Title 5

 

BUSINESS LICENSES AND REGULATIONS

 

Chapters:

5.04         Business Licenses

5.06         Utility Tax

5.08         Amusement Devices, Vending Machines, Music Machines

5.12         Pawnbrokers and Secondhand Dealers

5.16         Pool, Billiards, and Cardrooms

5.20         Public Dances and Dance Halls

5.24         Taxicabs

5.28         Taverns

5.32         Liquor

5.36         Franchises

5.40         Gambling

5.48         Engineering Costs

 

 


 

 


Chapter 5.04

 

BUSINESS LICENSES*

 

Sections:

5.04.010       Definitions.

5.04.020       Purposes.

5.04.030       License fees.

5.04.040       Procedure for obtaining license.

5.04.050       Examinations of business premises.

5.04.055       Fire inspection certificates.

5.04.060       Penalties.

5.04.070       Additional remedies.

5.04.080       License—Compliance—Revocation.

5.04.090       License—Needed for defense.

5.04.320       Public utilities.

5.04.330       Unpaid license fee.

5.04.360       Exemptions.

5.04.380       Publishers.

5.04.420       Duties of the city clerk.

 

*     Prior ordinance history: 373, 376, 391, 403, 509, 595, 598, 605, 865, 880, 948, 949, 950, 960, 966, 972 and 978.

 

5.04.010       Definitions.

    The following terms when used in this chapter shall have the meanings designated below:

    A.    “Person” means all individuals, partnerships, domestic and foreign corporations, associations, syndicates, joint ventures, and societies transacting and carrying on any business in the city of Sedro-Woolley, Washington.

    B.     “Business” means professions, trades, occupations, shops and all and every kind of calling, but not including, however, the following:

    1.     Suppliers who do not have a place of business in the city and those engaged solely in wholesale selling to licensed retailers;

    2.     Any person whose income is based solely on an hourly, daily, weekly, monthly or annual wage or salary;

    3.     Any person transacting and carrying on any business which is exempt from a license fee by virtue of the Constitution of the United States, the Constitution of the state of Washington, or the laws of the United States or the state of Washington;

    4.     Vendors in a temporary bazaar or community fair for which a master license has been given to the sponsor thereof;

    5.     Rental or lease of real property by an owner, provided that the owner of any structure on real property shall obtain a fire inspection certificate for each property from the Sedro-Woolley fire department if required by this chapter; and provided that any business on the property shall, if otherwise required by Section 5.40.030, obtain a business license. Rentals with added services, including but not limited to hotels, motels, storage facilities, and bed-and-breakfasts, shall obtain a business license;

    6.     Businesses and organizations which have IRS 501(c)(3) nonprofit tax status, for activities within the scope of their IRS 501(c)(3) purpose, provided that:

    a.     The organization fill out an information form and provide proof of IRS 501(c)(3) status to the satisfaction of the city clerk,

    b.     The activity shall not include the sale of food, beverages, cigarettes, or gambling, and

    c.     The owner of property used for this exempt purpose shall obtain a fire inspection certificate if required by this chapter.

    C.     The agent or agents of a nonresident proprietor engaged in a business for which a license is required by this chapter shall be liable for the payment of the fee thereon as herein provided and for the penalties for failure to pay the same or to comply with the provisions of this chapter to the extent and with like effect as if such agent or agents were themselves proprietors. (Ord. 1422-02 § 1, 2002: Ord. 1192 § 1 (part), 1993)

 

5.04.020       Purposes.

    A.    To provide revenue for municipal planning,  policing, and regulatory purposes and to provide revenue to pay for the necessary expense required to issue the license for and to regulate the businesses licensed.

    B.     The license fees levied by this chapter shall be independent and separate from any license or permit fees now or hereafter required of any person to engage in any business by any ordinance of the city, regulating any business herein required to be licensed, and all such businesses shall remain subject to the regulatory provisions of any such ordinances or ordinances now or hereinafter in effect, and the persons engaged in all such businesses shall be liable for the payment of any license fees for which provision has been made herein.

    C.     The levy or collection of a license fee upon any business shall not be construed to be a license or permit of the city to the person engaged therein to engage therein, in the event such business shall be unlawful, illegal, or prohibited by the ordinance of the city or the laws of the state or the United States. (Ord. 1192 § 1 (part), 1993)

 

5.04.030       License fees.

    A.    No person shall engage in business in the city without first having applied for, paid for and obtained the license therefore for the current year, as provided herein, and without having first complied with any and all applicable provisions of this chapter.

