HomeMy WebLinkAbout6898 ORDINANCE NO. 6898
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON AMENDING AUBURN CITY
CODE CHAPTERS 3.53 AND 3.54 RELATED TO CITY
BUSINESS AND OCCUPATION (B&O) TAX, CLARIFYING
DEFINITIONS AND PROCEDURES, AND UPDATING
PROVISIONS FOR CONSISTENCY WITH STATE LAW
CHANGES
WHEREAS, in 2021 the City enacted its business and occupations (B&O) tax
code (ACC 3.53), and its corresponding B&O tax administrative code (ACC 3.54);
WHEREAS, following ongoing review and practical application, the City's
Finance Department has determined that these ACC chapters need revisions:
(1) clarifying the definitions of existing terms and adding definitions to assist
taxpayers and the City in administering and collecting B&O taxes;
(2) refining B&O tax collection procedures to clarify City B&O tax exemptions
for taxpayers and to give the City's Finance Department greater flexibility
in administering interest and penalties in B&O tax collection;
(3) updating language within the City's B&O codes to match recent State law
changes regarding B&O taxation; and
(4) making additional needed technical revisions and corrections to the code;
WHEREAS, these revisions and additions to ACC 3.53 and 3.54 will enable
greater clarity and precision in the administration and implementation of the City's B&O
tax code, and they are in the best interest of the City, its business community and its
B&O taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Chapter 3.53 of the Auburn City Code
is amended to read as set forth in Exhibit A to this Ordinance.
Ordinance No. 6898
November 17, 2023
Page 1 of 2
Section 2. Amendment to City Code. Chapter 3.54 of the Auburn City Code
is amended to read as set forth in Exhibit B to this Ordinance.
Section 3. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 4. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 5. Effective date. Except for the Exhibit A revisions to ACC 3.53.090
(that take effect on January 1, 2024), this Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: NOV 2 0 2023
PASSED: NOV 2 0 2023
APPROVED: NOV 2 0 2023
NANCY B US, MAYOR
ATTEST: APP'O"ED111 ! :li':
Amik Shawn Campbe , MMC, City Clerk Har' ; '., Acing City Attorney
Published: NoverAbelt 29' , 2011)) \\\ Int SeaMki i ir \&c
Ordinance No. 6898
November 17, 2023
Page 2 of 2
ORD. 6898—Exhibit A
ACC 3.53.020 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. A :— ••' - -- "Adult family home" means a residential home licensed by the
Washington State Department of Social and Health Services (DSHS) pursuant to
Chapter 70.128 RCW in which a person or persons provides personal care, special
care, room and board to more than one but not more than six adults who are not related
by blood or marriage to the person or persons providing the services.
B. "Advance,""Reimbursement"
1. "Advance" means money or credits a taxpayer receives from a customer or client for
the purpose of paying costs or fees on behalf of the customer or client.
2. "Reimbursement" means money or credits a taxpayer receives 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.
C. "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 animal. "Agricultural product" does not include animals intended to
be pets, marijuana, or marijuana-infused products as defined by RCW 69.50.101(y) and
(if)).
2. "Farmer" means any person engaged in the business of growing or producing, upon
the person's own lands or upon 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. "Farmer" does not include any person engaged in the business of
growing, producing, processing, selling or distributing marijuana.
D. "Artistic or Cultural Organization."
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 (D)(10) of this section, for viewing or attendance by the general public.
2. The organization must be a not-for-profit corporation under Chapter 24.03 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 24.12 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 organization must be irrevocably dedicated to the activities for which
the exemption is granted and, on the liquidation, dissolution, or abandonment by the
organization, 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. The organization 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, age, sex, marital status, Vietnam or disabled veteran status, sexual orientation,
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.
E. "Assisted living facility" means any home or other institution, however named, which
is advertised, announced, or maintained for the express or implied purpose of providing
housing, basic services, and assuming general responsibility for the safety and well-
being of the residents, and may also provide domiciliary care. "Assisted living facility"
shall not include facilities certified as group training homes pursuant to RCW
71A.22.040, nor any home, institution or section thereof which is otherwise licensed and
regulated under the provisions of state law providing specifically for the licensing and
regulation of such home, institution or section thereof. Nor shall it include any
independent senior housing, independent living units in continuing care retirement
communities, or other similar living situations including those subsidized by the
Department of Housing and Urban Development.
F. "Athletic or fitness facility" means an indoor or outdoor facility or portion of a facility that is
primarily used for: Exercise classes; strength and conditioning programs; personal training
services; tennis, racquetball, handball, squash, or pickleball; or other activities requiring the use
of exercise or strength training equipment, such as treadmills, elliptical machines, stair climbers,
stationary cycles rowing machines, Pilates equipment, balls, climbing ropes, jump ropes, and
weightlifting equipment.
G.F. "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.
HG. "Business and occupation tax" or"gross receipts tax" 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.
11=1. "City" means the city of Auburn, Washington.
