the entire/full price for a ticket for a dinner; provided, that if the admission charge is separate from dinner, i.e., if one can be admitted without paying a charge for dinner, then the tax shall be on the charge paid for the ticket without dinner; otherwise, the entire amount/charge shall be taxed. The admission tax would only apply to that fee actually paid for admission, and not include cover charges to night clubs, lounges, private clubs, or similar places;

8. Admission to any theater, public dance or dance hall, amphitheater, auditorium, stadium, athletic pavilion or field, baseball or athletic park, carnival, circus, amusement or side show, exhibition, swimming pool, outdoor amusement park, roof garden, cabaret, skating rink, resort, picnic ground, or any other similar type place. Admission to any carnival, amusement park, etc.: admission tax shall be imposed upon admission to carnivals, amusement parks, etc., however the city will not impose an additional tax upon admissions to any mechanical devices, amusements type booths or activities and/or rides such as merry-go-rounds, Ferris wheels, etc., within that event, unless there is no admission charge “at the gate” for such events. Then the person conducting the event is required to collect a tax per LMC 3.43.030 for the admission to the various rides.

B. “Fraternal” means an association or society of persons formed for mutual aid and benefit, but not for profit.

C. “Government activities” means activities that are sponsored or conducted by other local governments, county, state or federal governments.

D. “Person” means any individual, receiver, assignee, firm, copartnership, joint venture, corporation, company, joint stock association, society, any group of individuals acting as a unit, whether mutual, cooperative or fraternal, or any nonprofit or not-for-profit corporation or organization as the term “nonprofit” is defined under the statutes of the state of Washington, RCW 82.04.365 and 82.04.366.

E. “Place” includes, but is not limited to, theaters, dance halls, amphitheaters, auditoriums, stadiums, athletic pavilions and fields, baseball and athletic parks, circuses, carnivals, amusements or side shows, exhibitions, swimming pools, outdoor amusement parks or similar type areas.

F. “Religious organization” means an organization engaged in the practice of a particular faith or central beliefs.

G. “Ticket sales outlet” means the location of any agency, person, group, etc. that is in charge of distributing, selling, or otherwise managing the sale of tickets and are collecting the fees for such tickets to any of the described events.

H. “Transient” means temporary, short-lived, nonpermanent or nonlasting.

I. “City-sponsored event” means any program or event provided by the city of Lynnwood or any of its departments.

J. “City co-sponsored event” means an event which benefits the community and for which the city of Lynnwood and another entity share jointly the expenses and responsibilities of providing the event. For an event to be co-sponsored by the city, there must be a formal written agreement entered into between the city and the other entity or entities sponsoring the event in which the city agrees to the co-sponsorship. A lease agreement from the city to another entity does not constitute co-sponsorship unless the lease specifically provides that it does.

K. “Nonprofit organization” means an organization, corporation, or association organized and operated for the advancement, appreciation, public exhibition or performance, preservation, study and/or teaching of the performing arts, visual arts, history, science, or a public charity providing social or human services or public education and which is currently recognized by the United States of America as exempt form federal income taxation pursuant to Section 501(c)(1) or (3) of the Internal Revenue Code, as now existing or hereafter amended. (Ord. 2291 § 1, 1999)

3.43.020 Certificate of registration.

A. Every person, firm or corporation, prior to conducting or operating any event, or place of entrance, to which an admission charge is made, shall complete a certificate of registration and file the same with the finance director. The certificate of registration shall continue to be valid until December 31st of the same year in which it was issued. The application for certificate of registration, or a duplicate of it shall be posted in the ticket office or box office where tickets or admission are sold.

B. Whenever registration is made for the purpose of operating or conducting a temporary or transitory event by persons who are not the owners, lessees or custodians of the building, lots or place where the activity is to be conducted, both the person conducting the event and the owner, lessee or custodian, shall be held jointly liable for collection and remittance of the said tax. The owner, lessee and/or custodian shall be responsible for the remittance of the entire admissions tax unless the tax is paid by the conductor of the event. (Ord. 2291 § 1, 1999)

3.43.030 Tax levied.

There is hereby levied and imposed upon every person without regard to age who pays an admission charge to any place as described in LMC 3.43.010, a tax of five percent of the amount paid for admission. Failure to pay such tax or failure to collect such tax shall be a violation of this chapter. (Ord. 2291 § 1, 1999)

