HomeMy WebLinkAbout4423ORDINANCE NO. 4423
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending chapters 3.18,
3.28 and 3.29 of the Kent City Code, to update
definitions related to telephone businesses and
gross income, clarify code language relating to
business and occupation tax, and codify current
practices related to square footage tax.
RECITALS
A. The City levies a utility tax against certain businesses pursuant
to Chapter 3.18 of the Kent City Code (KCC). Telephone businesses are one
of the businesses subject to the utility tax, In order to keep up with evolving
technologies, from time to time it is necessary to update the City's tax code
to recognize changes in the way traditional services are provided by utility
businesses and to clarify the taxability of such services.
B, The amendments to Chapter 3.18 of the KCC will better align
the code with current technology provided by telephone businesses, and
ensure that connection charges associated with water, sewer and drainage
utility services continue to be exempt from the City's utility tax, in accord
with current practices.
7 Amend KCC Chapters 3.78, 3'28, 3.29 -
Re: B&O Tax; Utility Tax
c. The city levies a business and occupation tax (B&O tax)
pursuant to Chapter 3.28 KCC. The B&O tax is comprised of two separate
taxes, a gross receipts tax and a Square footage tax. The amendments
related to the gross receipts tax are generally for the purposes of simplifying
the code language to clarify the proper calculation of taxes due.
D. The amendments related to the square footage tax are for the
purpose of clarifying the application of the tax to specific business practices'
In particular, the amendments serve to clarify how the square footage tax
applies to the rental of real estate and codify the City Council's intent to
exempt residential rental units from square footage tax. The amendments
also clarify that when space is rented to a tenant, the tax obligation will only
shift to commercial tenants when the tenant is using the space for business
purposes,
E, The amendments related to the square footage tax also
address the application of the tax to self-storage operations. Recently, the
City was successful in defending against a challenge to tax assessed against
a self-storage business. The amendments herein are in line with the decision
of the Hearing Examiner in that tax appeal, and will codify current tax
practices as they apply to self-storage businesses. The amendments are
necessary only to clarify how the business space of self-storage operations
is to be categorized and to ensure that the payment of the tax remains the
responsibility of the business, not the tenants renting the individual storage
units.
NOW, THEREFORE, THE CITY COUNCIL OF THE CIry OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
2 Amend KCC Chapters 3.78,3.28,3.29 -
Re: B&O Tax; Utility Tax
ORDINANCE
EcTION 7, - Amendment - KCC 3.18.010. Section 3.18.010 0f the
Kent City Code, entitled "Definitions," is hereby amended as follows:
Section 3.18.O1O. Definitions. The following words, terms, and
phrases, when used in this chapter, shall have the meanings ascribed to
them in this section, except where the context clearly indicates a different
meaning:
Cable television business means:
1. A system providing service pursuant to a franchise issued by
the city under the Cable Communications Policy Act of L984, Public Law No.
98-549,47 U.S.C. Section 521, as it may be amended or superseded; or
2. Any system that competes directly with such franchised system
by employing antennas, microwaves, wires, Wave guides, coaxial cables, or
other conductors, equipment, or facilities designed, construed, or used for
the purpose of:
a. Collecting and amplifying local and distant broadcast
television signals and distributing and transmitting them;
b. Transmitting original cable cast programming not
received through television broadcast signals; or
c. Transmitting television pictures, film, and videotape
programs not received through broadcast television signals, whether or not
3 Amend KCC Chapters 3.78, 3.28, 3.29'
Re: B&O Tax; Utility Tax
encoded or processed to permit reception by only selected receivers;
provided, however, that "cable television business" shall not include entities
that are subject to charges aS "commercial TV stations" under 47 U.S.C-
Section 158, as it may be amended or superseded'
Cetlular telephone service means any two-way voice and/or data telephone
or similar communications system based in whole or in substantial part on
wireless radio communications, including cellular mobile service, and which
is not subject to regulation by the Washington State Utilities and
Transportation Commission that conflicts with or overrides this chapter'
Cellular telephone service includes other wireless radio communications
services including, without limitation, specialized mobile radio, paging
serviCes, personal communiCationS, and data serviCes, and any other
evolving wireless radio communications technology that accomplishes a
purpose substantially similar to cellular telephone service. Cellular telephone
service is included within the definition of "telephone business" for the
purposes of this chapter.
Competitive telephone service means the providing by any person, firm, or
corporation of telecommunications equipment or apparatus, or service
related to that equipment or apparatus such as repair or maintenance
service, if the equipment or apparatus is of a type which can be provided by
persons that are not subject to regulation as telephone companies under
RCW Title 80 and for which a separate charge is made.
Gross income means the value proceeding or accruing from the performance
of the particular public service business involved, including operations
incidental thereto, but without any deduction on account of the cost of the
commodity furnished or sold, the cost of materials used, labor costs,
4 Amend KCC Chapters 3.78,3.28,3'29'
Re: B&O Tax; Utility Tax
interest, discount, delivery costs, taxes, or any other expense whatsoever
paid or accrued and without any deduction on account of losses. In addition,
when determining total gross income from cellular telephone service, "gross
income" shall include all income from cellular telephone service (including
roaming charges incurred outside this state) provided to customers whose
"place of primary use" is in the city, regardless of the location of the facilities
used to provide the service. The customer's place of primary use is, with
respect to each telephone: (a) the customer'S address shown on the
telephone service company's records; or (b) the customer's place of
residence if the telephone is for personal use, and in both cases must be
located within the licensed service area of the home service provider.
Roaming charges and cellular telephone charges to customers whose place
of primary use is outside the city of Kent will not be taxable even though
those cellular services are provided within the city of Kent, There is a
rebuttable presumption that the address shown on the cellular telephone
service company's records is the place of primary use and is accurate, If the
cellular telephone service company knows or should have known that a
customer's place of primary use address for a telephone is within the city,
then the gross income from cellular telephone service provided to that
customer with respect to that telephone is to be included in the company's
gross in6sms. For the purposes of this chapter, water, sewer, and drainage
c6F\rr-a annn6 nn fnac chall ha avrlttAaA Frrt atdcc th-nm6
ire
simitar eemmuniea
5 Amend KCC cha*ersuti";,i if;,i;?";
ineludes interstate serviee; ineluding tollserviee; originating from er reeeived
for the serviee is billed to a person in this state, "Network telephone servi€e"
mierowave, or similar eommunieation or transmission syst€fi]. "N€twork
provided at the site of the internet serviee provider,
Sot6 waste means all putrescible and nonputrescible solid and semisolid
wastes including, but not limited to, garbage, rubbish, ashes, industrial
waSteS, swill, SeWage sludge, infectious, hazardous, or toxic wastes,
demolition and construction wastes, abandoned vehicles or parts thereof,
and recyclable or reusable materials collected, in whole or in part, for
recycling or salvage.
Solid waste collection service means receiving solid waste for transfer,
storage, processing, treatment, or disposal including, but not limited to, all
residential and commercial collection services, public or private solid waste
disposal sites, transfer stations, and similar operations' Solid waste
collection service includes the activities of transferring, processing, treating,
storing, or disposing of the solid waste collected'
Ielephone bssffiess means the business of providing network telephone
6 Amend KCC Chapters 3.78, 3'28' 3.29 -
Re: B&O Tax; Utility Tax
innnma r{a A Fra'm nallc nrininrtina aAlar hilla/ tn cr rhcnriho rc reri{-hin fha
city. Telephone business also includes ancillary services that are associated
rarith nr ineirl anlrl fn fha nrnrricinn nf larnmmr rninrfinn carrrt c innlr rrlinn
RCW 82.04.065.
Aztz nr cimi lar aammr rnir=finn nr l'rrn cmicaian Far hira rrir r lnn ol +olanhnna
network. toll line or channel, cable, microwave, or similar communication or
V
{-alanhnna carrrinac /tr 2 a{.innc nnarrtinn awr'!ranaac Thafrrmar lina
7 Amend KCC Chapters 3.78,3.28, 3'29 -
Re: B&O Tax; Utility Tax
infarnaf nrn irlar rrir r lnnrl l'alanhnn nahrrnrlz fnll lina /\r ah nnal nrhla
mrarnlAr2\ra cimilrr ^n mmr rnir^2fin nr l-rrncmiccinn c\/cta Talanhnna
business does not include the providing of competitive telephone service.
business rather than competitive telephone service.
SECTION 2. - Amendment - KCC 3.28. The title of chapter 3.28 of
the Kent City Code, entitled "Business and Occupation Tax Gross
Receipts," is hereby revised as follows:
Chapter 3.28
BUSINESS AND OCCUPATION TAX ffi
9E9TION 3. - Amendment - KCC 3.28.030. Section 3.28.030 0f the
Kent City Code, entitled "Definitions," is hereby amended as follows:
Section 3.28.O3O. Definitions. In construing the provisions of this
chapter, the following definitions shall be applied. Words in the singular
number shall include the plural, and the plural shall include the singular.
A. Advance, reimbursement.
1. Advance meanS money or credits received by a taxpayer from
a customer or client with which the taxpayer is to pay costs or fees on behalf
of the customer or client.
B Amend KCC Chapters 3.78,3.28, 3.29'
Re: B&O Tax; Utility Tax
2. Reimbursement means money or credits received from a
customer or client to repay the taxpayer for money or credits expended by
the taxpayer in payment of costs or fees of the customer or client.
