Chapter 5-26 TAX ADMINISTRATIVE CODE

Washington Constitution Article XI, Section 12 and RCW 35A.82.020 and 35A.11.020 (code cities); RCW 35.22.280(32) (first class cities); RCW 35.23.440(8) (second class cities); and RCW 35.27.370(9) (fourth class cities and towns), which give municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. It is intended that this chapter be as uniform as possible among the various municipalities and consistent with the mandatory requirements of Chapter 35.102 RCW for municipalities. Uniformity with provisions of state tax laws should not be presumed, and references in this chapter to statutory or administrative rule changes do not mean state tax statutes or rules promulgated by the Department of Revenue automatically apply. This chapter is to provide administrative specific guidelines and provisions to implement, administer, and enforce the city tax codes. (Ord. 5756, 5-18-15)

5-26-2 APPLICATION OF CHAPTER STATED:

Unless expressly stated to the contrary in each chapter, the provisions of this chapter shall apply with respect to the taxes and fees imposed by Chapter 5-5 (Business Licenses), 5-6 (Admission Tax), 5-8 (Gambling Tax), 5-11 (Utility Tax), and 5-25 (Business and Occupation Tax Code). This chapter shall also apply to such other chapters and sections of the Renton Municipal Code (RMC) in such manner and to such extent as expressly indicated in each such chapter or section. (Ord. 5756, 5-18-15)

5-26-3 DEFINITIONS:

For purposes of this chapter:

A. “Administrator” means the Administrator of the Finance Department or any officer, agent, or employee of the City designated to act on the Administrator’s behalf.

B. “Chapter” means this Chapter 5-26 as it may be amended from time to time, unless otherwise clearly indicative by the context.

C. “Department” means the Department of Finance or successor department.

D. Reserved. (Ord. 6038, 11-22-21)

E. “Reporting period” means:

1. A one (1) month period beginning the first day of each calendar month (monthly); or

2. A three (3) month period beginning the first day of January, April, July or October of each year (quarterly); or

3. A twelve (12) month period beginning the first day of January of each year (annual).

F. “Return” means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date.

G. “Successor” means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer’s business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor.

H. “Tax year” or “taxable year” means the calendar year. (Ord. 5756, 5-18-15; Ord. 5866, 12-4-17)

5-26-4 DEFINITIONS – REFERENCES TO CHAPTER 82.32 RCW:

Where provisions of Chapter 82.32 RCW are incorporated by reference in this chapter or any chapter to which these administrative provisions apply, “department” as used in this Chapter or the RCW shall refer to the “Administrator” as defined in RMC 5-25-2.A and “warrant” as used in the RCW shall mean “citation or criminal complaint.” (Ord. 5756, 5-18-15)

5-26-5 REGISTRATION/LICENSE REQUIREMENTS:

No person shall engage in any business or conduct any business activity without first obtaining a valid current business registration as required by RMC 5-5-3, General Business License. (Ord. 5756, 5-18-15)

5-26-6 WHEN DUE AND PAYABLE – REPORTING PERIODS – MONTHLY, QUARTERLY, AND ANNUAL RETURNS – THRESHOLD PROVISIONS OR RELIEF FROM FILING REQUIREMENTS – COMPUTING TIME PERIODS – FAILURE TO FILE RETURNS:

A. Except as provided in RMC 5-5-3.C, taxes or fees imposed by Chapters 5-5, 5-6, 5-8, 5-11, and 5-25 shall be due and payable in quarterly installments. At the Administrator’s discretion, businesses may be assigned to a monthly or annual reporting period depending on the tax amount owing or type of tax. Until December 31, 2020, tax returns and

payments are due on or before the last day of the next month following the end of the assigned reporting period covered by the return. Effective January 1, 2021, tax returns and payments are due on or before the time as provided in RCW 82.32.045(1), (2), and (3).

B. Taxes and fees shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the Administrator. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true to the best of their belief and knowledge.

C. Tax returns must be filed and tax must be paid by the due date. The tax return must be filed whether or not any tax is owed. Returns not received on or before the due date are subject to penalties and interest in accordance with this chapter, in addition to any other civil or criminal sanction or remedy that may be available.

