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HomeMy WebLinkAbout3173 AN ORDINANCE amending Ordinances Nos. 2901,JO~/ 2002, 2121 and 1917, and repealing Ordinance No. 3023, relating to increasing the regis- tration fee, establishing a minimum tax per quarter, establishing a minimum and maximum penalty per quarter, deleting all exemptions from the Business and Occupation Tax and provisions of businesses partly within the City, and adding certain related provisions on transactions of the City, method of pay- ment, that the tax is not to be passed on and severability. THE CITY OF BREMERTON DOES' ORDAIN: SECTION 1. Section 1 of Ordinance 2901 is hereby amended to read as follows: Section 1. PERSONS SUBJECT TO TAX AMOUNT. There is hereby levied upon and there shall be collected from every person as hereinafter provided, for the act or privilege of engaging in business activities within the city, whether his office or place of business be within and/or without the city, a license fee or occupation tax, sometimes herein referred to as the "tax", in amounts to be determined by application of rates given against value of products, including by-products, gross proceeds of sales or gross income of business, as the case may be, for the three calendar months next preceding the beginning of each quarterly period, with a minimum tax of $2.00 for each quarterly period on every person engaged in business activities within the city, as follows: (1) Upon'every person engaging within this city in business of rendering personal services to others; as to such persons, the amount of the tax shall be equal to the gross income of the business or profession multiplied by the rate of one tenth of one percent. Personal services shall include all persons rendering professional or personal services to persons as distinguished from services rendered to personal property of persons and shall include, but is not limited to the following: Accountants, abstractors, aerial surveying and map making, agents, appraisers, architects, assayers, attorneys, automobile brokers, barbers, barge operators, beautyshop owners, boardinghouse owners, brokers, chemists, chiropractors, collection agents, community television antenna owners, contractors who merely clear land or move earth, court reporters, dentists, detectives, employment agents, engineers, financiers, funeral directors, garage owners (storage), golf course operators, hospital owners, house wreckers, insurance agents and brokers, janitors, kennel operators, laboratory operators, landscape architects, loan agents, music teachers, oculists, osteopathic physicians, parking lot operators, physicians, real estate agents, school operators, stenographers, storage and warehouse operators, teachers, theater operators, tow boat operators, undertakers and veterinarians. (2) Upon every other person engaging in any other business within the City of Bremerton, the amount of the tax shall be equal to the gross income of said business or profession multiplied by the rate of one-tenth of one percent. "Any other business" as herein used, includes, but is not limited, to sales at retail and wholesale, the rendering of professional services and other, printing and publishing, construction and repair of property, real or personal, the operation of the business of taxicab service as provided in Chapter 5.54. The measure of the tax is the value of the products, including by-products so manufactured or extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the city. - 2 - SECTION 2. Ordinance No. 3023 is hereby repealed and Section 8 of Ordinance No. 1917 is hereby amended to read as follows: Section ~,~ EXEMPTIONS - MINIMUM TAX. Except as hereinafter provided, any person engaging in any business activity within the City of Bremerton shall be subject to a minimum possible tax of $2.00 for each quarterly period, provided, however, that, where one person engages in more than one business activity and the combined measures of tax applicable to such business equal or exceed Three Hundred Dollars per month, that person shall combine them and pay the applicable tax amount. The provisions of this chapter shall not apply to: (1) Any person in respect to the business of conducting boxing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Commission. (2) Any person in respect to his employment in the capacity of any employee or servant as distinguished from that of an independent contractor. (3) Any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the horse racing commission. (4) Fraternal benefit societies, as defined in Revised Code of Washington, Section 48.36.010; fraternal mutual property insurers, as defined in Revised Code of Washington, Section 48.36.410, and beneficiary corporations or societies organized under and existing by virtue of Revised Code of Washington, Sections 24.15.010 to 24.16.140 inclusive, if such corporations or societies provide in their by-laws for the payment of death benefits as authorized in Revised Code of Washington, Section 24.16.000. (5) Any person in respect to the business of operating a hospital; provided, that no exemption is granted to hospitals organized for profit or where the income therefrom inures to the benefit of any physician, surgeon, stockholder or individual by virtue of ownership or control of such hospital; and, further provided, the word "hospital" shall not be construed to include clinics and resorts or spas, even though health at, actions shall be operated in conjunction therewith. (6) Amounts derived from the lease, rental or sale of real estate; provided, however, that nothing herein shall be construed to allow a deduction of amounts derived from engaging in any business wherein a mere license to use or enjoy real property is granted, or to allow a deduction of amounts received as commissions from the sale or rental of real estate. (7) The gross income received by the United States or any instrumentality thereof and by the State of Washington or any municipal subdivision thereof, PROVIDED, HOWEVER, that the exemption contained in this subsection shall only apply to gross income which the City is prohibited from taxing pursuant to the terms of any federal or state law. (8) "Casual" or "isolated" sales. (9) Nothing in this chapter shall be construed as imposing a license fee on any interstate or foreign commerce. SECTION 3. Section 1 of Ordinance 2002 is hereby amended to read as follows: Section 1. BUSINESS LICENSE REQUIRED. No person, whether subject to the payment of a tax or not, shall engage in any business or activity in the city for which a license fee or tax is imposed by this chapter without having first obtained and being the holder of a valid and subsisting license so to do, to be known as a "business license," issued under the provisions of this chapter, as hereinafter provided, and without paying - 4 - the license fee or tax imposed by this ordinance. The fee or tax for the "business license" shall be the license fee or tax imposed by this ordinance, and in addition the sum of five dollars, as a license fee which shall accompany the application for the license. Such license shall be permanent as long as the business or activity is carried on under the same ownership. Applications for the license shall be made to and