B. Agricultural product, farmer.
1. Agricultural product means any product of plant cultivation or
animal husbandry including, but not limited to: a product of horticulture,
grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW
15.85.020; plantation Christmas trees; turf; or any animal including but not
limited to an animal that is a private sector cultured aquatic product as
defined in RCW 15,85.020, or a bird, or insect, or the substances obtained
from such an animal. "Agricultural product" does not include animals
intended to be pets,
2. Farmer means any person engaged in the business of growing
or producing, upon the person's own lands or upon the lands in which the
person has a present right of possession, any agricultural product
whatsoever for sale, "Farmer" does not include a person using such products
as ingredients in a manufacturing process, or a person growing or producing
suCh prOductS for the perSon'S OWn Consumption' "Farmer" does not include
a person selling any animal or substance obtained therefrom in connection
with the person's business of operating a stockyard or a slaughter or packing
house, "Farmer" does not include any person in respect to the business of
taking, cultivating, or raising timber'
C. Artistic or cultural organization' As used in this chapter:
9 Amend KCC Chapters 3.78,3.2& 3'29 -
Re: B&O Tax; lttility Tax
1. The term "artistic or cultural organization" means an
organization which is organized and operated exclusively for the purpose of
providing artistic or cultural exhibitions, presentations, or performances or
cultural or art education programs, as defined in subsection (CX10) of this
section, for viewing or attendance by the general public'
2. The organization must be a not-for-profit corporation under
Chapter 24.O3 RCW.
3, The organization must be managed by a governing board of not
less than eight individuals, none of whom is a paid employee of the
organization or by a corporation sole under Chapter 24.L2 RCW.
4. No part of its income may be paid directly or indirectly to its
members, stockholders, officers, directors, or trustees except in the form of
services rendered by the corporation in accordance with its purposes and
bylaws.
5, Salary or compensation paid to its officers and executives must
be only for actual services rendered, and at levels comparable to the salary
or compensation of like positions within the state.
6. Assets of the corporation must be irrevocably dedicated to the
activities for which the exemption is granted and, on the liquidation,
dissolution, or abandonment by the corporation, may not inure directly or
indirectly to the benefit of any member or individual except a nonprofit
organization, association, or corporation which also would be entitled to the
exemption.
7 o A m e n d KCC c h a pte rsu?;
1?,i if;,.,i;?;
7. The corporation must be duly licensed or certified when
licensing or certification is required by law or regulation.
8, The amounts received that qualify for exemption must be used
for the activities for which the exemption is granted.
9. Services must be available regardless of race, color, national
origin, anCestry, religiOn, d9€, sex, marital StatuS, sexual orientatiOn,
Vietnam or disabled veteran status, or the presence of any mental or
physical disability.
10. The term artistic or cultural exhibitions, presentations, or
performances or cultural or art education programs is limited to:
a. An exhibition or presentation of works of art or objects
of cultural or historical significance, such as those commonly displayed in
art or history museums;
b. A musical or dramatic performance or series of
performances; or
c. An educational seminar or program, or series of such
programs, offered by the organization to the general public on an artistic,
cultural, or historical subject.
D. Business includes all activities engaged in with the object of gain,
benefit, or advantage to the taxpayer or to another person or class, directly
or indirectly.
tLAmend KCC Chapters 3'78, 3.28' 3.29'
Re: B&O Tax; UtilitY Tax
E. Business and occupation tax or gross receipts fax means a tax
imposed on or measured by the value of products, the gross income of the
business, or the gross proceeds of sales, as the case may be, and that is the
legal liability of the business.
F. Commercial or industrial use means the following uses of products,
including byproducts, bY the extractor or manufacturer thereof:
1, Any use as a consumer; and
2. The manufacturing of articles, substances, or commodities.
G. Competitive telephone service means the providing by any person of
telecommunications equipment or apparatus, or service related to that
equipment or apparatus such as repair or maintenance service, if the
equipment or apparatus is of a type which can be provided by persons that
are not subject to regulation as telephone companies under RCW Title 80
and for which a separate charge is made.
H, Consumer means the following
1. Any person who purchases, acquires, owns, holds, or uses any
tangible or intangible personal property irrespective of the nature of the
person's business and including, among others, without limiting the scope
hereof, perSOnS who inStall, repair, clean, alter, improve, conStruct, Or
decorate real or personal property of or for a consumer other than for the
purpose of:
l2Amend KCC Chapters 3'78,3.28,3'29 -
Re: B&O Tax; Utility Tax
a. Resale as tangible or intangible personal property in the
regular course of business;
b. Incorporating such property as an ingredient or
component of real or personal property when installing, repairing, cleaning,
altering, imprinting, improving, constructing, or decorating such real or
personal property of or for consumers;
c. Incorporating such property as an ingredient or
component of a new product or as a chemical used in processing a new
product when the primary purpose of such chemical is to create a chemical
reaction directl.y through contact with an ingredient of a new product; or
d. Consuming the property in producing ferrosilicon which
is subsequently used in producing magnesium for sale, if the primary
purpose of such property is to create a chemical reaction directly through
contact with an ingredient of ferrosilicon;
2. Any person engaged in any business activity taxable under KCC
3,28.0s0( A)(7);
3. Any person who purchases, acquires, or uses any competitive
telephone service as herein defined, other than for resale in the regular
course of business;
4. Any person who purchases, acquires, or uses any personal,
business, or professional service defined as a retail sale or retail service in
this section, other than for resale in the regular course of business;
I3Amend KCC Chapters 3.78,3.28, 3.29'
Re: B&O Tax; Utility Tax
5. Any person who is an end user of software;
6. Any person engaged in the business of "public road
construction" in respect to tangible personal property when that person
incorporates the tangible personal property as an ingredient or component
of a publicly owned street, place, road, highway, easement, right-of-way,
mass public transportation terminal or parking facility, bridge, tunnel, or
trestle by installing, placing, o1'spreading the property in or upon the right-
of-way of a publicly owned street, place, road, highway, easement, bridge,
tunnel, or trestle or in or upon the site of a publicly owned mass public
transportation terminal or parking facility;
7. Any person who is an owner, lessee, or has the right of
possession to or an easement in real property which is being constructed,
repaired, decorated, improved, or otherwise altered by a person engaged in
business;
8. Any person who is an owner, lessee, or has the right of
possession to personal property which is being constructed, repaired,
improved, cleaned, imprinted, or otherwise altered by a person engaged in
business;
9. Any person engaged in "government contracting"' Any such
person shall be a consumer within the meaning of this subsection in respect
to tangible personal property incorporated into, installed in, or attached to
such building or other structure by such person.
Nothing contained in this or any other subsection of this section shall be
construed to modify any other definition of "consumer."
L4 A m e n d KCC c h a pte rsu?;I?i ifl,i;?";
I. Delivery means the transfer of possession of tangible personal
property between the seller and the buyer or the buyer's representative'
Delivery to an employee of a buyer is considered delivery to the buyer'
Transfer of possession of tangible personal property occurs when the buyer
or the buyer's representative first takes physical control of the property or
exercises dominion and control over the property. Dominion and control
means the buyer has the ability to put the property to the buyer's own
purposes, It means the buyer or the buyer's representative has made the
final decision to accept or reject the property, and the seller has no further
right to possession of the property and the buyer has no right to return the
property to the seller, other than under a warranty contract. A buyer does
not exercise dominion and control over tangible personal property merely
by arranging for shipment of the property from the seller to itself' A buyer's
representative is a person, other than an employee of the buyer, who is
authorized in writing by the buyer to receive tangible personal property and
take dominion and control by making the final decision to accept or reject
the property. Neither a shipping company nor a seller can serve as a buyer's
representative, It is immaterial where the contract of sale is negotiated or
where the buyer obtains title to the property. Delivery terms and other
provisions of the Uniform Commercial Code (RCW Title 62A) do not
determine when or where delivery of tangible personal property occurs for
purposes of taxation.
J. Director means the finance director of the city or any officer, agent or
employee of the city designated to act on the director's behalf.
K. Digital automated service, digital code, and digital goods have the
same meaning as in RCW 82.04.L92.
75 A me nd KCC c h a pte rsu?;i\i if;,i;?";
L. Digital products means digital goods, digital codes, digital automated
services, and the services described in RCW 82.04.050(Z)(g) and (6Xb).
M, Eligibte gross receipts fax. The term "eligible gross receipts tax"
means a tax which:
1. Is imposed on the act or privilege of engaging in business
activities within KCC 3.28.050; and
2. Is measured by the gross volume of business, in terms of gross
receipts, and is not an income tax or value added tax; and
3. Is not, pursuant to law or custom, separately stated from the
sales price; and
4. Is not a sales or use tax, business license fee, franchise fee,
royalty, or severance tax measured by volume or weight, or concession
charge, or payment for the use and enjoyment of property, property right,
or a privilege; and
5. Is a tax imposed by a local jurisdiction, whether within or
without the state of Washington, and not by a country, state, province, or
any other nonlocal jurisdiction above the county level.
N. Engaging in business.
1. The term "engaging in business" means commencing,
conducting, or continuing in business, and also the exercise of corporate or
7 6 A m e n d KCC c h a pE rsut i";,i if;,i;?";
franchise powers, as well as liquidating a business when the liquidators
thereof hold themselves out to the public as conducting such business.