D. For purposes of the tax imposed by Chapter 5-25, any person whose value of products, gross proceeds of sales, or gross income of the business, subject to tax after all allowable deductions, is equal to or less than Five Hundred Thousand dollars ($500,000) in the current reporting year, shall file a return, declare no tax due under Chapter 5-25 on their return, and submit the return to the Administrator. The gross receipts and deduction amounts shall be entered on the tax return even though no tax may be due.

E. Notwithstanding subsection A of this section, the Administrator may relieve any person of the requirement to file returns if the person meets exemption criteria under RMC 5-25-10.

F. A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity.

G. Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter the day of the act or event from which the designated period of time runs shall not be included. The last day of the period shall be included unless it falls on a Saturday, Sunday, or City or federal legal holiday, in which case the last day of such period shall be the next succeeding day which is neither a Saturday, Sunday, or city or federal legal holiday.

H. If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the Administrator is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the Administrator’s estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the City by the taxpayer. The Administrator shall notify the taxpayer by mail in writing of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. The cost to the City, whether in staff time, or the use of professionals hired by the City, of researching and calculating such tax or fee shall be added to the taxpayer’s assessment and paid by the taxpayer. (Ord. 5756, 5-18-15; Ord. 5866, 12-4-17; Ord. 5946, 11-18-19)

5-26-7 PAYMENT METHODS – MAILING RETURNS OR REMITTANCES – TIME EXTENSION – DEPOSITS – RECORDING PAYMENTS – PAYMENT MUST ACCOMPANY RETURN – NSF CHECKS:

A. Taxes shall be paid to the Administrator in United States currency by bank draft, certified check, cashier’s check, personal check, money order, cash, or by wire transfer or electronic payment if such wire transfer or electronic payment is authorized by the Administrator. A convenience fee may be charged for electronic payments. If payment so received is not paid by the bank on which it is drawn, the taxpayer, by whom such payment is tendered, shall remain liable for payment of the tax and for all legal penalties, the same as if such payment had not been tendered. Acceptance of any sum by the Administrator shall not discharge the tax or fee due unless the amount paid is the full amount due.

B. A return or remittance that is transmitted to the City by United States mail shall be deemed filed or received on the date shown by the cancellation mark stamped by the post office upon the envelope containing it. The Administrator may allow electronic filing of returns or remittances from any taxpayer. A return or remittance which is transmitted to the City electronically shall be deemed filed or received according to procedures set forth by the Administrator.

C. If a written request is received prior to the due date, the Administrator, for good cause, may grant, in writing, additional time within which to make and file returns.

D. The Administrator shall keep full and accurate records of all funds received or refunded. The Administrator shall apply payments first against all penalties and interest owing, and then upon the tax, without regard to any direction of the taxpayer.

E. For any return not accompanied by a remittance of the tax shown to be due thereon, the taxpayer shall be deemed to have failed or refused to file a return and shall be subject to the penalties and interest provided in this chapter.

F. Any payment made that is returned for lack of sufficient funds or for any other reason will not be considered received until payment by certified check, money order, or cash of the original amount due, plus a “nonsufficient funds” (NSF) charge as specified in the City of Renton Fee Schedule is received by the Administrator. Any license issued upon payment with an NSF check will be considered void, and shall be returned to the Administrator. No license shall be reissued until payment (including the NSF fee) is received.

G. The Administrator is authorized, but not required, to mail tax return forms to taxpayers, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from filing returns and making payment of the taxes or fees, when and as due under this chapter. (Ord. 5756, 5-18-15; Ord. 5866, 12-4-17)

5-26-8 RECORDS TO BE PRESERVED – EXAMINATION – ESTOPPEL TO QUESTION ASSESSMENT:

Every person liable for any fee or tax imposed by Chapters 5-5, 5-6, 5-8, 5-11, and 5-25 shall keep and preserve, for a period of five (5) years after filing a return, such records as may be necessary to determine the amount of any fee or tax for which the person may be liable; which records shall include copies of all federal income tax and state tax returns and reports made by the person. All books, records, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including supporting data for federal income tax and state tax returns and reports shall be open for examination at any time by the Administrator or its duly authorized agent. Every person’s business premises shall be open for inspection or examination by the Administrator or a duly authorized agent.

