Chapter 3.24
BUSINESS AND OCCUPATION TAX
Sections:
3.24.070 Inspection of records.
3.24.080 Time limitation on corrections, adjustments, and refunds.
3.24.100 Sale or transfer of business.
3.24.120 Remedy for nonpayment of tax.
3.24.130 Appeals to city council.
3.24.150 Notification of annexation.
3.24.010 Authority.
The provisions of this chapter shall be deemed an exercise of power to license for revenue. (Ord. 15-004 § 1; Ord. 08-031 § 2; Ord. 00-624 § 2).
3.24.020 License required.
After May 1, 1983, no person, firm or corporation shall engage in or carry on any business, occupation, act or privilege for which a tax is imposed by KMC 3.24.030 without first having obtained, and being the holder of, a license to be known as an occupation license. Applications for an occupation license must be made to the city clerk. The city clerk must present the application to the city council for their approval prior to issuing a license. Upon city council approval, the city clerk shall issue a nontransferable license. (Ord. 15-004 § 1; Ord. 08-031 § 3; Ord. 00-624 § 3).
3.24.030 Levied – Rate.
From and after May 1, 1983, there is hereby levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the following business for hire or sale of a commodity or a service within or partly within the corporate limits of the city of Kittitas, a tax for the privilege of doing business as follows:
(1) Upon any telephone or wireless communication business there shall be levied a tax equal to six percent of the total gross revenue from all commercial and residential user fee accounts.
(2) Upon any garbage collection business there shall be levied a tax equal to six percent of the total gross revenue from all commercial and residential user fee accounts.
(3) Upon any electrical sale, delivery or distribution business there shall be levied a tax equal to six percent of the total gross revenue from all commercial and residential user fee accounts.
(4) Upon any natural gas sale, delivery and distribution business there shall be levied a tax equal to six percent of the total gross revenue from all commercial and residential user fee accounts.
(5) Upon every person engaged in or carrying on the business of furnishing a cable subscription system for television signal distribution within the city there shall be levied a tax equal to six percent of the total annual gross operating revenue. It is not the intent of this section to classify the business as a public utility.
(6) Total annual gross operating revenue shall be calculated on a calendar year basis beginning January 1st of any year and ending on December 31st of the same year. (Ord. 15-004 § 1; Ord. 08-031 § 4; Ord. 00-624 § 4).
3.24.040 Exception.
There shall be no tax levied upon installation charges for any businesses listed in KMC 3.24.030. (Ord. 15-004 § 1; Ord. 08-031 § 5; Ord. 00-624 § 5).
3.24.050 Payable when.
The tax imposed in this chapter shall be due and payable in, at least, quarterly installments and remittance shall be made on or before the thirtieth day of the month following the end of the quarter in which the tax accrued. Such quarterly periods are as follows:
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First Quarter |
January, February, March |
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Second Quarter |
April, May, June |
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Third Quarter |
July, August, September |
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Fourth Quarter |
October, November, December |
(Ord. 15-004 § 1; Ord. 08-031 § 6; Ord. 00-624 § 6).
3.24.060 Deductions.
The following items shall be deducted from gross revenue prior to computing the amount of tax due:
(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 Constitution of the United States or the State of Washington.
(3) Amounts derived by the taxpayer from the city of Kittitas and Kittitas School District No. 403. (Ord. 15-004 § 1; Ord. 08-031 § 7; Ord. 00-624 § 7).
3.24.070 Inspection of records.
Each taxpayer shall keep records reflecting the amount of gross operating revenue, and any such records shall be open at all reasonable times to the inspection of the city clerk for verification of tax returns. (Ord. 15-004 § 1; Ord. 08-031 § 8; Ord. 00-624 § 8).
3.24.080 Time limitation on corrections, adjustments, and refunds.
Except as provided for herein, in all cases of the voluntary payment of any tax imposed by this chapter, resulting in an overpayment of the true amount due, whether or not the result of mistake of law, mistake of fact, inadvertence or error, such payments may be adjusted or corrected only within one year (365 days) of payment. The correction, adjustment or refund of all or any portion of such payment is barred one year (365 days) following payment to the city. (Ord. 15-004 § 1; Ord. 08-031 § 9; Ord. 00-624 § 9).