2. This section sets forth examples of activities that constitute
engaging in business in the city, and establishes safe harbors for certain of
those activities so that a person who meets the criteria may engage in de
minimis business activities in the city without having to register and obtain
a business license or pay city business and occupation taxes. The activities
listed in this section are illustrative only and are not intended to narrow the
definition of "engaging in business" in subsection (N)(1) of this section' If
an activity is not listed, whether it constitutes engaging in business in the
city shall be determined by considering all the facts and circumstances and
applicable law.
3. Without being all inclusive, any one of the following activities
conducted within the city by a person, or its employee, agent,
representative, independent contractor, broker, or another acting on its
behalf, constitutes engaging in business and requires a person to register
and obtain a business license:
a. Owning, renting, leasing, maintaining, or having the
right to uSe, or using, tangible personal property, intangible personal
property, or real property permanently or temporarily located in the city.
b. Owning, renting, leasing, using, or maintaining an office,
place of business, or other establishment in the city.
c. Soliciting sales.
17 Amend KCC chantersu?;1?,i if,i,i; f;
d, Making repairs or providing maintenance or service to
real or tangible personal property, including warranty work and property
maintenance.
e. Providing technical assistance or service, including
quality control, product inspections, Warranty work, or similar services, on
or in connection with tangible personal property sold by the person or on its
behalf.
f. Installing, constructing, or supervising installation or
construction of real or tangible personal property.
g. Soliciting, negotiating, ot approving franchise, license,
or other similar agreements.
h. Collecting current or delinquent accounts.
i. Picking up and transporting tangible personal property,
solid waste, construction debris, or excavated materials.
j. Providing disinfecting and pest control services,
employment and labor pool services, home nursing care, janitorial services,
appraising, landscape architectural services, security system services,
surveying, and real estate services including the listing of homes and
managing real property.
k. Rendering professional services such as those provided
by accountants, architects, attorneys, auctioneers, consultants, engineers,
professional athletes, barbers, baseball clubs and other sports organizations,
l9Amend KCC Chapters 3.78' 3.2& 3.29 -
Re: B&O Tax; Utility Tax
chemists, psychologists, court reporters, dentists, doctors, detectives,
laboratory operators, teachers, and veterinarians.
l. Meeting with customers or potential customers, even
when no sales or orders are solicited at the meetings.
m, Training or recruiting agents, representatives,
independent contractors, brokers, or others, domiciled or operating on a job
in the city, acting on its behalf, or for customers or potential customers.
n. Investigating, resolving, or otherwise assisting in
resolving customer complaints.
o, In-store stocking or manipulating products or goods,
sold to and owned by a customer, regardless of where sale and delivery of
the goods took place.
p. Delivering goods in vehicles owned, rented, leased,
used, or maintained by the person or another acting on its behalf,
4. If a person, or its employee, agent, representative,
independent contractor, broker, or another acting on the person's behalf,
engages in no other activities in or with the city but the following, it need
not register and obtain a business license and pay tax:
a. Meeting with suppliers of goods and services as a
customer
lgAmend KCC Chapters 3.78,3.2& 3.29'
Re: B&O Tax; Utility Tax
b. Meeting with government representatives in their official
capacity, other than those performing contracting or purchasing functions.
c. Attending meetings, such as board meetings, retreats,
seminars, and conferences, or other meetings, wherein the person does not
provide training in connection with tangible personal property sold by the
person or on its behalf. This provision does not apply to any board of director
member or attendee engaging in business, such as a member of a board of
directors who attends a board meeting'
d. Renting tangible or intangible property as a customer
when the property is not used in the city.
e, Attending but not participating in a "trade show" or
"multiple vendor events." Persons participating at a trade show shall review
the city's trade show or multiple vendor event ordinances.
f . Conducting advertising through the mail.
g. Soliciting sales by phone from a location outside the city.
5. A seller located outside the city merely delivering goods into
the city by means of common carrier is not required to register and obtain
a business license; provided, that it engages in no other business activities
in the city. Such activities do not include those in subsection (N)(a) of this
section,
6. The city expressly intends that engaging in business includes
any activity sufficient to establish nexus for purposes of applying the tax
2lAmend KCC Chapters 3.78,3.28' 3.29'
Re: B&O Tax; Utility Tax
under the law and the constitutions of the United States and the state of
Washington. Nexus is presumed to continue as long as the taxpayer benefits
from the activity that constituted the original nexus generating contact or
subsequent contacts.
O. Extracting is the activity engaged in by an extractor and is reportable
under the extracting classification.
P, Extractor means every person who from the person'S own land or
from the land of another under a right or license granted by lease or
contract, either directly or by contracting with others for the necessary labor
or mechanical services, for sale or for commercial or industrial use, mines,
quarrieS, takes, or produCes cOal, oil, natural gas, ore, stone, Sand, gravel,
clay, mineral, or other natural resource product; or fells, cuts, or takes
timber, Christmas trees, other than plantation Christmas trees, or other
natural products; or takes fish, shellfish, or other sea or inland water'foods
or products. "Extractor" does not include persons performing under contract
the necessary labor or mechanical services for others, or persons meeting
the definition of "farmer."
a, Extractor for hire means a person who performs under contract
necessary labor or mechanical services for an extractor'
R, Gross income of the business means the value proceeding or accruing
by reason of the transaction of the business engaged in and includes gross
proceeds of sales, compensation for the rendition of services, gains realized
from trading in stocks, bonds, or other evidences of indebtedness, interest,
diSCount, rents, royalties, fees, CommisSiOns, dividendS, and Other
emoluments however designated, all without any deduction on account of
2lAmend KCC Chapters 3.78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
the cost of tangible property sold, the cost of materials used, labor costs,
interest, discount, delivery costs, taxes, or any other expense whatsoever
paid or accrued and without any deduction on account of losses.
S. Gross proceeds of sales means the value proceeding or accruing from
the sale of tangible personal property, digital goods, digital codes, digital
automated services, or for other services rendered, without any deduction
on account of the cost of property sold, the cost of materials used, labor
costs, interest, discount paid, delivery costs, taxes, or any other expense
whatsoever paid or accrued and without any deduction on account of losses.
T. Manufacturing means the activity conducted by a manufacturer and
is reported under the manufacturing classification.
U. Manufacturer, to manufacture
1, Manufacturer means every person who, either directly or by
contracting with others for the necessary labor or mechanical services,
manufactures for sale or for commercial or industrial use from the person's
own materials or ingredients any products. When the owner of equipment
or facilities furnishes, or sells to the customer prior to manufacture,
materials or ingredients equal to less than 20 percent of the total value of
all materials or ingredients that become a part of the finished product, the
owner of the equipment or facilities will be deemed to be a processor for
hire, and not a manufacturer. A business not located in this city that is the
owner of materials or ingredients processed for it in this city by a processor
for hire shall be deemed to be engaged in business as a manufacturer in this
city.
2LAmend KCC Chapters 3.78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
Z. To manufacture means all activities of a commercial or
industrial nature wherein labor or skill is applied, by hand or machinery, to
materials or ingredients so that as a result thereof a new, different or useful
product is produced for sale or commercial or industrial use, and shall
include:
a The production of special made or custom made articles;
b. The production of dental appliances, devices,
restorations, substitutes, or other dental laboratory products by a dental
laboratory or dental technician;
c Crushing and/or blending of rock, sand, stone, gravel, or
ore; and
d. The producing of articles for sale, or for commercial or
industrial use, from raw materials or prepared materials by giving such
materials, articles, and substances of trade or commerce new forms,
qualities, properties, or combinations including, but not limited to, such
activities as making, fabricating, processing, refining, mixing, slaughtering,
packing, aging, curing, mild curing, preserving, canning, and the preparing
and freezing of fresh fruits and vegetables.
"To manufacture" shall not include the production of digital goods or the
production of computer software if the computer software is delivered from
the seller to the purchaser by means other than tangible storage media,
including the delivery by use of a tangible storage media where the tangible
storage media is not physically transferred to the purchaser.
23Amend KCC Chapters 3.78, 3'28, 3.29'
Re: B&O Tax; UtilitY Tax
V. Newspaper means a publication offered for sale regularly at stated
intervals at least once a week and printed on newsprint in tabloid or
broadsheet format folded loosely together without stapling, 9lue, or any
other binding of any kind.
Magazine or periodical meanS any printed publication, other than a
newspaper, issued and offered for sale regularly at stated intervals at least
once every three months, including any supplement or special edition of the
publication. Any publication meeting this definition qualifies regardless of its
content.
W. Nonprofit corporation or nonprofit organization means a corporation
or organization in which no part of the income can be distributed to its
members, directors, or officers and that holds a current tax exempt status
as provided under Section 501(c)(3) of the Internal Revenue Code, as
hereafter amended, or is specifically exempted from the requirement to
apply for its tax exempt status under Section 501(c)(3) of the Internal
Revenue Code, aS hereafter amended. Where the term "nonprofit
organization" is used, it is meant to include a nonprofit corporation.
X. Office or place of busines.s means a fixed location or permanent facility
where the regular business of the person is conducted and which is either
owned by the person or over which the person exercises legal dominion and
control. The regular business of the person is presumed conducted at a
location:
1.
address;
Whose address the person uses as its business mailing
24Amend KCC Chapters 3.78, 3.28' 3.29 -
Re: B&O Tax; Utility Tax
2. Where the place of primary use is shown on a telephone billing
or a location containing a telephone line listed in a public telephone directory
or other similar publication under the business name;
3. Where the person holds itself out to the general public as
conducting its regular business through signage or other means; and
4. Where the person is required to obtain any appropriate state
and local business license or registration unless they are exempted by law
from such requirement.