3.43.040 Business license required.

In addition to any licenses and fees required under this chapter, every applicant shall also obtain a business license pursuant to LMC Title 5. (Ord. 2291 § 1, 1999)

3.43.050 Exemptions.

The following activities are exempt from the provisions of this chapter:

A. Activities of elementary and secondary schools;

B. Activities of churches and religious organizations;

C. Government activities;

D. City-sponsored and city co-sponsored events; provided, that for profit activities conducted in conjunction with such an event shall not be exempt;

E. Activities of nonprofit organizations, as defined in LMC 3.43.010(K); provided, that all of the following requirements are met:

1. The nonprofit organization:

a. Publicly sponsors and through its members, representatives or personnel promotes and publicizes the event; or

b. Publicly sponsors and:

i. Performs a major portion of the performance; or

ii. Supplies a major portion of the materials on exhibit; or

iii. When the event is part of a season or series of performances or exhibitions, performs the major portion of the performances or exhibitions in the season or series or supplies a major portion of the materials on exhibit;

2. The nonprofit organization receives the use and benefit of the admission charges collected;

3. The proceeds from any single event sponsored by the nonprofit organization do not exceed $100,000;

4. The event for which the exemption is claimed cannot be one for which a nonprofit organization lends its name as an endorsement to an ineligible person or organization for the purpose of invoking the exemption;

5. The nonprofit organization must be registered with the finance director’s office as provided in LMC 3.43.020 and must provide a copy of its incorporation approval by the state of Washington and any other proof deemed reasonably necessary by the finance director to verify that the organization meets the definition of nonprofit organization established by this chapter;

F. Activities occurring at the Lynnwood Convention Center. (Ord. 2635 § 1, 2006; Ord. 2291 § 1, 1999)

3.43.060 Counting number of admissions.

Whenever a charge is made for admission to any place, a serially numbered or reserved seat ticket shall be furnished to the person paying such charge unless written approval has been obtained from the finance director to use a turnstile or other counting device which will accurately count the number of paid admissions. (Ord. 2291 § 1, 1999)

3.43.070 Printing admission charges.

A. The established price of admission, any noncity tax, city tax, and the total price at which each admission ticket or card is sold, shall be conspicuously and indelibly printed or written on the face or back of that part of the ticket which is to be retained by the management of the place to which admission is gained. This requirement may be waived in regard to temporary or transient events, which due to time make it impossible to print up admission tickets. This waiver must be reviewed and authorized by the finance director’s office prior to authorizing the event.

B. It is unlawful for any person to sell an admission ticket or card without having the name of the person conducting the event and the price of admission printed, stamped or written thereon. The admission tax due shall be based on the established price printed on each ticket. (Ord. 2291 § 1, 1999)

3.43.075 Unlawful sales of tickets in excess of price.

It is unlawful for anyone to sell or offer to sell an admission ticket or card at a price in excess of the price printed, stamped or written thereon. This section does not prohibit a ticket agent, duly authorized to sell tickets by the person or entity responsible for or in charge of conducting the subject vent, from collecting a reasonable handling charge from the purchaser, in addition to the disclosed ticket price, consistent with general marketing practices in the Lynnwood area. The handling charge shall also be subject to tax in a sum equal to five percent of the amount of such excess or handling charge. (Ord. 2291 § 1, 1999)

3.43.080 Posting admission charge.

At all events, when a charge is made for admission a sign must be posted in a conspicuous place at its entrance or ticket office of the event which breaks down the admission charge as to:

A. Established price of admission;

B. Noncity tax imposed, if any;

C. City tax imposed; and

D. Total price.

The name of the company or organization conducting the event, shall also be posted at the same place. (Ord. 2291 § 1, 1999)

3.43.090 Tickets sold elsewhere than regular ticket office.

Whenever tickets are sold by a person outside of the city limits for an event located within the city limits, that person shall collect the admission tax imposed thereon. Whenever tickets or cards of admission are sold elsewhere than the ticket or box office of the place of event, any price or charge made in excess of the established price or charge at such ticket or box office shall also be taxable in a sum equal to five percent of the amount of such excess. This additional tax shall be paid by the person paying the admission charge and shall be collected and remitted in the manner provided in LMC 3.43.100 by the person selling such tickets. (Ord. 2291 § 1, 1999)

3.43.100 Collection and remittance.

A. The person, firm or corporation receiving payment for admissions on which a tax is levied under this chapter, shall collect the amount of the tax imposed from the person making payment for admission, shall hold said tax in trust until the same is remitted to the finance director as herein provided, and shall be personally liable for the amount of such tax if the same is not collected and remitted as herein provided; provided, however, that for temporary or transient events, the owner, custodian etc., may be responsible for the payment of the tax per LMC 3.43.020 and this section.

