Chapter 5.08
BUSINESS AND OCCUPATION TAXES Amended Ord. 3306
Sections:
5.08.010 Power to license for revenue.
5.08.030 Tax designated. Amended Ord. 3306
5.08.040 Computation deductions.
5.08.050 Due date and reporting period.
5.08.090 Failure to provide return – City action.
5.08.100 Taxpayer assumes cost.
5.08.110 Transfer of business – Successor liability.
5.08.120 Additional assessment – Taxpayer’s right to petition.
5.08.130 Appeal – To hearing examiner.
5.08.150 Authority of director.
5.08.010 Power to license for revenue.
The provisions of this chapter shall be deemed to be an exercise of the power of the city to license for revenue. (Ord. 3216 § 1, 2020; Ord. 1299 § 1, 1957).
5.08.020 License required – Application.
Repealed by Ord. 3178. (Ord. 1299 § 2, 1957).
5.08.030 Tax designated. Amended Ord. 3306
There shall be levied an annual tax as follows:
(1) From and after January 1, 2023, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in furnishing, for a monetary consideration, the city and the inhabitants thereof with electricity and electrical energy for lighting, heating, power and other public purposes, within or partly within the city limits, an annual tax for the privilege of so doing, such tax to be equal to three and two-tenths percent of the total gross subscribers’ revenues from business and residential electrical power service in the city. From and after January 1, 2024, such tax will be four and two-tenths percent.
(2) From and after January 1, 2023, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in furnishing, for a monetary consideration, the city and the inhabitants thereof with natural gas or manufactured gas for lighting, heating, power and other public purposes, within or partly within the city limits, an annual tax for the privilege of so doing, such tax to be equal to three and two-tenths percent of the total gross subscribers’ revenues from business and residential gas service, both natural and manufactured, in the city. From and after January 1, 2024, such tax will be four and two-tenths percent.
(3) From and after January 1, 2023, there is levied upon everyone engaged in the business of operating or conducting a cable television system (CATV), a fee or tax equal to three and two-tenths percent of the total gross income from gross subscriber revenues. From and after January 1, 2024, such tax will be four and two-tenths percent. For purposes of this chapter, “gross subscriber revenues” means and includes those receipts derived from the supplying of subscription service, that is, fees for regular cable benefits including the transmission of broadcast signals and access and origination channels and per-program and per-channel charges. Gross subscriber revenues do not include leased channel receipts, advertising receipts, or any other income derived from the system.
(4) From and after January 1, 1992, there is levied upon, and there shall be collected from, every person, firm or corporation engaged in carrying on the business of selling or furnishing water, for domestic or industrial consumption, sanitary sewer service or storm and surface water removal service, within or partly within the city limits, a fee or tax equal to eight percent of the total gross income from such business in the city.
(5) From and after January 1, 2023, there is levied upon, and there shall be collected from, every person, firm or private corporation engaged in furnishing garbage or solid waste collection services, as defined in Chapter 6.12 PMC, within or partly within the city limits, a fee or tax equal to three and two-tenths percent of the total gross revenues, as defined by Chapter 6.12 PMC, from such business conducted within the city of Puyallup, as indicated by billing and/or charges to or for Puyallup customers. From and after January 1, 2024, such tax will be four and two-tenths percent.
(6) From and after January 1, 2023, there is levied upon, and there shall be collected from, every municipal corporation engaged in furnishing garbage or recycling service within or partly within the city limits, a fee or tax equal to three and two-tenths percent of the total gross income from such business in the city. From and after January 1, 2024, such tax will be four and two-tenths percent. “Total gross income” is defined as the total billing net of any state tax collected under RCW 82.18.030 and any amount paid to a person, firm, or private corporation for the collection and disposal of the garbage or recycled materials for which a tax is paid under the preceding subsection or is exempt from said tax in the preceding subsection.