A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not
an office or place of business. A post office box is not an office or place of
business.
If a person has an office or place of business, the person's home is not an
office or place of business unless it meets the criteria for office or place of
business above. If a person has no office or place of business, the person's
home or apartment within the city will be deemed the place of business.
Tf r narcnn ic anarrl-ina r calf-cfnra a lrr rcinacc rarhara cfn r rnifc rra
place of business.
Y. Person meanS any individual, receiver, administrator, executor,
assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint
venture, club, compdnY, joint stock company, business trust, municipal
corporation, political subdivision of the state of Washington, corporation,
limited liability company, association, societrT, or any group of individuals
25Amend KCC Chapters 3.78,3.28' 3'29 -
Re: B&O Tax; Utility Tax
acting aS a unit, whether mutual, cooperative, fraternal, nonprofit, or
otherwise, and the United States or any instrumentality thereof.
Z. Processing for hire means the performance of labor and mechanical
services upon materials or ingredients belonging to others so that as a result
a new, different, or useful product is produced for sale, or commercial or
industrial use. A processor for hire is any person who would be a
manufacturer if that person were performing the labor and mechanical
services upon that person's own materials or ingredients. If a person
furnishes, or sells to the customer prior to manufacture, materials or
ingredients equal to 20 percent or more of the total value of all materials or
ingredients that become a part of the finished product, the person will be
deemed to be a manufacturer and not a processor for hire.
AA. Product means tangible personal property, including articles,
substances, or commodities created, brought forth, extracted , or
manufactured by human or mechanical effort'
Byproducf means any additional product, other than the principal or
intended product, which results from extracting or manufacturing activities
and which has a market value without regard to whether or not such
additional product was an expected or intended result of the extracting or
man ufactu ring activities.
BB. Retaiting means the activity of engaging in making sales at retail and
is reported under the retailing classification.
CC. Retait service shall include the sale of or charge made for personal,
business, or professional services including amounts designated as interest,
26Amend KCC Chapters 3'78, 3'2& 3.29 -
Re: B&O Tax; UtilitY Tax
rents, fees, admission, and other service emoluments however designated,
received by persons engaging in the following business activities:
1. Amusement and recreation services including but not limited to
golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts
and tows, basketball, racquet ball, handball, squash, tennis, batting cages'
day trips for sightseeing purposes, and others, when provided to consumers.
"Amusement and recreation services" also includes the provision of related
facilities such as basketball courts, tennis courts, handball courts, swimming
pools, and charges made for providing the opportunity to dance. The term
"amusement and recreation services" does not include instructional lessons
to learn a particular activity such as tennis lessons, swimming lessons, or
archery lessons;
2. Abstract, title insurance, and escrow services;
3. Credit bureau services;
4. Automobile parking and storage garage services;
5. Landscape maintenance and horticultural services but
excluding (a) horticultural services provided to farmers and (b) pruning,
trimming, repairing, removing, and clearing of trees and brush near electric
transmission or distribution lines or equipment, if performed by or at the
direction of an electric utility;
6. Service charges associated with tickets to professional sporting
events; and
2TAmend KCC Chapters 3.78,3'28' 3.29'
Re: B&O Tax; Utility Tax
7. The following personal services: physical fitness services,
tanning salon services, tattoo parlor services, steam bath services, Turkish
bath services, escort services, and dating services.
8. The term shall also include the renting or leasing of tangible
personal property to consumers and the rental of equipment with an
operator.
DD. Sale, casual or isolated sale.
1. Sale means any transfer of the ownership of, title to, or
possession of property for a valuable consideration and includes any activity
ClaSSified aS a "Sale at retail," "retail Sale," Or "retail SerViCe." It inClUdeS
renting or leasing, conditional sale contracts, leases with option to purchase,
and any contract under which possession of the property is given to the
purchaser but title is retained by the vendor as security for the payment of
the purchase price. It also includes the furnishing of food, drink, or meals
for compensation whether consumed upon the premises or not.
2. Casual or isolated sale means a sale made by a person who is
not engaged in the business of selling the type of property involved on a
routine or continuous basis.
EE, Sale at retail, retail sale
1. Sale at retail or retail sale means every sale of tangible
personal property (including articles produced, fabricated, or imprinted) to
all persons irrespective of the nature of their business and including, among
others, without limiting the scope hereof, persons who install, repair, clean,
2\Amend KCC Chapters 3'78, 3.28, 3'29 -
Re: B&O Tax; UtilitY Tax
alter, improve, construct, or decorate real or personal property of or for
consumers, other than a sale to a person who presents a resale certificate
under RCW 82.04.470 and who:
a. Purchases for the purpose of resale as tangible personal
property in the regular course of business without intervening use by such
person; or
b. Installs, repairs, cleans, alters, imprints, improves,
constructs, or decorates real or personal property of or for consumers, if
such tangible personal property becomes an ingredient or component of
such real or personal property without intervening use by such person; or
c. Purchases for the purpose of consuming the property
purchased in producing for sale a new article of tangible personal property
or substance, of which such property becomes an ingredient or component
or is a chemical used in processing, when the primary purpose of such
chemical is to create a chemical reaction directly through contact with an
ingredient of a new article being produced for sale; or
d. Purchases for the purpose of consuming the property
purchased in producing ferrosilicon which is subsequently used in producing
magnesium for sale, if the primary purpos.e of such property is to create a
chemical reaction directly through contact with an ingredient of ferrosilicon;
or
e. Purchases for the purpose of providing the property to
consumers as part of competitive telephone service, as defined in RCW
82.04.065. The term shall include every sale of tangible personal property
2gAmend KCC Chapters 3'78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
which is used or consumed or to be used or consumed in the performance
of any activity classified as a "sale at retail" or "retail sale" even though such
property is resold or utilized as provided in subsection (EE)(1)(a), (b), (c),
(d), or (e) of this section following such use; or
f . Purchases for the purpose of satisfying the person's
obligations under an extended warranty as defined in subsection (EE)(7) of
this section, if such tangible personal property replaces or becomes an
ingredient or component of property covered by the extended warranty
without intervening use by such person.
2. "Sale at retail" or "retail sale" also means every sale of tangible
personal property to persons engaged in any business activity which is
taxable under KCC 3.28.050(AX7),
3. "Sale at retail" or "retail sale" shall include the sale of or charge
made for tangible personal property consumed and/or for labor and services
rendered in respect to the following:
a. The installing, repairing, cleaning, altering, imprinting,
or improving of tangible personal property of or for consumers, including
charges made for the mere use of facilities in respect thereto, but excluding
charges made for the use of coin-operated laundry facilities when such
facilities are situated in an apartment house, rooming house, or mobile home
park for the exclusive use of the tenants thereof, and also excluding sales
of laundry service to nonprofit health care facilities, and excluding services
rendered in respect to live animals, birds, and insects;
3oAmend KCC Chapters 3.78, 3.28, 3.29'
Re: B&O Tax; Utility Tax
b. The constructing, repairing, decorating, or improving of
new or existing buildings or other structures under, upon, or above real
property of or for consumers, including the installing or attaching of any
article of tangible personal property therein or thereto, whether or not such
personal property becomes a part of the realty by virtue of installation, and
shall also include the sale of services or charges made for the clearing of
land and the moving of earth excepting the mere leveling of land used in
commercial farming or agriculture;
c. The charge for labor and services rendered in respect to
constructing, repairing, or improving any structure upon, above, or under
any real property owned by an owner who conveys the property by title,
possession, or any other means to the person performing such construction,
repair, or improvement for the purpose of performing such construction,
repair, or improvement and the property is then reconveyed by title,
possession, or any other means to the original owner;
d. The sale of or charge made for labor and services
rendered in respect to the cleaning, fumigatin g, razing, or moving of existing
buildings or structures, but shall not include the charge made for janitorial
services; and for purposes of this section the term "janitorial services" shall
mean those cleaning and caretaking services ordinarily performed by
commercial janitor service businesses including, but not limited to, wall and
window washing, floor cleaning and waxing, and the cleaning in place of
rugs, drapes, and upholstery. The term "janitorial services" does not include
painting, papering, repairing, furnace or septic tank cleaning, snow removal,
or sandblasting;
3IAmend KCC Chapters 3.78,3.28, 3.29 -
Re: B&O Tax; Utility Tax
e, The .sale of or charge made for labor and services
rendered in respect to automobile towing and similar automotive
transportation services, but not in respect to those required to report and
pay taxes under Chapter 82.L6 RCW;
f, The sale of and charge made for the furnishing of lodging
and all other services, except telephone business and cable service, by a
hotel, rooming house, tourist court, motel, trailer camp, and the granting of
any similar license to use real property, as distinguished from the renting or
leasing of real property, and it shall be presumed that the occupancy of real
property for a continuous period of one month or more constitutes a rental
or lease of real property and not a mere license to use or enjoy the same'
Forthe purposes of this subsection, it shall be presumed thatthe sale of and
charge made for the furnishing of lodging for a continuous period of one
month or more to a person is a rental or lease of real property and not a
mere license to enjoy the same;
g. The installing, repairing, altering, or improving of digital
goods for consumers;
h. The sale of or charge made for tangible personal
property, labor, and services to persons taxable under subsections
(EE)(3)(a), (b), (c), (d), (e), (f), and (g) of this section when such sales or
charges are for property, labor, and services which are used or consumed in
whole or in part by such persons in the performance of any activity defined
aS a "Sale at retail" Or "retail Sale" even though suCh prOperty, labor, and
services may be resold after such use or consumption. Nothing contained in
this subsection shall be construed to modify subsection (EE)(1) of this
32 A m e n d KCC c h a Ne rsu?;I? i ii;,i;?r;
section and nothing contained in subsection (EEX1) of this section shall be
construed to modify this subsection.
4. "Sale at retail" or "retail sale" shall also include the providing
of competitive telephone service to consumers.
5.a, "Sale at retail" or "retail sale" shall also include the sale of
prewritten software other than a sale to a person who presents a resale
certificate under RCW 82.04.47O, regardless of the method of delivery to
the end user. For purposes of this subsection (EEXSXa) the sale of
prewritten computer software includes the sale of or charge made for a key
or an enabling or activation code, where the key or code is required to
activate prewritten computer software and put the software into use. There
is no separate sale of the key or code from the prewritten computer
software, regardless of how the sale may be characterized by the vendor or
by the purchaser.
The term "sale at retail" or "retail sale" does not include the
sale of or charge made for:
i. Custom software; or
ii. The customization of prewritten software.
b,i. The term also includes the charge made to consumers
for the right to access and use prewritten computer software, where
possession of the software is maintained by the seller or a third party,
regardless of whether the charge for the service is on a per use, per user,
per license, subscription, or some other basis.
33 Am e n d KCC c h a Ne rsu?;i\i if;,i;?r;
ii.(A) The service described in subsection (EEX5)(b)(i)
of this section includes the right to access and use prewritten software to
perform data processing.
(B) For purposes of this subsection
(EE)(5XbXii) data processing means the systematic performance of
operations on data to extract the required information in an appropriate form
or to convert the data to usable information. Data processing includes check
processing, image processing, form processing, survey processing, payroll
processing, claim processing, and similar activities.
6. "Sale at retail" or "retail sale" shall also include the sale of or
charge made for labor and services rendered in respect to the building,
repairing, or improving of any street, place, road, highway, easement, right-
of-way, maSS public transportation terminal or parking facility, bridge,
tunnel, or trestle which is owned by a municipal corporation or political
subdivision of the state, the state of Washington, or by the United States
and which is used or to be used primarily for foot or vehiculartraffic including
mass transportation vehicles of any kind.
7 "Sale at retail" or "retail sale" shall also include the sale of or
charge made for an extended warranty to a consumer. For purposes of this
subsection, extended warranty means an agreement for a specified duration
to perform the replacement or repair of tangible personal property at no
additional charge or a reduced charge for tangible personal property, labor,
or both, or to provide indemnification for the replacement or repair of
tangible personal property, based on the occurrence of specified events. The
term "extended warranty" dOes nOt include an agreement, Otherwise
34Amend KCC Chapters 3.78, 3.28, 3.29'
Re: B&O Tax; Utility Tax
meeting the definition of "extended warranty" in this subsection, if no
separate charge is made for the agreement and the value of the agreement
is included in the sales price of the tangible personal property covered by
the agreement.
8. "Sale at retail" or "retail sale" shall also include the sale of or
charge made for labor and services rendered in respect to the constructing,
repairing, decorating, or improving of new or existing buildings or other
structures under, upon, or above real property of or for the United States,
any instrumentality thereof, or a county or city housing authority created
pursuant to Chapter 35.82 RCW, including the installing or attaching of any
article of tangible personal property therein or thereto, whether or not such
personal property becomes a part of the realty by virtue of installation.
9. "Sale at retail" or "retail sale" shall not include the sale of
services or charges made for the clearing of land and the moving of earth of
or for the United States, any instrumentality thereof, or a county or city
housing authority. Nor shall the term include the sale of services or charges
made for cleaning up for the United States, or its instrumentalities,
radioactive waste and other byproducts of weapons production and nuclear
research and development.
10. "Sale at retail" or "retail sale" shall not include the sale of or
charge made for labor and services rendered for environmental remedial
action.
11. "Sale at retail" or "retail sale" shall also include the following
sales to consumers of digital goods, digital codes, and digital automated
services:
3|Amend KCC Chapters 3.78,3'28' 3'29 -
Re: B&O Tax; Utility Tax
a, Sales in which the seller has granted the purchaser the
right of permanent use;
b. Sales in which the seller has granted the purchaser a
right of use that is less than permanent;
c. Sales in which the purchaser is not obligated to make
continued payment as a condition of the sale; and
d, Sales in which the purchaser is obligated to make
continued payment as a condition of the sale.
A retail sale of digital goods, digital codes, or digital automated
services under this subsection (EE)(11) includes any services provided by
the seller exclusively in connection with the digital goods, digital codes, or
digital automated services, whether or not a separate charge is made for
such services.
For purposes of this subsection, permanenf means perpetual or for an
indefinite or unspecified length of time. A right of permanent use is
presumed to have been granted unless the agreement between the seller
and the purchaser specifies or the circumstances surrounding the
transaction suggest or indicate that the right to use terminates on the
occurrence of a condition subsequent,
L2. "Sale at retail" or "retail sale" shall also include the installing,
repairing, altering, or improving of digital goods for consumers.
36Amend KCC Chapters 3.78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
FF. Sale at wholesale or wholesale sale means any sale of tangible
personal property, digital goods, digital codes, digital automated services,
prewritten computer software, or services described in subsection
(EE)(5)(b)(i) of this section which is not a retail sale, and any charge made
for labor and services rendered for persons who are not consumers, in
respect to real or personal property and retail services, if such charge is
expressly defined as a retail sale or retail service when rendered to or for
consumers. Sale at wholesale also includes the sale of telephone business
to another telecommunications company as defined in RCW 80.04.010 for
the purpose of resale, as contemplated by RCW 35.2L.715'
GG. Services includes those activities that do not fall within one of the
other tax classifications used by the city.
HH. Software, prewritten software, custom software, customization of
canned software, master copies, retained rights.
1. Prewritten software or canned software means computer
software, including prewritten upgrades, that is not designed and developed
by the author or other creator to the specifications of a specific purchaser,
The combining of two or more prewritten computer software programs or
prewritten portions thereof does not cause the combination to be other than
prewritten computer software. Prewritten computer software includes
software designed and developed by the author or other creator to the
specifications of a specific purchaser when it is sold to a person other than
such purchaser. Where a person modifies or enhances computer software of
which such person is not the author or creator, the person shall be deemed
to be the author or creator only of the person's modifications or
enhancements. Prewritten computer software or a prewritten portion thereof
3TAmend KCC Chapters 3.78,3.28,3'29 -
Re: B&O Tax; Utility Tax
that is modified or enhanced to any degree, where such modification or
enhancement is designed and developed to the specifications of a specific
purchaser, remains prewritten computer software; however, where there is
a reasonable, separately stated charge or an invoice or other statement of
the price given to the purchaser for the modification or enhancement, the
modification or enhancement shall not constitute prewritten computer
software.
2. Custom software means software created for a single person.
3. Customization of canned software means any alteration,
modification, or development of applications using or incorporating canned
software to specific individualized requirements of a single person.
Customization of canned software includes individualized configuration of
software to work with other software and 'computer hardware but does not
include routine installation. Customization of canned software does not
change the underlying character or taxability of the original canned
software.
4. Master copies of software means copies of software from which
a software developer, author, inventor, publisher, licensor, sublicensor, or
distributor makes copies for sale or license. The software encoded on a
master copy and the media upon which the software resides are both
ingredients of the master coPY.
5. Retained rights means any and all rights, including intellectual
property rights such as those rights arising from copyrights, patents, and
trade secret laws, that are owned or are held under contract or license by a
3\Amend KCC Chapters 3.78, 3'28, 3.29 -
Re: B&O Tax; Utility Tax
softWare developer, author, inventor, publisher, licensor, sublicensor, or
distributor.
6. Software means any information, program, or routine, or any
set of one or more programs, routines, or collections of information, used,
or intended for use, to convey information that causes one or more
computers or pieces of computer-related peripheral equipment, or any
combination thereof, to perform a task or set of tasks. "Software" includes
the associated documentation, materials, or ingredients, regardless of the
media upon which that documentation is provided, that describe the code
and its use, operation, and maintenance and that typically are delivered with
the code to the consumer, All software is classified as either canned or
custom.
II. Taxpayer means any "person," as herein defined, required to have a
business license under this chapter or liable for the collection of any tax or
fee under this chapter, or who engages in any business or who performs any
act for which a tax or fee is imposed by this chapter'
JJ. Tuition fee includes library, laboratory, health service, and other
special fees, and amounts charged for room and board by an educational
institution when the property or service for which such charges are made is
furnished exclusively to the students or faculty of such institution.
Educationat institution, as used in this section, means only those institutions
created or generally accredited as such by the state and includes educational
programs that such educational institution cosponsors with a nonprofit
organization, as defined by the Internal Revenue Code Section 501(c)(3),
as hereafter amended, if such educational institution grants college credit
for coursework successfully completed through the educational program, or
3gAmend KCC Chapters 3.78,3.28' 3.29 -
Re: B&O Tax; UtilitY Tax
an approved branch campus of a foreign degree-granting institution in
compliance with Chapter 288.90 RCW, and in accordance with RCW
82.O4.4332 or defined as a degree-granting institution under RCW
288.85,010(3) and accredited by an accrediting association recognized by
the United States Secretary of Education, and offering to students an
educational program of a general academic nature or those institutions
which are not operated for profit and which are privately endowed under a
deed of trust to offer instruction in trade, industry, and agriculture, but not
including specialty schools, business colleges, other trade schools, or similar
institutions.
KK. Value proceeding or accruing means the consideration, whether
money, credits, rights, or other property expressed in terms of money, a
person is entitled to receive or which is actually received or accrued. The
term shall be applied, in each case, on a cash receipts or accrual basis
according to which method of accounting is regularly employed in keeping
the books of the taxPaYer,
LL. Value of products.
1. The value of products, including byproducts, extracted or
manufactured, shall be determined by the gross proceeds derived 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 with respect to the extraction, manufacture, or sale of such
products or byproducts by the seller.
2. Where such products, including byproducts, are extracted or
manufactured for commercial or industrial use; and where such products,
4OAmend KCC Chapters 3'78,3'28, 3.29 -
Re: B&O Tax; UtilitY Tax
including byproducts, are shipped, transported or transferred out of the city,
or to another person, without prior sale or are sold under circumstances
such that the gross proceeds from'the sale are not indicative of the true
value of the subject matter of the sale; the value shall correspond as nearly
as possible to the gross proceeds from sales in this state of similar products
of like quality and character, and in similar quantities by other taxpayers,
plus the amount of subsidies or bonuses ordinarily payable by the purchaser
or by any third person with respect to the extraction, manufacture, or sale
of such products, In the absence of sales of similar products as a guide to
value, such value may be determined upon a cost basis, In such cases, there
shall be included every item of cost attributable to the particular article or
article extracted or manufactured, including direct and indirect overhead
costs. The director may prescribe rules for the purpose of ascertaining such
values.
3. Notwithstanding subsection (LLX2) of this section, the value of
a product manufactured or produced for purposes of serving as a prototype
for the development of a new or improved product shall correspond to:
a, The retail selling price of such new or improved product
when first offered for sale; or
b. The value of materials incorporated into the prototype in
cases in which the new or improved product is not offered for sale.
MM. Whotesaling means engaging in the activity of making sales at
wholesale, and is reported under the wholesaling classification.
4TAmend KCC Chapters 3.781 3'2& 3.29 -
Re: B&O Tax; Utility Tax
SECTION 4. - Amendment - KCC 3.28'050. Section 3.28.050 of the
Kent City Code, entitled "Imposition of the tax - Tax or fee levied," is hereby
amended as follows:
Section 3.28.O5O. Imposition of the tax #
Except as provided in subsection (C) of this section, there is hereby levied
upon and shall be collected from every person a tax for the act or privilege
of engaging in business activities within the city, whether the person's office
or place of business be within or without the city. The gross receipts tax and
square footage tax are separate business and occupation taxes imposed by
ha rlofarrnin hrr annlinrfinn nf c ra=inct l-ha cnr rrro aa nf tha
Jrr rcinacc cnrna rrrif in {-ha ai}rr ac rlacariha/ in crrhcanfinn \\Qtt ^f thic canl'inn
calcr rlaterl rrnder arh tev as measrrred for each tax rennrtino neriod-+he
tax shall be in amounts to be determined by applieaEion of rates against the
ineluding byproduets; and by applieation of rates against the square footage
felle'tsl
A. Gross recei7ts tax.
1. Upon every person engaging within the city in business as an
extractor; as to such persons the amount of the tax with respect to such
business shall be equal to the value of the products, including byproducts,
42Amend KCC Chapters 3.78, 3.28, 3,29 -
Re: B&O Tax; Utility Tax
extracted within the city for sale or for commercial or industrial use,
multiplied by the rate of 0'00152) through
December3!,2o2L,andmultipliedbytherateofffi
ffi0.002}effectiveJanuaryL,2022.Themeasureofthetaxisthe
value of the products, including byproducts, so extracted, regardless of the
place of sale or the fact that deliveries may be made to points outside the
city.
2. Upon every person engaging within the city in business as a
manufacturer, as to such persons, the amount of the tax with respect to
such business shall be equal to the value of the products, including
byproducts, manufactured within the city, multiplied by the rate of m46
0.00046) through December 3I, 2O2L, and
multiplied by the rate of 0.001) effective
January L,2022. The measure of the tax is the value of the products,
including byproducts, so manufactured, regardless of the place of sale orthe
fact that deliveries may be made to points outside the city.
3. Upon every person engaging within the city in the business of
making sales at wholesale, as to sUch persons, the amount of tax with
respect to such business shall be equal to the gross proceeds of such sales
of the business without regard to the place of delivery of articles,
commodities or merchandise sold, multiplied by the rate of e;l52
0.00152) through December 3t, 20L9, and
multiplied by the rate 0.002) effective
January t, 2020.
4. Upon every person engaging within the city in the business of
making sales at retail, as to such persons, the amount of tax with respect
43Amend KCC Chapters 3.78, 3'28, 3.29 -
Re: B&O Tax; Utility Tax
to such business shall be equal to the gross proceeds of such sales of the
business, without regard to the place of delivery of articles, commodities or
merchandise sold, multiplied by the rate of
(0.00046) through December 3!,202L, and multiplied by the rate of HOO
0'001) effective JanuarY L, 2022.
5. Upon every person engaging within the city in the business of
(a) printing, (b) both printing and publishing newspapers, magazines,
periodicals, books, music, and other printed items, (c) publishing
newspapers, magazines and periodicals, (d) extracting for hire, and (e)
processing for hire; as to such persons, the amount of tax on such business
shall be equal to the gross income of the business multiplied by the rate of
0.00046) through December 3L, 202L,
and multiplied by the rate of 0.001)
effective January I, 2022.
G. Upon every person engaging within the city in the business of
making sales of retail services; as to such persons, the amount of tax with
respect to such business shall be equal to the gross proceeds of sales
multiplied by the rate of 0.00152) through
December3L,2o2L,andmultipliedbytherateofffi
pereen+(O.002) effective January t, 2022'
7. Upon every other person engaging within the city in any
business activity other than or in addition to those enumerated in the above
subsections; as to such persons, the amount of tax on account of such
activities shall be equal to the gross income of the business multiplied by
the rate of 0.00152) through December
3L, 2O2L, and multiplied by the rate of
44Amend KCC Chapters 3.78, 3'28, 3.29 -
Re: B&O Tax; Utility Tax
(0,002) effective January L,2022. This subsection includes, among others,
and without limiting the scope hereof (whether or not title to material used
in the performance of such business passes to another by accession, merger,
or other than by outright sale), persons engaged in the business of
developing or producing custom software or of customizing canned software,
producing royalties or commissions, and persons engaged in the business of
rendering any type of service which does not constitute a sale at retail, a
sale at wholesale, or a retail service.
B. Square footage fax, Upon every person who leases, owns, occupies,
or otherwise maintains an office, warehouse, outdoor warehouse, or other
place of business within the city for purposes of engaging in business
activities in the city, the tax shall be measured by the number of square feet
of business warehouse floor space, outdoor warehouse Space, or other
business floor space for each office, warehouse, outdoor warehouse, or other
place of business leased, owned, occupied, or otherwise maintained within
the city during the reporting period, calculated to the nearest square foot.
1.
t+is-seetien-,+Ihe amount of the tax due shall be equal to the sum of the
number of square feet of business warehouse floor space and outdoor
warehouse space for each business warehouse or outdoor warehouse leased,
owned, occupied, or otherwise maintained within the city multiplied by the
rate for each calendar year listed below, and the number of square feet of
other business floor space for each office or other place of business leased,
owned, occupied, or otherwise maintained within the city multiplied by the
rate for each calendar year listed below.
41Amend KCC Chapters 3.78,3.28, 3'29 -
Re: B&O Tax; Utility Tax
Effective
Date
Business
Warehouse Floor
Space/Outdoor
Warehouse Space
Other Business
Floor Space
11112019 0.06 quarterly rate
0.24 annual rate
0.02 quarterly rate
0.08 annual rate
1t112020 0.09 quarterly rate
0.36 annual rate
0.02 quarterly rate
0.08 annual rate
11112025 0.12 quarterly rate
0.48 annual rate
0.02 quarterly rate
0.08 annual rate
1t1t2028 0.15 quarterly rate
0.60 annual rate
0.03 quarterly rate
0.12 annual rate
2. For purposes of this section, business warehouse means a
building or structure, or any part thereof, in which goods, wares'
merchandise, or commodities are received or stored, whether or not for
compensation, in furtherance of engaging in business. The storage units of
self-storage businesses are not business warehouses.
3. For purposes of this section, outdoor warehouse means an area
that is outdoors and is primarily used for the transloading of goods, wares,
merchandise, or commodities on property for purposes of switching modes
or vehicles of conveyance for the primary purpose of wholesaling,
distributing, or reorganizing goods, Wares, merchandise, or commodities en
route to final destinations of sale or other transaction. Transloading
generally involves the transfer of goods from one mode of transportation to
another en route to an ultimate destination and, for purposes of the square
46Amend KCC Chapters 3.78,3.28,3.29 -
Re: B&O Tax; Utility Tax
footage tax, includes areas used for crossdocking, waylaYing, temporary
embarkment, and other similar activities'
4. For purposes of this section, other business floor space means
the floor space of an office or place of business, other than a business
warehouse or outdoor warehouse,
5, For purposes of this section, the square footage of a business
warehouse and other business floor space shall be computed by measuring
to the inside finish of permanent outer building walls and shall include space
used by columns and projections necessary to the building, Square footage
shall not include stairs, elevator shafts, flues, pipe shafts, vertical ducts,
heating or ventilation shafts, janitor closets, and electrical or utility closets.
