HomeMy WebLinkAbout5139 ORDINANCE NO. � � 3 �
AN ORDINANCE of the City Counc�l of the Crty of
Bremerton, Washmgton, amendmg Section 3 48 030 entrtled
"Definrt�ons" relatmg to the definrtion of "Engagmg m
Busmess "
WHEREAS, the current provisions of BMC 3 48 030 entrtled "Defin�tions"
relatmg to Busmess Licenses and the C�ty's Busmess and Occupation Tax provide a definrtion of
"Engagmg m busmess," "nexus", and
WHEREAS, the City Council des�res to amend the definrt�on of "Engagmg m
busmess," "nexus" m order to clanfy that a person providmg language mterprettve services to the
Bremerton Municipal Court is not engagmg m busmess that requires a C�ty busmess l�cense and
the payment of City Busmess and Occupat�on Talces, NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS
SECTION 1. Section 3 48 030 of the Bremerton Mumc�pal Code ent�tled
"Definrt�ons" is hereby amended to read as follows
3.48.030 DEFINITIONS.
In construmg the provisions of th�s chapter, the followmg defimt�ons shall be applied
Words m the smgular number shall mclude the plural, and the plural shall mclude the smgular
"Advance," "reimbursement."
(1) "Advance" means money or credrts rece�ved by a taacpayer from a customer or
client wrth which the taacpayer is to pay costs or fees on behalf of the customer or client
(2) "Reimbursement" means money or credrts received from a customer or client to
repay the t�payer for money or credits expended by the taxpayer m payment of costs or fees of
the customer or client
"Agricultural product" means any product of plant cultivation or ammal husbandry
mcludmg, but not l�mrted to a product of hort�culture, gram cultrvation, verm�culture, vrt�culture,
or aquaculture as defined m RCW 15 83 480, plantation Christmas trees, turf, or any animal
mcludmg but not limrted to an ammal that is a private sector cultured aquatic product as defined
�n RCW 15 83 480, or a bird, or msect, or the substances obtamed from such an an�mal
"Agricultural product" does not mclude ammals mtended to be pets
"Artishc or cultural organization." As used m this chapter
(1) The term "artistic or cultural organization" means an orgamzation wh�ch ts
orgamzed and operated exclusively for the purpose of prov�dmg art�stic or cultural exh�b�t�ons,
presentations, or performances or cultural or art educat�on programs, as defined m subsection (10)
of th�s defimtion, for viewmg or attendance by the general publ�c
(2) The orgamzation must be a not-for-profit corporation under Chapter 24 03 RCW
(3) The orgamzation must be managed by a governmg board of not less than e�ght
(8) mdiv�duals none of whom �s a paid employee of the orgamzation or by a corporation sole
under Chapter 24 12 RCW
(4) No part of �ts mcome may be paid directly or md�rectly to rts members,
stockholders, officers, directors, or trustees except m the form of services rendered by the
corporat�on m accordance wrth rts purposes and bylaws
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(5) Salary or compensation paid to �ts officers and executives must be only for actual
services rendered, and at levels comparable to the salary or compensation of l�ke posrt�ons w�thm
the State
(6) Assets of the corporation must be irrevocably ded�cated to the activ�ties for
wh�ch the exempt�on is granted and, on the l�qu�dat�on, d�ssolution, or abandonment by the
corporation, may not mure directly or mdirectly to the benefit of any member or mdiv�dual except
a nonprofit orgamzat�on, association, or corporation which also would be entrtled to the
exempt�on
(7) The corporat�on must be duly l�censed or certified when l�censmg or certification
�s required by law or regulation
(8) The amounts rece�ved that qualify for exemption must be used for the activrties
for which the exemption is granted
(9) Services must be available regardless of race, color, national origm, ancestry,
religion, age, sex, marrtal status, sexual onentation, V�emam or disabled veteran status, or the
presence of any mental or physical d�sabilrty
(10) The term "artistic or cultural exhibrt�ons, presentat�ons, or performances or
cultural or art education programs" is hmrted to
(a) An e�ch�b�tion or presentat�on of works of art or ob�ects of cultural or
histoncal s�gnificance, such as those commonly d�splayed m art or h�story museums,
(b) A mus�cal or dramat�c performance or senes of performances, or
(c) An educat�onal semmar or program, or senes of such programs, offered
by the orgamzation to the general publ�c on an artist�c, cultural, or histoncal sub�ect
"Business" mcludes all act�vrties engaged m wrth the ob�ect of ga�n, benefit, or
advantage to the taxpayer or to another person or class, directly or mduectly
"Business and occupahon tax" or "gross receipts tag" means a t� imposed on or
measured by the value of products, the gross mcome of the busmess, or the gross proceeds of
sales, as the case may be, and that is the legal liab�lrty of the busmess
"Cash discount" means a deduction from the mvoiced amount allowed by the seller �f
the bill is paid wrthm a certam t�me penod or before a specified date
"City" means City of Bremerton, Washmgton
"Commercial or industrial use" means the followmg uses of products, mcludmg by-
products, by the extractor or manufacturer thereof
(1) Any use as a consumer,
(2) Any use m the manufacturmg of products mcludmg anc�les, substances or
commodrt�es
"Competitive telephone service" means the providmg by any person of
telecommumcations equ�pment or apparatus, or service related to that equ�pment or apparatus
such as repa�r or mamtenance service, �f the equipment or apparatus is of a type which can be
provided by persons that are not sub�ect to regulahon as telephone compames under RCW T�tle
80 and for which a separate chazge is made
"Consumer" means the followmg