J-1. "Commercial or industrial use" means the following uses of products, including by-
products, by the extractor or manufacturer thereof:
1. Any use as a consumer; and
2. The manufacturing of articles, substances or commodities.
KJ. "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.
LK. "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. "Consumer"
includes, among others and without limiting its scope, 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:
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 directly 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 that is taxable under ACC 3.53.040;
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;
5. Any person who is an end user of software;
6. Any person engaged in the business of"public road construction" with 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, or 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; or
9. Any person engaged in "government contracting." Any such person shall be a
consumer within the meaning of this subsection with 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."
Mh. "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.
NM. "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.
ON. "Digital automated service," "digital code" and "digital goods" have the same
meaning as in RCW 82.04.192.
PG. "Digital products" means digital goods, digital codes, digital automated services,
and the services described in RCW 82.04.050(2)(q) and (6)(b).
QP. Eligible Gross Receipts Tax. Tho term "oEligible gross receipts tax" means a tax
which:
1. Is imposed on the act or privilege of engaging in business activities within section
ACC 3.53.040; 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.
RQ. "Engaging in Business."
1. The term "engaging in business" means commencing, conducting, or continuing in
business, and also the exercise of corporate or franchise powers, as well as liquidating
a business when the liquidators thereof hold themselves out to the public as conducting
such business.
2. This subsection 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 (RQ)(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.
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, or 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, chemists, psychologists, court reporters, dentists,
doctors, detectives, laboratory operators, teachers, veterinarians.
I. 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 person acting on its behalf.
4. If a person, or their 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.
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 directors 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 Chapter 2.23 ACC, Special Event
Permits.
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 (RQ)(4) of this section.
6. The city expressly intends that engaging in business include any activity sufficient to
establish nexus for purposes of applying the 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.
SR. "Extracting" is the activity engaged in by an extractor and is reportable under the
extracting classification.
TS. "Extractor."
1. "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.
2. "Extractor" does not include persons performing under contract the necessary labor
or mechanical services for others; or-persons meeting the definition of"farmer:" under
RCW 82.04.213, or persons producing cannabis.
3. When an "extractor" is also a "manufacturer" under this chapter, the principles of
WAC 458-20-135 (as now enacted or hereafter amended) shall apply.
UT. "Extractor for hire" means a person who performs under contract necessary labor
or mechanical services for an extractor.
VU. "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 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.
WV. "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.
XW. "Gross receipts" has the same meaning as gross income.
YX. "Hospital" means any institution, place, building, or agency which provides
accommodations, facilities and services over a continuous period of 24 hours or more,
for observation, diagnosis, or care, of two or more individuals not related to the operator
who are suffering from illness, injury, deformity, or abnormality, or from any other
condition for which obstetrical, medical, or surgical services would be appropriate for
care or diagnosis. "Hospital" as used in this chapter does not include hotels, or similar
places furnishing only food and lodging, or simply domiciliary care; nor does it include
clinics, or physician's offices where patients are not regularly kept as bed patients for 24
hours or more; nor does it include nursing homes, as defined and which come within the
scope of Chapter 18.51 RCW; nor does it include birthing centers, which come within
the scope of Chapter 18.46 RCW; nor does it include psychiatric hospitals, which come
within the scope of Chapter 71.12 RCW; nor any other hospital or institution specifically
intended for use in the diagnosis and care of those suffering from mental illness,
intellectual disability, convulsive disorders, or other abnormal mental condition.
Furthermore, nothing in this chapter or the rules adopted pursuant thereto shall be
construed as authorizing the supervision, regulation, or control of the remedial care or
treatment of residents or patients in any hospital conducted for those who rely primarily
upon treatment by prayer or spiritual means in accordance with the creed or tenets of
any well recognized church or religious denominations.
ZY. "International Investment Management Services."
1. "International investment management services" includes investment research,
investment consulting, fund administration, fund distribution, investment transactions, or
related investment services provided to persons for or on behalf of a collective
investment fund. A person is considered to be engaged in providing international
investment management services if such person is providing investment management
services and/or is a member of an affiliated group (as defined by RCW 82.04.293(2)(b))
primarily in the business of providing investment management services to collective
investment funds, and at least 15 percent of the gross income of the person and/or
affiliated group is derived from providing investment management services to any of the
following:
a. Persons or collective investment funds residing outside the United States; or
b. Collective investment funds with at least 50 percent of their investment assets
located or issued outside the United States.