    B.     Class 1: each person engaged in the following business in the city shall pay an annual basic license fee of seventy-five dollars:

    1.     Banks;

    2.     Building materials and supplies companies;

    3.     Bus companies;

    4.     Canneries, except custom canneries;

    5.     Department stores, major;

    6.     Food processors;

    7.     Grocery stores, supermarket type, having over three thousand square feet;

    8.     Manufacturing—large, over twenty-five employees;

    9.     Motor freight and transfer companies;

    10.    New car dealers having used car lots;

    11.    Railroad companies;

    12.    Savings and loan associations;

    13.    Soft drink manufacturers and/or bottlers;

    14.    Title insurance companies;

    15.    Theaters;

    16.    Wholesale petroleum products dealers;

    17.    Billboards.

    C.     Class 2: all persons engaged in the business in the city not included in Class 1 shall pay an annual basic license fee of thirty-five dollars.

    D.    Businesses located outside the city limits making retail sales and deliveries within the city limits, businesses located outside the city limits engaged in sales or service within the city limits, vending machine operators, and peddlers and solicitors will pay the annual Class 2 business license fee herein as well as any other required fees.

    E.     The license fee herein required shall be due and payable on January 1st of each year for the year commencing and shall be delinquent on and after the following March 1st of each year. Licenses for persons engaging in any business after January 1st in any year shall be due and payable upon such person engaging in such business and shall be delinquent if not paid within ten days thereafter; provided, however, that persons engaging in any such businesses for the first time, after July 1st of any year, shall pay only fifty percent of the annual fee for the remainder of the license year.

    F.     Each branch establishment or separate location of a business conducted by any person shall, for the purpose thereof, be a separate business and subject to the license therefore provided for herein.

    G.     If any person be engaged in operating or carrying on in the city more than one business, then such person shall pay the license herein prescribed for as many of said businesses as are carried on by such person.

    H.    The license year shall commence on January 1st of each year, and shall terminate at midnight on December 31st of the year. (Ord. 1422-02 § 2, 2002: Ord. 1408-01 § 1, 2001: Ord. 1192 § 1 (part), 1993)

 

5.04.040       Procedure for obtaining license.

    A.    All licenses shall be issued by the city clerk. Normally, such licenses shall be issued within seven days of the date application is made. Provided, however, when, in the opinion of the city clerk, there exists sufficient question regarding the appropriateness of approving an application, said application shall be considered by the city council at its next regularly scheduled meeting. All licenses and permits are subject to revocation at any time by the council for cause.

    B.     The application for such license shall contain the following information:

    1.     The name of the applicant, with a statement of all persons having an interest in said business, either as proprietors or owners of said business;

    2.     The location of the place where the business is conducted;

    3.     A description of the trade, shop, business, profession, occupation or calling to be carried on within the city;

    4.     The amount of money tendered with the application;

    5.     The date of the application;

    6.     The signature of the applicant.

    C.     No license issued to do business within the limits of the city shall be transferable. Only the individuals to whom the license is issued shall be eligible to operate on that license.

    D.    The city clerk shall issue a license only after payment of the full fee. All persons operating on or doing business under license of the city shall, at all times, keep such license either on their person or properly displayed while so operating within the city limits.

    E.     Issuance of a business license shall not relieve the applicant from the need to comply with all other applicable city ordinances. (Ord. 1192 § 1 (part), 1993)

 

5.04.050       Examinations of business premises.

    City officials shall have the authority to investigate and examine all places of business licensed or subject to license under this chapter at any reasonable time for the purpose of determining whether such place of business is complying with the provisions of the chapter. (Ord. 1192 § 1 (part), 1993)

 

5.04.055       Fire inspection certificates.

    A.    The owner of nonresidential, commercial, industrial, or multifamily residential structures on real property shall obtain a fire inspection certificate for each property from the Sedro-Woolley fire department and fill out an informational form to the satisfaction of the city clerk.

    B.     For purposes of this chapter, multifamily residential rental property shall be defined as a building containing four or more dwelling units or a single dwelling unit in a building used primarily for nonresidential purposes. Hotel, motel, and “bed and breakfast” facilities shall be considered commercial facilities.

    C.     The owner of the real property shall be primarily responsible for obtaining the fire inspection certificate; however, the tenant or lessee may obtain the fire inspection certificate for the owner, as the owner’s agent. (Ord. 1422-02 § 3, 2002)

 

5.04.060       Penalties.

    A.    It is unlawful for any person to wilfully make any false or misleading statement to the city clerk for the purpose of determining the amount of any license fee herein provided to be paid by any such person, or to fail or refuse to comply with any of the provisions of this chapter to be complied with, or to fail or refuse to pay before the same shall be delinquent any license fee or penalty hereby required to be paid by any such person.