B. The tax imposed by this chapter shall be due and payable on a quarterly basis and remittance therefor shall accompany each return and be in the finance director’s office by 5:00 p.m. P.S.T. on or before the last day of each April, July, October and January, by the person, firm or corporation collecting the same; provided, the finance director for good cause may require the return and remittance of the admissions tax immediately upon its collection or at the conclusion of the series of performances or exhibitions, or otherwise as the finance director deems appropriate. The quarterly returns shall be made on forms provided by the finance director, separately stating the number of admissions sold, the price for each admission, and the amount of tax, shall be signed and verified by the person making the return, and shall contain such other information as the finance director may specify. (Ord. 2291 § 1, 1999)

3.43.110 Penalty for late payment.

A. For each payment due, if such payment is not made by 5:00 p.m. on the due date, there shall be added penalties as follows:

1. One to 15 days’ delinquency, 10 percent with a minimum penalty of $10.00;

2. After 15 days’ delinquency, 15 percent with a minimum penalty of $10.00 shall be imposed.

B. Failure to pay tax is a violation of this chapter and may be punished as such in addition to the late fees imposed. (Ord. 2291 § 1, 1999)

3.43.120 Transient business remittance.

Whenever any theater, carnival, circus, show, exhibition, public dance, entertainment or amusement or the like makes an admission charge which is subject to the tax herein levied, and the same is of a temporary or transitory nature, of which the finance director shall be the judge, the finance director may require the return and remittance of the admissions tax immediately upon its collection or at the conclusion of the series of performances or exhibitions, or otherwise as the finance director deems appropriate. An application for a certificate of registration shall be required as noted in LMC 3.43.020. For temporary or transient events, the owner, lessee or custodian shall be responsible for payment of this tax if the person conducting the event fails to do so. Failure to comply with any requirement of the finance director as to reporting and remittance of the tax as required shall be a violation of this chapter. (Ord. 2291 § 1, 1999)

3.43.130 Applications and returns confidential.

The applications and returns made to the finance director pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of anyone except the mayor, city attorney, finance director or authorized agent, the members of the city council, etc., unless otherwise provided by law. It is unlawful for any person to make public or to inform another person as to the contents or any information contained in or to permit inspection of any application or return except as authorized in this section or otherwise in the State Privacy Act or other provisions of state law. (Ord. 2291 § 1, 1999)

3.43.140 Sporting events and places.

There shall be levied an admission tax of five percent of the amount paid where an admission is required to be paid to gain entrance to any building, enclosure, place or area in which there is a swimming pool, skating rink, bowling alley, golf course, golf driving range, miniature golf course, short nine, or to gain entrance to such pool, rink or course itself, that shall be applicable to both private and public facilities or any other similar event charging admission fees. This tax shall be assessed on admission charges whether in the form of membership fees or other charges for privilege of using the above areas. If no admission is required to be paid to gain entrance to such a facility, no admission tax is due, even if within the facility, place or area, activities occur which require an admissions tax. (Ord. 2291 § 1, 1999)

3.43.150 Ticket sale outlet.

The admissions tax shall apply to tickets sold by Lynnwood-based ticket sales outlets for local events only. Additionally, the tax shall also apply to ticket sales outlets which are not located in Lynnwood but are selling tickets for events in Lynnwood. (Ord. 2291 § 1, 1999)

3.43.160 Overpayment of admissions tax.

Whenever the taxpayer has made an over-payment and within one year after date of such overpayment, upon submission of satisfactory proof thereof, makes application for refund or credit of the overpayment, such refund or credit shall, where appropriate, be made. (Ord. 2291 § 1, 1999)

3.43.170 Inspection of records.

The books, records, and accounts of any person, firm or corporation collecting a tax herein levied, shall, as to admission charges and tax collections, be at all reasonable times subject to examination and audit by the finance director and/or the state auditor, and all such records shall be retained and be available for such inspection for a period of at least six years. (Ord. 2291 § 1, 1999)