2. For the purpose of this section, "collective investment fund" includes:
a. A mutual fund or other regulated investment company as defined in 26
USC_§851(a), as now enacted or hereafter amended;
b. An investment company, as defined in 15 U.S.C. §80a-3 (as now enacted or
hereafter amended), as well as any entity that would be an investment company for this
purpose but for the exemptions contained in 15 USC,§80a-3;
c. An employee benefit plan, which includes any plan, trust, commingled employee
benefit trust, or custodial arrangement that is subject to 29 U.S.C. ,§1001 et seq., or that
is described in 26 U.S.C. §§125, 401, 403, 408, 457, 501(c)(9), and 501 x(17) through
(243), or a similar plan maintained by a state or local government, or a plan trust, or
custodial arrangement established to self-insure benefits required by federal, state, or
local law;
d. A fund maintained by a tax exempt organization, as defined in 26 U S,C,§501(c)(3)
for operating, quasi-endowment, or endowment purposes;
e. Funds that are established for the benefit of such tax exempt organizations, such as
charitable remainder trusts, charitable lead trusts, charitable annuity trusts, or other
similar trusts; or
f. Collective investment funds similar to those described in subsections (ZY)(2)(a)
through (ZY)(2)(e) of this section created under the laws of a foreign jurisdiction.
AAZ. "Liquor" shall have the same meaning as RCW 66.44.010.
BB. "Lottery commissions" are commissions received from sales of lottery and scratch
tickets to a consumer.
CCAA. "Manufacturing" means the activity conducted by a manufacturer and is
reported under the manufacturing classification.
DDRB. "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.
2. "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.
EECC. "Newspaper,""Magazine,""Periodical."
1. "Newspaper" means a publication offered for sale regularly at stated intervals at least
once per week and printed on newsprint in tabloid or broadsheet format folded loosely
together without stapling, glue, or any other binding of any kind.
2. "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.
FFD. "Office" or "place of business" 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. Whose address the person uses as their business mailing address; and
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; and
3. Where the person holds themselves out to the general public as conducting 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 the person is 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.
GGEE. "Option to purchase" shall mean a continuing offer or contract by which owner
stipulates with another that the latter shall have the right to buy property at a fixed dollar
price within a certain time. An agreement is only an option when no obligation rests on
the potential buyer to make any payment except such as may be agreed upon by the
parties as consideration to support the option until the potential buyer has made up their
mind within a time specified to complete the purchase. The use of the term "fair market
value" or any other like term shall not be substituted for a fixed dollar price in
determining if an "option to purchase" exists.
HHFF. "Person" means any individual, receiver, administrator, executor, assignee,
trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company,
joint stock company, business trust, municipal corporation, political subdivision of the
state of Washington, corporation, limited liability company, association, society, or any
group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or
otherwise and the United States or any instrumentality thereof.
IIGG. "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.
JJFIFT. "Product" means tangible personal property, including articles, substances, or
commodities created, brought forth, extracted, or manufactured by human or
mechanical effort. "By-product" 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 manufacturing activities.
KK-14. "Retailing" means the activity of engaging in making sales at retail and is reported
under the retailing classification.
LLJV. "Retail service" shall include the sale of or charge made for personal, business,
or professional services including amounts designated as interest, 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 include 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
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.
MMS. "Royalties" means compensation for the use of intangible property, such as
copyrights, patents, licenses, franchises, trademarks, trade names, and similar items.
NNS. "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.
00MM. "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, 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
purpose 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 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
subsections (OOM-)(1)(a) through (OO )(1)(e) of this section following such use.
f. Purchases for the purpose of satisfying the person's obligations under an extended
warranty as defined in subsection (004)(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 ACC 3.53.040(A)(7).
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 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;
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, fumigating, 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;
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 82.16 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. For
the purposes of this subsection, it shall be presumed that the 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 (00M4)(3)(a) through (00 )(3)(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 (00 )(1) of this section and nothing contained in
subsection (00 )(1) 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. Sale at Retail or Retail Sale.
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 82.04.470,
regardless of the method of delivery to the end user.
a. For purposes of this subsection (00 )(5), 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.
b. The term "sale at retail" or"retail sale" does not include the sale of or charge made
for:
a. Ccustom software; or
+i. Tthe customization of prewritten software.
bc. 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.
i. The service described in this subsection (OO1V1M4)(5)(cb) includes the right to access
and use prewritten software to perform data processing.
ii. For purposes of subsection (001)(5)(cb)(i) of this section "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 vehicular traffic including mass
transportation vehicles of any kind (public road construction).
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 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 (government contracting).
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 by-products of weapons production and
nuclear research and development. (This should be reported under the service and
other classification as defined under ACC 3.53.040(A)(7):),
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. (This should be reported
under the service and other classification as defined under ACC 3.53.040(A)(7)7),
11. "Sale at retail" or "retail sale" shall also include the following sales to consumers of
digital goods, digital codes, and digital automated services:
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 (00 )(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, "permanent" 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.
12. "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or
improving of digital goods for consumers.
PPNN. "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 (OOMM)(5)(b) 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 35.21.715.
QQOQ. "Service" means any sale or charge made for personal, business or
professional service, including amounts designated as rents, fees, or admissions, not
otherwise included within any other tax classification defined herein; provided, that the
term "service" excludes retail or wholesale services.
RRP-P. "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 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 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.
SSQQ. "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.