(1) Any person who purchases, acquires, owns, holds, or uses any tang�ble or
�ntangible personal property irrespect�ve of the nature of the person's busmess and mcludmg,
among others, w�thout l�m�tmg the scope hereof, persons who mstall, repa�r, clean, alter, improve,
construct, or decorate real or personal property of or for a consumer other than for the purpose of
(a) Resale as tangible or mtangible personal property m the regular course of
business,
(b) Incorporatmg such property as an mgred�ent or component of real or
personal property when mstalhng, repa�rmg, cleamng, altenng, imprmtmg, improvmg,
constructmg, or decoratmg such real or personal property of or for consumers,
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(c) Incorporatmg such property as an mged�ent or component of a new
product or as a chemical used m processmg a new product when the pnmary purpose of such
chemical �s to create a chemical reaction directly through contact w�th an mgred�ent of a new
product, or
(d) Consum�ng the properly m producmg ferrosil�con wh�ch is subsequently
used m producmg magnesium for sale, if the primary purpose of such property is to create a
chemical reaction directly through contact wrth an mgredient of ferrosilicon,
(2) Any person engaged m any busmess activrty taxable under BMC 3 48 O50(1)(g),
(3) Any person who purchases, acquires, or uses any competrt�ve telephone serv�ce
as herem defined, other than for resale m the regular course of busmess,
(4) Any person who purchases, acqu�res, or uses any personal, busmess, or
profess�onal service defined as a retail sale or retail service m th�s sect�on other than for resale m
the regular course of busmess,
(5) Any person who is an end user of software,
(6) Any person engaged m the busmess of "publ�c road construct�on" m respect to
tangible personal properly when that person mcorporates the tang�ble personal property as an
mgred�ent or component of a publicly owned street, place, road, highway, easement, nght-of-
way, mass pubhc transportat�on termmal or parkmg facilrty, bndge, tunnel, or trestle by
mstallmg, placmg or spreadmg the property m or upon the nght-of-way of a publicly owned
street, place, road, h�ghway, easement, bridge, tunnel, or trestle or m or upon the srte of a publicly
owned mass publ�c transportat�on termmal or parkmg facil�ty,
(7) Any person who is an owner, lessee or has the nght of possess�on to or an
easement m real property wh�ch is bemg constructed, repaired, decorated, improved, or otherw�se
altered by a person engaged m busmess,
(8) Any person who is an owner, lessee, or has the nght of possession to personal
property which �s be�ng constructed, repa�red, �mproved, cleaned, impnnted, or otherw�se altered
by a person engaged m busmess,
(9) Any person engaged m"government contractmg " Any such person shall be a
consumer wrthm the meanmg of th�s definrt�on m respect to tang�ble personal property
mcorporated mto, mstalled m, or attached to such buildmg or other structure by such person
Nothmg contamed in th�s or any other subsection of this definrtion shall be construed to modify
any other defimhon of "consumer "
"Deficiency" means the amount of tax imposed by law less any tax reported by the
taxpayer on a tax return
"Delivery" means the transfer of possession of tang�ble personal property between the
seller and the buyer or the buyer's representat�ve Del�very to an employee of a buyer �s
cons�dered delivery to the buyer Transfer of possess�on of tang�ble personal property occurs
when the buyer or the buyer's representat�ve first takes phys�cal control of the property or
exercises domm�on and control over the properly "Domm�on and control" means the buyer has
the ab�lrty to put the property to the buyer's own purposes It means the buyer or the buyer's
representat�ve has made the final dec�sion to accept or re�ect the property, and the seller has no
further nght to possession of the property and the buyer has no nght to return the property to the
seller, other than under a warranty contract A buyer does not exercise domm�on and control over
tang�ble personal property merely by arrangmg for sh�pment of the property from the seller to
�tself A buyer's representative �s a person, other than an employee of the buyer, who �s authonzed
m wntmg by the buyer to receive tangible personal property and take dommion and control by
makmg the final decision to accept or re�ect the property Nerther a shippmg company nor a seller
can serve as a buyer's representative It �s immater�al where the contract of sale is negot�ated or
where the buyer obtams t�tle to the property Delivery terms and other prov�sions of the Umform
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Commercial Code (RCW T�tle 62A) do not determme when or where delivery of tangible
personal property occurs for purposes of taacation
"Director" means the Director of Financial Serv�ces of the Crty or any officer, agent or
employee of the C�ty designated to act on the Director's behalf
"Eligible gross receipts tag" means a tax wh�ch
(1) Is imposed on the act or pnvilege of engagmg m busmess act�vrties wrthm BMC
3 48 050, and
(2) Is measured by the gross volume of busmess, m terms of gross rece�pts and �s not
an mcome taac or value added tax, and
(3) Is not, pursuant to law or custom, separately stated from the sales pnce, and
(4) Is not a sales or use tax, busmess l�cense fee, franchise fee, royalty or severance
tax measured by volume or weight, or concess�on charge, or payment for the use and en�oyment
of property, property r�ght or a priv�lege, and
(5) Is a taac imposed by a local Junsdiction, whether withm or wrthout the State of
Wash�ngton, and not by a counhy, state, provmce, or any other non-local�unsd�ction above the
County level
"Engaging in business," "nezus."
