HomeMy WebLinkAbout6993ORDINANCE NO. 6993
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON AMENDING SECTIONS 3.53 OF
THE AUBURN CITY CODE (ACC) RELATING TO THE
IMPOSITION AND ADMINISTRATION OF THE CITY
BUSINESS & OCCUPATION (B&O) TAX
WHEREAS, Auburn City Code (ACC) Chapter 3.53 enacts the City's B&O tax; and
WHEREAS, Sections of Chapter 3.53 ACC amendments due to a mandatory
change of the B&O Tax Model Ordinance in connection with the provisions of SB 5814
updates related to administration of the Chapters;
WHEREAS, Section 3.53.020 ACC as amended would modify the definition of
"retail sale" 3.53.020 (PP), "wholesale sale" 3.53.020 (QQ) with the effective date January
1, 2026, and "retail services" 3.53.020 (MM) adding new reporting requirements of
individual self-service storage, effective April 1, 2026 (per ESSB 5797); and
WHEREAS, Section 3.53.040 (C) ACC as amended would update the non -
reporting threshold from $2,000 to $4,000, per mandatory change of City Business
License Model Ordinance with the effective date to January 1, 2026; and
WHEREAS, the revisions proposed in this Ordinance are in the best interest of the
City and its Taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO -ORDAIN as follows:
Section 1. Amendment to City Code. Section 3.53.020 ACC is hereby
amended to read as set forth in Exhibit A attached to this Ordinance.
Section 2. Amendment to City Code. Section 3.53.040 ACC is hereby.
amended to read asset forth in Exhibit B attached to this Ordinance.
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Ordinance No. 6993
December 4, 2025
Page 1 of 2
Rev. 2024
ACC 3.53.020, Definitions Exhibit A Page 1 of 33
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. "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 15.85.020or 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 (ff).
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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 2 of 33
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 maybe 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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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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. "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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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H. "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.
I. "City" means the city of Auburn, Washington.
J. "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.
K. "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.
L. "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 anew 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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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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."
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 6 of 33
M. "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.
N. "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.
0. "Digital automated service," "digital code" and "digital goods" have the same meaning as in
RCW 82.04,192.
P. "Digital products" means digital goods, digital codes, digital automated services, and the
services described in RCW 82.04.050(2)(a) and (6)(b).
Q. "Eligible gross receipts tax" means a tax which:
1. Is imposed on the actor privilege of engaging in business activities within 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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 7 of 33
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.
R. 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 (RIM 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.
The Auburn City Code is current through ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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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 JKU4 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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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S. "Extracting' is the activity engaged in by an extractor and is reportable under the extracting
classification.
T. 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; 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.
U. "Extractor for hire" means a person who performs under contract necessary labor or
mechanical services for an extractor.
V. "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.
W. "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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 11 of 33
X. "Gross receipts" has the same meaning as gross income.
Y. "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.
Z. 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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3,53.020, Definitions
2. For the purpose of this section, "collective investment fund" includes:
Page 12 of 33
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 USC 80(a)(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 80 a 3 ;
c. An employee benefit plan, which includes any plan, trust, commingled employee
benefit trust, or custodial arrangement that is subject to 29 USC 1001 et seq., or that is
described in 26 USC 125, 401, 403, 408, 457, 501 c 9 , and 501 c 17 through LZ41 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 USC 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 Z 2 a
through Z 2 e of this section created under the laws of a foreign jurisdiction.
AA. "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.
CC. "Manufacturing' means the activity conducted by a manufacturer and is reported under
the manufacturing classification.
DD. "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,
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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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.
EE. 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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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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.
FF. "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.
GG. "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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 15 of 33
HH. "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.
II. "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.
J. "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. "Retailing' means the activity of engaging in making sales at retail and is reported under
the retailing classification.
LL. "Retail floor space" means the area where items are on display for sale to the public,
together with the walkways and open spaces associated with such display.
MM. "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, racquetball,
handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others,
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 16 of 33
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.
9 Beginning April 1 2026 the rental or lease of individual self-service storage space at
self -storage facilities.
NN. "Royalties" means compensation for the use of intangible property, such as copyrights,
patents, licenses, franchises, trademarks, trade names, and similar items.
00. Sale, Casual or lsolated 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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 17 of 33
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.
PP. Sale at Retail, Retail Sale.