TTRR. "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. "Educational 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 26 U S,C,§501(c)(3), as hereafter amended, if
such educational institution grants college credit for coursework successfully completed
through the educational program, or an approved branch campus of a foreign degree-
granting institution in compliance with Chapter 286.90 RCW, and in accordance with
RCW 82.04.4332 or defined as a degree-granting institution under
RCW 28B.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.
UUSS. "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.
Wim. "Value of Products."
1. The value of products, including by-products, 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 by-products by the seller.
2. Where such products, including by-products, are extracted or manufactured for
commercial or industrial use; and where such products, including by-products, 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 (VVTT)(2) 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.
WWk . "Warehouse" means every structure wherein facilities are offered for the
storage of tangible personal property. It includes the following:
1. "Storage warehouse" means a building or structure, or any part thereof, in which
goods, wares, or merchandise are received for storage for compensation, except field
warehouses, fruit warehouses, fruit packing plants, unroasted coffee bean warehouses,
warehouses licensed under Chapter 22.09 RCW (which are agricultural commodities
warehouses), public garages storing automobiles, railroad freight sheds, docks and
wharves, and "self-storage" or "mini-storage" facilities whereby customers have direct
access to individual storage areas by separate access.
2. "Cold storage warehouse" means a storage warehouse used to store fresh and/or
frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any
combination thereof, at a desired temperature to maintain the quality of the product for
orderly marketing. This term does not include freezer space or frozen food lockers.
3. "Automobile storage garage" means any off-street building, structure, or area where
vehicles are parked or stored, for any period of time, for a charge.
XXW. "Warehouse, outdoor" means anarea that is outdoors and is primarily used for
the storage of merchandise, goods, inventory, materials or equipment or other items,
which are not intended for immediate sale, whether or not for compensation, in
furtherance of engaging in business.
YYWW. "Wholesaling" means engaging in the activity of making sales at wholesale,
and is reported under the wholesaling classification.
ACC 3.53.040 Imposition of the tax—Tax or fee levied.
Except as provided in subsection C of this section, effective January 1, 2022, at 12:01
a.m. 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 of Auburn, whether the
person's office or place of business be within or without the city. The tax shall be in
amounts to be determined by application of rates against gross proceeds of sale, gross
income of business, or value of products, including by-products, as the case may be, as
follows:
A. Gross Receipts 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 by-products, extracted within the city for sale or for
commercial or industrial use, multiplied by the rate of 0.100 of 1% or+e percent (0.001).
The measure of the tax is the value of the products, including by-products, 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 by-products, manufactured within the city, multiplied by
the rate of 0.100 of 1% one percent (0.001). The measure of the tax is the value of the
products, including by-products, so manufactured, regardless of the place of sale or the
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 multiplied by the rate of 0.180
of 1% one percent-(0.0018).
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 to such business shall be equal to
the gross proceeds of such sales of the business multiplied by the rate of 0.050 of 1%
one percent (0.0005).
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
0.100 of 1% one percent (0.001).
6. 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 0.150 of 1% ene-per-sent
(0.0015).
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; such persons shall report
gross receipts under the "service and other tax" classification, and the amount of tax on
account of such activities shall be equal to the gross income of the business multiplied
by the rate of 0.100 of 1% ene-per-cent (0.001). This classification includes (among
others, without limiting its scope and 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, persons 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.
8. : Lottery Commissions are commissions received from the sales of lottery and scratch
tickets to a consumer. Taxpayers must report commissions received
from such sales on the excise tax return under Service & Other B&O tax classificationf.
Lottery payouts do not qualify for the payouts deduction.
9.8. Persons otherwise subject to the "service and other tax" classification who engage
in business in multiple jurisdictions shall report their service income under the "service
and other apportionment" tax classification, and shall allocate their gross receipts in
accordance with ACC 3.53.080 by using the city's service income apportionment
supplemental form.
B. Square Footage Tax.
1. Upon every person who leases, owns, occupies, or otherwise maintains a
warehouse or outdoor warehouse within the city for purposes of engaging in business
activities in the city there shall be a tax measured by the number of square feet of
business warehouse floor space or outdoor warehouse space. The amount of the tax
shall be equal to $0.10 for each quarterly period of a calendar year for each square foot
of warehouse or outdoor warehouse floor space that is leased, owned, occupied, or
otherwise maintained within the city during the reporting period, calculated to the
nearest square foot.
2. For purposes of this section, "warehouse" means every structure wherein facilities
are offered for the storage of tangible personal property. It includes "storage
warehouses," "cold storage warehouses" and "automobile storage garage" as defined in
ACC 3.53.020(WWUU).
3. For purposes of this section, "outdoor warehouse" means an area that is outdoors
and is primarily used for the storage of merchandise, goods, inventory, materials or
equipment or other items, which arc not intended for immediate sale, Lwhether or not for
compensations; in furtherance of engaging in business.
