HomeMy WebLinkAbout4041 Ordinance No . 4041
(Amending or Repealing Ordinances)
CFN=104 - Finance
Special Council Meeting 7/31/2012
Amending Title 13; new sec. 3.29
B&O Tax Administrative Provisions Ordinance
DID NOT PASS
The date["Beginning July 1, 19981 has led to confusion This date will be deleted from cover sheets of
ordinance/resolution revision pages. This cover sheet will be deleted on electronic pages only, no other
deletions or changes have been made to the document—6/21/2012
ORDINANCE NO. ���
AN ORDINANCE of the City Council of the
City of Kent, Washington, adding a new section
3.29 to the Kent City Code entitled, "Business and
Occupation Tax - Administrative Provisions."
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION I. - New Chapter. A new Chapter 3.29 of the Kent City
Code is hereby adopted
Chapter 3.29
Business and Occupation Tax - Administrative Provisions
Sec. 3.29.010. Purpose. The purpose of this chapter is to
provide administrative guidelines and provisions to implement, administer
and enforce the city's business and occupation tax ordinance, chapter 3.28
of the Kent City Code.
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New Section 3.29
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Sec. 3.29.015. Application of chapter stated. The provisions
of this chapter shall apply with respect to the taxes imposed under chapter
3.28 KCC and under other titles, chapters, and sections in such manner
and to such extent as indicated in each such title, chapter or section.
Sec. 3.28.020. Definitions. For purposes of this chapter, the
definitions contained in chapter 3.29 KCC shall apply equally to the
provisions of this chapter unless the term is defined otherwise in this
chapter. In addition, the following definitions will apply.
A. "Reporting period." "Reporting period" means:
(1) A one-month period beginning the first day of each calendar
month (monthly); or
(2) A three-month period beginning the first day of January,
April, July or October of each year (quarterly); or
(3) A twelve-month period beginning the first day of January of
each year (annual).
B. "Return." "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.
C. "Successor." "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
2 Amend Title 3
New Section 3.29
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successor to any contractor defaulting in the performance of any contract
as to which such person is a surety or guarantor.
D. "Tax year," "taxable year." "Tax year" or "taxable year" means the
calendar year.
Sec. 3.29.021. Definitions -- References to Chapter 82.32
RCW. Where provisions of Chapter 82.32 RCW are incorporated in
Section 3.29.090 of this chapter, "Department" as used in the RCW shall
refer to the "Director" as defined in section 3.28.030 and "warrant" as
used in the RCW shall mean "citation or criminal complaint."
Sec. 3.29.025. Registration/license requirements. Any
person who engages in any business or performs any act which is subject
to the provisions of Title 5 KCC or chapter 3.18 KCC, relating to utility
business taxes, chapter 3.20 KCC, relating to natural or manufactured gas
line use taxes, chapter 3.21 KCC, relating to gambling taxes, chapter 3.23
KCC relating to lodging taxes, chapter 3.26, relating to admissions taxes,
and chapter 3.28 KCC, relating to business and occupation taxes, even if
that person is not subject to any tax imposed thereby, shall apply under
the rules and regulations as the department may prescribe and, upon
approval, receive from the department a registration certificate applicable
to all such business engaged in or activity performed.
No person shall engage in any business without being registered in
compliance with the provisions of this section.
Sec. 3.29.030. Registration/license certificates. A
registration fee of $80.00 shall be due at the time of filing an application.
The city will issue a registration certificate acknowledging registration and
3 Amend Title 3
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payment of the fee. The registration certificate shall be personal and
nontransferable and shall be valid as long as the taxpayer continues in
that business and pays any tax imposed by the city.
The registration fee shall be administratively adjusted by the
director on January 1, 2014, and annually after that in an amount equal to
the greater of four (4) percent or the percentage increase in the CPI.
"CPI" means the Consumer Price Index - All Urban Consumers, (Seattle-
Tacoma-Bremerton, WA), All Items, base period 1982-84=100, Not
Seasonally Adjusted, issued by the U.S. Bureau of Labor Statistics. If the
CPI is converted to a different standard reference base, or otherwise
revised, the adjustment set forth in this paragraph shall be made with the
use of the conversion formula published by the U.S. Bureau of Labor
Statistics. In the event business is transacted at two or more separate
places by one taxpayer, a separate registration certificate for each place at
which business is transacted shall be required. These additional
certificates shall be issued at no additional fee. Where a taxpayer changes
the nature of business conducted or conducts additional activities upon
which a tax is imposed by Title 5 KCC or chapter 3.18 KCC, relating to
utility business taxes, chapter 3.20 KCC, relating to natural or
manufactured gas line use taxes, chapter 3.21 KCC, relating to gambling
taxes, chapter 3.23 KCC relating to lodging taxes, chapter 3.26, relating to
admissions taxes, and chapter 3.28 KCC, relating to business and
occupation taxes, that taxpayer shall apply for and receive a new
registration certificate at o additional fee.
Each registration certificate shall be numbered and shall show the
name, business location, mailing address and any other information that
the director deems necessary. The certificate of registration shall be
posted in a conspicuous place at the place of business for which it is
issued.
4 Amend Title
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Where a place of business of the taxpayer is changed, the taxpayer
shall notify the department and upon approval, the department will issue a
new certificate.
Sec. 3.29.040. 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.
(1) Other than any annual license fee or registration fee assessed under
this chapter, the tax imposed by this chapter shall be due and payable in
quarterly installments. 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. 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.
(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.
(4) For purposes of the tax imposed by chapter 3.28 KCC, 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 One Hundred Twenty-Five Thousand Dollars ($125,000) (or higher
threshold as determined by the city) in the current quarter, shall file a
return, declare no tax due on their return, and submit the return to the
5 Amend Title
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director. The gross receipts and deduction amounts 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.
Sec. 3.29.050. Payment methods - Mailing returns or
remittances - Time extension - Deposits - Recording payments -
Payment must accompany return - NSF checks.
(1) Taxes shall be paid to the director 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 director. If payment so received
is not paid by the bank on which it is drawn, the taxpayer, by whom such
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payment is tendered, shall remain liable for payment of the tax and for al
legal penalties, the same as if such payment had not been tendered
Acceptance of any sum by the director shall not discharge the tax or fee
due unless the amount paid is the full amount due.
(2) A return or remittance that is transmitted to the city by Unite
States mail shall be deemed filed or received on the date shown by the
cancellation mark stamped by the Post Office upon the envelop
containing it. The director may allow electronic filing of returns o
remittances from any taxpayer. A return or remittance which i
transmitted to the city electronically shall be deemed filed or receive
according to procedures set forth by the director.
(3) If a written request is received prior to the due date, the director,
for good cause, may grant, in writing, additional time within which to
make and file returns.
(4) The director shall keep full and accurate records of all fund
received or refunded. The director shall apply payments first against all
penalties and interest owing, and then upon the tax, without regard to an
direction of the taxpayer.
(5) For any return not accompanied by a remittance of the tax shown t
be due thereon, the taxpayer shall be deemed to have failed or refused t
file a return and shall be subject to the penalties and interest provided in
this chapter.
(6) 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 "non
sufficient funds" (NSF) charge of twenty dollars ($20.00) is received b
the director. Any license issued upon payment with a NSF check will b
considered void, and shall be returned to the director. No license shall b
reissued until payment (including the twenty dollars ($20.00) NSF fee) i
received.
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(7) The _Director 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.
Sec. 3.29.060. Records to be preserved - Examination -
Estoppel to question assessment. Every person liable for any fee or
tax imposed by this chapter shall keep and preserve, for a period of five
(5) years after filing a tax 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 federal income tax and state tax returns and reports
shall be open for examination at any time by the director or its duly
authorized agent. Every person's business premises shall be open for
inspection or examination by the director or a duly authorized agent.
(1) 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 director, or (b) bears
the cost of examination by the director'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 director the estimated amount
thereof including round-trip fare, lodging, meals and incidental expenses,
subject to adjustment upon completion of the examination.
(2) 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
8 Amend Title
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or kept and preserved, or in respect of which inspection or examination of
the business premises has been denied. The director 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 director 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.
Sec. 3.29.070. Accounting methods.
(1) 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.
(2) The taxes imposed and the returns required hereunder shall be
upon a calendar year basis.
Sec. 3.29.080. Public work contracts - Payment of fee and
tax before final payment for work. The director 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 director a verified list of all
subcontractors supplying labor and/or materials to the person in
connection with said public work.
Sec. 3.29.090. Underpayment of tax, interest, or penalty —
Interest.
9 Amend Title
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(1) If, upon examination of any returns, or from other
information obtained by the director, it appears that a tax or penalty less
than that properly due has been paid, the director shall assess the
additional amount found to be due and shall add thereto interest on the
tax only. The director 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 director may
provide in writing.
(2)(a) Interest imposed after the effective date of this ordinance,
shall be computed from the last day of the month following the end of the
reporting period and will continue to accrue until payment is made. In
case of an audit the interest shall be computed from the first day of the
month following each calendar year or portion thereof included in the audit
period.
(b) For the purposes of this section, the rate of interest to be
charged to the taxpayer shall be an average of the federal short-term rate
as defined in 26 U.S.C. Sec. 1274(d) plus two percentage points. The rate
shall be computed by taking an arithmetical average to the nearest
percentage point of the federal short-term rate, compounded annually.
That average shall be calculated using the rates from four months:
January, April, and July of the calendar year immediately preceding the
new year, and October of the previous preceding year. The rate shall be
adjusted on the first day of January of each year for use in computing
interest for that calendar year.
Sec. 3.29.095. Time in which assessment may be made.
The director shall not assess, or correct an assessment for, additional
taxes, penalties, or interest due more than four years after the close of
the calendar year in which they were incurred, except that the director
may issue an assessment:
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(1) 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 10 years prior to the close of the calendar year in
which the person was contacted in writing by the director;
(2) Against a person that has committed fraud or who misrepresented a
material fact; or
(3) Against a person that has executed a written waiver of such
limitations.
Sec. 3.29.100. Over payment of tax, penalty, or interest -
Credit or refund - Interest rate - Statute of limitations.
(1) If, upon receipt of an application for a refund, or during an audit or
examination of the taxpayer's records and tax returns, the director
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 (2) of this section, no refund or credit shall be made for taxes,
penalties, or interest paid more than four (4) years prior to the beginning
of the calendar year in which the refund application is made or
examination of records is completed.
(2) 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 director discovers that a refund or credit is due.
(3) Refunds shall be made by means of vouchers approved by the
director and by the issuance of a city check or warrants drawn upon and
payable from such funds as the city may provide.
(4) Any final judgment for which a recovery is granted by any court o
competent jurisdiction for tax, penalties, interest, or costs paid by any
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person shall be paid in the same manner, as provided in subsection (3) o
this section, upon the filing with the director a certified copy of the order
or judgment of the court.
(5) Interest on overpayments of taxes shall be the average federal
short term interest rate as outlined for assessments under .090(2)(c) plus
two (2) percentage points.
Sec. 3.29.110. Late payment - Disregard of written
instructions - Evasion - Penalties.
(1) If payment of any tax due on a return to be filed by a taxpayer is
not received by the director by the due date, the director shall add a
penalty in accordance with RCW 82.32.090(1), as it now exists or as it
may be amended equal to five (5) percent of the amount of the tax; and i
the tax is not received on or before the last day of the month following the
due date, the Director shall add a total penalty equal to fifteen (15)
percent of the amount of the tax; and if the tax is not received on or
before the last day of the second month following the due date, .the
Director shall add a total penalty equal to twenty-five (25) percent of the
amount of the tax. No penalty assessed herein shall be less than Five
Dollars ($5.00).
(2) If the director 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 equal to five (5) percent of the amount of the deficiency. I
payment of any tax deficiency assessed by the director is not received by
the due date specified in the notice, or any extension thereof, the director
shall assess a penalty equal to fifteen (15) percent of the amount of the
additional tax found due. If payment of any tax deficiency assessed by
the director is not received on or before the thirtieth day following the due
date specified in the notice, or any extension thereof, the director shall
12 Amend Title
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assess a penalty equal to twenty-five (25) percent of the amount of
additional tax found due. No penalty added shall be less than Five Dollars
($5.00).
(3) If a citation or criminal complaint is issued by the director 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.
(4) If the Director 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 Director a license as required by KCC
3.29.025/030, the Director shall impose a penalty in accordance with RCW
82.32.090(4), as it now exists or as it may be Amendedof five (5) percent
of the amount of tax due from that person for the period that the person
was not licensed. No penalty shall be imposed under this subsection (4) if
the person who has engaged in business without a license obtains a
license prior to being notified by the director of the need to be licensed.
(5) If the director 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.
(a) A taxpayer fails to follow specific written tax reporting
instructions when the director has informed the taxpayer in writing of the
taxpayer's tax obligations and the taxpayer fails to act in accordance with
those instructions unless the director has not issued final instructions
because the matter is under appeal pursuant to this chapter. The director
shall not assess the penalty under this subsection (5), upon any taxpayer
that has made a good faith effort to comply with the specific written
instructions provided by the Director to that taxpayer.
(b) Specific written instructions may be given as a part of a tax
assessment, audit, determination or closing agreement, provided that
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such specific written instructions shall apply only to the taxpayer
addressed or referenced on such documents.
(c) Any specific written instructions by the director shall be
clearly identified as such and shall inform the taxpayer that failure to
follow the instructions may subject the taxpayer to the penalties imposed
by this subsection.
(6) If the director finds that all or any part of the deficiency resulted
from an intent to evade the tax payable, the director shall assess a
penalty in accordance with RCW 82.32.090(6), as it now exists or as it
may be amended.
(7) The penalties imposed under subsections (1) through (5) above 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.
(8) The Director shall not impose both the evasion penalty and the
penalty for disregarding specific written instructions on the same tax found
to be due.
(9) 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.
(10) If incorporation into the Kent City Code of future changes to RCW
82.32.090 is deemed invalid, then the provisions of RCW 82.32.090
existing at the time this ordinance is effective shall apply.
Sec. 3.29.120. Cancellation of penalties.
(1) The director may cancel any penalties imposed under subsections
.110 (1) 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
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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 director has no
authority to cancel any other penalties or to cancel penalties for any other
reason except as provided in subsection (3).
(2) A request for cancellation of penalties must be received by the
director within 30 days after the date the department mails the notice that
the penalties 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.
(3) The director may cancel the penalties in subsections .110 (1) one
time if a person:
(a) Is not currently licensed and filing returns,
(b) Was unaware of its responsibility to file and pay tax, and
(c) Obtained business licenses and filed past due tax returns
within 30 days after being notified by the department.
(4) The director shall not cancel any interest charged upon amounts
due.
Sec. 3.29.130. Taxpayer quitting business - Liability of
successor.
(1) 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.
(2) 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: a) the taxpayer shall produce a receipt from the city
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showing payment in full of any tax due or a certificate that no tax is due,
or b) more than six (6) months has passed since the successor notified the
Director of the acquisition and the director has not issued and notified the
successor of an assessment.
(3) 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.
(4) Notwithstanding the above, if a successor gives written notice to the
Director 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.
Sec. 3.29.140. Administrative Appeal. Any person, except one
who has failed to comply with section .060, aggrieved by the amount o
the fee or tax determined by the Director to be required under the
provisions of this chapter may appeal from such determination by filing a
written notice of appeal with the City Clerk within 30 days from the date
written notice of such amount was mailed to the taxpayer. A $250.00
filing fee shall be submitted with the appeal, which filing fee is required to
process the appeal. The city's hearing examiner shall, as soon as
practical, fix a time and place for the hearing of such appeal, and shall
cause a notice of the time and place thereof to be delivered or mailed to
the parties. The hearing shall be conducted in accord with the provisions
of Chapter 1.04 of the Kent City Code. The decision of the Hearing
Examiner shall indicate the correct amount of the fee or tax owing.
Sec. 3.29.150. Judicial Review of Director's Determination.
Any person, except one who has failed to comply with section .060, having
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paid any tax as required and feeling aggrieved by the amount of the to
assessed, and after first exhausting the right of administrative appeal se
forth in this chapter, may seek judicial review in the King County Superior
Court within 21 days of the date of the decision of the (city official charged
with hearing appeals). The taxpayer shall set forth the amount of the tax
imposed upon the taxpayer that the taxpayer concedes to be the correct
amount of tax and the reason why the tax imposed should be reduced o
abated. The trial in the Superior Court shall be de novo in accordance
with the laws of the State of Washington. The burden shall rest upon the
taxpayer to prove that the tax paid by the taxpayer is incorrect, either in
whole or in part, and to establish the correct amount of the tax.
Sec. 3.29.160. Director to make rules. The director shall have
the power, from time to time, to adopt, publish and enforce rules and
regulations not inconsistent with this chapter or with law for the purpose
of carrying out the provisions of this chapter and it shall be unlawful to
violate or fail to comply with, any such rule or regulation.
Sec. 3.29.170. Ancillary allocation authority of Director. The
director is authorized to enter into agreements with other Washington
cities which impose an "eligible gross receipts tax":
(1) To conduct an audit or joint audit of a taxpayer by using an auditor
employed by the City of Kent, 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;
(2) To 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.
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(3) To apply the City's tax prospectively where a taxpayer has no offic
or place of business within the City and has paid tax on all gross income t
another Washington city where the taxpayer is located; provided that the
other city maintains an eligible gross receipts tax, and the income was no
derived from contracts with the City.
Sec. 3.29.180. 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 b
the records of the Director. Failure of the taxpayer or licensee to receive
any such mailed notice shall not release the taxpayer or licensee from an
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 Director in writing about
change in the taxpayer's address.
Sec. 3.29.190. Tax declared additional. The license fee and to
herein levied shall be additional to any license fee or tax imposed or levied
under any law or any other ordinance of the City of Kent except as herein
otherwise expressly provided.
Sec. 3.29.200. Public disclosure - Confidentiality
Information sharing.
(1) For purposes of this section, unless a different meaning is clear)
established by context, the following definitions apply:
(a) "Disclose" means to make known to any person in an
manner.
(b) "Tax information" means:
(i) A taxpayer's identity;
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(ii) The nature, source, or amount of the taxpayer'
income, payments, receipts, deductions, exemption, credits, assets
liability, net worth, tax liability deficiencies, over assessments, o
k
tax payments, whether taken from the taxpayer's books an
records or any other source;
(iii) Whether the taxpayer's return was, is being, or will b
examined or subject to other investigation or processing; or
(iv) Other data received by, recorded by, prepared by, o
provided to the Director with respect to a taxpayer.
PROVIDED, That tax information shall not include data, material, o
documents that do not disclose information related to a specific o
identifiable taxpayer.
(2) Tax returns and information may be "public records" as that term i
defined by chapter 42.56 RCW. The director shall not disclose to
information if disclosure would violate RCW Chapter 42.56 or any other
law prohibiting disclosure.
(3) Tax information may be disclosed to the following:
(a) The mayor, chief administrative officer, city attorney, city
clerk, or their authorized designees, for official purposes;
(b) Any agency or officer of the United States of America, the
State of Washington, or a tax department of any state, county, city o
town, provided that the agency or officer grants substantially similar
privileges to the city, and further provided that the agency or officer shall
not further disclose the tax information except as authorized in this
section.
(c) The taxpayer to whom it pertains or to such person o
persons as the taxpayer may designate in writing as the taxpayer'
designee; except that tax information not received from the taxpayer shall
not be so disclosed if the director determines that such disclosure would
compromise any investigation or litigation by any federal, state, or local
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government agency in connection with the civil or criminal liability of th
taxpayer or another person, or that such disclosure would identify
confidential informant, or that such disclosure is contrary to an
agreement entered into by the Director that provides for the reciproca
exchange of information with other government agencies which agreemen
requires confidentiality with respect to such information unless such
information is required to be disclosed to the taxpayer by the order of an
court.
(4) Nothing in this section shall prevent the use of tax information b
the Director or any other agency in any civil or criminal action involving
any license, tax, interest, or penalty.
(5) A person disclosing tax information to a person not entitled t
receive that information under this section is guilty of a misdemeanor, and
if the person violating this privacy requirement is an officer or employee o
the City, such person may be required to forfeit their office . o
employment.
Sec. 3.29.210. Tax constitutes debt. Any license fee or tax du
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 a
any other debt in like amount, which remedy shall be in addition to all
other existing remedies.
Sec. 3.29.220. Unlawful actions - Violation - Penalties.
(1) It shall be unlawful for any person liable for fees under thi
chapter(or other chapters as listed):
(a) To violate or fail to comply with any of the provisions of this
chapter or any lawful rule or regulation adopted by the director;
(b) To make any false statement on any license application or to
return;
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(c) To aid or abet any person in any attempt to evade payment
of a license fee or tax;
(d) To fail to appear or testify in response to a subpoena;
(e) To testify falsely in any investigation, audit, or proceeding
conducted pursuant to this Chapter.
(2) Violation of any of the provisions of this chapter is a gross
misdemeanor. Any person convicted of a violation of this chapter may be
punished by a fine not to exceed $1,000, imprisonment not to exceed one
year, or both fine and imprisonment. Penalties or punishments provided
in this chapter shall be in addition to all other penalties provided by law.
(3) 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 $5,000,
or imprisonment not to exceed one year, or both fine and imprisonment.
Sec. 3.29.230. Suspension or Revocation of business
registration [license].
(1) The director, or designee, shall have the power and authority to
suspend or revoke any license issued under the provisions of this chapter.
The director, or designee, shall notify such licensee in writing by certified
mail of the suspension or revocation of his or her license and the grounds
therefor. Any license issued under this chapter may be suspended or
revoked based on one or more of the following grounds:
(a) The license was procured by fraud or false representation of
fact.
(b) The licensee has failed to comply with any provisions of
chapters 3.28 and 3.29 KCC.
(c) The licensee is in default in any payment of any license fee or
tax under chapters 3.28 and 3.29 KCC.
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(e) The licensee or employee has been convicted of a crime
involving the business.
(2) Any licensee may, within 30 days from the date that the suspension
or revocation notice was mailed to the licensee, appeal from such
suspension or revocation by filing a written notice of appeal ("petition")
setting forth the grounds therefor with the director. A copy of the petition
must be provided by the licensee to the director and the city attorney on
or before the date the petition is filed with the city clerk. The hearing
shall be conducted in accordance with the procedures for hearing
contested cases set out in KCC 3.29.140. The hearing examiner shall set
a date for hearing said appeal and notify the licensee by mail of the time
and place of the hearing. After the hearing thereon the hearing examiner
shall, after appropriate findings of fact, and conclusions of law, affirm,
modify, or overrule the suspension or revocation and reinstate the license,
and may impose any terms upon the continuance of the license.
No suspension or revocation of a license issued pursuant to the
provisions of this subchapter shall take effect until 30 days after the
mailing of the notice thereof by the Department, and if appeal is taken as
herein prescribed the suspension or revocation shall be stayed pending
final action on the appeal. All licenses which are suspended or revoked
shall be surrendered to the City on the effective date of such suspension
or revocation.
The decision of the hearing examiner shall be final. The licensee
and/or the department may seek review of the decision by the Superior
Court of Washington in and for King County. If review is sought as herein
prescribed the suspension or revocation shall be stayed pending final
action by the Superior Court.
(3) Upon revocation of any license as provided in this subchapter no
portion of the license fee shall be returned to the licensee.
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Sec. 3.29.240. Closing agreement provisions. The director
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 director 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:
(1) The case shall not be reopened as to the matters agreed upon, or
the agreement modified, by the director or the taxpayer, and
(2) 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.
SECTION 2. - Savings. The existing portions of Title 3 of the Kent
City Code which are repealed and replaced by this ordinance, shall remain
in full force and effect until the effective date of this ordinance.
SECTION 3. - Corrections by City Clerk or Code Reviser. Upon
approval of the City Attorney, the City Clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state or federal laws, codes, rules, or
regulations.
SECTION 4. - Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, that
decision shall not affect the validity of the remaining portion of this
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ordinance and that remaining portion shall maintain its full force and
effect.
SECTION 4. - Effective Date. This ordinance shall take effect and
be in force five (5) days from and after its passage and publication, a
provided by law.
SUZETTE COOKE, MAYOR
ATTEST:
BRENDA JACOBER, CITY CLERK
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
PASSED: day of r 2012.
APPROVED: day of , 2012.
PUBLISHED: day of 12012.
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
(SEAL)
BRENDA JACOBER, CITY CLERK
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