A. If a person does not keep the necessary books and records within the city, it shall be sufficient if such person (a) produces within the City such books and records as may be required by the Administrator, or (b) bears the cost of examination by the Administrator’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 Administrator the estimated amount thereof including round-trip transportation costs, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination.

B. Any person who fails, or refuses a Department request, to provide or make available records, or to allow inspection or examination of the business premises, shall be forever barred from questioning in any court action, the correctness of any assessment of taxes made by the City for any period for which such records have not been provided, made available or kept and preserved, or in respect of which inspection or examination of the business premises has been denied. The Administrator is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the estimate of the tax or fees due. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the City by the taxpayer. The Administrator shall notify the taxpayer by mail the amount of tax so determined, together with

any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. The cost to the City, whether in staff time, or the use of professionals hired by the City, of researching and calculating such tax or fee shall be added to the taxpayer’s assessment and paid by the taxpayer. (Ord. 5756, 5-18-15)

5-26-9 ACCOUNTING METHODS:

A. A taxpayer may file tax returns in each reporting period with amounts based upon cash receipts only if the taxpayer’s books of account are kept on a cash receipts basis. A taxpayer that does not regularly keep books of account on a cash receipts basis must file returns with amounts based on the accrual method.

B. The taxes imposed and the returns required shall be upon a calendar year basis. (Ord. 5756, 5-18-15)

5-26-10 PUBLIC WORK CONTRACTS – PAYMENT OF FEE AND TAX BEFORE FINAL PAYMENT FOR WORK:

The Administrator may, before issuing any final payment to any person performing any public work contract for the City, require such person to pay in full all license fees or taxes due under this title from such person on account of such contract or otherwise, and may require such taxpayer to file with the Administrator a verified list of all subcontractors supplying labor and/or materials to the person in connection with said public work. (Ord. 5756, 5-18-15)

5-26-11 UNDERPAYMENT OF TAX, INTEREST, OR PENALTY – INTEREST:

If, upon examination of any returns, or from other information obtained by the Administrator, it appears that a tax or penalty less than that properly due has been paid, the Administrator shall assess the additional amount found to be due and shall add thereto interest on the tax only. The Administrator shall notify the person by mail of the additional amount, which shall become due and shall be paid within thirty (30) days from the date of the notice, or within such time as the Administrator may provide in writing.

A. For the purposes of this section, the rate of interest to be charged for any late or underpayment of taxes and/or any assessments shall be in accordance with RCW 82.32.050 as it now exists or as it may be amended.

B. If subsection A of this section is held to be invalid, then the provisions of RCW 82.32.050 as existing at the effective date of the ordinance codified in this section shall apply. (Ord. 5756, 5-18-15)

5-26-12 TIME IN WHICH ASSESSMENT MAY BE MADE:

The Administrator shall not assess, or correct an assessment for, additional taxes, penalties, or interest due more than four (4) years after the close of the calendar year in which they were incurred, except that the Administrator may issue an assessment:

A. Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing ten (10) years prior to the close of the calendar year in which the person was contacted in writing by the Administrator;

B. Against a person that has committed fraud or who misrepresented a material fact; or

C. Against a person that has executed a written waiver of such limitations. (Ord. 5756, 5-18-15)

5-26-13 OVERPAYMENT OF TAX, PENALTY, OR INTEREST – CREDIT OR REFUND – INTEREST RATE – STATUTE OF LIMITATIONS:

A. If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer’s records and tax returns, the Administrator determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer’s account or shall be refunded to the taxpayer. Except as provided in subsection B of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than (4) four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.

B. The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the Administrator discovers that a refund or credit is due.

C. Refunds shall be made by means of vouchers approved by the Administrator and by the issuance of a City check or warrants drawn upon and payable from such funds as the City may provide.

D. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in subsection C of this section, upon the filing with the Administrator a certified copy of the order or judgment of the court.