(1) The term "engagmg m busmess" means commenc�ng, conductmg, or contmumg
m busmess, and also the exercise of corporate or franch�se powers, as well as l�quidatmg a
busmess when the l�quidators thereof hold themselves out to the public as conduct�ng such
busmess
(2) This section sets forth examples of activrties that constrtute engagmg m busmess
m the Crty, and establ�shes safe harbors for certam of those activ�ties so that a person who meets
the crrtena may engage m de mm�mis busmess activrt�es m the Crty wrthout havmg to register
and obtam a busmess license or pay Crty busmess and occupation taxes The activ�ties l�sted m
this sect�on are illustratrve only and are not mtended to narrow the definrtion of "engagmg m
busmess" m subsection (1) of th�s defimt�on If an activrty �s not l�sted, whether rt const�tutes
engagmg m busmess m the Crty shall be determmed by considermg all the facts and
c�rcumstances and appl�cable law
(3) Without bemg all mclusive, any one (1) of the followmg activ�t�es conducted
withm the C�ty by a person, or �ts employee, agent, representat�ve, mdependent contractor, broker
or another actmg on its behalf const�tutes engagmg m busmess and requires a person to register
and obtam a busmess l�cense pursuant to Chapter 5 02 BMC
(a) Ownmg, rentmg, leasmg, mamtammg, or hav�ng the nght to use, or
usmg, tangible personal property, mtangible personal property, or real properly permanently or
temporanly located m the City
(b) Ownmg, rent�ng, leasmg, usmg, or mamtammg, an office, place of
bus�ness, or other establ�shment m the Crty
(c) Sol�crtmg sales
(d) Makmg repa�rs or providmg mamtenance or service to real or tang�ble
personal property, mcludmg warranty work and property mamtenance
(e) Providmg techmcal assistance or service, mcludmg qual�ty control,
product mspect�ons, warranty work, or similaz services on or m connection wrth tangible personal
property sold by the person or on rts behalf
(� Instalhng, construchng, or supervismg mstallation or construction of real
or tang�ble personal property
(g) Sol�crtmg, negotiat�ng, or approvmg franch�se, license, or other s�m�lar
agreements
(h) Collecting cunent or delmquent accounts
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(i) Pickmg up and transportmg tangible personal property, sohd waste,
construct�on debns, or excavated matenals
�) Prov�dmg d�smfectmg and pest control services, employment and labor
pool serv�ces, home nursmg care, Janrtor�al serv�ces, appraismg, landscape arch�tectural serv�ces,
secur�ty system serv�ces, surveymg, and real estate services mcludmg the listmg of homes and
managmg real properly
(k) Rendenng professional serv�ces such as those prov�ded by accountants,
arch�tects, attorneys, auctioneers, consultants, engmeers, profess�onal athletes, barbers, baseball
clubs and other sports organizations, chem�sts, consultants, psycholog�sts, court reporters,
dentists, doctors, detectives, laboratory operators, teachers, and vetennanans
(1) Meetmg wrth customers or potent�al customers, even when no sales or
orders are sohcrted at the meetmgs
(m) Trammg or recrurtmg employees, agents, representatrves, mdependent
contractors, brokers or others, domiciled or operatmg on a�ob m the C�ty, actmg on rts behalf, or
for customers or potent�al customers
(n) Investigat�ng, resolvmg, or otherw�se ass�stmg m resolvmg customer
complamts
(o) In-store stockmg or mampulatmg products or goods, sold to and owned
by a customer, regardless of where sale and delivery of the goods took place
(p) ExceQt as prov�ded m subsection (51 of this definrt�on, �g
deliverm� �oods m veh�cles owned, rented, leased, used, or ma�ntamed by the person or another
actmg on rts behalf
(q) Acceptmg or executmg a contract with the City, irrespective of whether
goods or services are delivered wrthm or wrthout the Crty, or whether the person's office or place
of busmess is w�thm or wrthout the C�ty
(4) Not Enga�g m Busmess If a person, or rts employee, agent, representat�ve,
mdependent contractor, broker or another actmg on the person's behalf, engages m no other
act�vities m or w�th the Crty but the followmg, that person is not en�a�g �n a busmess and
therefore �s not requ�red to �ee�e�reg�ster and obtam a C�busmess license a��ursuant to
Chapter 5 02 BMC or pav C�ty Busmess and Occu�at�on Taxes pursuant to th�s chapte�
(a) Meetmg wrth suppl�ers of goods and services as a customer
(b) Meetmg w�th government representat�ves m their official capacrty, other
than those performmg contractmg or purchasmg funct�ons
(c) Attendmg meet�ngs, such as board meetmgs, retreats, semmars, and
conferences, or other meetmgs where�n the person does not provide tra�mng m connechon wrth
tang�ble personal property sold by the person or on rts behalf
(d) Renting tangible or intangible properiy as a customer when the property
is not used m the C�ty
(e) Attendmg, but not partic�patmg m a"trade show" or "mult�ple vendor
events " Persons part�c�patmg at a trade show shall review the City's trade show or multiple
vendor event ordmances
( fl Conductmg adverhsmg through the mail
(g) Sol�c�tmg sales by phone from a location outs�de the C�ty
�h) Providmg lan ug�age mterpretrve serv�ces to the Bremerton Mumcipal
Court
(5) A se�e�-busmess located outside the C�ty merely del�vermg goods mto the C�ty
by �e�s-e€-common carrier or other means mcludmg use of rts own vehicles �s not requ�red to
register and obtam a busmess l�cense, prov�ded, that �t engages m no other busmess act�vrt�es m
the City Such busmess act�vrt�es do not mclude those m subsect�on (4) of th�s definrt�on
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(6) "Nezus." A person has created nexus w�th the Crty if, whether rtself or by �ts
employees, agents, representatives, mdependent contractors, brokers or others actmg on �ts
behalf, rt
(a) Is physically present m the Crty,
(b) Endeavors to mamtam a share of the market wrthm the City, or
(c) Ava�ls rtself of the economic benefits of the Crty
The City expressly mtends that engagmg m busmess mcludes any activity sufficient to estabhsh
nexus for purposes of applymg the taac under the law and the const�tutions of the Unrted States
and the State of Washmgton Nexus �s presumed to contmue as long as the taxpayer benefits from
the achvity that const�tuted the origmal nexus-generatmg contact or subsequent contacts
"Eztracting" is the activrty engaged m by an extractor and is reportable under the
extractmg classification
"Eztractor" means every person who from the person's own land or from the land of
another under a nght or license granted by lease or contract, erther d�rectly or by contracting w�th
others for the necessary labor or mechamcal services, for sale or for commercial or mdustrial use,
mmes, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mmeral or
other natural resource product, or fells, cuts or takes tunber, Chr�stmas trees, other than plantat�on
