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Chapter 8.10
Utilities, Franchise TaxesSections:
8.10.010 Definitions.
8.10.020 Tax Imposed.
8.10.030 Business Activities Subject to Tax – Amounts.
8.10.040 Exemptions.
8.10.045 Credits.
8.10.050 Payment – Returns.
8.10.060 Commencement of Business During the Tax Year.
8.10.070 Sale or Transfer of Business.
8.10.080 Multiple Businesses.
8.10.090 Taxpayer to Keep Records – Confidentiality.
8.10.100 Department to Investigate Returns.
8.10.110 Extension – Late Payment.
8.10.120 Procedure upon Overpayment.
8.10.130 Procedure upon Underpayment.
8.10.140 Remedy for Nonpayment of Tax.
8.10.150 Appeals.
8.10.160 Finance Director to Make Rules.
8.10.170 Mailing of Notices.
8.10.180 No City Estoppel.
8.10.190 False Statement.
8.10.200 Violation – Penalty.
8.10.210 Severability.
8.10.220 Computation of Income of Tariffed Utilities.
8.10.010 Definitions.
In construing the provisions of this chapter, except where otherwise stated or apparent from the context, the following definitions apply:
A. “Cable franchise fee” means a fee assessed pursuant to SMC 10.27.310 upon a cable operator by the City as a condition of a cable franchise.
B. “Department” means the administrative official responsible for the functions of the office of taxes and licenses, or other designee of the division director of finance.
C. Gross Income.
1. “Gross income” or “gross revenues” means the value proceeding or accruing from the sale of tangible personal property or service, and receipts (including all sums earned or charged, whether received or not) by reason of the investment of capital in the business engaged in, including rentals, royalties, fees, 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, the cost of materials used, labor costs, taxes, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses.
2. “Gross income” is further defined to mean the total gross income received or earned as above noted on a cash receipts or on an accrual basis according to the method of accounting regularly employed by the taxpayer during the period for which the taxes are applicable.
D. “Internet” means the international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork called the “world wide web.”
E. “Internet service” means a service that includes computer processing applications, provides the user with additional or restructured information, or permits the user to interact with stored information through the internet or a proprietary subscriber network. “Internet service” includes provision of internet electronic mail, access to the internet for information retrieval, and hosting of information for retrieval over the internet or the graphical subnetwork called the “world wide web”.
F. “Pager telephone business service,” commonly known as pager service, has that common meaning and includes one-way communication services such as tone only (beeper), numeric or alphanumeric messaging, and tone and voice messaging. It includes talk-back paging, conventional dispatch radio and specialized mobile radio pager service.
G. “Person” means an individual, entity, co-partnership, joint venture, firm, club, company, joint stock company, corporation, assignee, successor, receiver, administrator, executor, trustee in bankruptcy, trust, estate, association, society, governmental unit, municipal corporation, or quasi-municipal corporation, including the City, a City department, or officer, agent, or employee of any of the foregoing.
H. Solid Waste.
1. “Solid waste collection service” means receiving solid waste for transfer, processing, treatment, storage, or disposal, including but not limited to, all collection services. It does not include the operation of public or private dumps, transfer stations and similar operations. It does not include operation of a regional solid waste disposal system, to the extent the same may be established by interlocal agreement between the City and County of Spokane, although components of charges for taxable solid waste collection service may include charges of regional system facilities, including transfer stations, dumps, or waste-to-energy disposal facilities.
2. “Solid waste,” for purposes of this subsection, means garbage, trash, rubbish, or other material discarded by the generator as worthless or not economically viable for further use. “Solid waste” includes infectious, hazardous, or toxic wastes, and recyclable or reusable materials collected in whole or part for recycling or salvage as part of a general solid waste collection service to the public.
I. “Taxpayer” means any person liable for the tax or license fee imposed under this chapter.
J. “Tax year” or “taxable year” means the particular taxpayer’s fiscal year or such fiscal year as adjusted in the discretion of the division director of finance to accommodate the taxpayer’s method of accounting.