6. For purposes of this section, the square footage of an outdoor
warehouse shall only include those areas used for the receipt or storage of
goods, wares, merchandise, or commodities that are being received and
temporarily stored for transloading, whether or not for compensation, in
furtherance of engaging in business. Such areas will typically include those
areas where goods, wares, merchandise, and commodities, in transit to their
ultimate destination, are parked, packaged, or stored after transloading,
waylaying, or crossdocking. Square footage shall not include areas used only
for employee, customer, or visitor parking, dock high loading areas used
primarily for a business warehouse, buildings, areas used only for direct
sales or rentals to consumers, landscaped areas, stormwater facilities,
maneuvering areas and drive aisles, areas used only for garbage or recycling
pickup, rights-of-way, or other areas clearly not used for the temporary
storage of goods, wares, merchandise, and commodities in transit. Outdoor
areas used for storage of agricultural products or for ancillary storage of
47 Amend KCC Chapters 3.78, 3'28, 3.29'
Re: B&O Tax; Utility Tax
materials utilized ih, or products resulting from, onsite manufacturing
operations are not considered outdoor warehouses'
7. Persons with more than one office, business warehouse,
outdoor warehouse, or other place of business within the city must include
all business warehouse floor Space, outdoor warehouse Space, and other
business floor space for all locations within the city. Except in the case of
self-storaoe units,WWhen a person rents space to another person, the
person occupying the rental space is responsible for the square footage
business tax on that rental space only if the space is used by the renter for
purposes of engaging in business activities and the renter has exclusive right
of possession in the space as against the landlord. Space rented as self-
cfnr.ana r rni chrll ha innlrrrlad in fho har hr rcinacc flnnr cnana fha narcnn
that operates the self-storage business. Space rented for the storage of
goods in a warehouse or outdoor warehouse where no walls or other barriers
separate the goods, and where the exclusive right of possession in the space
is not held by the person to whom the space is rented, shall be included in
the business warehouse floor space of the person that operates the business
warehouse, and not by the person renting the warehouse space'
rn this sHbsedl +en
C, Gross receipts and square footage threshold'
49Amend KCC Chapters 3.78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
1. Gross receipts threshold. The gross receipts tax imposed in
subsection (A) of this section shall not apply to any person engaging in any
one or more business activities which are otherwise taxable pursuant to this
section, whose value of products, including byproducts, gross proceeds of
sales, and gross income of the business, as the case may be, from all
activities conducted within the city during any calendar year does not exceed
the threshold amount of $250,000.
2. Square footage threshold. The square footage tax on business
warehouse floor space and other business floor space imposed in subsection
(B) of this section shall not apply to any person unless that person's total
area of business warehouse space and other business floor space within the
city exceeds one of the following thresholds:
a, Four thousand taxable square feet of business
warehouse space; or
b. Twelve thousand taxable square feet of other business
floor space
If the square footage tax applies to business warehouse floor space or other
business floor space, it applies to all business warehouse space and other
business floor space leased, owned, occupied, or otherwise maintained by
the taxpayer during the applicable reporting period'
The square footage tax on outdoor warehouse space imposed in subsection
(B) of this section shall not apply to any person unless that person's total
area of outdoor warehouse space within the city exceeds 26L,360 taxable
square feet (six acres) of outdoor warehouse space. If the square footage
4gAmend KCC Chapters 3'78,3.28, 3.29 -
Re: B&O Tax; Utility Tax
tax applies to outdoor warehouse space, it applies to all outdoor warehouse
space leased, owned, occupied, or otherwise maintained by the taxpayer
during the applicable reporting period.
D. Gross receipts maximum - Retailing activities. Effective January 1,
2022, the gross receipts tax imposed in subsection (A) of this section shall
not apply to retailing activities exceeding $20,000,000 in any calendar year
which are otherwise taxable pursuant to this section.
E. Rules. The director may promulgate rules and regulations regarding
the manner, means, and method of calculating any tax imposed under this
section,
$ECTION 5. - Amendment - KCC 3.28.090. Section 3.28,090 0f the
Kent City Code, entitled "Exemptions," is hereby amended as follows:
Section 3.28.O9O. ExemPtions.
A. Nonprofit corporations or nonprofit organizations. This chapter 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'
B, Certain fraternal and beneficiary organizations. This chapter shall not
apply to fraternal benefit societies or fraternal fire insurance associations,
as described in RCW Title 48; nor to beneficiary corporations or societies
organized under and existing by virtue of RCW Title 24, if such beneficiary
corporations or societies provide in their bylaws for the payment of death
benefits. This exemption is limited, however, to groSS income from
SOAmend KCC Chapters 3'78, 3.28, 3'29'
Re: B&O Tax; Utility Tax
premiums, fees, assessments, dues, or other charges directly attributable
to the insurance or death benefits provided by such societies, associations,
or corporations.
C. Certain corporations furnishing aid and relief. This chapter shall not
apply to the gross sales or the gross income received by corporations which
have been incorporated under any act of the congress of the United States
of America and whose principal purposes are to furnish volunteer aid to
members of the armed forces of the United States and also to carry on a
system of national and international relief and to apply the same in
mitigating the sufferings caused by pestilence, famine, fire, floods, and other
national calamities and to devise and carry on measures for preventing the
same
D. Operation of sheltered workshops. This chapter shall not apply to
income received from the Department of Social and Health Services for the
cost of care, maintenance, support, and training of persons with
developmental disabilities at nonprofit group training homes as defined by
Chapter 7LA.22 RCW or to the business activities of nonprofit organizations
from the operation of sheltered workshops. For the purposes of this
subsection, "the operation of sheltered workshops" means performance of
business activities of any kind on or off the premises of such nonprofit
organizations which are performed for the primary purpose of:
1. Providing gainful employment or rehabilitation services to the
handicapped as an interim step in the rehabilitation process for those who
cannot be readily absorbed in the competitive labor market or during such
time as employment opportunities for them in the competitive labor market
do not exist; or
STAmend KCC Chapters 3.78,3.28, 3.29'
Re,'B&O Tax; Utility Tax
2. Providing evaluation and work adjustment services for
handicapped individuals.
E. Credit unions. This chapter shall not apply to the gross income of
credit unions organized under the laws of the state, any other state, or the
United States.
F. Health maintenance organization, health care service contractor,
certified health plan. 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.L4.020L.
G. 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 utility tax provisions of Chapter 3'18 KCC.
H, 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.
L lnternational 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
S2Amend KCC Chapters 3.78,3'28, 3'29 -
Re: B&O Tax; Utility Tax
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, L2
U.S,C. Sections 611 through 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 U.S.C'
Sections 601 through 604(a), that includes only international banking facility
time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation
D (L2 CFR Part 2O4), as promulgated by the Board of Governors of the
Federal Reserve System), and international banking facility extensions of
credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D).
J. Insurance business. This chapter shall not apply to amounts received
by any person 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. t4.O2O; 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.
K. Farmers - Agriculture. This chapter shall not apply to any farmer in
respect to amounts received from selling fruits, vegetables, berries, butter,
€ggS, fish, milk, poultry, meats, or any other agricultural product that is
raised, caught, produced, or manufactured by such persons.
L. 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.
53Amend KCC Chapters 3.78,3.28, 3.29 -
Re: B&O Tax; Utility Tax
M, 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.
N. 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'OL\.
O. Employees
1. This chapter shall not apply to 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.
2.
chapter.
A booth renter is an independent contractor for purposes of this
p. ffi\ale or rental 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 30 days or longer--The-fgnlal--gf
self-storage units where tenants are permitted 24-hour unrestricted access
S4Amend KCC Chapters 3.78, 3.28' 3'29'
Re: B&O Tax; Utility Tax
to their individual unit and tenants are permitted to lock or secure their unit
units are rented for a continuous period of 30 days or longer. The square
footaoe tax shall not apply to residential dwelling units.
a. 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.
R. 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 82.38.010 and exempt under RCW 82.38.280; 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,
S. 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.
T, Casual and isolated sales. This chapter shall not apply to the gross
proceeds derived from casual or isolated sales.
U. 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 (1) the amount paid by the buyer does not
S5Amend KCC Chapters 3.78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
exceed the amount paid by the seller to the vendor in the acquisition of the
article and (2) 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
14 days to reimburse in kind a previous accommodation sale by the buyer
to the seller.
V. 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,
W. IJnited States, Washington State governmental entities, This chapter
shall not apply to gross income received by the United States or any
instrumentality thereof and by the state of Washington or any municipal
subdivision thereof.
X. Research and development under federal contracts. This chapter shall
not apply to amounts received for research and development activities
performed on behalf of, under contract to, or in partnership with the United
States government, For purposes of this section, research and development
activities means activities performed to discover technological information,
and technical and nonroutine activities concerned with translating
technological information into new or improved products, processes,
techniques, formulas, inventions, or software, the application of which is
intended to be useful in the development of a new or improved federal
project or component thereof.
SECTION 6. - Amendment - KCC 3.29.120. Section 3.29.120 of the
Kent City Code, entitled "Cancellation of penalties," is hereby amended as
follows:
56Amend KCC cha*ers
?;1?,i if;,i;?";
Section 3.29,12O Cancellation of penalties.