(7) In consideration of the allowance by the Puyallup school district of the use of its facilities by the city for recreational and other purposes, the one percent tax on customer billings on amounts in excess of $420.00 in any month shall not apply to the school district. (Ord. 3262 § 1, 2022; Ord. 3216 § 1, 2020; Ord. 2950 § 1, 2010; Ord. 2861 § 1, 2006; Ord. 2770 § 3, 2003; Ord. 2758 § 2, 2003; Ord. 2416 § 1, 1994; Ord. 2337 § 1, 1992; Ord. 2298 § 1, 1992; Ord. 2296 § 1, 1991; Ord. 2047 § 1, 1984; Ord. 2003 § 1, 1983; Ord. 1964 § 1, 1982; Ord. 1956 § 1, 1982; Ord. 1919 §§ 1, 2, 1982; Ord. 1902 § 1, 1981; Ord. 1829 § 1, 1980; Ord. 1795 § 1, 1980; Ord. 1780 § 1, 1979; Ord. 1628 § 1, 1973; Ord. 1520 § 1, 1968; Ord. 1299 § 3, 1957).
5.08.035 Tax schedule.
Repealed by Ord. 2296. (Ord. 2003 § 2, 1983).
5.08.040 Computation deductions.
In computing the annual tax there shall be deducted from the 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 of Washington;
(3) Amounts derived from payments by the city of Puyallup for utilities actually used by the city, and the city of Puyallup is exempted from the payment of any taxes imposed by this chapter on utilities actually used by the city of Puyallup;
(4) The amounts paid to the city as taxes collected under this chapter. (Ord. 3216 § 1, 2020; Ord. 2693 § 1, 2001; Ord. 1844 § 1, 1980).
5.08.050 Due date and reporting period.
The tax imposed by PMC 5.08.030 shall be due and payable in monthly installments. At the discretion of the finance director, businesses may be assigned a quarterly or annual reporting period depending on the tax amount owing or type of tax. Tax payments are due on or before the last business day of the next month following the end of an assigned reporting period covered by the return. (Ord. 3216 § 1, 2020; Ord. 2758 § 3, 2003; Ord. 1825 § 1, 1980; Ord. 1780 § 2, 1979).
5.08.060 Records of revenue.
Each taxpayer shall keep records reflecting the amount of his gross operating revenues for a period of six years, and such records shall be open at all reasonable times to the inspection of the director for verification of the tax returns or for the fixing of the tax of a taxpayer who fails to make such returns. (Ord. 3216 § 1, 2020; Ord. 3178 § 1 (Exh. A), 2018; Ord. 1299 § 6, 1957).
5.08.070 Failure to pay.
If any person, firm or corporation subject to this chapter fails to pay any tax required by this chapter within 30 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax; and if the tax is not paid within 60 days of the due date, there shall be added an additional penalty of five percent of the amount of the tax; and if the tax is not paid within 90 days of the due date, then the total amount of the tax and penalties enumerated above shall accrue interest at the rate of 12 percent per year, such interest to be calculated beginning on the date 90 days after the due date of the tax. Further, if the city finds that all or any part of the deficiency resulted from an intent to evade the tax payable under the provisions of this chapter, a further penalty of 50 percent of the tax may be added. Any tax due under this chapter and unpaid, and all penalties thereon, constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. 3216 § 1, 2020; Ord. 1825 § 2, 1980).
5.08.080 Overpayment of tax.
(1) 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 the determination by the city finance director that such money was paid in error, be credited against any tax due or to become due from such taxpayer hereunder or refunded at the city’s discretion; provided, however, that overpayments extending beyond three years prior to notification of the city shall not be refunded. If such taxpayer has ceased doing business in the city, any such overpayment shall be refunded, rather than credited, to the taxpayer.
(2) Any person having paid any tax, original assessment, additional assessment, or corrected assessment of any tax may apply to the city finance director within the time limitation for refund provided in this section by petition in writing for a correction of the amount paid and if desired a conference for examination and review of the tax liability, in which petition shall be set forth the reasons why a correction should be granted, and the amount in which the tax, interest, or penalty should be refunded. The city finance director may request supplemental information. The city finance director shall consider the petition and may grant or deny it, and provide notice to the petitioner of such decision. (Ord. 3216 § 1, 2020; Ord. 1299 § 8, 1957).
5.08.085 Taxes due prior to effective date.
Repealed by Ord. 3178. (Ord. 1825 § 3, 1980).
5.08.090 Failure to provide return – City action.
(1) If any person fails or refuses to make any return or to make available for examination the records required by this chapter, the city finance director shall proceed in such manner as the city finance director may deem best to obtain facts and information on which to base his estimate of the tax. To this end the city finance director may examine the books, records, and papers of any such person and may take statements of any person relating to the subject of the inquiry.