3.24.090 Distribution of tax.
The six percent utility tax levied shall be distributed as follows:
(1) Ninety percent of the six percent, or 5.4 percent, shall be distributed to the current expense fund.
(2) Ten percent of the six percent, or 0.6 percent, shall be distributed to support the cumulative reserve fund.
(3) This does not apply to any utility tax collected under Chapter 3.26 KMC. (Ord. 15-004 § 1; Ord. 08-031 § 10; Ord. 00-624 § 10).
3.24.100 Sale or transfer of business.
Upon the sale or transfer during any tax year of a business on account of which a fee or tax is required, the purchaser or transferee shall, if the fee or tax has not been paid in full for the year, be responsible for its payment for that portion of the year during which he carried on such business. (Ord. 15-004 § 1).
3.24.110 Cost of audit.
Upon the failure or refusal of the taxpayer to furnish the information called for by the city clerk or if the books and records of the taxpayer are complicated, or do not readily disclose the information required for making a complete or satisfactory return without the assistance of a skilled accountant, then the city clerk may in his discretion employ a skilled accountant, and such clerical assistance as is necessary, to make an audit of the books and records of the taxpayer and such expenses shall be collected from the taxpayer in the manner provided for the collection of the license or tax. (Ord. 15-004 § 1).
3.24.120 Remedy for nonpayment of tax.
If any taxpayer fails to apply for a license or make his return, or to pay the fee or tax therefor or the cost of any audit required by the city clerk or any part thereof by the due date referred to in KMC 3.24.050, the city clerk shall ascertain the amount of the fee or tax or installment thereof and/or cost of audit due, and shall add to such amount interest which shall be assessed at 12 percent per annum figured on a daily basis and a penalty of 15 percent of the total amount past due, and shall notify such taxpayer thereof, who shall be liable therefor in any suit or action by the city for collection thereof. The penalty which is assessed shall not be considered as interest. The city clerk shall also notify the city attorney in writing of the name of such delinquent taxpayer and the amount due from him and the city attorney shall with the assistance of the city clerk collect the same by any appropriate means or by any suit or action in the name of the city of Kittitas. (Ord. 15-004 § 1).
3.24.130 Appeals to city council.
All taxpayers aggrieved by the amount of the fee or tax found by the city clerk to be required under the provisions of this chapter may appeal to the city council from such finding by filing a written notice of appeal with the city clerk within five days from the time such taxpayer was given notice of such amount. The city clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal, which time shall be not later than the next scheduled regular city council meeting more than six 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 city council shall thereupon ascertain the correct amount of the fee or tax by resolution and the city clerk shall immediately notify the appellant thereof, which amount, together with costs of appeal, if appellant is unsuccessful therein, must be paid within three days after such notice is given. (Ord. 15-004 § 1).
3.24.140 False returns.
It is unlawful for any person liable to tax under this chapter to fail or refuse to make application for return for 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 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 person to fail to appear and/or testify in response to subpoena issued pursuant hereto, or to testify falsely upon an investigation of the correctness of a return, or upon the hearing of any appeal, or in any manner to hinder or delay the city or any of its officers or auditors in carrying out the provisions of this chapter. (Ord. 15-004 § 1).
3.24.150 Notification of annexation.
Whenever the boundaries of said city are extended by annexation, all persons subject to this chapter shall be provided copies of all annexation ordinances by the city. (Ord. 15-004 § 1).
3.24.160 Rules.
The city clerk is hereby authorized to adopt, publish, and enforce, from time to time, such rules and regulations for the proper administration of this chapter as shall be necessary, and it shall be a violation of this chapter to violate or fail to comply with any such rule or regulation lawfully promulgated hereunder. (Ord. 15-004 § 1).
3.24.170 Penalty.
Any person who violates any of the provisions of this chapter shall be punishable as defined in Chapter 1.16 KMC by a penalty of up to $5,000 together with all penalties and assessments imposed by law for each violation. (Ord. 15-004 § 1).