"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 p o erty
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 propeM 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 propeM 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 our ose of r)roviding the property to consumers as part of
competitive telephonedefined in RCW 82.04.065;• ••
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(f) Purchases for the purpose of satisfying the person's obligations under an extended
warranty as defined in subsection (8)(7-) of this section if such tangible personal
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 18 of 33
property replaces or becomes an ingredient or component of property covered by the
extended warranty without intervening use by such person.
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 (a)(b), (c), (d), (e), or (f) of this subsection following such use.
The term also means every sale of tangible personal oroDertv to Dersons en a eg d in a-y
business that is taxable under RCW 82.04.280(1)(a), (b), and (g), 82.04,290, and
82.04.2908.
(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 .050(1)(g).
(3) The term "sale at retail" or "retail sale" includes 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:
(a) Information technology training services, technical support, and other services
inclUdin.g,..but ..not limited to assistinR with network..operations and support help_
desk services in -person training related to hardware or software, network system
support services data entry services and data processing services; or
(b) Custom website development services. For the purposes of this subsection (3),
"website development services" means the design development and support of a
website provided by a website developer to a customer: or
(c) Investigation security services security monitoring services, and armored car
services including but not limited to background checks, security guard and patrol
services personal and event security, armored car transportation of cash and
valuables and security ystem services and monitoring. This does not include
locksmith services; or
(d) Temporary staffing services For the purposes of this subsection (3) "temporary
staffing services" means providing workers to other businesses, except for hospitals
licensed under chapter 70.41 or 71.12 RCW, for limited periods of time to
supplement their workforce and fill employment vacancies on a contract or for fee
basis: or
(e) Advertising services (i) For the purposes of this subsection (3) "advertising services"
means all digital and nondigital services related to the creation, preparation,
production or dissemination of advertisements including, but not limited to: (A)
Layout art direction, graphic design mechanical preparation, production
supervision placement, referrals acquisition of advertising space, and rendering
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 19 of 33
advice concerning the best methods of advertising products or services: and (B)
Online referrals, search engine marketing, and lead generation optimization, web
cam ai n planning, the acquisition of advertising space in the internet media, and
the monitoring and evaluation of website traffic for purposes of determining the
effectiveness of an advertising campaign_
(ii) "Advertising services" do not include:
(A) Web hosting services and domain name registration;
(B) Services rendered in respect to the following:
(1) "Newspapers" as defined in RCW 82.04.214:
(II) Printing or publishing under RCW 82.04.280: and
(III) "Radio and television broadcasting" within this state as defined in
RCW 82.04 (section 1, chapter 9, Laws of 2025): and
(C) Services rendered in respect to out -of --home advertising, including_
Billboard advertising; street furniture advertising: transit advertising:
place -based advertising such as in-store display advertising or point -of -sale
advertising: dynamic or static signag_e at live events: naming rights; and fixed
signage advertising. Out -of -home advertising does not include direct mail: or
(f1 Live presentations including but not limited to lectures seminars, workshops, or
courses where participants attend either in person or via the internet or
telecommunications equipment_that allows audience members and the presenter or
instructor to give receive and discuss information with each other in real time.
For the -purposes of a) through (c) and (e) of this subsection (3), the terms "sale at retail"
and "retail sale" do not include a sale between members of an affiliated group as defined in
RCW 82.04.299(1)(f).
(4) "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 includingcharges harges made for the mere use of
facilities in respect thereto but excluding charges made for the use of coin operated
laundry facilities when such facilities are situated in an apartment house, rooming
house or mobile home park for the exclusive use of the tenants thereof, and also
excluding sales of laundry ervice 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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 20 of 33
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
imorovina anv structure upon, above, or under any real propert 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 upholste!y. The term "janitorial services" does not include painting,
papering repairing, furnace or se6tic 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;
ff) 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 occuaancy of real .propert for or a continuous period of one month or more
constitutes a rental or lease of real property and not a mere license to use or enioy
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 (a) (b) (c) (d) (e) (fl and (g) of this subsection 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 (1) of this section and nothing contained in subsection
(1) of this section shall be construed to modify this subsection.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 21 of 33
(5) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone
service to consumers "^^e sep'°' "
(6) "Sale at retail" or "retail sale"
(a) "Sale at retail" or "retail sale" shall also include the sale of prewritten software
custom software and customization of prewritten computer software to a consumer,
other than a sale to a person who presents a resale certificate under RCW 82.04.470
regardless of the method of deliverr(to the end user. For purposes of this subsection
(65)(a) the sale of 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.._sal_e...m.ay.._ characterized the..vendor._ or by term "gale at
¢Jii (i)The term "sale at retail" or "retail sale" also includes the charge made to
consumers for the right to access and use prewritten computer software,
custom software and customization of 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.
ii (A) The service described in (b)(i) of this subsection 6-5 includes the right to
access and use orewritten software custom software, and customization of
prewritten computer software to perform data processing.