4. For purposes of this section, the square footage of a business warehouse 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. Outdoor warehouse
space is measured based on the entire space used for outdoor warehousing and is not
measured solely based on the size of the goods, wares, merchandise, or commodities
that are being stored.
5. 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, whether or not for
compensation, in furtherance of engaging in business. 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, storm water 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. scd for storago of agricultural products or fec
6. Persons with more than one business warehouse or outdoor warehouse within the
city must include all business warehouse floor space and outdoor warehouse space for
all locations within the city. When 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 :- , ' _ -- . •-. . . .. . - - •- :. .. - - . ;-
the-land-le-rd. 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.
7. If the square footage tax imposed in this subsection B is equal to or less than the
gross receipts tax imposed in subsection A of this section, no square footage tax will be
due. If the square footage tax imposed in this subsection B exceeds the gross receipts
tax imposed in subsection A of this section, the square footage tax will be due, but no
gross receipts tax will be due. The taxpayer shall remit the tax due on the higher of the
two categories, but not both, under subsections A and B of this section.
C. Gross Receipt and Square Footage Tax Thresholds.
1. Gross Receipts Threshold. The gross receipts tax imposed in this section shall not
apply to any person whose company-wide gross proceeds of sales, gross income of the
business, and value of products, including by-products, as the case may be, from all
activities during any calendar year is equal to or less than $500,000, nor shall it apply to
any person who does not maintain a place of business in the city whose annual value of
products, gross proceeds of sales, or gross income of the business in the city is equal to
or less than $2,000.
2. Square Footage Threshold. The square footage tax imposed in subsection B of this
section shall not apply to any person unless that person's total area of business space
within the city exceeds one of the following thresholds:
a. Four thousand (4,000) taxable square feet of business warehouse space; or
b. Two hundred sixty-one thousand three hundred sixty (261,360) taxable square feet
(six acres) of outdoor warehouse space.
If the square footage tax applies, it applies to all business space leased, owned,
occupied, or otherwise maintained by the taxpayer during the applicable reporting
period.
3.53.090 Allocation and apportionment of printing and publishing income
when activities take place in more than one jurisdiction.
Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the
activities of printing, and of publishing newspapers, periodicals, or magazines, shall be
allocated to the principal place in this state from which the taxpayer's business is
directed or managed. As used in this section until December 31, 2023, the activities of
printing, and of publishing newspapers, periodicals, or magazines, have the same
meanings as attributed to those terms in RCW 82.04.280(1) by the department of
revenue. Beginning January 1, 2024, until January 1, 2034, as used in this section, the
activities of printing, and of publishing newspapers and periodicals or magazines are
those activities to which the exemption in RCW 82.04.759 and the tax rate in RCW
82.04.280(1)(a) apply.
ACC 3.53.100 Exemptions.
This section applies only to the gross receipts tax imposed in ACC 3.53.040(A).
A. Adult Family Homes. This chapter does not apply to adult family homes as defined in
ACC 3.53.020(A) that are licensed or specifically exempt from licensing under DSHS
rules.
B. Daycare Provided by Churches. This chapter shall not apply to amounts derived by
a church that is exempt from property tax under RCW 84.36.020 from the provision of
care for children for periods of less than 24 hours.
C. Child Care Resource and Referral Services by Nonprofit Organizations. This chapter
does not apply to nonprofit organizations in respect to amounts derived from the
provision of child care resource and referral services.
D. Nonprofit Organizations That Are Guarantee Agencies, Issue Debt, or Provide
Guarantees for Student Loans. This chapter does not apply to gross income received by
nonprofit organizations exempt from federal income tax under 26 U.S.C. §501(c)(3), as
hereafter amended, that:
1. Are guarantee agencies under the federal guaranteed student loan program or that
issue debt to provide or acquire student loans; or
2. Provide guarantees for student loans made through programs other than the federal
guaranteed student loan program.
E. Nonprofit Organizations— Credit and Debt Services. This chapter does not apply to
nonprofit organizations in respect to amounts derived from provision of the following
services:
1. Presenting individual and community credit education programs including credit and
debt counseling;
2. Obtaining creditor cooperation allowing a debtor to repay debt in an orderly manner;
3. Establishing and administering negotiated repayment programs for debtors; or
4. Providing advice or assistance to a debtor with regard to subsection (E)(1), (E)(2), or
(E)(3) of this subsection.
F. 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 premiums, fees, assessments, dues or other charges directly attributable
to the insurance or death benefits provided by such societies, associations, or
corporations.
G. 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 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.
H. Community Services Provided by DSHS. This chapter shall not apply to the first
$2,000,000 in annual taxa- gross income received from the DSHS by a business or
organization otherwise subject to this chapter for the cost of care, maintenance, support
and training of persons with developmental disabilities at nonprofit group training homes
Las defined by Chapter 71A.22 RCW or to the business activities of nonprofit
organizations from the operation of community services. For the purposes of this
subsection, "the operation of community services" 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
2. Providing evaluation and work adjustment services for handicapped individuals.
I. 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.
J. The city of Auburn is exempt from the tax levied by this chapter.
K. Gross Receipts Taxed Under Other Sections of This Code. This chapter shall not
apply to:
1. Any person in respect to a business activity with respect to which tax liability is
specifically imposed under the provisions of Chapter 3.88 ACC, Utility Services; or
2. Any person in respect to a business activity with respect to which tax liability is
specifically imposed under the provisions of Chapter 3.80 ACC, Gambling Activities.