K. Telephone Business.
1. “Telephone business” means the business of providing by any person of access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. It includes the provision of transmission to and from the site of an internet provider via a local telephone network, toll line or channel, cable microwave, or similar communication or transmission system, or any other similar telecommunications business activity lawfully taxable by the City of Spokane.
2. “Telephone business” includes cooperative or farmer line telephone companies or associations operating exchanges.
3. “Telephone business” includes cellular telephone service, which is a two-way voice and/or data telephone/telecommunications system based in whole or in a substantial part upon wireless radio communications, whether or not subject to regulation by the Washington State Utilities and Transportation Commission (WUTC). It includes cellular mobile service. “Cellular mobile service” includes additional varieties of partly or entirely wireless radio communications services commonly referenced or marketed as specialized mobile radio (SMR), personal communications services (PCS) and other such wireless radio communications technologies accomplishing a purpose similar to cellular mobile service.
4. “Telephone business” does not include the providing of competitive telephone service, the providing of cable television service, the providing of broadcast services by radio or television stations. It further does not include the provision of internet service, including the reception of dial-in connection, provided at the site of the internet service provider; provided, in the event any statutory prohibition of municipal taxation of internet service providers hereafter expire or otherwise be removed, then at such time, “telephone business” shall thereafter include the provision of internet service, including the reception of dial-in connection, provided at the site of the internet service provider. (Note: State prohibits taxation of internet providers.)
“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 RCW title 80 and for which a separate charge is made; provided, “competitive telephone service” does not include cellular telephone service. “Telecommunications” is as defined in RCW 80.04.010.
[Ord. C32872 § 1; Passed: 7/30/2001]
8.10.020 Tax Imposed.
A. The provisions of this chapter are an exercise of the City’s power to tax and license for revenue and to impose terms and conditions on utility operations in or over public right-of-way areas. No license authority granted shall continue beyond one year from the date thereof.
B. No person may engage in or carry on any utility business, occupation, or activity in the City of Spokane described in SMC 8.10.030 without having first filed a return with and paid the tax or license fee imposed as required by this chapter to the city treasurer, within such time and manner as this chapter may prescribe, or in absence of provision therefor, as required by the city treasurer.
[Ord. C30113; Passed: 6/17/1991]
8.10.030 Business Activities Subject to Tax – Amounts.
A. There is levied upon and shall be collected from all persons engaging in the following utility business activities a utility gross receipts tax or license fee measured by multiplying the rate specified times the gross income as follows:
1. Selling, wheeling, or furnishing electric light or power: six percent of gross income;
2. Selling, brokering, or furnishing natural or manufactured gas for hire: six percent of gross income;
3. Providing solid waste collection service: seventeen percent of gross income;
4. Operating a public wastewater collection and treatment system: seventeen percent of gross income;
5. Providing telegraph service: three and one-half percent of gross income;
6. Engaging in the telephone business: six percent.
a. This percentage is taken of gross revenues derived from engaging in the telephone business in the City of Spokane, including one hundred percent of the total gross revenues derived from intrastate toll telephone services so long as the tax is not imposed on that portion of network telephone service, as defined in RCW 82.04.065, which represents 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 service, or for access to, or charges for interstate services, or charges for network telephone service that is purchased for the purpose of resale.
b. With respect to any rate affecting cellular taxation, subject also to RCW 35.21.870, no change in the tax rate affects business activities occurring before the effective date of the change, and no change will take effect sooner than sixty days following enactment of any amendatory ordinance.
c. In the case of cellular telephone service, when the service is provided to a customer roaming outside his normal use cellular network area, gross income for taxation purposes is determined consistent with the taxpayers 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. In the case of cellular telephone service, payments by a customer for the telephone service for telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address for the period during which the tax applies. There is a presumption that the service address a customer supplies to the taxpayer is accurate and current, unless the taxpayer has knowledge or reason to know the contrary.