(B) For purposes of this subsection (b)(ii) "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 nrocessinR, survev processing i3avroll processing, claim processing,
and similar activities.
(7) "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)
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 22 of 33
(8) "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 pro'erty 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
extend_ed.___.._....._.warranty__inthis subsection,...... if no separate,Ct argq is ma.de._for.the_agreement_a.nd.
the value of the agreement is included in the sales price of the tangible personal property
covered by the agreement.
(9) "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 y virtue of installation (government contracting).
L 0) "Sale at retail' or "retail sale" shall not include the sale of services or charges made for the
clearing of land and the moving of earth of or for the United States, any instrumentality
thereof, or a county or city housing authority. Nor shall the term include the sale of
services or charges made for cleaning up for the United States, or its instrumentalities,
radioactive waste and other byproducts of weapons production and nuclear research and
development [This should be reported under the service and other classification as
defined under ACC 3.53.040(A)(7).1
(11) "Sale at retail' or "retail sale" shall not include the sale of or charge made for labor and
services rendered for environmental remedial action. rThis should be reported under the
service and other classification.1
('12) (a) "Sale at retail' or "retail sale" shall also include the following sales to consumers of
digital goods digital codes. and digital automated services:
(a} fi�__Sales in which the seller has_granted the purchaser the right of permanent use-
ii Sales in which the seller has granted the purchaser a-ht of use that is less than
permanent,
Sales in which the purchaser is not obligated to make continued payment as a
condition of the sale: and
t-4(iv) Sales in which the purchaser is obligated to make continued payment as a
condition of the sale.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 23 of 33
(b) A retail sale of digital goods digital codes or digital automated services under this
subsection [Lnsert reference to section .040 1 Z). 1j-14 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.
(c) A retail sale of digital goods digital codes or digital automated services does not
include the following services if the sale occurs between members of an affiliated ,group
as defined in RCW 82.04.299(1)(fl:
(i) Any service that primarily involves the application of human effort by the
seller, and the human effort originated after the customer requested the service;
(ii) Live presentations such as lectures seminars workshops, or courses, where
participants are connected to other participants via the internet or
telecommunications equipment which allows audience members and the
presenter or instructor to give receive and discuss information with each other
in real time;
(iii) Advertising services For purposes of this subsection "advertising services"
means all services directlelated to the creation_ preparation,._production, or
dissemination of advertisements Advertising services include layout, art
direction graphic design mechanical preparation production supervision
placement, and rendering advice to a client concerning the best methods of
advertising that client's products or services Advertising services also include
online referrals search engine marketing and lead generation optimization,
web campaign planning, the acquisition of advertising space in the internet
media and the monitoring and evaluation of website traffic for purposes of
determining the effectiveness of an advertising campaign. Advertising
services do not include web hosting_ services and domain name registration;
and
(iv) Data processing services For purposes of this subsection "data processing
service" means a primarily automated service provided to a business or
other organization where the primary object of the service is the systematic
performance of operations by the service provider on data supplied in whole
or in part by the customer to extract the required information in an
appropriate form or to convert the data to usable information. Data
processing services include check processing image processing, form
orm
processing, survey processing payroll processing claim aim processing, and
similar activities Data processing does not include the service described in
subsection (insert reference) of this section.
d 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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 24 of 33
circumstances surrounding the transaction suggest or indicate that the right to use
terminates on the occurrence of a condition subsequent.
(13) "Sale at retail" or "retail sale" shall also include the installing, altering
improving of digital goods for consumers.
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The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
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The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3,53.020, Definitions
Page 26 of 33
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The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 27 of 33
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The Auburn City Code is current through Ordinance 6983, passed July 21, 2025,
ACC 3.53.020, Definitions
Page 28 of 33
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The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 29 of 33
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QQ. "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property,
digital goods, digital codes, digital automated services, prewritten computer software, custom
software--cu_stQ.rp.z.Rio.r1..-.o...f-prewrtten._software-ta_a c_on_s_urn-er,.._or services described in
subsection PP 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.