3.43.180 Violator – Violations.

Any person who directly or indirectly performs or omits to perform any act in violation of this chapter, including reporting posting requirements or aids or abets the same, whether present or absent, and every person who directly or indirectly counsels, encourages, hires, commands, induces or otherwise procures another to commit such violation is, and shall be a principal under the terms of this chapter, subject to penalty, and may be proceeded against such. (Ord. 2291 § 1, 1999)

3.43.190 Penalty for violation.

Every person violating or failing to comply with any provision of this chapter or any lawful rule or regulation adopted by the finance director pursuant thereto, is guilty of a gross misdemeanor and upon conviction thereof shall be punished by a fine not to exceed $5,000 or by imprisonment for a term not to exceed one year or by both such fine and imprisonment.

In addition to any other remedy, no business license shall be issue or renewed, and an existing business license may be revoked, for a business which has failed to pay taxes or penalties required pursuant to this chapter; provided, a business license shall not be withheld if the license is in compliance with an administrative or court order concerning payment of taxes or penalties. (Ord. 2291 § 1, 1999)

Chapter 3.44
ADVANCE TRAVEL EXPENSE REVOLVING FUND

Sections:

3.44.010 Established.

3.44.020 Fund transfer.

3.44.025 Increase.

3.44.030 Custodian.

3.44.040 Deposits – Disbursements – Administration.

3.44.050 Reimbursement.

3.44.010 Established.

There is established in the city a revolving fund to be known as the “advance travel expense revolving fund,” which fund is to be used solely for the purpose of making advance payments of out-of-town travel expenses for authorized city officers or employees traveling as agents of the city for the city’s purposes, and specifically to defray necessary costs while performing such official duties. (Ord. 560 § 1, 1970)

3.44.020 Fund transfer.

This fund shall be established in the city by transfer of treasurer’s funds, by check in the sum of $1,000, to the custodian herein designated, and the total amount of such fund so established shall be shown separately in the city’s statement of current assets. (Ord. 560 § 2, 1970)

3.44.025 Increase.

This fund shall be increased to $15,000 by transfer of treasurer’s funds, by check, in the sum of $5,000 to the custodian designated. (Ord. 1850 § 1, 1991; Ord. 1594 § 1, 1987; Ord. 1203 § 1, 1981; Ord. 1000 § 1, 1978; Ord. 803 § 1, 1975)

3.44.030 Custodian.

The city clerk is designated and appointed as the custodian of this fund, and upon receipt of the monies transferred to him as custodian he shall immediately open a check account in a local bank in the name of the city and entitled “advance travel expense account – Lynnwood city clerk, custodian.” (Ord. 560 § 3, 1970)

3.44.040 Deposits – Disbursements – Administration.

Deposits to, disbursements from, and administration of this fund shall be subject to and in accordance with all of the restrictions, limitations, requirements, and other provisions of Chapter 42.24 RCW, which laws are hereby adopted by reference as a part of this chapter as though fully set forth herein, and Rules and Regulations Bulletin No. 94 of the Division of Municipal Corporations of the Office of the Washington State Auditor, dated July 15, 1969, three copies of which are kept at the office of the city clerk and the terms of which are incorporated herein. (Ord. 560 § 4, 1970)

3.44.050 Reimbursement.

Reimbursement shall be made only for actual expenses incurred by officers or employees for authorized travel, as submitted upon the required fully itemized travel expense vouchers, and all expenses, except meals, shall be substantiated by appropriate receipts to be submitted with such travel expense vouchers, in accordance with the city’s regular policies and rates as to such reimbursement. (Ord. 1095 § 1, 1979; Ord. 560 § 5, 1970)

Chapter 3.50
CAPITAL DEVELOPMENT FUND

Sections:

3.50.010 Creating capital development fund.

3.50.020 Appropriation of monies.

3.50.030 Monies accumulation.

3.50.040 Repealed.

3.50.010 Creating capital development fund.

There is hereby created and established a fund known as the “capital development fund.” (Ord. 2093 § 1, 1996)

3.50.020 Appropriation of monies.

Into the capital development fund shall be placed monies appropriated or budgeted from time-to-time, and monies from the general fund above that directly budgeted for current year operations, which are determined reasonable and necessary for construction, alteration, or repair of any public building, or the making of any public improvement, including acquisition of real property, services, construction costs, as well as providing a source f