e. If there is a dispute between the City of Spokane and another Washington city imposing a municipal telephone utility tax on cellular service of the same nature as imposed by this chapter, which dispute is limited only to the question of the correct allocation of municipal telephone taxes as between the City of Spokane and some other Washington city, the taxpayer may obtain exoneration from further tax liability, interest and penalties due and owing to the City of Spokane with respect to the transactions under dispute by tendering the total amount of tax claimed due by the City of Spokane into an escrow account with the city treasurer or as established hereafter by appropriate interlocal agreements under the administrative sponsorship of the Association of Washington Cities. Under these arrangements the taxpayer remains responsible to adjust its billing records promptly upon notification under procedures sanctioned through the Association of Washington Cities of the resolution of any dispute encompassed within the terms of this paragraph.
7. Selling or furnishing water for hire: seventeen percent of gross income.
8. Providing cable, telecommunications, or similar type service to the public which involves the use of the right-of-way for the installation of wires, cables, fixtures or other equipment, where not otherwise addressed in this section or prohibited by law: six percent of gross income.
B. Subsections (A)(3), (A)(4) and (A)(7) of this section include, so far as permitted by law, the City of Spokane, and the fee or tax imposed applies to the specified business of the entire City service area, except that subsection (A)(3) of this section does not apply to operations or functions undertaken by the City occurring outside the City of Spokane and undertaken by the City as manager of a joint project pursuant to interlocal cooperation agreement.
[Ord. C33117 § 1; Passed: 12/9/2002]
8.10.040 Exemptions.
A. There may be exempted from the total gross income upon which the license fee or tax is computed revenues derived from business which the City is prohibited from taxing under the constitution or laws of the State of Washington or the United States, or the Charter of the City; and any amount collected by the taxpayer for the United States, the State, or the City as excise taxes levied or imposed directly upon the taxpayer’s customers for the sale or distribution of property or services.
B. There may be exempted from the total gross income upon which a license fee or tax is imposed amounts derived from the sale of commodities to persons in the same public service business as the sellers, for resale as such within this state. This exemption is allowed only with respect to those business activities taxed under SMC 8.10.030(A)(1), (A)(2), or (A)(6), or any other public service business as defined in RCW 82.16.010(10) which furnishes water, electrical energy, natural or manufactured gas, or any other commodity in the performance of public service businesses.
C. There may be exempted from the total gross income upon which the license fee or tax is computed the amount of state excise taxes imposed pursuant to RCW chapter 82.18 upon persons using the service of a solid waste collection business and collected for payment to the state by the solid waste collection business.
D. There may be exempted from the total gross income upon which the license fee or tax is imposed under SMC 8.10.030(A)(1) revenues otherwise taxable derived by a taxpayer from the business of selling electricity for use in the process of manufacturing aeronautical brake components, to the extent said revenues exceed one hundred thousand dollars during a calendar year for which said tax is due. In the event this provision is determined unenforceable for any reason, it shall not affect the validity of the tax or any other provision.
E. There may be exempted from the total gross income upon which the license fee or tax is imposed under SMC 8.10.030(A)(2) revenues otherwise taxable derived by a taxpayer arising from the business of selling natural or manufactured gas for use in the process of manufacturing aeronautical brake components, to the extent said revenues exceed one hundred thousand dollars during a calendar year for which said tax is due. In the event this provision is determined unenforceable for any reason, it shall not affect the validity of the tax or any other provision.