RR. "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.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 30 of 33
SS. 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
The Auburn City Code is current through ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions Page 31 of 33
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.
TT. '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.
UU. '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 USC
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 2813.90 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.
W. "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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 32 of 33
according to which method of accounting is regularly employed in keeping the books of the
taxpayer.
WW. 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 WW 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.
XX. 'Warehouse" means every structure or any part thereof that is used for the storage of
merchandise, goods, wares, commodities, inventory, materials, equipment or other items
(whether or not for compensation) in furtherance of engaging in business, including but not
limited to the following:
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.020, Definitions
Page 33 of 33
1. "Storage warehouse" means a building or structure, or any part thereof, in which goods,
wares, or merchandise are stored whether or not 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.
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.
YY. "Warehouse, outdoor" means an area that is outdoors and is primarily used for the storage
of merchandise, goods, wares, commodities, inventory, materials, equipment or other items
(whether or not for compensation) in furtherance of engaging in business.
ZZ. "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported
under the wholesaling classification. (Ord. 6943 § 1 (Exh. A), 2024; Ord. 6930 § 1 (Exh. A), 2024; Ord. 6898
§ 1 (Exh. A), 2023; Ord. 6860 § 1 (Exh. A), 2022; Ord. 6814 § 1 (Exh. A), 2021.)
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
Disclaimer: The city clerk's office has the official version of the Auburn City Code. Users should
contact the city clerk's office for ordinances passed subsequent to the ordinance cited above.
City Website: www.auburnwa.gov
Hosted by General Code.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC3.53.040, Imposition of the tax - Tax or fee levied Exhibit B Page 1 of 5
3.53.040 Imposition of the tax - Tax or fee levied.
Except as provided in subsection C of this section, effective ja nua ry 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 one 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 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.
I 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
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 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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.040, Imposition of the tax - Tax or fee levied
Page 2 of 5
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 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 one percent (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 one percent (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 and other B&O tax classification. Lottery payouts do not
qualify for the payouts deduction.
9. 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. This subsection B applies to any business that uses warehouse space
within the city in the course of or in the furtherance of engaging in business, regardless of any
business activity tax classifications in subsection A of this section.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.040, Imposition of the tax - Tax or fee levied
Page 3 of 5
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 subsection, "warehouse" means every structure or any part thereof
that is used for the storage of merchandise, goods, wares, commodities, inventory,
materials, equipment or other items (whether or not for compensation) in furtherance of
engaging in business, including but not limited to "storage warehouses," "cold storage
warehouses" and "automobile storage garage" as defined in ACC 3.53.020M).
3. For purposes of this subsection, "outdoor warehouse" means an area that is outdoors
and primarily used for the storage of merchandise, goods, wares, commodities, inventory,
materials, equipment or other items (whether or not for compensation) in furtherance of
engaging in business.
4. For purposes of this subsection, 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.
5. For purposes of this subsection, 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. The square footage
of an outdoor warehouse shall only include those areas used and/or intended to be used
for the storage of goods, wares, merchandise, commodities, inventory, materials,
equipment, or other items (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; buildings or areas used only for retail floor space or
rentals to consumers; landscaped areas; storm water facilities; maneuvering areas or drive
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.040, Imposition of the tax - Tax or fee levied
Page 4 of 5
aisles; areas used only for garbage or recycling pickup; rights -of -way; or other areas clearly
not used for the storage of items described in this subsection.
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. 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. Effective January 1. 2026, this threshold changes to $4,000.
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
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
ACC 3.53.040, Imposition of the tax - Tax or fee levied
Page 5 of 5
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. (Ord. 6943
§ 2 (Exh. A), 2024; Ord. 6930 § 1 (Exh. A), 2024; Ord. 6898 § 1 (Exh. A), 2023; Ord. 6860 § 1 (Exh. A), 2022;
Ord. 6814 § 1 (Exh. A), 2021.)
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.
Disclaimer: The city clerk's office has the official version of the Auburn City Code. Users should
contact the city clerk's office for ordinances passed subsequent to the ordinance cited above.
City Website: www.auburnwa.gov
Hosted by General Code.
The Auburn City Code is current through Ordinance 6983, passed July 21, 2025.