L. Credit Unions. This chapter shall not apply to the gross income of credit unions
organized under the laws of this state, any other state, or the United States.
M. International Banking Facilities. This chapter shall not apply to the gross receipts of
an international banking facility. As used in this subsection, an "international banking
facility" means:
1. A facility represented by a set of asset and liability accounts segregated on the
books and records of a commercial bank whose principal office is located in this state,
and which is incorporated and doing business under the laws of the United States or of
this state;
2. A United States branch or agency of a foreign bank;
3. An Edge corporation organized under 12 U S C,§§611 through 631; or
4. An agreement corporation having an agreement or undertaking with the Board of
Governors of the Federal Reserve System under 12 U.S.C. §§601 through 604a, that
includes only international banking facility time deposits as defined
in 12 C,F,R,§204.8(a)(2) and international banking facility extensions of credit as
defined in 12 C,F,R,§204.8(a)(3).
N. 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 48.14.020; and provided further,
that the provisions of this subsection shall not exempt any bonding company from tax
with respect to gross income derived from the completion of any contract as to which it
is a surety, or as to any liability as successor to the liability of the defaulting contractor.
O. Farmers—Agriculture. This chapter shall not apply to any farmer in respect to
amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk, poultry,
meats or any other agricultural product that is raised, caught, produced or manufactured
by such persons.
P. 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.
Q. 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.
R. Ride Sharing. This chapter does not apply to any funds received in the course of
commuter ride sharing or ride sharing for persons with special transportation needs in
accordance with RCW 46.74.010.
S. Employees. 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 defined as employees in 26 U S C_§3121(d), as now
enacted or hereafter amended. A booth renter as defined in RCW 82.04.360(3) is an
independent contractor for purposes of this chapter.
T. Amounts Derived from Sale of Real Estate. This chapter shall not apply to gross
proceeds derived from the sale of real estate. This, however, shall not be construed to
allow an exemption of amounts received as commissions from the sale of real estate,
nor as fees, handling charges, discounts, interest or similar financial charges resulting
from, or relating to, real estate transactions. This chapter shall also not apply to
amounts received for the rental of real estate if the rental income is derived from a
contract to rent for a continuous period of 30 days or longer.
U. 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.
V. Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle
Fuel. This chapter shall not apply to manufacturing, selling or distributing motor vehicle
fuel, as the term "motor vehicle fuel" is defined in RCW 82.38.020 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.
W. 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.
X. Casual and Isolated Sales. This chapter shall not apply to the gross proceeds
derived from casual or isolated sales.
Y. 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 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.
Z. Real Estate Brokers and Associated Brokers, Agents, or Salesmen. This chapter
does not apply to that portion of a real estate commission assigned to another
brokerage office pursuant to the division of revenue between the originating brokerage
office and a cooperating brokerage office on a particular transaction. Each brokerage
office shall pay the tax upon its respective revenue share of the transaction.
Furthermore, where a brokerage office has paid the business and occupation tax on the
gross commission earned by that brokerage office, associate brokers, salesmen or
agents within the same office shall not be required to pay the tax upon their share of the
commission from the same transaction.
AA. 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.
BB. 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 with respect to premiums or prepayments that
are taxable under RCW 48.14.0201. However, per RCW 48.14.0201(7), this exemption
is not intended to, and shall not, impair the city's ability to impose a tax hereunder upon
the health care services directly delivered by the employees of a health maintenance
organization under Chapter 48.46 RCW.
CC. Nonprofit Hospital.
1. This chapter shall not apply to nonprofit hospitals;las "hospital" is defined in
ACC 3.53.020(YX)) to the extent that the ; provided, that a nonprofit hospital's annual
net operating income is less than $10,000,000. For purposes of this subsection, "net
operating income" shall mean income in an amount equal to:
a. The organization's aggregate gross revenue generated from operating activities and
services, less —
b. Uncollectable debts and uncompensated services, and less —
c. Total expenses related to operating activities.
Capital expenditures, debt service and noncash charges, such as depreciation of assets
or amortization of financing costs, shall not be included in the calculation of net
operating income.
2. Nonprofit hospitals exceeding $10,000,000 in net operating income are not eligible
for subject—to—the exemptions within this subsection.
DD. County, City, Town, School District, or Fire District Activity. This chapter shall not
apply to any county, city, town, school district, or fire district activity, regardless of how
financed, other than a utility or enterprise activity as defined by the State Auditor
pursuant to RCW 35.33.111 and 36.40.220 and upon which the tax imposed pursuant to
this chapter had previously applied. Nothing contained in this section shall limit the
authority of the city to authorize the imposition of such tax prospectively upon such
activities as the city shall specifically designate.
EE. This chapter shall not apply to the gross income received by the United States or
any instrumentality thereof, or by the state of Washington or any municipal subdivision
thereof; provided, however, that the exemption contained in this subsection shall only
apply to gross income which the city is prohibited from taxing pursuant to the terms of
any federal or state law.
FF. This chapter shall not apply to any person conducting business in an area that
becomes a part of the city by annexation in accordance with Chapter 35.10 or 35.
13 RCW 35.10 or 35.13 after this chapter's effective date. The exemption provided in
this subsection shall expire at the end of the calendar quarter three years after the date
of such annexation.
ORD. 6898 Exhibit B
3.54.030 Definitions.
For purposes of this chapter:
The definitions contained in Chapter 3.53 ACC shall apply equally to the provisions of
this chapter unless the term is defined otherwise in this chapter. In addition, the
following definitions will apply:
A. "Cash basis" means a basis of accounting which recognizes revenues and
expenses as occurring in the reporting period when they were actually either received or
paid.
B. "City" means the City of Auburn and all of its departments, including Auburn Public
Libraries and Auburn Public Utilities.
C. "Department" means the Tax Division of the Finance Department of the City or any
successor department.
D. "Director" means the Director of the Finance Department of the City or any officer,
agent, or employee of the City designated to act on the Director's behalf.
BE. "Generally accepted accounting principles" means those national accounting
standards promulgated by the Financial Accounting Standards Board for businesses
and nonprofit associations or by the Governmental Accounting Standards Board for
state agencies or local governments.
FG. "Records" means the books of accounts and other business-related records of a
taxpayer subject to the city's tax code or license code. Such records include ledgers,
subsidiary ledgers, invoices, receipts, registration and incorporation documents, federal,
state and local tax returns, and any other records necessary to establish the amounts
due under the provisions of this code.
GD. "Reporting period" means:
1. A one-month period beginning the first day of each calendar month (monthly); or
2. A three-month period beginning the first day of January, April, July or October of
each year (quarterly); or
3. A twelve-month period beginning the first day of January of each year (annual).
HE. "Return" means any document a person is required by the city to file to satisfy or
establish a tax or fee obligation that is administered or collected by the city and that has
a statutorily defined due date.
I . "Successor" means any person to whom a taxpayer quitting, selling out,
exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly,
in bulk and not in the ordinary course of the taxpayer's business, any part of the
materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any
person obligated to fulfill the terms of a contract shall be deemed a successor to any
contractor defaulting in the performance of any contract as to which such person is a
surety or guarantor.
JG. "Tax" means the amount, usually based upon gross income, assessed upon a
person doing business under the provisions of Chapter 3.53 ACC.
Kkl. "Tax year" or"taxable year" means the calendar year.
3.54.060 When due and payable — Reporting periods — Monthly, quarterly,
and annual returns —Threshold provisions or relief from filing
requirements — Computing time periods — Failure to file returns.
A. Other than any annual license fee or registration fee assessed under this chapter,
the tax imposed by this chapter shall be due and payable in quarterly installments. At
period depending on the tax amount owing or type of tax. Until December 31, 2020, tax
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(3-ythe tax imposed by Chapter 3.53 shall be submitted using only city authorized tax
return forms, and shall be due and payable as follows:
1. Taxpayers with gross income of less than $2,000 per calendar year that do not
maintain a permanent operating location within the city are exempt from the tax and
return requirements imposed by this chapter.
2. Taxpayers who were directly contacted by the director or the total estimated tax due
imposed under Chapter 3.53 for a calendar year exceeds $3,000, shall be due in
quarterly installments, and paid on or before the thirtieth day of the month after the end
of the quarterly period in which the income was received.
3. All other businesses, who did not receive a written notification from the director or
whose estimated annual tax due imposed by this chapter is less than $3,000, shall be
due annually, and paid on or before April 30th of the year following the year in which the
income was received. The qross receipts and deduction amounts shall be entered on
the tax return even though no tax may be due.
B. Director reserves the right to review and reassign tax return filing frequency on a
case-by-case basis, as warranted by administrative requirements and applicable under
this chapter.
C. For purposes of the tax imposed by Chapter 3.53 ACC, any person whose value of
products, gross proceeds of sales, or gross income of the business is equal to or less
than $500,000 in the current calendar year and/or whose combined taxable business
warehouse square footage within the city is 4,000 square feet or less, shall file a return
declaring no tax due and submit the return to the director. The gross receipts and
deduction amounts shall be entered on the tax return even though no tax may be due.
BD. Taxes shall be paid as provided in this chapter and accompanied by a return on
city authorized forms as prescribed by the director. The return shall be signed by the
taxpayer personally or by a responsible officer or agent of the taxpayer. The individual
signing the return shall swear or affirm that the information in the return is complete and
true.
