Chapter 3.16
OCCUPATION TAX
Sections:
3.16.010 Exercise of revenue license power.
3.16.030 Occupation license—Required—Effect of noncompliance.
3.16.040 Tax year designated—License expiration—Adjustments for bookkeeping convenience.
3.16.050 Taxable occupations designated—Amounts.
3.16.060 Exemptions and deductions.
3.16.070 Monthly tax installments.
3.16.120 Taxpayer records—Confidentiality of return.
3.16.130 Investigation of return—Right of entry—Subpoena.
3.16.140 Overpayment—Refunds—Time limits.
3.16.150 Failure to pay—Remedies.
3.16.170 Rule and regulation promulgation—Compliance required.
3.16.180 License posting required—Prohibited use of license.
3.16.190 Unlawful acts designated.
3.16.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. (Ord. 207 § 1, 1957)
3.16.020 Definitions.
In construing the provisions of this chapter, except when otherwise plainly declared or clearly apparent from the context, the following definitions shall be applied:
A. “Competitive telephone service” shall be defined as set forth in RCW 82.04.065(1) as now exists or as hereafter may be amended.
B. “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 reasons of the investment of capital in the business engaged in, including rentals, royalties, fees or other emoluments, however designated (excluding 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 evidence of indebtedness, or stocks and the like) and without any reduction on account of the cost of the property sold, the cost of materials used, labor cost, interest, or discount paid, or any expenses whatsoever, and without deduction on account of losses.
C. “Network telephone service, shall be defined as set forth in RCW 82.04.065(2) as now exists or as hereafter may be amended.
D. “Person” or “persons” means individuals, firms, partnerships, corporations, public utility districts, municipal corporations or departments thereof, public or private utilities, water companies or districts, and other associations, whether acting by themselves or by servants, agents or employees.
E. “Taxpayer” means any person liable for the license fee or tax imposed by this chapter.
F. “Tax year” or “taxable year” means the year commencing January 1st and ending on the last day of December of such year, or, in lieu thereof, the taxpayer’s fiscal year when permission is obtained from the city clerk to use the same as the tax period.
G. “Telephone service” shall be defined as set forth in RCW 82.04.065(3) as now exists or as hereafter may be amended.
H. “Telephone business” shall be defined as set forth in RCW 82.04.065(4) as now exists or as hereafter may be amended and shall not include the provision of competitive telephone service.
I. “Telecommunications company” shall be defined as set forth in RCW 80.04.010 as now exists or as hereafter may be amended. (Ord. 511 § 1, 1989: Ord. 207 § 2,1957)
3.16.030 Occupation license—Required—Effect of noncompliance.
A. No person shall engage in or carry on any business, occupation, pursuit or privilege for which a license fee or tax is imposed by this chapter without having first obtained, and being the holder of, a valid and subsisting license to do so, to be known as an occupation license.
B. Each person shall apply to the city clerk for a license upon the form the clerk shall prepare and provide, giving such information as the clerk shall deem reasonably necessary to enable him/her to administer and enforce this chapter. The taxpayer shall provide accurate information and sign the same in the form of an affidavit wherein the taxpayer shall swear or affirm the information therein given is true and correct and he knows the same to be so. Upon acceptance of such application by the clerk, he/she shall issue the license to the applicant.
C. An occupation license shall be personal and nontransferable.
D. Any person engaging in, or carrying on, more than one such business, occupation, pursuit or privilege shall pay the license fee or tax so imposed upon each of the same.
E. Any person who engages in, or carries on, any business subject to a license fee or a tax under this chapter without having his occupation license to do so, shall be guilty of a violation of this chapter for each day during which business is so engaged in or carried on, and any taxpayer who fails or refuses to pay the license fee or tax or any part thereof on or before the due date shall be operating without having his license to do so. (Ord. 511 § 2, 1989: Ord. 207 § 3, 1957)
3.16.040 Tax year designated—License expiration—Adjustments for bookkeeping convenience.
A. All occupation licenses shall be for the tax year for which issued and shall expire at the end of such tax year.
B. Such occupation license and the fee or tax imposed shall be for the year commencing January 1st and ending on the last day of December of such year; provided, however, that if the taxpayer in transacting his business keeps the books reflecting the same for a fiscal year not based on the calendar year, he may, with the assent of the city clerk, obtain his license for the period of his current fiscal year which shall be deemed his tax year, and pay the fee or tax computed upon his gross income made during his fiscal year covering his accounting period as shown by the method of keeping the books of the business. (Ord. 511 § 3, 1989: Ord. 207 § 4, 1957)
3.16.050 Taxable occupations designated—Amounts.
There are levied upon, and shall be collected from, the persons on account of the business activities license fees or occupation taxes in the amounts to be determined by the application of the rates against gross income as follows:
A. Electric. Upon every person engaging in the business of selling or furnishing electric energy, a fee or tax equal to six percent of the total gross income from such business in the city during the period for which a license fee or tax is due; provided, however, that the minimum fee or tax shall not be less than two hundred dollars per tax year, except there shall be no minimum for public utility districts.