E. The rate of interest on overpayments of taxes on refunds or credits of amounts paid or other recovery allowed a taxpayer shall be in accordance with RCW 82.32.060 as it now exists or as it may be amended.

F. If subsection E of this section is held to be invalid, then the provisions of RCW 82.32.060 as existing at the effective date of the ordinance codified in this section shall apply. (Ord. 5756, 5-18-15)

5-26-14 LATE PAYMENT – DISREGARD OF WRITTEN INSTRUCTIONS – EVASION – PENALTIES:

A. If payment of any tax due on a return to be filed by a taxpayer is not received by the Administrator by the due date, the Administrator shall add a penalty in accordance with RCW 82.32.090(1) as it now exists or as it may be amended.

B. If the Administrator determines that any tax has been substantially underpaid as defined in RCW 82.32.090(2), there shall be added a penalty in accordance with RCW 82.32.090(2) as it now exists or as it may be amended.

C. If a citation or criminal complaint is issued by the City for the collection of taxes, fees, assessments, interest or penalties, there shall be added thereto a penalty in accordance with RCW 82.32.090(3) as it now exists or as it may be amended.

D. If the Administrator finds that a person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the Administrator a license as required by RMC 5-5-3, the Administrator shall impose a penalty in accordance with RCW 82.32.090(4) as it now exists or as it may be amended. No penalty shall be imposed under this subsection D if the person who has engaged in business without a license obtains a license prior to being notified by the Administrator of the need to be licensed.

E. If the Administrator determines that all or any part of a deficiency resulted from the taxpayer’s failure to follow specific written tax reporting instructions, there shall be assessed a penalty in accordance with RCW 82.32.090(5) as it now exists or as it may be amended.

F. If the Administrator finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the Administrator shall assess a penalty in accordance with RCW 82.32.090(6) as it now exists or as it may be amended.

G. The penalties imposed under subsections A through E of this section can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law.

H. The Administrator shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due.

I. For the purposes of this section, “return” means any document a person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City, and that has a statutorily defined due date.

J. If incorporation into the city code of future changes to RCW 82.32.090 is deemed invalid,

then the provisions of RCW 82.32.090 referenced in this section existing at the time the ordinance codified in this section is effective shall apply. (Ord. 5756, 5-18-15)

5-26-15 CANCELLATION OF PENALTIES AND INTEREST:

A. The Administrator may cancel any penalties and/or interest imposed under RMC 5-26-14.A if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the return and pay the tax but was nevertheless, due to circumstances beyond the taxpayer’s control, unable to file or pay by the due date. The Administrator’s authority to waive or cancel penalties and/or interest under this subsection shall extend to amounts already paid and also includes any disputes currently pending. “Reasonable cause” may include the following and other similar circumstances:

1. The return was filed on time, but was inadvertently mailed to another agency or there was a delay or loss related to the postal service. The Administrator may also cancel interest in this situation.

2. The delinquency was due to written erroneous information given the taxpayer by the Department. The Administrator may also cancel interest in this situation.

3. The delinquency was caused by the death or serious illness of the taxpayer or his/her immediate family, or by the illness or death of his/her tax preparer or a member of the tax preparer’s immediate family, prior to the filing date.

4. The delinquency was caused by the unavoidable absence of the taxpayer, prior to the filing date.

5. The delinquency was caused by the destruction, through no fault of the taxpayer, by fire or other casualty of the taxpayer’s place of business or business records.

6. The taxpayer, prior to the time of filing the return, made timely application to the Department, in writing, for proper forms and these forms were not furnished in sufficient time to permit the completed return to be filed and the tax paid before the delinquent date.

7. The delinquency was the result of an unforeseen and unintentional circumstance, not immediately known to the taxpayer, caused by the malfeasance or misconduct of the taxpayer’s employee or accountant.

8. The Administrator has reasonably determined that the taxpayer made a good faith effort to comply with the provisions of this chapter.

9. The taxpayer inadvertently failed to file a tax return because of a good faith belief that the taxpayer qualified for the filing exemption in RMC 5-26-6.E.