EG. Tax returns must be filed and returned by the due date whether or not any tax is
owed, unless a taxpayer qualifies for an exemption under the subsection A.1 and C and
will be placed on the non-reporting status. Each taxpayer who claims a tax filling
exemption must submit a written request to director providing the detailed explanations.
Director will inform a taxpayer in writing about the status change and only written notice
from the director confirms the non-reporting status.,-
D. For purposes of the tax imposed by Chapter 3.53 ACC, any person whose value of
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declaring no tax due and submit the return to the director. The gross receipts and
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EF. A taxpayer that commences to engage in business activity shall file a return and
pay the tax or fee for the portion of the reporting period during which the taxpayer is
engaged in business activity.
G . Except as otherwise specifically provided by any other provision of this chapter, in
computing any period of days prescribed by this chapter the day of the act or event from
which the designated period of time runs shall not be included. The last day of the
period shall be included unless it is a Saturday, Sunday, or city or federal legal holiday,
in which case the last day of such period shall be the next succeeding day which is
neither a Saturday, Sunday, or city or federal legal holiday.
HG. Unless otherwise provided in this chapter, if any taxpayer fails, neglects or refuses
to make a return as and when required in this chapter, the director is authorized to
determine the amount of the tax or fees payable by obtaining facts and information upon
which to base the director's estimate of the tax or fees due. Such assessment shall be
deemed prima facie correct and shall be the amount of tax owed to the city by the
taxpayer. The director shall notify the taxpayer by mail of the amount of tax so
determined, together with any penalty, interest, and fees due; the total of such amounts
shall thereupon become immediately due and payable.
3.54.070 Payment methods — Mailing returns or remittances —Time
extension — Deposits — Recording payments — Payment must
accompany return — NSF checks.
A. Taxes shall be paid to the director in United States currency by bank draft, certified
check, cashier's check, personal check, money order, cash, or by wire transfer or
electronic payment if such wire transfer or electronic payment is authorized by the
director. If payment so received is not paid by the bank on which it is drawn, the
taxpayer, by whom such payment is tendered, shall remain liable for payment of the tax
and for all legal penalties, the same as if such payment had not been tendered.
Acceptance of any sum by the director shall not discharge the tax or fee due unless the
amount paid is the full amount due.
B. A return or remittance that is transmitted to the city by United States mail shall be
deemed filed or received on the date shown by the cancellation mark stamped by the
post office upon the envelope containing it. The director may allow electronic filing of
returns or remittances from any taxpayer. A return or remittance which is transmitted to
the city electronically shall be deemed filed or received according to procedures set
forth by the director.
C. If a written request is received prior to the due date, the director, for good cause,
13C. The director shall keep full and accurate records of all funds received or refunded.
The director shall apply payments first against all penalties and interest owing, and then
upon the tax, without regard to any direction of the taxpayer.
ED. For any return not accompanied by a remittance of the tax shown to be due
thereon, the taxpayer shall be deemed to have failed or refused to file a return and shall
be subject to the penalties and interest provided in this chapter.
FE. Any payment made that is returned for lack of sufficient funds or for any other
reason will not be considered received until payment by certified check, money order, or
cash of the original amount due, plus a "nonsufficient funds" (NSF) charge of$2035.00
is received by the director. Any license issued upon payment with a NSF check will be
considered void, and shall - - - - - - -• - - e . ' e - - _ not be reissued
until payment (including the $2035.00 NSF fee) is received.
FG. The director is authorized, but not required, to mail tax return forms to taxpayers,
but failure of the taxpayer to receive obtain any such forms shall not excuse the
taxpayer from filing returns and making payment of the taxes or fees, when and as due
under this chapter.
3.54.150 > G ion--Waiver of penalties and interest.
A. The director may cancel any penalties imposed under ACC 3.54.140(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 subsection C of this section.
B. A request for cancellation of penalties must be received by the director within 30
days after the date the finance 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 waive or cancel a penalty imposed under ACC 3.54.140 (A) when a
taxpayer is ineligible for a penalty waiver or cancellation under subsection A of this
section, if:
1. Was not licensed, and filing returns; and
2. The taxpayer has timely filed all tax returns and paid all required taxes due under
those RCW sections for 24-months immediately preceding the period for which the
waiver was requested.
D. The director may also waive or cancel interest imposed under this chapter if:
1. The timing of the taxpayer's tax payment was in direct reliance on written instructions
from the director to the taxpayer; or
2. The timing of a taxpayer's assessment deficiency payment was based on a due date
established for the sole convenience of the director.
E. The director may adopt rules for the waiver or cancellation of penalties and interest
under this section. C—The-dir-ester--may-eanselthe-penafti-e-s-' A - - -.- 4 ! ` !f
time if a person:
1-1-s-Ret-earrenttly-lieense d-fling returns;
2 Was-u aware of its responsibility to file and pay tax, and
being notified by the finance department.
D. The d'
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