F. Exemption for Collection of Source-Separated Recyclable Materials.
1. There may be exempted from the total gross income upon which the license fee or tax is imposed under SMC 8.10.030(A)(3) revenues derived from providing the service of collecting source-separated recyclable materials as follows:
a. Residential recycling: revenues derived from providing a residential curbside recycling collection service to the public in accord with the local comprehensive solid waste management plan adopted pursuant to RCW chapter 70.95;
b. Commercial and other recycling: revenues derived from the service of collecting commercial or other recyclable materials not included in subsection (F)(1)(a) of this section. This exemption is limited to materials actually resold, computed in proportion to weight, as follows:
i. Any weight added by processing or treatment after collection is subtracted from the weight as sold to obtain the allowable weight as sold; and
ii. Revenues are multiplied by a fraction, the numerator of which is the allowable weight as sold and denominator of which is the weight as collected.
2. Unless otherwise approved by the department under circumstances where the taxpayer’s accounting and business practices provide easily verifiable proof of the proper amounts eligible for exemption, exemptions under this subsection (D) of this section are allowed through a refund only. The taxpayer must have timely paid all taxes for the period, including any amounts for which the exemption may be claimed, and must file an application for refund, on forms provided by the department, within six months of the date on which payment was due.
3. This exemption does not apply to any energy-recovery or fuel-use process, nor in any case where materials collected have not been sold for commercial reuse within one hundred days from the date of collection. This period may be extended when a taxpayer shows to the department’s satisfaction that market conditions necessitate a longer period for sale.
G. Taxpayers providing pager telephone business service, previously classified within a more generic telephone business service class, may claim an exemption for pager service revenues upon which the former generic telephone business tax under SMC 8.10.030(A)(6) may have applied; provided, this exemption is limited to such revenues taxable before April 1, 2001. In addition, the department must receive a claim for this exemption no later than five p.m. December 31, 2001, after which the exemption opportunity expires.
H. Taxpayers accounting on an accrual basis may exempt net bad debts from the total gross income upon which a license fee or tax is computed if such items have been previously included and taxed as income.
[Ord. C32872 § 3; Passed: 7/30/2001]
8.10.045 Credits.
A. A credit is allowed against a tax imposed pursuant to SMC 8.10.030(A)(8), up to the amount of any cable franchise fee paid by the taxpayer to the City of Spokane for the same period in which said tax is payable; provided, said credit may not exceed five percent of gross revenues, as defined in SMC 10.27.040(U), and also may not exceed the amount of the tax itself.
B. A credit is allowed against any tax imposed pursuant to SMC 8.10.030(A)(2), up to the amount of any natural gas pipeline franchise fee. Said credit may not exceed two percent of gross receipts from the sale of said gas in the City of Spokane.
C. Taxpayers providing pager telephone business service, previously classified within a more generic telephone business service class, may claim a credit for taxes paid upon pager service revenues previously taxable under SMC 8.10.030(A)(6); provided, this credit may only be taken on such taxes due for tax periods before April 1, 2001, plus interest at six percent per annum on amounts eligible for the credit. In addition, the department must receive a claim for this credit no later than five p.m. December 31, 2001, after which the credit opportunity expires.
D. A credit claimed under this section may not exceed the amount of the tax against which it is taken. Such credit must have been actually paid and received by the City before it may be taken. The credit must accrue for the same period for which the tax against which it is taken accrues.
[Ord. C32872 § 4; Passed: 7/30/2001]
8.10.050 Payment – Returns.
A. The taxpayer must pay all taxes required monthly within the time specified herein unless a different period is allowed by written approval from the city treasurer. Each such payment is to be paid to the treasurer on or before the twenty-fifth day following the tax period just ended, to be computed based upon the gross income of said tax period.
B. Payment is made by bank draft, certified check, cashier’s check, personal check, money order, in cash, or federal funds wire transfer. If payment is made by draft or check, the tax or fee shall not be deemed paid until the instrument is honored in the usual course of business.
C. The acceptance of any payment by the city treasurer is not to be construed as an acquittance, accord, or discharge of the tax or fee unless the amount is in the full and actual sum claimed due by the City.