Christmas trees, or other natural products, or takes fish, or talces, cultivates, or raises shellfish, or
other sea or mland water foods or products "Extractor" does not mclude persons performmg
under contract the necessary labor or mechamcal services for others, persons cultivatmg or
rais�ng fish entirely wrthm confined rearmg areas on the person's own land or on land m wh�ch
the person has a present right of possess�on, or persons who fell, cut, or take plantat�on Christmas
trees from the person's ovm land or from land m which the person has a present r�ght of
possession, or persons meetmg the definrt�on of "farmer "
"Eztractor for hire" means a person who performs under contract necessary labor or
mechan�cal services for an extractor
' "Farmer" means any person engaged m the busmess of growmg or producmg, upon the
person's own lands or upon the lands m which the person has a present nght of possession, any
agricultural product whatsoever for sale "Farmer" does not mclude a person usmg such products
as mgredients m a manufactunng process, or a person growmg or producmg such products for the
person's own consumption "Farmer" does not mclude a person sellmg any ammal or substance
obtamed therefrom m connechon wrth the person's busmess of operatmg a stockyard or a
slaughter or packmg house "Farmer" does not mclude any person m respect to the busmess of
takmg, cultrvatmg, or raismg timber
"Gross income of the business" means the value proceedmg or accrumg by reason of
the busmess act�vrty engaged m and mcludes gross proceeds of sales, compensahon for the
rend�tion of serv�ces, gams realized from tradmg m stocks, bonds, or other evidences of
indebtedness, mterest, discounts, rents, royalties, fees, comm�ss�ons, div�dends, and other
emoluments however designated, all w�thout any deduct�on on account of the cost of tang�ble
property sold, the cost of matenals used, labor costs, mterest, d�scounts, delivery costs, taxes, or
any other expense whatsoever paid or accrued and w�thout any deduction on account of losses
"Gross proceeds of sales" means the value proceedmg or accrumg from the sale of
tangible personal property or for services rendered, wrthout any deduction on account of the cost
of properly sold, the cost of matenals used, labor costs, mterest, discounts paid, delivery costs,
ta�ces, or any other expense whatsoever paid or accrued and wrthout any deduct�on on account of
losses
"In this City" or "within this City" mcludes all federal areas lymg wrthm the corporate
C�ty l�mrts of the Crty
"Janitorial services" shall mean those cleanmg and caretak�ng services ordmanly
performed by commercial �amtor serv�ce busmesses mcludmg, but not hmrted to, wall and
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window washmg, floor cleamng and w�mg, and the cleamng m place of rugs, drapes and
upholstery The term does not mclude pamtmg, papenng, repairmg, furnace or sept�c tank
cleanmg, snow removal, sandblashng, or cleanup related to construct�on act�vrties
"Manufacturer," "to manufacture."
(1) "Manufacturer" means every person who, erther directly or by contractmg wrth
others for the necessary labor or mechamcal services, manufactures for sale or for commercial or
mdustnal use from the person's own mater�als or mgredients any products When the owner of
equ�pment or facilrt�es furnishes, or sells to the customer pr�or to manufacture, matenals or
mgredients equal to less than twenty (20) percent of the total value of all matenals or mgred�ents
that become a part of the finished product, the owner of the equipment or facilrties will be
deemed to be a processor for hue and not a manufacturer A busmess not located m th�s Crty that
is the owner of matenals or mgred�ents processed for rt m th�s C�ty by a processor for h�re shall
be deemed to be engaged m busmess as a manufacturer m this Crty
(2) "To manufacture" means all activrties of a commerc�al or mdusfial nature
wherem labor or skill is applied, by hand or machmery, to mater�als or mgred�ents so that as a
result thereof a new, different or useful product �s produced for sale or commercial or mdustnal
use, and shall mclude
(a) The production of special-made or custom-made articles,
(b) The production of dental appliances, devices, restorations, subst�tutes, or
other dental laboratory products by a dental laboratory or dental techmcian,
(c) Crushmg and/or blend�ng of rock, sand, stone, gravel, or ore, and
(d) The producmg of articles for sale, or for commerc�al or mdustnal use
from raw materials or prepared matenals by givmg such matenals, anc�les, and substances of
trade or commerce new forms, qualrties, properties or comb�nat�ons mcludmg, but not limrted to,
such activrt�es as makmg, fabncatmg, processmg, refinmg, m�x�ng, slaughtenng, packing, agmg,
curmg, mild curmg, preservmg, cannmg, and the prepanng and freezmg of fresh frurts and
vegetables
"To manufacture" shall not mclude the production of computer sofiware �f the computer
software is delivered from the seller to the purchaser by means other than tangible storage media,
mcludmg the del�very by use of a tangible storage med�a where the tang�ble storage media is not
phys�cally transferred to the purchaser
"Manufacturing" means the activity conducted by a manufacturer and �s reported under
the manufacturmg classification
"Newspaper," "magazine," "periodical." "Newspaper" means a publication offered
for sale regularly at stated mtervals at least once a week and prmted on newspnnt m tablo�d or
broadsheet format folded loosely together w�thout staplmg, glue, or any other bmdmg of any
kmd "Magazme" or "penodical" means any pnnted publication, other than a newspaper, issued
and offered for sale regularly at stated mtervals at least once every three (3) months, mcludmg
any supplement or spec�al edrtion of the publ�cat�on Any publ�cat�on meetmg this definrtion
qualifies regardless of �ts content
"Nonprofit corporation or nonpro5t organization" means a corporation or
orgamzat�on m which no part of the mcome can be distributed to rts members, directors, or
officers and that holds a current tax exempt status as prov�ded under Sect�on 501(c)(3) of the
Internal Revenue Code, as hereafter amended, or �s spec�fically exempted from the requ�rement to
apply for �ts tax exempt status under Section 501(c)(3) of the Internal Revenue Code, as hereafter
amended Where the term "nonprofit orgamzat�on" �s used, �t is meant to mclude a nonprofit
corporat�on
"Office" or "place of business" means a fixed locat�on or permanent facilrty where the
regular busmess of the person is conducted and which �s erther owned by the person or over
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wh�ch the person exercises legal dommion and control The regular busmess of the person is
presumed conducted at a locahon
