Chapter 5.08
Contractor Licenses
Sections:
5.08.010 Exercise of power to license and tax for revenue.
5.08.050 Quarterly payments of tax.
5.08.070 Books and records to be kept.
5.08.080 Public work contracts--Payment of fee and tax before final payment.
5.08.110 Applications and returns confidential.
5.08.140 Failure to make return.
5.08.150 False or fraudulent returns.
5.08.160 License fee and tax additional to others.
5.08.170 License fee and tax constitute debt.
5.08.180 Tax not to be passed on.
5.08.190 Revocation of license.
5.08.210 Penalties for violation.
5.08.010 Exercise of power to license and tax for revenue.
The provisions of this chapter shall be deemed an exercise of the power of the City of DuPont to license and tax for revenue the privilege of engaging in business in the City of DuPont. (Ord. 373 § 1, Oct. 12th, 1988).
5.08.020 License--Fee.
There is hereby imposed upon every person, firm, corporation or entity whatsoever, engaged in the business of design, engineering or construction of public and private works, by virtue of contract, including subcontracts, within the City of DuPont (hereinafter referred to as “contractor”) an annual license requirement. The fee for said license shall be twenty-five dollars for each calendar year within which the contractor conducts his businesses or any portion thereof within the City. (Ord. 373 § 2, Oct. 12th, 1988).
5.08.030 Amount of tax.
Upon every contractor engaging in the business of design, engineering or construction of public and private works, by virtue of contracts including subcontracts, within the City of DuPont, there is hereby imposed a tax equal to the gross income of said business multiplied by the rate of one-half of one percent (.005). (Ord. 373 § 3, Oct. 12th, 1988).
5.08.040 Apportionment.
Any contractor rendering services within and without the City of DuPont shall, for purposes of computing tax liability under this chapter, apportion to this City that portion of his gross income which is derived from services rendered within this City. Where such apportionment cannot be accurately made by separate accounting methods, the contractor shall apportion to this City that portion of his total income which the cost of doing business within the City bears to the total cost of doing business both within and without the City. (Ord. 373 § 4, Oct. 12th, 1988).
5.08.050 Quarterly payments of tax.
The tax imposed by this chapter, except the twenty-five dollars required to accompany the application for the license, shall be due and payable in quarterly installments, and remittance therefor shall be made on or before the fifteenth day of the month next succeeding the end of the quarterly period in which the tax accrued; that is, on October 15, January 15, April 15 and July 15 of each year. The remittance shall be made as hereinafter provided and shall be accompanied by a return on a form to be provided and prescribed by the Clerk. To the return, the contractor shall be required to swear or affirm that the information therein given is full and true and that the contractor knows the same to be so.
Whenever a contractor commences to engage in business during any quarterly period, his first return and the license fee or tax shall be based upon and cover the portion of the quarterly period during which he is engaged in business. (Ord. 373 § 5, Oct. 12th, 1988).
5.08.060 Method of payment.
The tax payable hereunder shall at the time the return is required to be filed hereunder be paid to the City by bank draft, certified check, cashier’s check, personal check or money order, or in cash. If payment is made by draft or check, the tax or fee shall not be deemed paid unless the check or draft is honored in the usual course of business; nor shall the acceptance of any sum by the City be an acquittance or discharge of the tax or fee unless the amount of the payment is in full and actual amount due. The return shall be presented to the City Clerk who shall endorse thereon the date and amount of payment received by him/her and file the same.
The City/Clerk is authorized, but not required, to mail to contractors forms for applications for licenses and forms for returns, but failure of the contractor to receive any such forms shall not excuse the contractor from making application for securing the license required, making returns, and payment of the license fee or tax, when and as due hereunder. (Ord. 373 § 6, Oct. 12th, 1988).
5.08.070 Books and records to be kept.
It shall be the duty of every contractor required to obtain a license or liable for the payment of any fee or 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 his gross income from contracts within the City, and from which can be determined the amount of any fee or tax for which he may be liable under the provisions of this chapter. The term “books and records” as used in this section includes the contractor’s copies of his Federal Income Tax Returns, Federal Excise Tax Returns, State of Washington Excise Tax Returns, City of DuPont Excise Tax Returns, and copies of Income Tax and Excise Tax audits made by the United States or State of Washington and furnished to such person. The contractor’s books and records shall be open for examination at all reasonable times by the Mayor or his/her duly authorized agent.
In the case of any contractor who does not keep the necessary books and records within the City for examination, it shall be sufficient if such person produce the same within the City as instructed or required by the Mayor, or if such person bears the cost of examination by the Clerk’s agent at the place where such books and records are kept; provided, that the person electing to bear such cost shall pay in advance to the Clerk the estimated amount thereof, including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination.
Any contractor who fails, neglects or refuses to produce such books and records either within or without the City, in addition to being subject to other civil and criminal penalties provided by this chapter, is subject to a jeopardy fee or tax assessment by the Mayor under the provisions of this chapter, which jeopardy assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing the City by the contractor unless he can prove otherwise by competent evidence. The contractor shall be notified by mail by the Clerk of the amount of tax so determined by jeopardy assessment, together with any penalty and/or interest, and the total of such amounts shall thereupon become immediately due and payable. (Ord. 373 § 7, Oct. 12th, 1988).
5.08.080 Public work contracts--Payment of fee and tax before final payment.
The Clerk shall, before issuing any warrant making final payment to any contractor performing any public work contract for the City, require such contractor to pay in full all license fees or taxes due under this chapter from such person on account of such contract or otherwise, and shall require such contractor to file with the Clerk a verified list of all subcontractors supplying labor and/or materials to the contractor in connection with said public work. (Ord. 373 § 8, Oct. 12th, 1988).
5.08.090 Extension of time.
The Mayor, 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 paying any fee or tax as he/she may deem proper; provided, that any extension of time under this section shall be conditioned upon payment of interest of one-half of one percent for each thirty days or portion thereof on the amount of the tax from the date said tax became due. (Ord. 373 § 9, Oct. 12th, 1988).
5.08.100 Failure to pay tax.
(a) If payment of any fee or tax due under this chapter is not received by the Clerk on or before the last day of the month in which the tax becomes due, or within an extension of time by the Mayor under section 5.08.090, there shall be added a penalty as follows:
1 to 40 days delinquency, 10% with a minimum penalty of $1.00;
41 to 70 days delinquency, 15% with a minimum penalty of $2.00; and
71 or more days delinquency, 20% with a minimum penalty of $3.00.
(b) In addition to said penalty, the Clerk shall charge the taxpayer interest of one-half of one percent for each thirty days or portion thereof on the amount of the tax from the date said tax becomes due under the provisions of this chapter.
(c) The Clerk shall notify the taxpayer by mail of the amount of any penalties and interest so added or assessed and the same shall become due and shall be paid within ten days from the date of such notice. (Ord. 373 § 10, Oct. 12th, 1988).
5.08.110 Applications and returns confidential.
The applications and returns made to the Clerk pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of any person except the Mayor or City Attorney, or the authorized agents thereof, or to the proper officer of the Internal Revenue Service of the United States, or to the proper officer of the Tax Department of any state, City or town or county for official purposes, but only if the statutes of such other State or to the proper officers of this City; and it shall be unlawful for any person to make public or to inform any other person as to the contents of any information contained in or to permit inspection of any application or return except as in this section authorized. (Ord. 373 § 11, Oct. 12th, 1988).
5.08.120 Underpayment of tax.
(a) If upon examination of any returns or from other information obtained by the Clerk, it appears that a tax or penalty has been paid less than the properly due amount, the Clerk shall assess against the contractor such additional amount found to be due and shall add thereto interest at the rate of not more than eight percent per annum from the respective due dates of such additional amount until date of such assessment. The Clerk shall notify the contractor by mail of the additional amount and the same shall become due and shall be paid within ten days from the date of notice, or within such further time as the Clerk may provide. If payment is not received by the Clerk by the due date specified in the notice, the Clerk shall add a penalty of ten percent of the amount of the additional tax found due. If the Clerk finds that all or any part of the deficiency resulted from an intent to evade the tax payable hereunder, a further penalty of fifty percent of the additional tax found to be due shall be added.
(b) No assessment or correction of an assessment for additional taxes due may be made by the Clerk more than four years after the close of the tax year, except (1) against a contractor who has not registered as required by this chapter, (2) upon a showing of fraud or of misrepresentation of a material fact by the contractor, or (3) where a contractor has executed a written waiver such limitation. (Ord. 373 § 12, Oct. 12th, 1988).
5.08.130 Overpayment of tax.
If, upon application by a contractor for a refund or for an audit of his records, or upon an examination of the returns or records of any contractor, it is determined by the Clerk that within two years immediately preceding the receipt by the Clerk of the application by the contractor for a refund or for an audit or in the absence of such an application, within the two years immediately preceding the commencement by the Clerk of such examination, a tax has been paid in excess of that properly due, the excess amount paid within such period of two years shall be credited to the contractor’s account or shall be refunded to the contractor, at his option. No refund or credit shall be allowed with respect to any payments made to the Clerk more than two years before the date of such application or examination. Where a refund or credit may not be made because of the lapse of said two-year period, the amount of the refund or credit which would otherwise be allowable for the portion of the statutory assessment period preceding the two-year period may be offset against the amount of any tax deficiency which may be determined by the Clerk for such preceding period. Interest upon any such refund or credit shall be allowed by the Clerk at the rate of three percent per annum. (Ord. 373 § 13, Oct. 12th, 1988).
5.08.140 Failure to make return.
If any contractor fails, neglects or refuses to make and file his return as and when required under this chapter, the Clerk is authorized to determine the amount of tax payable, together with any penalty and/or interest assessed under the provisions of this chapter, and by mail to notify such contractor of the amount so determined, which amount shall thereupon become the tax and penalty and/or interest and shall become immediately due and payable. (Ord. 373 § 14, Oct. 12th, 1988).
5.08.150 False or fraudulent returns.
It shall be unlawful for any contractor liable to tax hereunder to fail to refuse to secure the license, to make the returns as and when required, or to pay the fee or tax when due, or for any contractor to make any false or fraudulent application or return or 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 contractor to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon the hearing of any appeal, or in any manner to hinder or delay the City or any of its officers in carrying out the provisions of this chapter. (Ord. 373 § 15, Oct. 12th, 1988).
5.08.160 License fee and tax additional to others.
The license fee and tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other chapter of the City of DuPont except as herein otherwise expressly provided. (Ord. 373 § 16, Oct. 12th, 1988).
5.08.170 License fee and tax constitute debt.
Any license fee or tax due and unpaid under this chapter and all penalties thereon, shall constitute a debt to the City of DuPont and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. 373 § 17, Oct. 12th, 1988).
5.08.180 Tax not to be passed on.
It is not the intention of this chapter that the taxes herein levied upon contractors engaging in business be construed as taxes upon the purchasers or customers, but that such taxes shall be levied upon, and collectible from the contractor engaging in the business activities herein designated and that such taxes shall constitute a part of the operating overhead of such persons. (Ord. 373 § 18, Oct. 12th, 1988).
5.08.190 Revocation of license.
The Mayor may revoke the license issued to any contractor who is in default in any payment of any license fee or tax hereunder, or who shall fail to comply with any of the provisions of this chapter. Notice of such revocation shall be mailed to the contractor by the Clerk and on and after the date thereof any such contractor who continues to engage in business, shall be deemed to be operating without a license and shall be subject to any and all penalties provided under this chapter. (Ord. 373 § 19, Oct. 12th, 1988).
5.08.200 Severability.
If any provision or section of this chapter shall be held void or unconstitutional, all other parts, provisions and sections of this chapter not expressly so held to be void or unconstitutional shall continue in full force and effect. (Ord. 373 § 20, Oct. 12th, 1988).
5.08.210 Penalties for violation.
Any contractor violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the Clerk pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed three hundred dollars, or by imprisonment in jail for a term not exceeding ninety days, or by both such fine and imprisonment.
Any contractor who engages in, or carries on, any business subject to a tax hereunder without having his license, shall be guilty of a violation of this chapter for each day during which the business is so engaged in or carried on; and any contractor who fails or refuses to pay the license fee or tax, or any part thereof, on or before the due date, shall be deemed to be operating without having his license so to do. (Ord. 373 § 21, Oct. 12th, 1988).