B. Gas. Upon every person engaged in or carrying on the business of selling or furnishing natural or manufactured gas, a fee or tax equal to six percent of the total gross income from such business in the city during the period for which a license fee or tax is due; provided, however, that the minimum fee or tax shall not be less than two hundred dollars per tax year, except there shall be no minimum for public utility districts.
C. Telephone. Upon every person engaged in or carrying on a telephone business, a fee or tax equal to six percent of the total gross income from such business in the city during the period for which a license fee or tax is due; provided, however, that the minimum fee or tax shall not be less than two hundred dollars per tax year.
In determining gross income from such telephone business, including intrastate toll telephone service, the taxpayer shall include one hundred percent of the gross income received from such business in the city. The tax established hereunder shall not apply to that portion of network telephone service which represents charges to another telecommunications company 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.
D. Cable. Upon every person engaged in the business of constructing, operating and maintaining a coaxial cable subscriber system for television, radio and other audiovisual electrical signal distribution throughout the city, a fee or tax equal to six percent per year of the total gross income from such business in the city during the period for which a license fee or tax is due; provided, however, there shall not be included in the gross income on which computation is made, any sums received by such persons for any installations or connection work, and provided, further, that the minimum fee or tax shall not be less than two hundred dollars per tax year.
E. Water. Upon every person engaged in or carrying on the business of selling or supplying water for domestic, business or industrial consumption, a fee or tax equal to twelve percent of the total gross income from such business in the city during the period for which a license fee or tax is due; provided, however, that the minimum fee or tax shall not be less than two hundred dollars per tax year. For purposes of calculating “gross income” for the application of this subsection, any amounts paid by the taxpayer to the city for taxes imposed by this chapter shall be excluded from the calculation.
F. Garbage/Sewer. Upon every person engaged in or carrying on the business or activity, in the city, of collecting and disposing of garbage and/or sewage or other wastes, including the sanitary service department and the sewer department of the city, all such departments to be construed as separate persons for taxable purposes, a tax equal to twelve percent of the total gross income from such business in the city during the period for which a license fee or tax is due. For purposes of calculating “gross income” for purposes of this subsection, any amounts paid by the taxpayer to the city for taxes imposed by this chapter shall be excluded from the calculation. (Ord. 924 § 1, 2019; Ord. 604 § 1, 1994; Ord. 511 § 4, 1989: Ord. 411, 1981; Ord. 207 § 5, 1957)
3.16.060 Exemptions and deductions.
A. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed so much thereof as is derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents, and any amount paid by the taxpayer to the United States, the state of Washington, or the town of Brewster, as excise taxes levied or imposed upon the sale or distribution of property or service.
B. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed all bad debts for services incurred, rendered or charged for during the tax year or for a preceding tax year, if the charge off is made in the current tax year. Debts shall be deemed bad or uncollectible when the same have been written off the books of the taxpayer. In the event debts are subsequently collected, said income shall be reported in the return for the tax year in which such debts are collected and at the rate prevailing in the tax year when collected.
C. There shall be excepted and deducted from the total gross income upon which the license fee or tax is computed all cash discounts allowed and actually granted to customers of the taxpayer during the tax year.
D. Nothing in this chapter shall be construed as requiring a license or the payment of a license fee or tax or the doing of any act, which would constitute an unlawful burden or interference in violation of the Constitution or laws of the United States, or which would not be consistent with the Constitution or laws of the state of Washington. (Ord. 437, 1983; Ord. 207 § 7, 1957)
3.16.070 Monthly tax installments.
A. 1. The tax or fee imposed by Section 3.16.050 of this chapter shall be due and payable in monthly installments, and remittance therefor shall be made on or before the tenth day of the month following the end of the monthly period in which the tax is accrued.
2. On or before said due date, the taxpayer shall file with the clerk a written return under oath or affirmation upon such form and setting forth such information regarding the business of the previous month as the clerk shall reasonably require, together with the payment of the amount.
B. Remittance shall be by bank draft, certified check, cashier’s check or money order payable to the city treasurer, or in cash in the amount of the tax or fee or installment thereof. (Ord. 511 § 5, 1989: Ord. 207 § 8, 1957)
3.16.120 Taxpayer records—Confidentiality of return.
A. It shall be the duty of each taxpayer taxed upon his gross income to keep and enter in a proper book or set of books or records an account which shall accurately reflect the amount of his gross income, which account shall always be open to the inspection of the town clerk, and/or his or her duly authorized agent, and from which such officer or his agent may verify the return made by the taxpayer.
B. The applications, statements or returns made to the town clerk pursuant to this chapter, shall not be made public, nor shall they be subject to the inspection of any person except the mayor, the town attorney, the town clerk, or his authorized agent, and members of the town council. (Ord. 207 § 13, 1957)
3.16.130 Investigation or return—Right of entry—Subpoena.
If any taxpayer fails to apply for license or make his return, or if the town clerk is dissatisfied as to the correctness of the statement made in the application or return of any taxpayer, such officer or his authorized agent may enter the premises of such taxpayer at any reasonable time for the purpose of inspecting his books or records of account to ascertain the amount of fee or tax or to determine the correctness of such statements, as the case may be, and may examine any person under oath administered by such officer or his agent, touching the matters inquired into, or such officer, or his authorized agent, may fix a time and place for an investigation of the correctness of the return and may issue a subpoena to the taxpayer or any other person, to attend upon such investigation and there testify under oath administered by such officer, or his agent, in regard to the matters inquired into and may, by subpoena, require him, or any person, to bring with him such books, records and papers as may be necessary. (Ord. 207 § 14, 1957)
3.16.140 Overpayment—Refunds—Time limits.
Any money paid to the city through error or otherwise not in payment of the tax imposed by this chapter or in excess of such tax, shall, upon request of the taxpayer, be credited against any tax due or to become due from such taxpayer under this chapter, or, upon taxpayer’s ceasing to do business in the city, be refunded to the taxpayer. (Ord. 511 § 10, 1989: Ord. 207 § 15, 1957)
3.16.150 Failure to pay—Remedies.
If any taxpayer fails to apply for a license, or make his return, or to pay the fee or tax therefor, or any part thereof within ten days after the same has become due, there shall be added to such tax a penalty of twelve percent of the amount of such tax, and any tax due under this chapter which is 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. (Ord. 511 § 11, 1989: Ord. 207 § 16, 1957)
3.16.160 Appeal to council.
A. Any taxpayer aggrieved by the amount of the fee or tax found by the town clerk to be required under the provisions of this chapter, may appeal to the town council from such finding by filing a written notice of appeal with the town clerk within five days from the time such taxpayer was given notice of such amount. The town clerk shall, as soon as practicable, fix a time and place or the hearing of such appeal, which time shall not be more than ten days after the filing of the notice of appeal, and he 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 in his own behalf. The town council shall thereupon ascertain the correct amount of the fee or tax by resolution and the town clerk shall immediately notify the applicant thereof, which amount together with cost of the appeal, if appellant is unsuccessful therein, must be paid within three days after such notice is given.
B. The mayor of the town may, by subpoena, require the attendance thereat of any person, and may also require him 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 pertinent to the appeal, and it is unlawful for him to fail or refuse to do so. (Ord. 207 § 17, 1957)
3.16.170 Rule and regulation promulgation—Compliance required.
The town clerk shall have the power, subject to the approval of the town council, and it shall be his duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions thereof, and shall be unlawful to violate or fail to comply with, any such rule or regulation. (Ord. 207 § 18, 1957)
3.16.180 License posting required—Prohibited use of license.
A. All licenses issued pursuant to the provisions of this chapter shall be kept posted by the licensee in a conspicuous place in his principal place of business in the town.
B. No person to whom a license has been issued, pursuant to this chapter, shall suffer or allow any other person chargeable with a separate license to operate under or display his license, nor shall such other person operate under or display such license. (Ord. 207 § 19, 1957)
3.16.190 Unlawful acts designated.
It is unlawful for any person liable to tax under this chapter to fail or refuse to make application or return for a license or to pay the fee or tax or installment thereof when due, or for any person to make any false or fraudulent application or return any false statement or representation in or in connection with, any such application or return, or to aid or abet another in any attempt to evade payment of the fee or tax, or any part thereof, or for any person to fad to appear and/or testify in response to subpoena issued pursuant to this chapter or to testify falsely upon any investigation of the correctness of a return, or upon the bearing of any appeal, or in any manner to binder or delay the town or any of its officers in carrying out the provisions of this chapter. (Ord. 207 § 20, 1957)
3.16.200 Violation—Penalty.
Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the town clerk pursuant thereto, shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine in any sum not to exceed one hundred dollars or by imprisonment in the jail for a term not to exceed thirty days, or by both such fine and imprisonment. Each and every day that the violation of this chapter is continued is a separate offense and punishable as provided in this section. (Ord. 207 § 22, 1957)