(1) Whose address the person uses as �ts busmess mailmg address,
(2) Contammg a telephone hne l�sted m a public telephone directory or other similar
publ�cation under the busmess name,
(3) Where the person holds �tself out to the general public as conductmg �ts regular
busmess through s�gnage or other means, and
(4) Where the person is required to obtam any appropr�ate State and local busmess
license or registrat�on unless they are exempted by law from such requirement
A veh�cle such as a p�ck-up, van, truck, boat or other motor vehicle �s not an office or place of
busmess A post office box is not an office or place of busmess
If a person has an office or place of busmess, the person's home is not an office or place of
busmess unless rt meets the crrteria for office or place of busmess above If a person has no office
or place of bus�ness, the person's home or apartment wrthm the Crty w�ll be deemed the place of
busmess
"Person" means any ind�vidual, receiver, adm�mstrator, executor, assignee, trustee m
bankruptcy, trust, estate, firm, co-partnersh�p,�o�nt venture, club, company,�omt stock company,
busmess trust, mumc�pal corporation, polrt�cal subd�vis�on of the State of Washmgton,
corporation, limrted liabilrty company, assoc�ation, society, or any group of md�v�duals actmg as
a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise and the Unrted States or
any mstrumental�ty thereof
"Port District" means a port distr�ct as defined m Chapter 53 04 RCW
"Precious metal bullion," "monetized bullion." "Precious metal bullion" means any
prec�ous metal wh�ch has been put through a process of smelt�ng or refimng, mcludmg, but not
l�m�ted to, gold, s�lver, platmum, rhodium, and pallad�um, and which is m such state or cond�t�on
that �ts value depends upon rts contents and not upon rts form For purposes of this sect�on,
"monet�zed bull�on" means coms or other forms of money manufactured from gold, silver, or
other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of
this State, the Umted States, or any foreign nation, but does not mclude coms or money sold to be
manufactured mto�ewelry or works of art
"Processing for hire" means the performance of labor and mechamcal services upon
mater�als or mgredients belongmg to others so that as a result a new, different or useful product �s
produced for sale, or commerc�al or mdustr�al use A processor for h�re is any person who would
be a manufacturer if that person were performmg the labor and mechamcal serv�ces upon that
person's own matenals or mgredients If a person furnishes, or sells to the customer pnor to
manufacture, matenals or mgredients equal to twenty (20) percent or more of the total value of all
mater�als or mgredients that become a part of the fimshed product the person will be deemed to
be a manufacturer and not a processor for h�re
"Product," "by-product." "Product" means tang�ble personal property, mcludmg
art�cles, substances, or commodrties created, brought forth, extracted, or manufactured by human
or mechamcal effort "By-product" means any addrt�onal product, other than the pnnc�pal or
mtended product, which results from extractmg or manufactunng act�vrties and which has a
market value, wrthout regard to whether or not such additional product was an expected or
mtended result of the e�ctractmg or manufactunng act�v�ties
"Reporting period" means
(1) A one (1) month period begmnmg the first day of each calendar month
(monthly), or
(2) A three (3) month period begmnmg the first day of January, Apr�l, July or
October of each year (quarterly), or
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Business Licenses and
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(3) A twelve (12) month period begmnmg the first day of January of each year
, (annual)
"Itetail service" shall mclude the sale of or charge made for personal, bustness, or
professional services mcludmg amounts designated as mterest, rents, fees, admission, and other
service emoluments however des�gnated, recerved by persons engagmg in the followmg busmess
activrt�es
(1) Amusement and recreation services mcludmg but not limrted to golf, pool,
biWards, skatmg, bowl�ng, swimm�ng, bungee�umpmg, ski hfts and tows, basketball, racquetball,
handball, squash, tenms, battmg cages, day tnps for s�ghtseemg purposes, and others, when
provided to consumers Amusement and recreat�on services also mclude the provision of related
facilrt�es such as basketball courts, tenms courts, handball courts, swimmmg pools, and charges
made for prov�dmg the opportunrty to dance The term "amusement and recreat�on serv�ces" does
not mclude mstructional lessons to learn a part�cular activrty such as tenms lessons, swimmmg
lessons, or archery lessons,
(2) Abstract, trtle msurance, and escrow services,
(3) Credrt bureau services,
(4) Automobile parkmg and storage garage services,
(5) Landscape mamtenance and horticultural services but excludmg (a) horticultural
services prov�ded to farmers and (b) prumng, tnmmmg, repainng, removmg, and clearmg of trees
and brush near electr�c transmiss�on or d�stribut�on lmes or eqwpment, if performed by or at the
d�rection of an electnc utility,
(6) Service charges associated wrth tickets to profess�onal sportmg events,
(7) The followmg personal services physical fitness serv�ces, tamm�g salon serv�ces,
tattoo parlor serv�ces, steam bath services, Turkish bath services, escort serv�ces, and datmg
serv�ces, and
(8) The term shall also mclude the rentmg or leasmg of tangible personal property to
consumers and the rental of equipment w�th an operator
"Retailing" means the activrty of engagmg m makmg sales at retail and is reported under
the retail�ng classification
"Return" means any document a person �s required by the Crty to file to sat�sfy or
establ�sh a tax or fee obhgation that is admmistered or collected by the C�ty and that has a
statutonly defined due date
"Royalties" means compensation for the use of intangible property, such as copyrights,
patents, l�censes, franchises, trademarks, tradenames, and s�milar rtems
"Sale," "casual or isolated sale."
(1) "Sale" means any transfer of the ownership of, t�tle to, or possess�on of, property
for a valuable cons�derat�on and mcludes any activrty class�fied as a"sale at retail," "reta�l sale,"
or "reta�l serv�ce " It mcludes rentmg or leasmg, cond�tional sale contracts, leases w�th opt�on to
purchase, and any contract under which possession of the property is g�ven to the purchaser but
trtle is retamed by the vendor as secunty for the payment of the purchase pnce It also mcludes
the furnishmg of food, dnnk, or meals for compensation whether consumed upon the prem�ses or
not
(2) "Casual or �solated sale" means a sale made by a person who �s not engaged m
the busmess of sellmg the type of property mvolved on a routme or contmuous basis
"Sale at retail," "retail sale."