D. Payments are to be accompanied by the filing of a tax return on blanks or forms provided by the department requesting such information as may be necessary for the department to determine the lawful amount of the fee or tax, but failure of the taxpayer to receive any such forms does not excuse the taxpayer from filing a return and paying the license fee or tax as due hereunder.
E. The taxpayer is required, in a legible and truthful manner, to complete the return and supply the information requested. The taxpayer, acting through a responsible person, resident agent, or local manager empowered to execute documents upon the taxpayer’s behalf, must sign the return. By affidavit at the foot thereof the taxpayer’s signatory swears or affirms under penalty of perjury that the information given is full and true and that he/she knows the same to be so.
[Ord. C30113; Passed: 6/17/1991]
8.10.060 Commencement of Business During the Tax Year.
Whenever a taxpayer commences any business activity during the tax year upon which a tax is imposed under the provisions of this chapter, the taxpayer’s return and tax are based upon that portion of the tax year during which the taxpayer is engaged in business activity.
[Ord. C30113; Passed: 6/17/1991]
8.10.070 Sale or Transfer of Business.
A. Upon the sale or transfer during any year of a business or a portion of a business upon which a tax is required hereunder, the purchaser or transferee must, if the tax has not been paid in full for said tax year, be responsible for the payment of the tax for that portion of the tax year during which said transferee or purchaser carries on such business.
B. Whenever any taxpayer quits business, sells out, or otherwise disposes of the taxpayer’s business or otherwise terminates the same, any tax payable hereunder shall be immediately due and payable and the taxpayer must, within thirty days thereafter, make a return and pay the tax due.
[Ord. C30113; Passed: 6/17/1991]
8.10.080 Multiple Businesses.
Any person engaging in more than one category of a business activity under this chapter is required to obtain a valid and subsisting license therefor, file a return and pay the tax upon each such activity. (Former SMC 8.10.110.)
[Ord. C30113; Passed: 6/17/1991]
8.10.090 Taxpayer to Keep Records – Confidentiality.
A. Every taxpayer is required to keep and preserve such books and records as accurately reflect gross income from which can be determined amounts payable under this chapter and from which information required to be provided in the tax return can be verified.
B. Every taxpayer is required to keep such books and records always open and available for examination within the City of Spokane upon demand at all reasonable times by the department.
C. A taxpayer who does not keep the required books and records in the city must either produce records upon demand by the department or bear the cost of examination by the department at the place where the records are kept. This includes any records the department determines necessary, in the exercise of reasonable discretion, to fulfill its auditing function. Costs include transportation, food and lodging and any other incidental expenses determined by the department. The taxpayer must, upon demand, advance costs as estimated by the department, subject to adjustment upon completion of the examination.
D. Upon request by a taxpayer made with the filing of a return or at the time of submission of any information required hereunder, and a showing of eligibility under RCW 42.17.310(1)(c), such information or items as requested may be kept confidential and withheld from public disclosure, inspection, or copying, except from the department, comptroller, office of the city attorney, the mayor, members of the city council, the city hearing examiner, or their authorized agents. The foregoing is not, however, to be construed to prohibit the City or any agent thereof from:
1. giving such facts or information in evidence in any hearing or court action involving the tax imposed hereunder or involving a violation of the provisions hereof;
2. giving such facts or information to the taxpayer or taxpayers duly authorized agent;
3. publishing statistics so classified as to prevent the identification of particular returns and reports of items thereof;
4. permitting City records to be audited and examined by proper state or local government officials, their agents or employees; or
5. giving any such facts or information to the proper office of the federal Internal Revenue Service or to the proper officer of the tax department of any state, city, town, or county for official purposes, but only if the statutes of said entities grant substantially similar privileges to the proper officers of the City of Spokane.
E. The City hereby consents to the inspection of such records as necessary to qualify the City for inspection of records privileges from the State Department of Revenue pursuant to RCW 82.32.330.
[Ord. C32755; Passed: 12/4/2000]
8.10.100 Department to Investigate Returns.
A. The department investigates all taxpayers and returns necessary to assure full and fair enforcement of the provisions of this chapter and to conduct audits as deemed necessary. The department investigates any taxpayer who fails to file a return, pay a tax due under this chapter, or otherwise demonstrate full compliance with this chapter.
B. In case of any question, or if the department is dissatisfied with the correctness of any statement made upon the return of the taxpayer, the department may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting the taxpayer’s books and records to ascertain the amount of any tax due under this chapter, or the correctness of any statement or return provided by the taxpayer.
C. In the performance of these functions the department may examine any record or person for information bearing on taxes payable, under oath and/or may fix a time and place for the investigation of the correctness of the return and compliance with this chapter. The department may issue a subpoena to the taxpayer or any other person to attend such investigation and there testify, under oath administered by the department, in regard to any matter inquired into and may further, by subpoena, require the taxpayer or any person to bring with them such books, records, or papers as may be requested.
D. Any taxpayer who fails, neglects, or refuses to keep and produce the required books and records is guilty of a civil infraction for each day such failure continues. In addition said taxpayer is liable for payment of whatever assessment of tax, including interest and penalties, which the department may determine and will be forever barred from questioning the accuracy or correctness thereof.
E. In addition to other remedies the city attorney may seek a court order to enforce any departmental subpoena or demand to produce records in any manner authorized by law.
[Ord. C31589; Passed: 3/25/1996]
Cross Reference: RCW 82.32.070, 82.32.110.
8.10.110 Extension – Late Payment.
A. The department, for good cause shown, may extend the time for making and filing any return and/or paying any fee or tax as required under this chapter and may grant such reasonable additional time within which to file such returns and/or pay any fee or tax as it may deem appropriate. Any extension of time under this section is conditioned upon payment of interest of twelve percent per annum upon the amount of the tax from the date said tax became due and payable.
B. If payment of any tax due hereunder is not received by the City treasurer on or before the day upon which said tax becomes due, or within any extension granted, there is added a penalty computed on the amount due as follows, unless waived by the division director of finance:
1. five percent of the total amount due with a minimum amount penalty of fifteen dollars if not received by the first day of the month next succeeding the due date;
2. ten percent of the total amount due with a minimum penalty of twenty dollars if not received by the first day of the second month next succeeding the due date;
3. twenty percent of the total amount due with a minimum penalty of twenty-five dollars if not received by the first day of the third month next succeeding the due date;
4. fifty percent of the total amount due if the department determines that all or a part of the deficiency assessed resulted from an intent by the taxpayer to evade the tax.
C. In addition to said penalties the department charges the taxpayer interest of twelve percent per annum or portion thereof on any amount of the tax plus penalty from the date said tax or penalty becomes due. Penalties and/or interest may be waived in whole or in part where the department finds the underpayment was a result of circumstances beyond the taxpayer’s control.
[Ord. C32248 § 1; Passed: 8/31/1998]
Cross Reference: RCW 82.32.050, 82.32.105.
8.10.120 Procedure upon Overpayment.
A. Whenever, upon petition by a taxpayer for a refund or otherwise, the department determines that a sum paid under this chapter was in excess of the amount properly due within a three-year period preceding the departmental determination or written petition for a refund, and a refund is payable, the department credits the overpayment to the taxpayer’s account or refunds it at the taxpayer’s option. Department decisions may be appealed as provided in SMC 8.10.150.
B. Petitions for refunds must state, in writing:
1. the taxpayer’s name, address and telephone;
2. the dates of payment of tax, method of payment, amount and proof of payment;
3. the tax periods involved and taxpayer’s gross income from business activity in the city for said period; and
4. reasons why a refund is proper.
C. Refunds may be denied or limited, in the division director of finance’s discretion, when it appears that:
1. information supplied by the taxpayer is materially misleading, incomplete, false, or fraudulent;
2. the overpayment was the result of taxpayer negligence or careless oversight; or
3. the tax was paid without written protest, delivered with payment to the department, under circumstances in which the taxpayer knew or should have known of an objection or basis of claim for overpayment.