    B.     In the event any person required to obtain a license shall fail or neglect to obtain the same before it shall become delinquent, the city clerk shall collect, upon payment therefor, in addition thereto, a penalty of ten percent of the fee therefor for each calendar month or fraction thereof that the same shall be delinquent.

    C.     Nothing herein contained shall be taken or construed as vesting any right in any license as a contract obligation on the part of the city as to the amount of the fee hereunder. Other or additional taxes or fees and the fees herein provided for may be increased or decreased and additional or other fees provided for and levied in any and all instances at any time by the city.

    D.    The conviction of any person for violation of any of the provisions of this chapter shall not operate to relieve such person from paying any fee or penalty thereupon for which such person shall be liable, nor shall the payment of any such fee be a bar to or prevent prosecution in the city court of any complaint for the violation of any of the provisions of this chapter.

    E.     Any person violating any of the provisions hereof shall, upon the conviction thereof, be punished by a fine not to exceed one thousand dollars, or by imprisonment for a term not exceeding one year or by both such fine and imprisonment. Each day any person shall conduct any business within the city for which a license or tax is hereby required without having paid the license fee shall constitute a separate offense.

    F.     All persons, firms and corporations who perform labor, services and construction within the city (as provided in Rule II, WAC 458-20-145), shall report the city “Location Code Number 2908” on their excise tax returns to the state of Washington, Department of Revenue. On any violation hereof, the amount of local sales and use taxes due the city shall be paid to the city by the violator, together with a penalty of one hundred percent in addition to all other penalties, fines and remedies provided in this chapter. (Ord. 1192 § 1 (part), 1993)

 

5.04.070       Additional remedies.

    A.    In addition to the penalties provided in this chapter and as separate and distinct remedies, the city may sue in any court of competent jurisdiction to obtain a judgment and enforce collection thereof by execution for any license fee or tax due under this chapter.

    B.     The city may seek an injunction prohibiting a person from engaging in any unlicensed business.

    C.     In any action or suit authorized by this section, the city, if it prevails, shall recover a reasonable attorney’s fee to be set by the court, in addition to its costs and disbursements. (Ord. 1192 § 1 (part), 1993)

 

5.04.080       License—Compliance—Revocation.

    Every license shall be taken and held subject to all of the ordinances and police regulations of the city existing at the time of the issuance thereof, and also subject to revocation by the city council at their discretion at any time upon refunding the price paid, proportionately for the unexpired term of such license; and upon conviction of any license for the violation of any ordinance regulating the licensed business, the city council shall have power to revoke the license without notice and without repayment of the unearned portion of the license fee, whereupon the license shall be forfeited. The conditions contained in this section shall constitute a part of each license issued by the city. (Ord. 1192 § 1 (part), 1993)

 

5.04.090       License—Needed for defense.

    Upon the trial of any action brought for the violation of any license ordinance of the city, the defendant shall be deemed not to have procured or have in force the required license unless he produces such license in court and proves that the same has been properly issued and the fee therefor paid, and in any such action the fact that the defendant has represented himself as engaging in any business or calling for which a license is required shall be conclusive evidence of the liability of the defendant to pay for such license and procure the issuance thereof. (Ord. 1192 § 1 (part), 1993)

 

5.04.320       Public utilities.

    A.    After the effective date of the ordinance codified in this section, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by subsection B of this section without first having obtained, and being the holder of, a license to do so, to be known as an occupation license. Each such person, firm or corporation shall promptly apply to the city clerk for such license upon such forms as the clerk prescribes, giving such information as the clerk deems reasonably necessary to enable said clerk’s office to administer and enforce this section; and, upon acceptance of such application by the clerk, the clerk shall thereupon issue such license to the applicant. Such occupation license shall be personal and nontransferable and shall be valid as long as the licensee continues in said business and complies with this section.

    B.     From and after the effective of the ordinance codified in this section, there is levied upon, and shall be collected from, every person, firm or corporation engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city, the tax for the privilege of so doing business as hereinafter defined:

    1.     Upon any cable television business, there shall be levied a tax equal to six and one-half percent of the total gross subscriber revenues from business in the city.