A. The director may cancel any penalties imposed under KCC
3.29.110(A) if the taxpayer shows that its failure to timely file or pay the
tax was due to reasonable cause and not willful neglect, Willful neglect is
presumed unless the taxpayer shows that it exercised ordinary business care
and prudence in making arrangements to file the return and pay the tax but
was, nevertheless, due to circumstances beyond the taxpayer's control,
unable to file or pay by the due date, The director has no authority to cancel
any other penalties or to cancel penalties for any other reason except as
provided in @this section,
B, 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.
C, The director may cancel the penalties in KCC 3.29.110(A) one time if
a person:
1. Is not currently registered and filing returns;
2. Was unaware of its responsibility to file and pay tax; and
3. Obtained a registration certificate and any applicable business
licenses and filed past due tax returns within 30 days after being notified by
the department.
57 Amend KCC chapters ?;i?,i if;.,i;?r;
D. The director shall not cancel any interest charged upon amounts due
E, The director may cancel the penalties imposed under KCC
3.29.110(A) one time for a person:
1, If payment of any tax due on a return to be filed by a taxpayer
was received by the director by the due date for the previous 24 months; or
2. If payment of any tax due on a return to be filed by a taxpayer
was received by the director by the due date for all previous months, if the
person has not been required to file a return for the previous 24 months.
SECTION 7. - Amendment - KCC 3.29.150. Section 3.29.150 of the
Kent City Code, entitled "Judicial review of director's determination," is
hereby amended as follows:
Section 3.29.15O. Judicial review of director's determination.
*nV eerson; exeep ing
ier
taxpayer snatt set
that the taxpayer eoneedes to be the eorreeE amount of tax and the reason
why the tax imposed should be redueed or abated, The trial in the superior
Washington, The burden shall rest upon the taxpayer to prove that the tax
58 A m e n d KC c c h a Pte rsul; if;,i if,i,i;?r;
review of the hearing examiner's administrative decision by applyinlfor a
\A/rit nf Parriarnr in a l1inn /^nr rnfrr cr rnorinr rnr rrf in a r;'lrnaa rrrilh l-ha
procedure set forth in Chapter 7.16 RCW, other applicable law, and court
rr rlac rrril.hin J 1 arlanrl:r rlrrrc fnllnrar inn {-ha rla{-a {-hrf {.ha rlanicinn nf fha
hearing examiner was transmitted electronically or sent by first class mail
l-n fha nrrtiac Tha nitrr chall harra fha crma rinh{- nf rarriarrr frnm fha
=rl min icf ral-irra rlarrcr aa z{aao = {-=vnrrlar
SECTION 8, - Severability. If any one or more section, subsection,
or sentence of this ordinance is 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 9. - 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 70. - Effective Date. This ordinance shall take effect and
be in force thirty days from and after its passage, as provided by law.
DANA RALPH, MAYO
December 14, 2021
Date Approved
ATTEST:
OMOTO, CIry CLERK
December 14. 2021
Date Adopted
59Amend KCC Chapters 3.78, 3,28, 3.29 -
Re: B&O Tax; Utility Tax
KIMBERLEY A
December 17. 2021
Date Published
APPROVED AS TO FORM:
TH *P FITZPATRIC CITY ATTORNEY
60Amend KCC Chapters 3.78, 3.28, 3.29 -
Re: B&O Tax; Utility Tax
STATE OF WASHINGTON, COUNTY OF KING }
AFFIDAVIT OF PUBLICATION
PUBLIC NOTICE
Rudi Alcott, being first duly sworn on oath that he is the
Vice President of Advertising for Sound Publishing,
which publishes the
Kent Reporter
a weekly newspaper, which newspaper is a legal newspaper of general
circulation and is now and has been for more than six months prior to the date
of publication hereinafter refened to, published in the English language
continuously as a weekly newspaper in King County, Washington. The
Kent- Covington Reporter has been approved as a Legal Newspaper by order of
the Superior Court of the State of Washington for King County.
The notice in the exact form annexed was published in regular issues of
the Kent- Covington Reportel (and not in supplement form) which was regularly
distributed to its subscribers during the below stated period. The annexed
notice, a:
Public Notice #KENe44e2B
was published on December L7,202I
The full amount of the fee charged for said foregoing publication is the
sum of $14%04 ftrW
Rudi Alcott
Vice President, Advertising
Subscribed and sworn to me this 17t day of December, 202I .
Tribbett,Public for the State of Washington, Residing in
Washington
tl{'fAil;'
l), i -; 'rr
atil
Classified Proof
CITYOF KENT
NOTICE OF
ORDINANCES
PASSED AY THE CITY
COUNCIL
The following are sum-
maries of ordinances
passed by lhe Kent City
Council on December
14" 2021.
ORDINANCE NO. 4/t2{
-AN ORDINANCE ofthe
City Council of the City
of K6nt, Washington, ap-
proving the consolidatingbudget adjustments
made between October
1,2021 aad November
30, 2021, reflecting an
overall budget increase
of $31,099,990. This or-
dinance shall take effecl
and be in force five days
after publication, as pro-
vided by law.
ORDINANCE NO. 4422
- AN ORDINANCE ofthe
City Council of the Cityof Kent, Washington,
arnending Chapter 5.01of the Kent City Code
entitled, "General Busi-
ness Licenses" to im-
prove the business li-cense application
process pursuant to the
City's partnership with
the business liceose andtax liling portal
"Filelocal," 10 modify the
appeal process for busi-
ness license denials and
revocations, and to add
additional grounds for
which a business license
may be denied or re-
voked. This ordinance
shall take effect and bein force 30 days from
and after its passage, as
provided by law.
ORDINANCE NO. 4423
-AN ORDINANCE ofthe
City Council of the Cityof Kent, Washinglon,
amending chapters 3.18,
3.28 and 3.29 of tha
Kent City Code, to up-
Proofed by Jennifer Tribbett, 12/09/2021 12:32:55 pm Page:2
t Classified Proof
dete definilions relat€d
to tolephone businesses
and gross income, clarifu
code lenguags relating
to business and octupa-
tion tax, and codiff cur-
rent practices relat€d to
square footage tax. This
ordinance shall take ef-
fect and be in force 30
days ftom snd after it,s
passage, as provkCed by
lau
A copy of the ctmpl€te
text of eny ordinanc€ will
be mailed upon request
of the City Cle*.
Kimbedey A. Komoto,
City Clerk
Kkornoto@KentWA.gov
253€56-5725
#s44928
1?i17n1
Proofed by Jennifer Tribbett, 12109/2021 12:32:55 pm Page:3
STATE OF WASHINGTON, COUNTY OF KING }
AFFIDAVIT OF PUBLICATION
PUBLIC NOTICE
Rudi Alcott, being first duly sworn on oath that he is the
Vice President of Advertising for Sound Publishing,
which publishes the
Kent Reporter
a weekly newspaper, which newspaper is a legal newspaper of general
circulation and is now and has been for more than six months prior to the date
of publication hereinafter referred to, published in the English language
continuously as a weekly newspaper in King Counry Washington. The
Kent- Covington Reporter has been approved as a Legal Newspaper by order of
the Superior Court of the State of Washington for King County.
The notice in the exact form annexed was published in re$ular issues of
the Kent- Covington Reporter (and not in supplement form) which was regularly
distributed to its subscribers during the below stated period. The annexed
notice, a:
Public Notice #KENe4s222
was published on December L7,202L
The full amount of the fee charged for said foregoing publication is the
sum of $142J,4 .f{e-fit
Rudi Alcott
Vice President, Advertising
Subscribed and sworn to me this 17fr day of December; 202L .
Public for the State of Washington, Residing in
Washington
qssT&,fi?y
Pq:*,*ti
Op'
tt!,
Classified Proof
CITYOF KENT
NOTICE OF
ORDINANCES
PASSED BY THE CITY
COUNCIL
The following are sum-
maries of ordinances
passed by the Kent City
Council on December
14,2021.
ORDINANCE NO. .1421
-AN ORDINANCE ofthe
City Council of the City
of Kent, Washington, aP.
proving the oonsolidalingbudget adjustrnents
made b€tween October
1, 2021 and November
30, 2021, rsflecling an
overall budget increase
of $31,099,990. This or-
dinance shall take effect
and be in force fve days
aft€r publication, as pro-
vided by law.
ORDIMNCE NO. 4422
-AN ORDINANCE ofthe
City Council of the Cityof Kent, l/Vashinglon,
arnending Chapter 5.01of the Kent City Code
entitled, "General Busi-
ness Licenses' to irn-
prove ihe business li-eense application
process pursuant lo the
City's partnership with
the business license andtax filing portal
"Filelocal," lo modify the
appeal process for busi-
revocations, and to add
additional grounds for
whieh a business license
may be denied or re-
voked. This ordinance
shall take effect and bein force 30 days from
and afler its passage, as
provided by law-
ORDINANCE NO. 4423
- AN ORDINANCE ofthe
City Council of the Crtyof Kent, Washington,
amending chapters 3.1 8,
3.28 and 3.29 of the
Kent City Code, to up-
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"-Classified Proof
date definitions related
to telophone businesses
and gross income, clariff
code language relating
to busins€s and oc,oupa-
tion tax, and oodi! cur-
rent practices related to
square footago tax. This
ordinance shall take ef-
feot and be in force 30
davs from and after its
pa3sage, as provided by
law.
A copy of the compl€te
text of any ordinanc€ will
be mailed upon request
of the City Clerk.
Kimbedey A. Komolo,
City Clerk
Kkomto@KentWA.oov2s3-356:5725--
*945222pl17n1
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