The Administrator has no authority to cancel any other penalties or to cancel penalties for any other reason except as provided in subsection C of this section.

B. A request for cancellation of penalties and/or interest must be received by the Administrator within thirty (30) days after the date the Department mails the notice that the penalties and/or interest are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rests upon the taxpayer.

C. The Administrator may cancel the penalties in RMC 5-26-14.A one time if a person:

1. Was not licensed, and filing returns;

2. Was unaware of his/her responsibility to file and pay tax; and

3. Obtained business licenses and filed past due tax returns within thirty (30) days after being notified by the Department.

D. The Administrator shall not cancel any interest charged upon amounts due, except under subsections A.1 and 2 of this section. (Ord. 5756, 5-18-15)

5-26-16 VOLUNTARY REGISTRATION:

In the case of any unregistered taxpayer doing business in the City of Renton that voluntarily registers prior to being contacted by the Department, the Department shall not assess for back taxes or interest for more than four (4) calendar years prior to the year of registration. In addition, the late payment penalty imposed under RMC 5-26-14.A shall not apply. (Ord. 5756, 5-18-15)

5-26-17 TAXPAYER QUITTING BUSINESS – LIABILITY OF SUCCESSOR:

A. Whenever any taxpayer quits business, sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due.

B. Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the City from the taxpayer until such time as:

1. The taxpayer shall produce a receipt from the City showing payment in full of any tax due or a certificate that no tax is due; or

2. More than six (6) months have passed since the successor notified the Administrator of the acquisition and the Administrator has not issued and notified the successor of an assessment.

C. Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer.

D. Notwithstanding the above, if a successor gives written notice to the Administrator of the acquisition, and the Department does not within six (6) 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. 5756, 5-18-15)

5-26-18 CORRECTION OF TAX – ADMINISTRATIVE APPEAL:

A. Any person, except one who has failed to comply with section 5-26-8, having been issued a notice of additional taxes, delinquent taxes, interest, or penalties assessed by the Department may, within thirty (30) days after the issuance of such notice or within the period covered by any extension of the due date granted by the Department, request a correction of the amount of the assessment and a conference for review of the assessment. Interest and penalties assessed shall continue to accrue during the Department’s review of a request for a correction, except and to the extent that the Department later determines that a tax assessment was too high or the delay in issuing a determination is due to unreasonable delays caused by the Department. After the conference, the Department will make a final determination regarding the assessment and shall notify the taxpayer of the Department’s determination within sixty (60) days, unless otherwise notified in writing by the Department. Such determination shall be subject to appeal pursuant to subsection B of this section. If no request for correction is filed within the time period provided herein, the assessment covered by such notice shall become final and immediately due and payable.

B. Any person aggrieved by the amount of any fee, tax, interest or penalty determined by the Department to be due under the provisions of this chapter or Chapters 5-5, 5-6, 5-8, 5-11, and 5-25 may pay the amount due as determined by the Department and appeal to the hearing examiner from such determination by filing a written notice of appeal with the City Clerk pursuant to the following procedure:

1. Filing Fee: A One Hundred Fifty Dollars ($150) filing fee shall be submitted with the appeal, which filing fee is required to process the appeal.

2. Form of Appeal: Any appeal must be in writing and must contain the following:

a. The taxpayer’s name, business address, and phone number;

b. A statement identifying the determination of the Department from which the appeal is taken;

c. A receipt or other proof of payment of the assessment in the amount determined by the Department;

d. A statement setting forth the grounds upon which the appeal is taken and identifying specific errors the Department is alleged to have made in making the determination; and

e. A statement identifying the requested relief from the determination being appealed.

f. A receipt from the Department, as proof of payment “under protest”, for the amount of the fee, tax, interest and penalty determined to be owing by the Department. Such payment shall be a condition precedent to the right to appeal to the hearing examiner.

3. Time and Place to Appeal: Any appeal shall be filed with the office of the City Clerk with a copy to the Administrator no later than twenty (20) days following the date on which the determination of the Department was mailed to the taxpayer. Failure to follow the appeal procedures in this section, including paying the filing fee and payment “under protest”, shall preclude the taxpayer’s right to appeal.