    2.     There is levied a tax on the sale, delivery or distribution of electricity and electrical energy, and for the privilege of carrying on said business such tax shall be equal to six and one-half percent of the total gross revenue derived from sales of such electricity to ultimate users within the city; provided, however, that there shall not be any tax levied for the installation charges of electrical units; and provided further, that the rate of tax shall be revised as follows:

 

Revised Date of Rate Revision

Revised Rate

October 31, 1982

6.4%

October 31, 1983

6.3%

October 31, 1984

6.2%

October 31, 1985

6.1%

October 31, 1986

6.0%

 

    3.     There is levied a tax on the sale, delivery, distribution or furnishing of natural gas for domestic, business or industrial consumption, and for the privilege of carrying on said business such tax shall be equal to six and one-half percent of the total gross income from such business in the city; provided, however, that there shall not be any tax levied for installation charges of gas energy units; and provided further, that the rate of tax shall be revised as follows:

 

Effective Date of Rate Revision

Revised Rate

October 31, 1982

6.4%

October 31, 1983

6.3%

October 31, 1984

6.2%

October 31, 1985

6.1%

October 31, 1986

6.0%

    C.     The tax imposed by this section shall be due and payable in quarterly installments and remittance shall be made on or before the thirtieth day of the month next succeeding the end of the quarterly period in which the tax accrued, such quarterly periods being, as follows:

    1.     First quarter: January, February, March;

    2.     Second quarter: April, May, June;

    3.     Third quarter: July, August, September;

    4.     Fourth quarter: October, November, December.

This section shall be effective January 1, 1982, and the first payment made under this section shall be made on or before April 30, 1982, for the first quarter. On or before said due date, the taxpayer shall file with the city clerk a written return upon such form and setting forth such information as the clerk reasonably requires, together with payment of the amount of the tax.

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

    1.     The amount of credit losses and uncollectibles actually sustained by the taxpayer;

    2.     Amounts derived from transactions in interstate or foreign commerce or from any business which the city is prohibited from taxing under the Constitutions of the United States or the state.

    E.     Each taxpayer shall keep records reflecting the amount of his gross operating revenues, and such records shall be open at all reasonable times to the inspection of the city clerk or her duly authorized subordinates for verification of said tax returns or for the fixing of the tax of a taxpayer who fails to make such returns.

    F.     If any person, firm or corporation subject to this section fails to pay any tax required by this section within thirty days after the due date thereof, there shall be added to such tax a penalty of one percent per month of the amount of such tax, and any tax due under this section and unpaid and all penalties thereon shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies.

    G.     Any money paid to the city through error or not otherwise in payment of the tax imposed by this section or in excess of such tax, upon request of the taxpayer, shall be credited against any tax due or to become due from such taxpayer under this section or, upon the taxpayer ceasing to do business in the city, shall be refunded to the taxpayer.

    H.    Any person, firm or corporation subject to this section who fails or refuses to apply for an occupation license or to make the required tax returns or to pay the tax when due, or who makes any false statement or representation in or in connection with any such application for an occupation license or such tax return, or otherwise violates or refuses or fails to comply with this section, is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not to exceed three hundred dollars or by imprisonment in the city or county jail for a term of not to exceed ninety days, or by both such fine and imprisonment. (Ord. 1192 § 1 (part), 1993)

 

5.04.330       Unpaid license fee.

    Any license fee or tax which shall become due and owing to the city, whether imposed by this chapter or any other license ordinance, shall constitute and remain an indebtedness due and owing to the city until paid and the same may be collected in any civil action. (Ord. 1192 § 1 (part), 1993)

 

5.04.360       Exemptions.

    Any person paying a business and occupation tax to the city under the terms of Ordinance No. 382, or under the terms of future ordinances of the city shall be exempt from the payment of any license or tax under this chapter during the year or years covered by such other ordinances. (Ord. 1192 § 1 (part), 1993)

 

5.04.380       Publishers.

    Publishers of newspapers, periodicals or any other publications, may, in lieu of procuring any license provided for in this chapter, pay to the city a sum of money equal in amount of the appropriate license fee set forth in Section 5.04.030, and upon payment thereof, shall be exempt from the requirements of this chapter, such exemption to apply for one calendar year, and to be renewable from year to year upon additional payment of the sum. (Ord. 1367-00 § 1, 2000: Ord. 1192 § 1 (part), 1993)

 

5.04.420       Duties of the city clerk.

    The city clerk shall keep full and accurate records of all funds received under the provisions of this chapter. Upon receipt of any license fee or penalties collected under the provisions of this chapter, he shall deposit the same with the city treasurer to the credit of the current expense fund.

