HomeMy WebLinkAbout5384 ORDINANCE NO. 5384
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, amending Section 3.48.090 of the
Bremerton Municipal Code entitled "Exemptions" and amending
Section 3.86.040 of the Bremerton Municipal Code entitled
"Payment and Reporting Periods."
WHEREAS,the City Council desires to amend and update provisions of the
Bremerton Municipal Code relating to the City's Business and Occupation Tax in order to be
consistent with updates to the Revised Code of Washington;NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 3.48.090 of the Bremerton Municipal Code entitled
"Exemptions" is hereby amended by amending Subsection 3.48.090 (14)as follows:
3.48.090 EXEMPTIONS
(1) Nonprofit Corporations or Nonprofit Organizations. This section shall not apply to
nonprofit organizations exempt from federal income tax under Section 501(c)(3) of the Internal
Revenue Code, as hereafter amended, except with respect to retail sales of such persons.
(2) Health Maintenance Organization, Health Care Service Contractor, Certified Health
Plan. Beginning on January 1, 2000,this chapter does not apply to any health maintenance
organization, health care service contractor, or certified health plan in respect to premiums or
prepayments that are taxable under RCW 48.14.0201.
(3) Public Utilities. This chapter shall not apply to any person in respect to a business
activity with respect to which tax liability is specifically imposed under the provisions of
Chapter 3.50 BMC.
(4) Investments -Dividends from Subsidiary Corporations. This chapter shall not apply
to amounts derived by persons, other than those engaging in banking, loan, security, or other
financial businesses, from investments or the use of money as such, and also amounts derived as
dividends by a parent from its subsidiary corporations.
(5) International Banking Facilities. This chapter shall not apply to the gross receipts of
an international banking facility. As used in this subsection, an "international banking facility"
means a facility represented by a set of asset and liability accounts segregated on the books and
records of a commercial bank, the principal office of which is located in this State, and which is
incorporated and doing business under the laws of the United States or of this State, a United
States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of
the Federal Reserve Act, 12 United States Code 611-631, or an agreement corporation having an
agreement or undertaking with the Board of Governors of the Federal Reserve System under
Section 25 of the Federal Reserve Act, 12 United States Code 601-604(a),that includes only
international banking facility time deposits (as defined in subsection (a)(2) of Section 2.4.8 of
Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal
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Reserve System), and international banking facility extensions of credit(as defined in subsection
(a)(3) of Section 2.4.8 of Regulation D).
(6) Insurance Business. This chapter shall not apply to amounts received by any person
or agent who is an insurer or their appointed insurance producer upon which a tax based on gross
premiums is paid to the State pursuant to RCW 48.14.020; and provided further,that the
provisions of this subsection shall not exempt any bonding company from tax with respect to
gross income derived from the completion of any contract as to which it is a surety, or as to any
liability as successor to the liability of the defaulting contractor.
(7) Farmers - Agriculture. This chapter shall not apply to any farmer in respect to
amounts received from selling fruits,vegetables, berries, butter, eggs, fish, milk, poultry, meats
or any other agricultural product that is raised, caught, produced, or manufactured by such
persons.
(8) Athletic Exhibitions. This chapter shall not apply to any person in respect to the
business of conducting boxing contests and sparring or wrestling matches and exhibitions for the
conduct of which a license must be secured from the State Boxing Commission.
(9) Racing. This chapter shall not apply to any person in respect to the business of
conducting race meets for the conduct of which a license must be secured from the Washington
State Horse Racing Commission.
(10) Ride Sharing. This chapter does not apply to any funds received in the course of
commuter ride sharing or ride sharing for persons with special transportation needs in
accordance with RCW 46.74.010.
(11) Employees. This chapter shall not apply to:
(a) Any person in respect to the person's employment in the capacity as an
employee or servant as distinguished from that of an independent contractor. For the purposes
of this subsection, the definition of employee shall include those persons that are defined in the
Internal Revenue Code, as hereafter amended.
(b) A booth renter, as defined by RCW 18.16.020, is an independent contractor
for purposes of this chapter.
(12) Amounts Derived from Sale of Real Estate. This chapter shall not apply to gross
proceeds derived from the sale of real estate. This, however, shall not be construed to allow an
exemption of amounts received as commissions from the sale of real estate, nor as fees, handling
charges, discounts, interest or similar financial charges resulting from, or relating to, real estate
transactions. This chapter shall also not apply to amounts received for the rental of real estate if
the rental income is derived from a contract to rent for a continuous period of thirty(30)days or
longer.
(13) Mortgage Brokers' Third-Party Provider Services Trust Accounts. This chapter
shall not apply to amounts received from trust accounts to mortgage brokers for the payment of
third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and
any rules adopted by the director of financial institutions.
(14) Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle
Fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle
fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.01082.38.020 and exempt under
RCW 52.36.11082.38.280;provided,that any fuel not subjected to the State fuel excise tax, or
any other applicable deduction or exemption, will be taxable under this chapter.
(15) Amounts Derived from Liquor, and the Sale or Distribution of Liquor. This
chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120.
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(16) Casual and Isolated Sales. This chapter shall not apply to the gross proceeds
derived from casual or isolated sales.
(17) Accommodation Sales. This chapter shall not apply to sales for resale by persons
regularly engaged in the business of making retail sales of the type of property so sold to other
persons similarly engaged in the business of selling such property where (a)the amount paid by
the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the
article; and (b)the sale is made as an accommodation to the buyer to enable the buyer to fill a
bona fide existing order of a customer or is made within fourteen (14) days to reimburse in kind
a previous accommodation sale by the buyer to the seller.
(18) Taxes Collected as Trust Funds. This chapter shall not apply to amounts collected
by the taxpayer from third parties to satisfy third-party obligations to pay taxes such as the retail
sales tax, use tax, and admission tax.
(19) Port District Business Activity. For the purpose of the tax imposed by
BMC 3.48.050(1)(a)through (g),persons engaged in business on Port District owned property
located within and zoned by the City with an industrial classification ("Port Property") shall be
treated in the same manner as if the Port Property were located in unincorporated Kitsap County
and therefore exempt from the tax; however,the apportionment and allocation, place of delivery
and the appropriate tax provisions of this chapter shall apply for business activity occurring off
the Port Property but within the City, also in the same manner as if the Port Property were
located in unincorporated Kitsap County.
(20) Three (3) Year Exemption for Annexed Businesses. This chapter shall not apply to
any person with respect to a business activity conducted in an area that has become part of the
City by annexation;provided, however, that the business premises of such person be located in
the said area on the date of annexation; and provided further,that the exemption provided herein
shall cease at the expiration of twelve (12) full calendar quarters following the date of such
annexation.
SECTION 2. Section 3.86.040 of the Bremerton Municipal Code entitled
"Exemptions" is hereby amended by amending Subsection 3.86.040 (1) as follows:
3.86.040 PAYMENT AND REPORTING PERIODS.
(1) Other than any annual license fee or registration fee assessed under
Chapter 5.02 BMC,the tax imposed by those chapters set forth in BMC 3.86.015 shall be due
and payable in quarterly installments unless otherwise specifically provided for therein. At the
Director'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 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 payments are due on or before the
time as provided in RCW 82.32.045 (1), (2), and(3).
(2) Taxes shall be paid as provided in this chapter and accompanied by a return on
forms as prescribed by the Director. 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.
(3) Tax returns must be filed and returned by the due date whether or not any tax is
owed.
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(4) For purposes of the tax imposed by Chapter 3.48 BMC, any person whose value of
products, gross proceeds of sales, or gross income of the business, subject to business and
occupation tax after all allowable deductions, is equal to or less than the tax exemption amount
set forth in BMC 3.48.050(2) in the current calendar year shall file a return, declare no tax due
on their return, and submit the return to the Director. The gross receipts, deduction amounts and
exemptions shall be entered on the tax return even though no tax may be due.
(5) 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.
(6) 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 is 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.
(7) If any taxpayer fails, neglects or refuses to make a return as and when required in
this chapter,the Director is authorized to determine the amount of the tax or fees payable by
obtaining facts and information upon which to base the Director'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 Director shall notify the taxpayer by mail 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.
SECTION 3. Corrections. The City Clerk and codifiers of this ordinance are
authorized to make necessary corrections to this ordinance including, but not limited to,the
correction of scrivener, clerical,typographical, and spelling errors, references, ordinance
numbering, section/subsection numbers and any references thereto.
SECTION 4. Severability. If any one or more sections, subsections, or sentences
of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the
validity of the remaining portion of this ordinance and the same shall remain in full force and
effect.
SECTION 5. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the 9h day of IQpV/,'►bf,l " , 2019.
,,J� Lesi t. DA16
-cu r RIC YOUN , Council President
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BMC 3.48.090& BMC 3.86.040—B & 0 Tax
Approved this 2N_r day of N OJQw►toex- 2019.
)1,.. t/
GREG ELER,Mayor
ATTEST: APPROVED AS TO FORM:
• GELd OOV R, City Clerk Ri GER A. LUBOVICH, City Attorney
PUBLISHED the9 -4144-1 day of Poste bPiY' , 2019.
EFFECTIVE the (O+F1 day of Y' , 2019.
ORDINANCE NO.53E .
R:\Legal\Legal\Ordinances\Community Development\BMC 3.48.090 and 3.86.040-Ordinance.docx
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