(1) "Sale at reta�l" or "reta�l sale" means every sale of tang�ble personal property
(mcludmg articles produced, fabricated, or imprmted) to all persons �rrespect�ve of the nature of
the�r busmess and mclud�ng, among others, wrthout lim�tmg the scope hereof, persons who
mstall, repair, clean, alter, improve, construct, or decorate real or personal property of or for
9
Business Licenses and
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consumers, other than a sale to a person who presents a resale cerhficate under RCW 82 04 470
and who
(a) Purchases for the purpose of resale as tang�ble personal property m the
regular course of busmess wrthout mtervenmg use by such person, or
(b) Installs, repa�rs, cleans, alters, �mprmts, improves, constructs, or
decorates real or personal property of or for consumers, �f such tang�ble personal property
becomes an mgred�ent or component of such real or personal property without mtervemng use by
such person, or
(c) Purchases for the purpose of consummg the property purchased m
producmg for sale a new article of tangible personal properly or substance, of which such
property becomes an mgredient or component or is a chem�cal used m processmg, when the
pnmary purpose of such chemical is to create a chemical reaction directly through contact wrth an
mgred�ent of a new art�cle bemg produced for sale, or
(d) Purchases for the purpose of consummg the property purchased m
producmg ferrosil�con which �s subsequently used m producmg magnes�um for sale, �f the
primary purpose of such properly �s to create a chemical reaction directly through contact w�th an
mgredient of ferrosil�con, or
(e) Purchases for the purpose of prov�dmg the property to consumers as part
of compet�tive telephone serv�ce, as defined m RCW 82 04 065 The term shall mclude every sale
of tangible personal property wh�ch �s used or consumed or to be used or consumed m the
performance of any activ�ty classified as a"sale at retail" or "retail sale" even though such
property is resold or utilized as prov�ded m subsection (1)(a), (b), (c), (d), or (e) of this defimtion
followmg such use, or
(� Purchases for the purpose of sat�sfymg the person's obl�gations under an
extended wananty as defined m subsect�on (8) of th�s definit�on, if such tang�ble personal
property replaces or becomes an mgredient or component of property covered by the extended
wananty w�thout mtervenmg use by such person
(2) "Sale at retail" or "retail sale" also means every sale of tangible personal property
to persons engaged m any busmess activ�ty which �s taxable under BMC 3 48 O50(1)(g)
(3) "Sale at retail" or "retail sale" shall mclude the sale of or charge made for
tangible personal property consumed and/or for labor and serv�ces rendered m respect to the
followmg
(a) The �nstallmg, repairmg, cleanmg, altenng, �mprmtmg, or improvmg of
tangible personal property of or for consumers, mcludmg charges made for the mere use of
facil�ties m respect thereto, but excludmg charges made for the use of com-operated laundry
facilities when such facil�t�es are srtuated in an apartment house, room�ng house, or mobile home
park for the exclusive use of the tenants thereof, and also excludmg sales of laundry service to
nonprofit health care facilrties, and excludmg services rendered m respect to live ammals, b�rds
and �nsects,
(b) The constructmg, repa�rmg, decoratmg, or improvmg of new or existmg
bu�ldmgs or other structures under, upon, or above real property of or for consumers, mcludmg
the mstallmg or attachmg of any article of tang�ble personal property therem or thereto, whether
or not such personal property becomes a part of the realty by v�rtue of mstallation, and shall also
mclude the sale of services or charges made for the clearmg of land and the movmg of earth
exceptmg the mere levelmg of land used m commercial farmmg or agnculture,
(c) The charge for labor and services rendered m respect to constructmg,
repa�nng, or �mprovmg any structure upon, above, or under any real property owned by an owner
who conveys the property by t�tle, possess�on, or any other means to the person performmg such
construchon, repa�r, or improvement for the purpose of performmg such construct�on, repa�r, or
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Business Licenses and
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improvement and the property �s then reconveyed by t�tle, possession, or any other means to the
ongmal owner,
(d) The sale of or charge made for labor and services rendered m respect to
the cleanmg, fum�gatmg, razmg or movmg of existmg buildmgs or structures, but shall not
mclude the charge made for Janrtorial services, which is taxed as a service m th�s chapter,
(e) The sale of or charge made for labor and services rendered m respect to
automobile towmg and similar automotive transportation services, but not m respect to those
required to report and pay taaLes under Chapter 82 16 RCW,
( fl The sale of and charge made for the furnishu►g of lodgmg and all other
serv�ces, except telephone busmess and cable service, by a hotel, roommg house, tounst court,
motel, trailer camp, and the grantmg of any similar license to use real property, as distmguished
from the rentmg or leasmg of real property, and �t shall be presumed that the occupancy of real
property for a contmuous per�od of one (1) month or more constrtutes a rental or lease of real
property and not a mere license to use or enJoy the same For the purposes of this subsection, �t
shall be presumed that the sale of and charge made for the furnishmg of lodgmg for a contmuous
period of one (1) month or more to a person is a rental or lease of real property and not a mere
l�cense to en�oy the same,
(g) The sale of or chazge made for tangible personal property, labor and
services to persons taxable under subsections (3)(a), (b), (c), (d), (e), and ( fl of this defimtion
when such sales or charges are for property, labor and serv�ces which are used or consumed m
whole or m part by such persons m the performance of any activ�ty defined as a"sale at retail" or
"retail sale" even though such property, labor and serv�ces may be resold after such use or
consumpt�on Noth�ng contamed m this subsection shall be construed to mod�fy subsect�on (1) of
th�s definrt�on and nothmg contamed m subsection (1) of th�s definrtion shall be construed to
mod�fy th�s subsect�on
(4) "Sale at retail" or "retail sale" shall also mclude the providmg of competrtive
telephone service to consumers
(5) "Sale at retail" or "retail sale" shall also mclude the sale of canned software other
than a sale to a person who presents a resale certificate under RCW 82 04 470, regardless of the
method of delivery to the end user, but shall not include custom softwaze or the customization of
canned soflware
(6) "Sale at retail" or "retail sale" shall also mclude the sale of or charge made for
labor and serv�ces rendered m respect to the buildmg, repaumg, or improvmg of any street, place,
road, h�ghway, easement, right-of-way, mass publ�c transportat�on termmal or parkmg facil�ty,
br�dge, tunnel, or trestle which is owned by a mumcipal corporation or polrtical subdrvision of the
State, the State of Washington, or by the Un�ted States and wh�ch is used or to be used primar�ly
for foot or veh�cular traffic mcludmg mass transportat�on vehicles of any kmd (publ�c road
constructton)
(7) "Sale at retail" or "retail sale" shall also mclude the sale of or charge made for
labor and services rendered m respect to the constructmg, repavtng, decoratmg, or improvmg of
new or existmg bu�ldmgs or other structures under, upon, or above real property of or for the
Umted States, any mstrumentalrty thereof, or a county or c�ty housmg authorrty created pursuant
to Chapter 35 82 RCW, mcludmg the mstalhng, or attach�ng of any article of tang�ble personal
property there�n or thereto, whether or not such personal property becomes a part of the realty by
virlue of mstallat�on (government contractmg)
(8) "Sale at reta�l" or "reta�l sale" shall also mclude the sale of or charge made for an
extended warranty to a consumer For purposes of this subsect�on, "extended warranty" means an
agreement for a specified duration to perform the replacement or repair of tangible personal
property at no add�tional charge or a reduced charge for tang�ble personal property, labor, or both,
or to provide mdemnificahon for the replacement or repair of tang�ble personal property, based
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Business Licenses and
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on the occurrence of specified events The term "extended warranty" does not mclude an
agreement, otherwise meetmg the defimt�on of extended warranty m this subsection, �f no
separate charge �s made for the agreement and the value of the agreement is mcluded m the sales
price of the tangible personal property covered by the agreement
(9) "Sale at retail" or "retail sale" shall not mclude the sale of services or charges
made for the clearmg of land and the movmg of earth of or for the Unrted States, any
mstrumentalrty thereof, or a county or crty housmg authonty Nor shall the term include the sale
of services or charges made for cleanmg up for the Umted States, or rts mstrumentalrt�es,
radioactive waste and other by-products of weapons production and nuclear reseazch and
development (This is reported under the service or other class�fication )
(10) "Sale at retail" or "retail sale" shall not mclude the sale of or charge made for
labor and services rendered for environmental remedial action (This is reported under the service
and other classtfication )
"Sale at wholesale" or "wholesale sale" means any sale of tangible personal property
wh�ch is not a retail sale, and any charge made for labor and serv�ces rendered for persons who
are not consumers, m respect to real or personal property, if such charge is expressly defined as a
retail sale when rendered to or for consumers "Sale at wholesale" also mcludes the sale of
telephone busmess to another telecommumcations company as defined m RCW 80 04 O10 for the
purpose of resale, as contemplated by RCW 35 21 715
"Services" means any busmess activrty other than or m add�tion to those defined m th�s
section
"Software," "canned software," "custom software," "customization of canned
software," "master copies," "retained rights."
(1) "Canned softwaze" means software that is created for sale to more than one (1)
person For purposes of this chapter, canned software is deemed to be tang�ble personal property
regardless of the method of delivery-tangible media (e g, disk or mstalled on hardware) or
mtang�ble (e g, electromcally over telecommumcations paths)
(2) "Custom software" means software created for a smgle person
(3) "Customizat�on of canned software" means any alterahon, modificat�on, or
development of apphcations usmg or mcorporatmg canned software to spec�fic md�viduahzed
requirements of a smgle person Custom�zation of canned software mcludes mdiv�dualized
configurat�on of softwaze to work w�th other softwaze and computer hazdware but does not
mclude routme mstallat�on Custom�zation of canned software does not change the underlymg
character or taxabilrty of the ongmal canned software
(4) "Master copies" of software means cop�es of software from which a software
developer, author, inventor, publisher, licensor, sublicensor, or distnbutor makes copies for sale
or license The software encoded on a master copy and the media upon which the software resides
are both mgredients of the master copy
(5) "Retamed nghts" means any and all r�ghts, mcludmg mtellectual property rights
such as those nghts ansmg from copynghts, patents, and trade secret laws, that are owned or are
held under contract or license by a software developer, author, mventor, publisher, l�censor,
sublicensor, or distnbutor
(6) "Software" means any mformation, program, or routme, or any set of one (1) or
more programs, routmes, or collections of mformation used, or mtended for use, to convey
mformat�on that causes one (1) or more computers or pieces of computer-related penpheral
equipment, or any combmation thereof, to perform a task or set of tasks "Software" mcludes the
associated documentation, matenals, or mgredients regardless of the media upon wh�ch that
documentation �s provided, that descnbes the code and rts use, operation, and ma�ntenance and
that typ�cally is del�vered wrth the code to the consumer All software �s classified as erther
canned or custom
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Business Licenses and
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"Successor" means any person to whom a taxpayer qu�ttmg, sellmg out, exchangmg, or
d�spos�ng of a busmess sells or otherw�se conveys, directly or mdirectly, m bulk and not m the
ordmary course of the taxpayer's busmess, any part of the matenals, suppl�es, merchand�se,
mventory, fixtures, or equipment of the taxpayer Any person obl�gated to fulfill the terms of a
contract shall be deemed a successor to any contractor defaultmg in the performance of any
contract as to wh�ch such person �s a surety or guarantor
"Tax year" or "taxable year" means the calendar year
"Tagpayer" means any person, as herem defined, requ�red to have a busmess l�cense
under this chapter or l�able for the collect�on of any tax or fee under this chapter, or who engages
m any busmess or who performs any act for which a tax or fee is �mposed by this chapter
"Tuition fee" includes l�brary, laboratory, health service and other special fees, and
amounts charged for room and board by an educat�onal mstrtution when the properly or service
for which such charges are made is furnished exclusively to the students or faculty of such
mst�tut�on "Educat�onal mstrtut�on," as used m this sechon, means only those mstitutions created
or generally accredrted as such by the State and mcludes educat�onal programs that such
educational �nst�tution cosponsors wrth a nonprofit orgamzat�on, as defined by the Internal
Revenue Code Sect�on 501(c)(3), as hereafter amended, if such educational mstrtut�on grants
college credit for course work successfully completed through the educat�onal program, or an
approved branch campus of a foreign degree-grantmg mst�tution �n compliance w�th Chapter
28B 90 RCW, and m accordance wrth RCW 82 04 4332 or defined as a degree-grantmg
mstrtution under RCW 28B 85 O10(3) and accred�ted by an accred�hng associahon recogmzed by
the Umted States Secretary of Educahon, and offermg to students an educahonal program of a
general academic nature or those mst�tutions wh�ch are not operated for profit and which are
pnvately endowed under a deed of trust to offer mstruction m trade, mdustry, and agriculture, but
not ir►cludmg specialty schools, busmess colleges, other trade schools, or similar mstrtutions
"Value of products."
(1) The value of products, mcludmg by-products, extracted or manufactured, shall be
determmed by the gross proceeds denved from the sale thereof whether such sale is at wholesale
or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from
any other person wrth respect to the extraction, manufacture, or sale of such products or by-
products by the seller
(2) Where such products, mcludmg by-products, are extracted or manufactured for
commercial or mdustnal use, and where such products, mcludmg by-products, are sh�pped,
transported or transferred out of the City, or to another person, wrthout pnor sale or are sold
under circumstances such that the gross proceeds from the sale are not u►d�cative of the true value
of the sub�ect matter of the sale, the value shall conespond as nearly as poss�ble to the gross
proceeds from sales m this State of similaz products of like quality and chazacter, and m similar
quant�ties by other taxpayers, plus the amount of subsidies or bonuses ordinanly payable by the
purchaser or by any third person wtth respect to the extract�on, manufacture, or sale of such
products In the absence of sales of s�milar products as a gu�de to value, such value may be
determmed upon a cost basis In such cases, there shall be mcluded every item of cost attnbutable
to the panc�ular anc�le or article extracted or manufactured, mcludmg d�rect and mdirect
overhead costs The Director may prescnbe rules for the purpose of ascertammg such values
(3) Notwithstandmg subsection (2) of th�s defimrion, the value of a product
manufactured or produced for purposes of servmg as a prototype for the development of a new or
improved product shall correspond to (a) the retail sellmg price of such new or improved product
when first offered for sale, or (b) the value of materials mcorporated mto the prototype m cases
whtch the new or improved product �s not offered for sale
"Value proceeding or accruing" means the considerahon, whether money, cred�ts,
r�ghts, or other property expressed m terms of money, a person is entrtled to recerve or which is
13
Business Licenses and
B& O Tar - Engaging in Business
actually received or accrued The term shall be appl�ed, m each case, on a cash receipts or accrual
bas�s accordmg to wh�ch method of accountmg is regularly employed m keepmg the books of the
taxpayer
"Wholesaling" means engag�ng m the activ�ty of makmg sales at wholesale, and is
reported under the wholesalmg class�ficat�on
SECTION2. Severabililv If any one or more sect�ons, subsect�ons, or
sentences of this Ordmance are held to be unconstrtutional or mval�d, such decision shall not
affect the validrty of the remammg port�on of this Ordmance and the same shall remam m full
force and effect
SECTION 3. Effective Date Th�s ordmance shall take effect and be m force
ten (10) days from and after �ts passage, approval and publication as prov�ded by law
PASSED by the Crty Council the n� day of � , 2011
,
WIL MAUPIN, ouncil P ent
Approved th�s �/�(� day of �_ 2011
�
PATTY LENT ayor
ATTEST APPROVED AS TO FORM
� ) , �' V
CAROL E GEN, C�ty lerk R ER A ,�
PUBLISHED the 7 '` day of , 2011
EFFECTNE the , day of , 2011
ORDINANCE NO
R U_,egal\I.egal\Ordmances�Finance�BMC 3 48 030 Engagmg m Busmess doc
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Business Licenses and
B& O Taz - Engaging in Business
F
AFFIDAVIT OF PUBLICATION
Account #42742 AD #20109640
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Robin Alexander, being first duly sworn on oath, deposes and says That she is now, and at all times
embraced in the publication herein mentioned was the principal clerk of the printers and publishers of
KITSAP SUN, that said newspaper has been approved as a legal newspaper by order of the Superior Court
of the County of Kitsap, in which County it is published and is now and has been for more than six months
prior to the date of the publication hereinafter referred to, published in the English language continually as
a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County,
Washington and is now and during all of said time, was printed in an office maintained in the aforesaid
place of publication of said newspaper, that the following is a true text of an advertisement as it was
published in regular issues (and not in supplement form) of said newspaper on the following date, to wit
And on February 7, 2011 such newspaper was regularly distributed to its subscribers during all of said
period The full amount of the fee charged for the foregoing publication is the sum of $36 45 This amount
has not been paid in full '
(Signature of Principal Clerk)
Subscribed and sworn to before me this day of March 4, 2011
CAV All
:cr• �• ZO� '�s
Notary Public in and for the State of Washington, Kitsap County
BP S .
ORDINANCE NO 5139 ', �'' , ,,�ts)� T • • • • • • • ,,�,S r•
AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 3 48 030 " O+,
entitled "Definitions" relating to the definition of "Engaging in Business "
PASSED by the City Council on the 2nd day of February, 2011
The full text of this ordinance is available from the City Clerk's Office, 345 Sixth Street, Suite 600,
Bremerton, WA 98337
February 7, 2011 Ad #20109640