4. Appeal Hearing: The hearing examiner shall schedule a hearing date, notify the taxpayer and the Administrator of such hearing date and shall then conduct an appeal hearing in accordance with this chapter and procedures developed by the hearing examiner, at which time the appellant taxpayer and the Administrator shall have the opportunity to be heard and to introduce evidence relevant to the subject of the appeal.

5. Burden of Proof: The appellant taxpayer shall have the burden of proving by a preponderance of the evidence that the determination of the Department is erroneous.

6. Hearing Record: The hearing examiner shall preserve a record of the hearing in such a form and manner as he/she deems proper.

7. Decision of the Hearing Examiner: Following the hearing, the hearing examiner shall enter a decision on the appeal, supported by written findings and conclusions in support thereof. A copy of the findings, conclusions and decision shall be mailed to the appellant taxpayer and to the Administrator. The decision shall state the correct amount of the fee, tax, interest or penalty owing. If the hearing examiner determines that the taxpayer is owed a refund, such refund amount shall be paid to the taxpayer in accordance with RMC 5-26-13. If the hearing examiner determines that the taxpayer is underpaying more than the amount determined by the Department, the additional amount owed by the taxpayer shall be paid to the City in accordance with RMC 5-26-11 and 5-26-14. (Ord. 5756, 5-18-15)

5-26-19 JUDICIAL REVIEW OF HEARING EXAMINER DECISION:

The decision of the hearing examiner is final, subject to review by either party under the provision 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 (20) days of the date of issuance of the hearing examiner’s decision. (Ord. 5756, 5-18-15)

5-26-20 ADMINISTRATION – ADMINISTRATOR TO MAKE RULES:

The administration of this chapter and Chapters 5-6, 5-8, 5-11, and 5-25 shall be accomplished under the direction of the Administrator.

The Administrator may prescribe forms and shall have the power, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with these chapters or with law for the purpose of carrying out the provisions of this chapter. It shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 5756, 5-18-15)

5-26-21 ANCILLARY ALLOCATION AUTHORITY OF ADMINISTRATOR:

The Administrator is authorized to enter into agreements with other Washington cities which impose an “eligible gross receipts tax” to:

A. Conduct an audit or joint audit of a taxpayer by using an auditor employed by the City of Renton, another city, or a contract auditor; provided, that such contract auditor’s pay is not in any way based upon the amount of tax assessed;

B. Allocate or apportion, in a manner that fairly reflects the gross receipts earned from activities conducted within the respective cities, the gross proceeds of sales, gross receipts, or gross income of the business, or taxes due from any person that is required to pay an eligible gross receipts tax to more than one Washington city; provided, that for tax periods beginning on or after January 1, 2008, such agreement shall be consistent with the allocation or apportionment methods set forth in RCW 35.102.130 as it now exists or as it may be amended;

C. Apply the City’s tax prospectively where a taxpayer has no office or place of business within the city and has paid tax on all gross income to another Washington city where the taxpayer is located; provided, that the other city maintains an eligible gross receipts tax, and the income was not derived from contracts with the City. (Ord. 5756, 5-18-15)

5-26-22 MAILING OF NOTICES:

Any notice required by this chapter to be mailed to any taxpayer or licensee shall be sent by ordinary mail, addressed to the address of the taxpayer or licensee as shown by the records of the Administrator. Failure of the taxpayer or licensee to receive any such mailed notice shall not release the taxpayer or licensee from any tax, fee, interest, or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. It is the responsibility of the taxpayer to inform the Administrator in writing about a change in the taxpayer’s address. (Ord. 5756, 5-18-15)

5-26-23 TAX DECLARED ADDITIONAL:

The license fee and tax levied in Chapters 5-5, 5-6, 5-8, 5-11, and 5-25 RMC shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the City of Renton except as otherwise expressly provided. (Ord. 5756, 5-18-15)

5-26-24 PUBLIC DISCLOSURE – CONFIDENTIALITY – INFORMATION SHARING:

A. For purposes of this section defined terms shall be as set forth in RMC 5-26-3 except as otherwise stated:

1. “Disclose” means to make known to any person in any manner whatever a return or tax information;