D. Refunds accrue interest at the rate allowed in RCW 82.32.060 for refund of state taxes.
E. No provision of this title extends the time necessary for a taxpayer to commence a legal action. No provision creates a right to a refund except and to the extent required by the constitution and laws of the State of Washington or the United States.
[Ord. C30113; Passed: 6/17/1991]
8.10.130 Procedure upon Underpayment.
A. Should it appear that a taxpayer has made a payment of tax and/or interest and/or penalty in an amount less than that actually due, the department, on the basis of whatever information it has, determines the amount remaining due and notifies the taxpayer by mail of the determination. The taxpayer is required thereafter to pay to the city treasurer the amount so determined within ten days of the date of mailing or such longer time as may be prescribed in the notice.
B. The department may not re-assess a taxpayer who has underpaid any sum more than four years after the end of a particular tax year unless the taxpayer has:
1. failed to file a return; or
2. made a material, misleading, incomplete, false, or fraudulent return or otherwise filed misleading, incomplete, false, or fraudulent information; or
3. unless the taxpayer waives the limitation.
[Ord. C30113; Passed: 6/17/1991]
8.10.140 Remedy for Nonpayment of Tax.
A. If any taxpayer fails to file a timely and accurate return or pay any tax due or portion thereof within the time set in SMC 8.10.050, the department ascertains the amount of the tax or installment due and notifies the taxpayer thereof, who shall be liable in suit or action by the City for collection. Failure of notification does not excuse the taxpayer from payment of the tax, penalty, or interest, or from compliance with this chapter.
B. The department also notifies the city attorney, in writing, of the name of such delinquent taxpayer and the amount due and said officer, with the assistance of the department, collects the same by appropriate means, including civil infraction and suit or action in the name of the City.
C. Selection of any remedy by the City does not waive or estop any other remedy nor will the accrual of penalties or interest on any delinquency be abated by the commencement of any action.
[Ord. C31589; Passed: 3/25/1996]
8.10.150 Appeals.
A. The department’s determination of tax owing, including penalties and interest, may be appealed by filing, in proper form, an appeal with the hearing examiner within twenty days of the date of determination. Copies are also to be provided by the appealing party in such time to the city attorney and the department. The date of determination is the date reflected therein or, if mailed, three days from the date of mailing, whichever is later. “Filing” requires actual receipt. As a further condition of appeal a taxpayer must tender to the city treasurer, pending the outcome of the appeal, the full amount of all taxes, fees, penalties and delinquencies assessed by the City.
B. To be accepted, in proper form, as timely, appeals must show:
1. the taxpayer’s name, telephone number and business address,
2. the tax period and taxpayer’s gross income from business activity in the city for that period with which the appeal is concerned,
3. a receipt or other proof from the city treasurer showing payment of the amount determined owing by the department,
4. the amount of tax, interest and penalty the taxpayer contends is due and method of calculation, and
5. reasons why a correction should be granted. The appeal must be signed, verified under oath and dated by an authorized representative of the taxpayer.
C. At the hearing the determination appealed from is regarded as prima facie correct. The hearing examiner may require any party to the appeal to testify under oath and upon personal knowledge and to produce documents or records deemed relevant or necessary. The hearing examiner preserves a record of the hearing in such form and manner as the examiner may deem proper. The examiner may reverse or modify the department’s decision and may assess the correct amount of tax, penalty, or interest due if the examiner determines the assessment violates the provisions of this chapter or is contrary to law. The decision of the hearing examiner is final, subject to review by either party under the provisions of RCW 7.16.040, so long as the appealing party files and serves upon all necessary parties the petition for granting a writ of review within twenty days of the date of issuance of the examiner’s decision.