issued by the city treasurer on forms provided by him. The license shall be personal and nontransferrable. In case the same business is transacted at two or more separate places by one taxpayer, a separate license for each place where business is transacted shall be required, but for such additional licenses no additional five dollar fee shall be required. Where one person conducts business under more than one name and operates~the same place or not, and a five dollar fee shall be collected for each. Each license shall be numbered, shall show the name, place and character of business of the taxpayer, such other information as the city treasurer shall deem necessary, and shall at all times be conspicuously posted in the place of business for which it is issued. Where a place of business of the taxpayer is changed, the taxpayer shall return to the city treasurer the license and new license shall be issued for the new place of business free of charge. No person to whom a license has been issued pursuant to this chapter shall suffer or allow any other person for whom a separate license is required to operate under or display his license; nor shall such other person operate under or display such license. SECTION 4. Section 1 of Ordinance 2121 is hereby amended to read as follows: Section 1. EXTENSION TIME FOR PAYMENT-INTEREST- PENALTY. The Treasurer for good cause shown may extend the time for making and filing any return as required under this - 5 - ordinance and may grant such reasonable additional time within which to file such returns as he may deem proper; provided that any extensions in excess of thirty days shall be conditioned upon payment of interest of one percent for each thirty days or portion thereof on the amount of the tax from the date upon which said tax became due. If payment of any tax due under this ordinance is not received by the treasurer by the last day of the month in which the tax was due, there shall be added to such tax a penalty as follows: 1 to 30 days, 10% of the tax due, with a minimum penalty of $3.00. 31 to 60 days, 15% of the tax due, with a minimum penalty of $4.00. 61 or more days, 20% of the tax due with a minimum penalty of $5.00. The treasurer shall notify the taxpayer by mail of the amount of any penalties so added or assessed and the same shall become due and shall be paid within ten days from the date of such notice. SECTION 5. Section 1 of Ordinance 3001 is hereby amended to read as follows: Section 1. BUSINESS PARTLY WITHIN CITY. Any person rendering services both within and without this city whether or not that person maintains a place of business within or without this city shall, for the purpose of computing the tax liability under this section be taxed on his gross income from his business without regard to where the services are rendered; and such persons . doing business inside the city and also elsewher~ shall, for the purpose of computing tax liability under this chapter, apportion to the city that portion of his gross income which is derived from services rendered within the city. Where such apportionment cannot be accurately made by separate accounting methods, the taxpayer shall apportion to this city that proportion 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. - 6 - Persons maintaining an office, plant, warehouse or other business establishment which is partly within and partly outside the city, shall be taxed on the value of products, gross proceeds of sales, or gross income of the business attributable to business within the city, ascertained either: (i) by a segregation of business within and business outside the city, shown and supported by separate accounting records; or (ii) if such segregation cannot be practiCably made, by an apportionment to the city of that part of the total value of products, gross proceeds of sales, or gross income of the business derived from proportion that the cost of doing business within the city bears to the cost of doing business both within and outside of the city: (aa) in the proportion that the cost of doing business within the city bears to the cost of doing business both within and outside the city, or (bb) when the use of such apportionment factor is impractical or inequitable, by a fair and equitable apportionment of such value, proceeds or income between business within the city and business outside of the city upon such basis, comparable in character to that prescribed in (aa) above, as shall be agreed upon by the treasurer and the taxpayer after consideration of the facts. SECTION 6. Ordinance 1917 is hereby amended by adding the following section: Section/~~. TRANSACTIONS SUBJECT TO TAX. Except where such a tax is otherwise levied and collected by the city from such person, there is hereby levied upon and there shall be collected from every person, as set forth and provided in Section 5.02.020 of this chapter, a tax on the act or privilege of engaging in business activities and transactions with the city involving the purchase of materials, supplies, equipment, improve- ments, and other contracutal services. Such tax shall be levied on the privilege of accepting and executing the contract, and - 7 - shall be collected whether such business activities or transactions occur or take place within or without the city and whether or not such person has his office or place of business within or without the city. Any person engaging in such business activities and/or transactions with the city shall be taxed on the contractual transactions in the same manner and form and under the same rules and regulations and at the same rates of tax as if they were doing business within the City of Bremerton. SECTION 7. Section 12 of Ordinance 1917 is hereby amended to read as follows: Section 12. METHOD OF PAYMENT. The license fee or tax payable hereunder shall at the time the return is re- quired 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 the full and actual amount due. The return shall be presented to the Treasurer who shall endorse thereon the date and amount of payment received by him and file the same. The Treasurer is authorized, but not required, to mail to taxpayers forms for applications for license and forms for returns, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from making application for and securing the license required, making returns, and payment of the license fee or tax, when and as due hereunder. SECTION 8. Ordinance 1917 is hereby amended by adding the following section: - 8 - Section 28a. TAX NOT TO BE PASSED ON. It is not the intention of this chapter that the taxes herein levied upon persons engaging in business be construed as taxes upon the purchasers or customers, but that such taxes shall be levied upon, and collect~ble from, the person engaging in the business activities herein designated and that such taxes shall constitute a part Of the operating overhead of such persons. SECTION 9. Ordinance 1417 is hereby amended by addition of the following sections: Section ia . 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. APPROVED by the City Council on the first reading PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested by the City Clerk in ~authentication of such passage this ~..?~ay of ~6~A~.~, 1974. ATTEST: G. YE~DON, ' ' ty CLERK -- 9 --