2. “Return” shall have the meaning provided in RMC 5-26-3;

3. “Tax information” means (a) a taxpayer’s identity, (b) the nature, source, or amount of the taxpayer’s income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, over assessments, or tax payments, whether taken from the taxpayer’s books and records or any other source, (c) whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, and (d) other data received by, recorded by, prepared by, furnished to, or collected by the City with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the City’s tax codes for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Nothing in this chapter requires any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure;

4. “City agency” means every city office, Department, division, bureau, board, commission, or other city agency;

5. “Taxpayer identity” means the taxpayer’s name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer.

B. Returns and tax information are confidential and privileged and, except as authorized by this section, neither the Administrator nor any other person may disclose any return or tax information.

C. This section does not prohibit the Administrator from:

1. Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:

a. In respect of any tax imposed under the City’s tax codes if the taxpayer or its officer or other person liable under this title is a party in the proceeding; or

b. In which the taxpayer about whom such return or tax information is sought and another city agency are adverse parties in the proceeding;

2. Disclosing, subject to such requirements and conditions as the Administrator prescribes, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer’s request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the Administrator determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the Administrator that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court;

3. Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof;

4. Disclosing such return or tax information, for official purposes only, to the mayor, chief administrative officer, or city attorney, or to any city agency, or to any member of the City Council or their authorized designees dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;

5. Permitting the City’s records to be audited and examined by the proper city, state or federal officer, his or her agents and employees;

6. Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or county or city prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county or city prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought or where otherwise allowed to be disclosed under this section;

7. Disclosing any such return or tax information to the proper officer of the Internal Revenue Service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax Department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of the City;

8. Disclosing any such return or tax information to the United States Department of Justice, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Defense, the Immigration and Customs Enforcement and the Customs and Border Protection agencies of the United States Department of Homeland Security, the United States Coast Guard, the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of Treasury, and the United States Department of Transportation, or any authorized representative of these federal agencies or their successors, for official purposes;

9. Publishing or otherwise disclosing the text of a written determination designated by the Administrator as a precedent pursuant to RCW 82.32.410.

10. Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers and the active/closed status of such registrations, state or local business license registration identification and the active/closed status and effective dates of such licenses, reseller permit numbers and the status of such permits, North American Industry Classification System or Standard Industrial Classification Code of a taxpayer, and the dates of opening and closing of business. This subsection may not be construed as giving authority to any person receiving such information to use such information for any commercial purpose;

11. Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of Chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;

12. Disclosing such return or tax information to the United States Department of Agriculture, or successor Department or agency, for the limited purpose of investigating food stamp fraud by retailers;

13. Disclosing to a financial institution, escrow company or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the City for a filed judgment, or lien against the real property;

14. Disclosing to a person against whom the Administrator has asserted liability as a successor under the City’s tax codes any return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded;

15. Disclosing real estate excise tax affidavit forms in the possession of the City, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax; or

16. Disclosing such return or tax information to the court or hearing examiner in respect to the Administrator’s application for a subpoena if there is probable cause to believe that records in the possession of a third party will aid the Administrator in connection with its official duties under this title or a civil or criminal investigation.

D. 1. The Administrator may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection D. The disclosure must be in connection with the Administrator’s official duties under this title, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed.

2. Before disclosure of any tax return or tax information under this subsection D, the Administrator must, through written correspondence, inform the taxpayer of the requested disclosure. The correspondence must clearly identify the data, materials, or documents to be disclosed. The Administrator may not disclose any tax return or tax information under this subsection D until the time period allowed in subsection D.3 of this section has expired or until the court has ruled on any challenge brought under subsection D.3 of this section.

3. The taxpayer has twenty (20) days from the receipt of the written request required under this subsection to petition the superior court of the county in which the petitioner resides (or with any court with jurisdiction over the matter that allows disclosure of information under this subsection D) for injunctive relief consistent with the provisions of applicable state law governing disclosure of taxpayer information.