[Ord. C30113; Passed: 6/17/1991]
8.10.160 Finance Director to Make Rules.
The division director of finance has the power from time to time to adopt and publish in the Official Gazette of the City of Spokane rules and regulations not inconsistent with this chapter or applicable law for the purpose of carrying out the provisions hereof. Such rules become effective twenty days after the date of publication in the Official Gazette and it shall be thereafter unlawful to violate or fail to comply with any such rule.
[Ord. C30113; Passed: 6/17/1991]
8.10.170 Mailing of Notices.
Any notice required or permitted to be mailed to any taxpayer is sent by ordinary mail, addressed to the address of the taxpayer as shown by the records of the department or, if no such address is shown, to such address as the department is able to ascertain by reasonable effort. Failure of the taxpayer to receive such mailed notice does not release the taxpayer from any tax or penalties thereon, nor does such failure operate to extend any time limit.
[Ord. C30113; Passed: 6/17/1991]
8.10.180 No City Estoppel.
The City is not estopped to recover additional taxes, penalties, or interest previously unpaid because of any municipal action or inaction, audit, rule, or taxpayer business or accounting practice or custom, whether disclosed or not.
[Ord. C30113; Passed: 6/17/1991]
8.10.190 False Statement.
It is unlawful for any person liable to tax under this chapter to fail or refuse to file a return or pay the tax or installment thereof when due, or for any person to make a false, fraudulent, or incomplete return or any false, fraudulent, or incomplete representation in or in connection with any such return, or to aid or abet another in any attempt to evade payment of tax or any part thereof, or for any person to fail to appear and/or testify in response to a subpoena issued pursuant to this chapter, or testify or supply false, fraudulent, or incomplete information to any investigator inquiring into the correctness of a return, or during the hearing of any appeal under the provisions of this chapter. It shall be unlawful for any person to in any manner hinder or delay the City or any of its officers or officials in carrying out the provisions of this chapter or any regulation promulgated pursuant to the authority thereof.
[Ord. C30113; Passed: 6/17/1991]
8.10.200 Violation – Penalty.
Any person violating or failing to comply with any of the provisions of this chapter, except for those violations designated as civil infractions, or any lawful rule or regulation of the division director of finance adopted pursuant to this chapter is guilty of a misdemeanor.
[Ord. C31589; Passed: 3/25/1996]
8.10.210 Severability.
If any section, subdivision of a section, paragraph, sentence, clause, or word of this chapter for any reason is adjudged invalid, such judgment will not affect, impair, or invalidate the remainder of this chapter but will be confined in its operation to the section, subdivision of a section, paragraph, sentence, clause, or word of the chapter directly involved in the controversy in which such judgment has been rendered. If any tax imposed under this chapter is adjudged invalid as to any person, corporation, or association or class of persons, corporations, or associations included within the scope of the general language of this chapter, such invalidity will not affect the liability of any person, corporation, or association or class of persons, corporations, or associations as to which such tax has not been adjudged invalid. It is hereby expressly declared that had any section, subdivision of a section, paragraph, sentence, clause, or word or any person, corporation, or association or class of persons, corporations, or associations as to which this chapter may be declared invalid been eliminated from the chapter at the time the same was considered, this chapter would have, nevertheless, been enacted with such portions eliminated.
[Ord. C30113; Passed: 6/17/1991]
8.10.220 Computation of Income of Tariffed Utilities.
Where a taxpayer’s gross income or gross revenues are subject to tariff approval of a regulatory authority and said authority permits or requires the taxpayer to refer the impact of any tax levied pursuant to this chapter upon the municipal rate base, the impact thereof is included in the gross income or gross revenues of the taxpayer. This provision is not to be construed to reduce the gross income or gross revenue of any taxpayer in any circumstance, but is supplemental and in addition to the inclusive definition of gross income or gross revenue in SMC 8.10.010(C).
[Ord. C30272; Passed: 12/9/1991]
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