    It shall be the duty of the city clerk to require all parties engaging in any business activity to procure such license, and should there be any license fee not paid by any person, it shall be the duty of the city clerk to enforce collection thereof in the manner provided in this chapter. (Ord. 1192 § 1 (part), 1993)

 

 


Chapter 5.06

 

UTILITY TAX

 

Sections:

5.06.010       Definitions.

5.06.020       Utility tax levied—Rate.

5.06.025       Cellular telephone utility tax levied—Rate.

5.06.030       License requirement.

5.06.040       Allocation of income—Cellular telephone service.

5.06.050       Remittance.

5.06.060       Taxpayer engaged in more than one business.

5.06.070       Deductions.

5.06.080       Record retention requirements.

5.06.090       Tax delinquency—Unlawful acts.

5.06.100       Quitting, selling or transferring business.

5.06.110       Tax not exclusive.

5.06.120       Rate changes.

5.06.130       Appeal procedure.

5.06.140       Over or underpayment of tax.

5.06.150       Pass-through to customer.

5.06.155       Use of funds.

 

5.06.010       Definitions.

    Unless the context clearly indicates otherwise, the words phrases and terms used in this chapter shall have the following meanings:

    A.    “Cellular telephone service” means a two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications which is not subject to regulation by the Washington State Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communications services such as 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. Cellular telephone service is included within the definition of “telephone business” for the purposes of this chapter.

    B.     “City clerk” means the city clerk of Sedro-Woolley and his or her designees or agents.

    C.     “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made.

    D.    “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 investment of capital in the business engaged in (including rentals, royalties, interest and other emoluments however designated excluding receipts or proceeds from the sale or use of real property or any interest therein and the proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like and without any deduction on account of the cost of the property sold, cost of materials used, labor costs, interest or discount paid, or any expenses whatsoever, and without any deduction on account of losses. Further deductions and exceptions from gross income upon which the fee or tax described in this chapter is computed are set forth in Section 5.06.070 of this chapter.

    E.     “Person” or “persons” means persons of either sex, firms, copartnerships, corporations, limited liability companies, and other associations, whether acting by themselves or through servants, agents or employees, and shall include the city of Sedro-Woolley for purposes of imposition and collection of this tax.

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

    G.     “Tax year” or “taxable year” means (1) the year commencing January 1st and ending on December 31st, of such year, or (2) the taxpayer’s fiscal year when permission is obtained from the city clerk to use that period as the tax year, or (3) the year commencing December 15th and ending on December 14th of the following calendar year when permission is obtained from the city clerk to use that period as the tax year.

    H.    “Telephone business” means the business of providing access to a local telephone network, local telephone network switching service, toll service or coin telephone services or providing telephonic, video, data or similar communication or transmission for hire, via a local telephone network, toll line or channel cable, microwave, or similar communication or transmission system. The term includes cooperative or farmer line telephone companies or associations operating an exchange. Telephone business also includes cellular telephone service, provided, that the utility tax therefore shall be collected under Section 5.06.025 of this chapter. Telephone business does not include the providing of competitive telephone service, the providing of cable television service, nor the providing of broadcast services by radio and television stations. (Ord. 1514-05 § 1, 2005: Ord. 1499-05 § 1, 2005)

 

5.06.020       Utility tax levied—Rate.

    On and after April 1, 2005, there is levied on and shall be collected from every person a tax for the act or privilege of engaging in certain business activities, measured by the application of the respective rates against gross income as follows:

    A.    Telephone Business. Upon every person engaged in or carrying on any telephone business (excluding cellular telephone service) within the city of Sedro-Woolley, a fee or tax equal to six percent of the total gross income from such business in the city of Sedro-Woolley. Tax liability imposed under this section shall not apply to that portion of gross income derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale.

    B.     Solid Waste. Upon every person engaged in or carrying on the business of collecting solid waste, recyclable materials or yard waste, a tax equal to two percent of the total gross income from such business in the city of Sedro-Woolley, but not including income from the collection of recyclables from commercial and industrial customers, nor the sale of recyclable materials or yard waste.

    C.     Sewer System. Upon every person engaged in or carrying on the business of operating a sanitary sewer system, a tax equal to two percent of the total gross income from such business in the city of Sedro-Woolley. (Ord. 1499-05 § 2, 2005)

 

5.06.025       Cellular telephone utility tax levied—Rate.

    On and after January 1, 2006, there is levied on and shall be collected from every person a tax for the act or privilege of engaging in certain business activities, measured by the application of the respective rates against gross income as follows:

    Cellular Telephone Business. Upon every person engaged in or carrying on any cellular telephone service business within the city of Sedro-Woolley a fee or tax equal to six percent of the total gross income from such business in the city of Sedro-Woolley. Tax liability imposed under this section shall not apply to that portion of gross income derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale. (Ord. 1514-05 § 2, 2005)

 

5.06.030       License requirement.

    Any person subject to taxation under the provisions of this chapter is required to obtain an occupation license from the city of Sedro-Woolley. On and after April 1, 2005, no person subject to payment of the tax herein shall engage in any business, occupation, or activity in the city of Sedro-Woolley without first obtaining and holding a valid license to do so, which license shall be known as an “occupation license” for which the applicant will pay no charge. Such occupation license shall expire at the end of the


calendar year in which it is issued and a new license shall be required for each calendar year, unless the taxpayer is transacting business on a fiscal year with the prior consent of the city clerk, obtains an occupation license for the period of its current fiscal year which shall be deemed the tax year for such taxpayer. In such case, the occupation license shall expire at the end of the taxpayer’s tax year.

    Application for an occupation license shall be made to the city of Sedro-Woolley’s community services department which shall provide the forms therefor and shall issue the license.

    Any person engaging in or carrying on more than one business, occupation, pursuit or privilege within the city of Sedro-Woolley that is subject to taxation under this chapter shall apply for and obtain an occupation license and shall pay the tax imposed on each of the same. Each occupation license shall be numbered, shall show the name, place and character of business of the taxpayer, and such other information on as the city clerk shall deem necessary, and shall be conspicuously posted in the place of business for which it is issued at all times. Such license shall be personal and nontransferable.

    No person to whom an occupation license has been issued pursuant to this chapter shall suffer or allow any other person for whom a separate license is required to operate under or display that person’s license, nor shall such other person operate under or display such license.

    Any taxpayer who engages in or carries on any business subject to tax hereunder without obtaining and maintaining a valid occupation license to do so shall be guilty of a violation of this chapter for each day during which the business is so engaged in or carried on and the taxpayer who fails or refuses to pay the license fee or tax on any part thereof on or before the due date shall be deemed to be operating without having a license to do so. (Ord. 1499-05 § 3, 2005)

 

5.06.040       Allocation of income—Cellular telephone service.

    A.    Service Address. Payments by a customer for the telephone service from telephones without a fixed location 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 the 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 between or among the city of Sedro-Woolley and one or more other cities, 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 of Sedro-Woolley and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). Once the taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes on the disputed revenues so long as it changes its billing records for future revenues to comport with the settlement facilitated by AWC. (Ord. 1514-05 § 3, 2005)

 

5.06.050       Remittance.

    A.    Monthly Remittance. The tax imposed by this chapter shall be reported and remitted to the city of Sedro-Woolley monthly on or before the last day of the subsequent month. If a taxpayer commences to engage in business at any time other than the first day of the month, then the taxpayer’s first return and tax payment shall be based upon and cover the portion of the month during which the taxpayer engaged in business.

    B.     Returns. The remittance shall be in legal tender and shall be accompanied by a return on a form to be provided and prescribed by the city clerk. The taxpayer shall be required to swear or affirm in writing on the return that the information therein given is full and true and that the taxpayer knows it to be so. If the total tax for which any person is liable under this chapter is not reasonably expected to exceed one hundred dollars in any month, the taxpayer may file a written request with the city clerk to file and pay taxes due under this chapter annually. Such requests are subject to approval by the city clerk. (Ord. 1499-05 § 4, 2005)

 

5.06.060       Taxpayer engaged in more than one business.

    Any person engaged in, or carrying on more than one activity or business subject to the tax imposed by this chapter, shall pay the tax so imposed on each such business or activity. (Ord. 1499-05 § 5, 2005)

 

5.06.070       Deductions.

    In computing the tax imposed by this chapter, the following may be deducted from the measure of the tax:

    A.    Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was properly a debt of a customer and for which the taxpayer can provide documentation to the city of Sedro-Woolley.

    B.     All cash discounts allowed and actually granted to customers of the taxpayer during the tax year and for which the taxpayer can provide documentation to the city of Sedro-Woolley.

    C.     Amounts derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents in their official capacity, and any amount paid by the taxpayer to the United States or the state of Washington, as excise taxes.

    D.    The amount of credit losses actually sustained by taxpayers whose regular books are kept on an accrual basis.

    E.     Amounts derived from business which the city of Sedro-Woolley is prohibited from taxing under the Constitution or the laws of this state or the United States.

    F.     Amounts derived from collection of recyclables from commercial and industrial customers. (Ord. 1499-05 § 6, 2005)

 

5.06.080       Record retention requirements.

    It shall be the duty of every person required to obtain an occupation license and liable for payment of any tax imposed by this chapter to keep and preserve for a period of five years such books and records as will accurately reflect the amount of gross income from the business, and from which can be determined the amount of any tax for which the person may be liable under the provisions of this chapter. The term “books and records” as used in this section includes but is not limited to copies of the taxpayer’s federal income tax returns, federal excise tax returns, state of Washington excise tax returns, and copies of income tax and excise tax audits made by the United States or the state of Washington and furnished to such person. The taxpayer’s books and records shall be available for examination at all reasonable times by the city clerk and his or her duly authorized.

    In the case of any taxpayer who does not keep the necessary books and records within the city of Sedro-Woolley for examination, it shall be sufficient if such person produce the same within the city of Sedro-Woolley as instructed or required by the city clerk.

    Any taxpayer who fails, neglects, or refuses to produce such books and records in accordance with this chapter, or fails to file a return, in addition to being subject to other civil and criminal penalties provided by this chapter, is subject to a tax assessment in an amount determined by the city clerk in accordance with the provisions of this chapter, which tax assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing to the city of Sedro-Woolley by the taxpayer unless the person can prove otherwise by competent evidence. The taxpayer shall be notified by mail by the city clerk of the amount of tax assessment imposed pursuant to this section, together with any penalty and/or interest due, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 1499-05 § 7, 2005)

5.06.090       Tax delinquency—Unlawful acts.

    A.    Penalties and Interest. For each payment due, if such payment is not made by the due date thereof, there shall be added penalty and interest as follows:

    1.     If paid one to ten days late, there shall be a penalty of ten percent added to the amount of tax due.

    2.     If paid eleven to twenty days late, there shall be a penalty of fifteen percent added to the amount of tax due.

    3.     If paid twenty-one to thirty days late, there shall be a penalty of twenty percent added to the amount of tax due.

    4.     If paid thirty-one to sixty days late, there shall be a penalty of twenty-five percent added to the amount of tax due.

    5.     In addition to the above penalty, the city of Sedro-Woolley shall charge the taxpayer interest on all taxes due at the rate of one percent per month or portion thereof that such amounts are past due.

    6.     The tax imposed by this chapter and all penalties and interest thereon shall constitute a debt to the city of Sedro-Woolley and may be collected by court proceedings in the same manner as any other debt which remedy shall be in addition to all other available remedies. Any judgment entered in favor of the city of Sedro-Woolley may include an award to the city of Sedro-Woolley of all court and collection costs including attorneys’ fees to the extent permitted by law. Amounts delinquent more than sixty days may be assigned to a third party for collection in which case the amount of any collection charges shall be in addition to all other amounts owed. Amounts due shall not be considered paid until the city of Sedro-Woolley has received payment for the full amount due or has discharged the amount due and not paid.

    B.     Unlawful Acts. It is unlawful for any person liable for the tax imposed by this chapter to fail to pay the tax when due or for any person, firm, or corporation to make any false or fraudulent return or any false statement in connection with the return.

    C.     Criminal Penalties. Any person who intentionally violates any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to state law or city ordinance. (Ord. 1499-05 § 8, 2005)

 

5.06.100       Quitting, selling or transferring business.

    Whenever any taxpayer quits business, or sells out, exchanges, or otherwise disposes of such business, any tax payable under this chapter shall become immediately due and payable, and such taxpayer shall, within ten days thereafter, make a return and pay the tax due; and any person who becomes a successor shall become liable for the full amount of any unpaid tax, interest, and penalties and shall withhold from the purchase price an amount sufficient to pay any tax due from the taxpayer until such time as the taxpayer shall produce a receipt from the city of Sedro-Woolley showing payment in full of any tax due or a certificate that no tax is due. If such tax, interest or penalty has not been paid by the taxpayer within ten days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of the full amount of tax, interest and penalties. The successor’s liability shall be limited to the purchase price or fair market value of the business purchased if no cash transaction took place. No successor shall be liable for any tax due from the taxpayer from whom the successor has acquired a business or stock of goods if the successor gives written notice to the city clerk of such acquisition and no assessment is issued by the city clerk within six months of receipt of such notice against the former operator of the business. Taxpayer’s account will remain on an active status and be subject to all taxes, penalties and interest until such time as the city clerk is notified in writing that the taxpayer has discontinued business activity within the city of Sedro-Woolley. Nothing in this chapter is intended nor shall it be construed to prohibit the successor from engaging in business in the city of Sedro-Woolley pending resolution of the successor’s tax liability. (Ord. 1499-05 § 9, 2005)

 

5.06.110       Tax not exclusive.

    The tax levied herein shall be additional to any license fee or tax imposed or levied under any other law or under any other ordinance of the city of Sedro-Woolley. (Ord. 1499-05 § 10, 2005)

 

5.06.120       Rate changes.

    No change in the rate of tax upon persons engaging in the telephone business, including cellular telephone service, shall apply to business activities occurring before the effective date of the change. Furthermore, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax on the telephone business may take effect sooner than sixty days following the enactment of the ordinance codified in this chapter establishing the change. The city of Sedro-Woolley shall send to each cellular telephone service company at the address on its occupation license, a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment. (Ord. 1514 § 4, 2005: Ord. 1499-05 § 11, 2005)

 

5.06.130       Appeal procedure.

    Any taxpayer aggrieved by the amount of the fee or tax found by the city clerk to be required under the provisions of this chapter may, upon full payment of the amount assessed, appeal from such finding by filing a written notice of appeal with the city clerk within fourteen days from the date such taxpayer was given notified in writing of such amount. The clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal before the city council, which time shall be not more than sixty days after the filing of the notice of appeal, and shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing before the city council, the taxpayer shall be entitled to be heard and to introduce evidence in his or her own behalf. The city council shall render a decision, together with findings of fact and conclusions of law, based upon the evidence presented at the time of the hearing and all material on file in the case. The city council’s decisions shall indicate the correct amount of the fee or tax owing. The city council’s decision shall be final. The appellant or the city of Sedro-Woolley may appeal the decision of the city council to the Superior Court of Washington in and for Skagit County within thirty days after the date of the city council’s decision. The city council, through the mayor may, by subpoena, require the attendance of any person, and may also require him or her to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the mayor as to any matter required of him or her pertinent to the appeal, and it is unlawful for him or her to fail or refuse to do so. (Ord. 1499-05 § 12, 2005)

 

5.06.140       Over or underpayment of tax.

    In the event that any person makes an overpayment and within two years of the date of such overpayment makes application for a refund or credit, the person’s claims shall be allowed and a refund made by the city of Sedro-Woolley upon determination by the city clerk that no other sums are owed by the person to the city of Sedro-Woolley. If a person determines that the tax has been underpaid and without notice by any party pays the amount due to the city of Sedro-Woolley, such amount shall not be subject to penalty. (Ord. 1499-05 § 13, 2005)

 

5.06.150       Pass-through to customer.

    The taxpayer may pass any tax in this chapter on to a customer, client, or purchaser, showing the additional amount on the billing for or invoice. However, doing so shall not cause the customer, client, or purchaser to become a “taxpayer” for purposes of this chapter. (Ord. 1499-05 § 14, 2005)

 

5.06.155       Use of funds.

    All monies collected from the tax upon cellular telephone services shall be deposited into the Cumulative Reserve Fund (Fund 302) and used only for construction of, acquisition of real estate for, or repairs to city municipal buildings, including fixtures and appliances. (Ord. 1514-05 § 6, 2005)

 

 


Chapter 5.08

 

AMUSEMENT DEVICES, VENDING MACHINES, MUSIC MACHINES

 

Sections:

5.08.010       Definitions.

5.08.020       Master license—Music machines.

5.08.030       Amusement devices.

5.08.040       Food and beverage machines.

5.08.050       Cigarette and tobacco vending machines.

5.08.060       Machines in owner’s place of business.

5.08.070       Assignment of license.

5.08.080       License—Application.

5.08.090       License—Issuance.

5.08.100       Seizure of unlicensed machine.

5.08.110       Minors operating.

5.08.120       Allowing minors to operate.

5.08.130       Limit on number of machines.

5.08.140       Permitting unlicensed machine on premises.

5.08.150       License fee a civil debt.

5.08.160       License—Revocation.

5.08.170       Revocation for violations.

5.08.180       License revocation—Hearing.

5.08.190       Gambling not permitted.

5.08.200       Moving machines.

5.08.210       Penalties.

5.08.220       Financial statement to accompany license application.

 

5.08.010       Definitions.

    “Distributor” as used herein means any person, firm or corporation who leases, rents to, or places with others within this city any machine or device operated by a coin or coins, or other valuable consideration, for playing music or other records, amusement devices, cigarette and tobacco vending machines, and candy or other merchandise vending machines.