(2) As soon as the city finance director procures such facts and information as the city finance director is able to obtain upon which to base the assessment of any tax payable by any person who has failed or refused to make a return, the city finance director shall proceed to determine and assess against such person the tax and penalties due, but such action shall not deprive such person of the right to appeal to the hearing examiner as provided in PMC 5.08.130. To the assessment the city finance director shall add the penalties provided in PMC 5.08.070. The city finance director shall notify the taxpayer by mail of the total amount of such tax, penalties, and interest, and the total amount shall become due and shall be paid within 10 days from the date of such notice.
(3) The city finance director or his/her designee or his duly authorized agent may examine any books, papers, records, or other data bearing upon the amount of any tax payable or upon the correctness of any return, or for the purpose of making a return where none has been made, or in order to ascertain whether a return should be made. The city finance director may require the attendance of any person at a time and place fixed in a notice served by any person in the same manner as a subpoena is served in a civil case.
(4) The persons summoned may be required to testify and produce any books, papers, records, or data required by the city finance director or his/her designee with respect to any tax or the liability of any person therefor.
(5) The city finance director or his/her designee or the city clerk shall have power to administer an oath to the person required to testify. (Ord. 3216 § 1, 2020).
5.08.100 Taxpayer assumes cost.
Upon the failure or refusal of the taxpayer to furnish the information called for by the city finance director, 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, the city finance director 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. Such expenses shall be collected from the taxpayer in the manner provided for the collection of the license or tax. (Ord. 3216 § 1, 2020).
5.08.110 Transfer of business – Successor liability.
Whenever any taxpayer quits business, or sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable under this chapter shall become immediately due and payable, and such taxpayer shall, within 10 days thereafter, make a return and pay the tax due. Any person who becomes a successor to such business shall become liable for the full amount of the tax due, and if such tax is not paid by the taxpayer within 10 days from the date of such sale, exchange, or disposal, the purchaser or successor shall become liable for the payment of the full amount of the tax.
Notwithstanding the above, if a successor gives written notice to the director of the acquisition, and the director does not within six months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. (Ord. 3216 § 1, 2020).
5.08.120 Additional assessment – Taxpayer’s right to petition.
Any person having been issued a notice of additional taxes, delinquent taxes, interest, or penalties assessed by the city, within 30 days after the issuance of the original notice of the amount thereof, or within the period covered by any extension of the due date thereof granted by the city finance director, may petition the city finance director in writing for a correction of the amount of the assessment, and if desired a conference for examination and review of the assessment. The petition shall set forth the reasons why the correction should be granted and the amount of the tax, interest, or penalties, which the petitioner believes to be due. The city finance director shall promptly consider the petition and may grant or deny it, and provide notice to the petitioner of such decision. If no such petition is filed within the 30-day period, the assessment covered by the notice shall become final. (Ord. 3216 § 1, 2020).
5.08.130 Appeal – To hearing examiner.
All appeals arising from this chapter shall be to the city’s hearing examiner as established by Chapter 2.54 PMC, provided said appeal is filed within 10 calendar days of the director’s decision. The decision of the hearing examiner shall be final. The taxpayer and/or the director may seek review of the decision by the superior court of Washington in and for Pierce County within 21 days from the date of the decision. If review is sought as herein prescribed, the decision of the hearing examiner shall be stayed pending final action by the superior court. (Ord. 3216 § 1, 2020).
5.08.140 Violation – Penalty.
Any said person, firm or corporation subject to this chapter who fails or refuses to apply for an occupation license or to make said tax returns or to pay said tax when due, or who makes any false statement or representation in or in connection with any such application for an occupation license on such tax return, or otherwise violates or refuses or fails to comply with this chapter, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished as provided in PMC 1.01.110. (Ord. 3216 § 1, 2020; Ord. 3178 § 1 (Exh. A), 2018; Ord. 1299 § 9, 1957. Formerly 5.08.090).
5.08.150 Authority of director.
The director is 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 to fail to comply with any such rule or regulation lawfully promulgated hereunder. (Ord. 3216 § 1, 2020; Ord. 3178 § 1 (Exh. A), 2018; Ord. 1299 § 11, 1957. Formerly 5.08.100).