4. Requesting information under this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section.

E. Service of and compliance with a subpoena issued by the court or any administrative body with authority to issue subpoenas does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena issued by the court or administrative body may disclose the existence or content of the subpoena and the records therein identified to that person’s legal counsel.

F. Any person acquiring knowledge of any return or tax information in the course of his or her employment with the City and any person acquiring knowledge of any return or tax information as provided under subsections C.3, 4, 5, 6, 7, or 9 of this section who reveals or makes known any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section or other applicable law may be punished by a civil penalty not exceeding One Thousand Dollars ($1,000), and, if the person violating this requirement is an officer or employee of the City, such person may be required to forfeit such office or employment. (Ord. 5756, 5-18-15)

5-26-25 TAX CONSTITUTES DEBT:

Any license fee or tax due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the City and may be collected in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. 5756, 5-18-15)

5-26-26 UNLAWFUL ACTIONS – VIOLATION – PENALTIES:

A. It shall be unlawful for any person liable for fees or taxes under this chapter or Chapters 5-5, 5-6, 5-8, 5-11, and 5-25:

1. To violate or fail to comply with any of the provisions of this chapter or Chapters 5-5, 5-6, 5-8, 5-11, or 5-25 RMC or any lawful rule or regulation adopted by the Administrator;

2. To make any false statement on any license application or tax return;

3. To aid or abet any person in any attempt to evade payment of a license fee or tax;

4. To fail to appear or testify in response to a subpoena issued pursuant to the rules of procedure of the office of the hearing examiner;

5. To testify falsely in any investigation, audit, or proceeding conducted pursuant to this chapter.

B. Violation of any of the provisions of this chapter is a gross misdemeanor. Any person convicted of a violation of this chapter shall be penalized in accordance with RMC 1-3-1. Penalties or punishments provided in this chapter shall be in addition to all other penalties provided by law. (Ord. 5831, 1-23-17)

C. Any person, or officer of a corporation, convicted of continuing to engage in business after the revocation of a license shall be guilty of a gross misdemeanor and may be punished by a fine not to exceed Five Thousand Dollars ($5,000), or imprisonment not to exceed one (1) year, or both fine and imprisonment. (Ord. 5756, 5-18-15)

5-26-27 SUSPENSION OR REVOCATION OF BUSINESS LICENSE AND/OR REGISTRATION:

See RMC Chapter 5-5. (Ord. 5756, 5-18-15)

5-26-28 CLOSING AGREEMENT PROVISIONS:

The Administrator may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the chapters within this title and administered by this chapter for any taxable period(s). Upon approval of such agreement, evidenced by execution thereof by the Administrator and the person so agreeing, the agreement shall be final and conclusive as to the tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact:

A. The case shall not be reopened as to the matters agreed upon, or the agreement modified, by the Administrator or the taxpayer; and

B. In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. (Ord. 5756, 5-18-15)

5-26-29 CHARGE-OFF OF UNCOLLECTIBLE TAXES:

The Administrator may charge off any tax, penalty, or interest that is owed by a taxpayer, if the Administrator reasonably ascertains that the cost of collecting such amounts would be greater than the total amount that is owed or likely to be collected from the taxpayer. (Ord. 5756, 5-18-15)

5-26-30 SEVERABILITY:

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. (Ord. 5756, 5-18-15)

5-26-31 COLLECTION OF TAX:

The City may pursue collection of any fee, tax, interest or penalty due and unpaid to the fullest extent and in any manner authorized by law, including but not limited to the filing of a civil action against the taxpayer for the payment of such debt or the use by the City of a collection agency for such purposes. (Ord. 5756, 5-18-15)

5-26-32 TAX AMNESTY:

The Administrator, with City Council approval, may from time to time declare periods of tax amnesty to the extent that the Administrator determines that such periods of tax amnesty are likely to have the effect of increasing revenues to the City. The Administrator may promulgate rules and procedures to implement the provisions of this section. (Ord. 5756, 5-18-15)

5-26-33 EFFECTIVE DATE:

This chapter shall be effective January 1, 2016. (Ord. 5756, 5-18-15)

CHAPTER 26TAX ADMINISTRATIVE CODE

5-26-1 PURPOSE: