Title 4 REVENUE AND FINANCE

4.03.040 When due and payable – Reporting periods – Monthly, quarterly, and annual returns – Threshold provisions or relief from filing requirements – Computing time periods – Failure to file returns.

4.03.050 Payment methods – Mailing returns or remittances – Time extension – Deposits – Recording payments – Payment must accompany return – NSF checks.

4.03.060 Records to be preserved – Examination – Estoppel to question assessment.

4.03.080 Public work contracts – Payment of fee and tax before final payment for work.

4.03.100 Overpayment of tax, penalty, or interest – Credit or refund – Interest rate – Statute of limitations.

4.03.110 Late payment – Disregard of written instructions – Evasion – Penalties.

4.03.010 Purpose.

This section implements Washington Constitution Article XI, Section 12 and RCW 35A.82.020 and 35A.11.020 (code cities); RCW 35.22.280(32) (first class cities); RCW 35.23.440(8) (second class cities); and RCW 35.27.370(9) (fourth class cities and towns), which give municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. It is intended that this chapter be as uniform as possible among the various municipalities and consistent with the mandatory requirements of Chapter 35.102 RCW for municipalities. Uniformity with provisions of state tax laws should not be presumed, and references in this section to statutory or administrative rule changes do not mean state tax statutes or rules promulgated by the Department of Revenue. (Ord. 5781 § 1, 2007; Ord. 5436 § 1, 2003.)

4.03.015 Application of chapter stated.

The provisions of this chapter shall apply with respect to the taxes imposed under Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; Chapter 4.14 BCC, Gambling Tax Code, and to such other chapters and sections of the Bellevue City Code in such manner and to such extent as expressly indicated in each such chapter or section. (Ord. 5436 § 1, 2003.)

4.03.020 Definitions.

The definitions contained in Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; and Chapter 4.14 BCC, Gambling Tax Code, 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. “Chapter,” unless otherwise clearly indicative by the context, means Chapter 4.03 BCC, as it may be amended from time to time.

B. Cost of Living Adjustment. Whenever a “cost of living adjustment” is required or permitted pursuant to any section of BCC Title 4, such adjustment shall be an amount equal to the amount and direction of change determined by reference to the U.S. City Average Urban Wage Earners and Clerical Workers Consumer Price Index (CPI) for each 12-month period ending on September 30th as published by the United States Department of Labor. To calculate this adjustment, the current rate will be multiplied by one plus or minus, as the case may be, the annual change in the CPI.

D. “Director” means the director of the finance department or his or her designee or other person designated by the city manager.

E. “Family” means one or more persons (but not more than six unrelated persons) living together as a single housekeeping unit. For purposes of this definition, children with familial status within the meaning of Title 42 U.S.C., Section 3602(k) and persons with handicaps within the meaning of Title 42 U.S.C., Section 3602(h) will not be counted as unrelated persons.

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

G. “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.

H. “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.

I. “Tax year” or “taxable year” means the calendar year. (Ord. 5436 § 1, 2003.)

4.03.021 Definitions – References to Chapter 82.32 RCW.

Where provisions of Chapter 82.32 RCW are incorporated by reference in this chapter or any chapter to which these administrative provisions apply pursuant to BCC 4.03.015, “department” as used in the RCW shall refer to the “director” as defined in BCC 4.03.020(D) and “warrant” as used in the RCW shall mean “citation or criminal complaint.” (Ord. 5781 § 2, 2007.)

4.03.025 Registration/license requirements.

Any person who engages in any business or performs any act which is subject to the provisions of Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; or Chapter 4.14 BCC, Gambling Tax Code, even if such person is not subject to any tax imposed thereby, shall apply under such rules and regulations as the department may prescribe and, upon approval, receive from the department a registration certificate applicable to all such business engaged in or activity performed.

No person shall engage in any business without being registered in compliance with the provisions of this section except the following:

A. Any farmer who is exempt from the business and occupation tax pursuant to BCC 4.09.090(J); or

C. Any person who performs activities subject to the provisions of Chapter 4.09 BCC and meets the requirements of BCC 4.09.030(L)(4). This exemption does not apply to any person engaged in activities that are subject to the provisions of other chapters of BCC Title 4. (Ord. 5605 § 1, 2005; Ord. 5436 § 1, 2003.)

4.03.030 Registration/license certificates.

A registration fee of $25.00 shall be due at the time of filing of the application. Such registration certificate shall be personal and nontransferable and shall be valid as long as the taxpayer continues in such business and pays any tax imposed by the city.

The registration fee shall be administratively adjusted by the director on January 1, 2004, in an amount equal to the cost of living adjustment applicable for that year. The amount of the registration fee so calculated shall be rounded to the nearest $1.00.

In the event business is transacted at two or more separate places by one taxpayer, a separate registration certificate for each place at which business is transacted shall be required. Such additional certificates shall be issued at no additional fee. Where a taxpayer changes the nature of business conducted or conducts additional activities upon which a tax is imposed by Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; or Chapter 4.14 BCC, Gambling Tax Code, such taxpayer shall apply for and receive a new registration certificate at no additional fee.

Each registration certificate shall be numbered and shall show the name, business location, mailing address and such other information as the department deems necessary. The certificate of registration shall be posted in a conspicuous place at the place of business for which it is issued.

Where a place of business of the taxpayer is changed, the taxpayer shall notify the department and upon approval a new certificate will be issued free of charge for the new place of business. (Ord. 5436 § 1, 2003.)

4.03.035 City subject to tax.

Whenever the city through any department or division engages in any business activity taxable under Chapter 4.10 BCC, Utility Occupation Tax Code, which if engaged in by any person would require a certificate of registration, the filing of returns and the payment of a registration fee or tax by such person, the city department or division engaging in such business activity shall, at the same time and in the same manner as persons are required hereunder, prepare returns and pay the registration fees or taxes imposed in Chapter 4.10 BCC, unless specifically exempted in the applicable tax code. (Ord. 5436 § 1, 2003.)

A. Other than any annual license fee or registration fee assessed under this chapter, the taxes imposed by Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; and Chapter 4.14 BCC, Gambling Tax Code, shall be due and payable in quarterly installments. At the director’s discretion, businesses may be assigned to a monthly or annual reporting period depending on the tax amount owing or type of tax; provided, however, that the director may only assign a monthly reporting period for purposes of Chapter 4.09 BCC where the taxpayer is remitting excise tax to the state on a monthly basis. Tax payments for monthly, quarterly and annual taxpayers are due as described for such reporting frequencies in RCW 82.32.045, as it now exists or as it may be amended.

B. Taxes shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the director. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true to the best of their belief and knowledge.

C. Tax returns must be filed and returned by the due date whether or not any tax is owed.

D. Notwithstanding subsection A of this section, the director may relieve any person of the requirement to file returns if the person meets exemption criteria under BCC 4.04.035(B), 4.04.035(C), 4.09.090(A), 4.14.040(A), or 4.14.040(B).

E. 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 subject to the conditions set forth in subsection D of this section.

F. 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.

G. 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. (Ord. 5781 § 3, 2007; Ord. 5436 § 1, 2003.)

4.03.050 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, may grant, in writing, additional time within which to make and file returns.

D. 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.

E. 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.

F. 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 $20.00 is received by the director. Any license issued upon payment with an NSF check will be considered void, and shall be returned to the director. No license shall be reissued until payment (including the $20.00 NSF fee) is received.

G. The director is authorized, but not required, to mail tax return forms to taxpayers, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from filing returns and making payment of the taxes or fees, when and as due under this chapter. (Ord. 5436 § 1, 2003.)

4.03.060 Records to be preserved – Examination – Estoppel to question assessment.

Every person liable for any fee or tax imposed by this chapter shall keep and preserve, for a period of five years after filing a tax return, such records as may be necessary to determine the amount of any fee or tax for which the person may be liable; which records shall include copies of all federal income tax and state tax returns and reports made by the person. All books, records, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal income tax and state tax returns and reports shall be open for examination at any time by the director or its duly authorized agent. Every person’s business premises shall be open for inspection or examination by the director or a duly authorized agent.

A. If a person does not keep the necessary books and records within the city, it shall be sufficient if such person (a) produces within the city such books and records as may be required by the director, or (b) bears the cost of examination by the director’s agent at the place where such books and records are kept; provided, that the person electing to bear such cost shall pay in advance to the director the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination.

B. Any person who fails, or refuses a department request, to provide or make available records, or to allow inspection or examination of the business premises, shall be forever barred from questioning in any court action, the correctness of any assessment of taxes made by the city for any period for which such records have not been provided, made available or kept and preserved, or in respect of which inspection or examination of the business premises has been denied. The director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the estimate of the tax or fees due. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the city by the taxpayer. The director shall notify the taxpayer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. (Ord. 5436 § 1, 2003.)

4.03.070 Accounting methods.

A. A taxpayer may file tax returns in each reporting period with amounts based upon cash receipts only if the taxpayer’s books of account are kept on a cash receipts basis. A taxpayer that does not regularly keep books of account on a cash receipts basis must file returns with amounts based on the accrual method.

B. The taxes imposed and the returns required, hereunder, shall be upon a calendar year basis. (Ord. 5436 § 1, 2003.)

4.03.080 Public work contracts – Payment of fee and tax before final payment for work.

The director may, before issuing any final payment to any person performing any public work contract for the city, require such person to pay in full all license fees or taxes due under this title from such person on account of such contract or otherwise, and may require such taxpayer to file with the director a verified list of all subcontractors supplying labor and/or materials to the person in connection with said public work. (Ord. 5436 § 1, 2003.)

4.03.090 Underpayment of tax, interest, or penalty – Interest.

If, upon examination of any returns, or from other information obtained by the director, it appears that a tax or penalty less than that properly due has been paid, the director shall assess the additional amount found to be due and shall add thereto interest on the tax only. The director shall notify the person by mail of the additional amount, which shall become due and shall be paid within 30 days from the date of the notice, or within such time as the director may provide in writing.

A. For the purposes of this section, the rate of interest to be charged to the taxpayer for tax periods prior to January 1, 2005, shall be an average of the federal short-term rate as defined in 26 U.S.C. Section 1274(d) plus two percentage points. The rate shall be computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually, for the months of January, April, July, and October of the year immediately preceding the calendar year as published by the United States Secretary of the Treasury. The rate shall be adjusted on the first day of January of each year for use in computing interest for that calendar year. For tax periods prior to January 1, 2005, interest shall be computed from the last day of the month following the end of the reporting period and will continue to accrue until payment is made.

B. For tax periods after December 31, 2004, the director shall compute interest in accordance with RCW 82.32.050 as it now exists or as it may be amended.

C. If subsection B of this section is held to be invalid, then the provisions of RCW 82.32.050 existing as of the effective date of the ordinance codified in this section shall apply. (Ord. 5781 § 4, 2007; Ord. 5605 § 2, 2005; Ord. 5558 § 1, 2004; Ord. 5436 § 1, 2003.)

4.03.095 Time in which assessment may be made.

The director shall not assess, or correct an assessment for, additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were incurred, except that the director may issue an assessment:

A. Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing 10 years prior to the close of the calendar year in which the person was contacted in writing by the director;

B. Against a person that has committed fraud or who misrepresented a material fact; or

C. Against a person that has executed a written waiver of such limitations. (Ord. 5558 § 2, 2004.)

4.03.100 Overpayment of tax, penalty, or interest – Credit or refund – Interest rate – Statute of limitations.

A. If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer’s records and tax returns, the director determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer’s account or shall be refunded to the taxpayer. Except as provided in subsection B of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.

B. The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the director discovers that a refund or credit is due.

C. Refunds shall be made by means of vouchers approved by the director and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide.

D. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in subsection C of this section, upon the filing with the director a certified copy of the order or judgment of the court.

E. The rate of interest on overpayments of taxes for tax periods prior to January 1, 2005, shall be the same as for underpayments, as set forth in BCC 4.03.090(A).

F. 1. For tax periods after December 31, 2004, the director shall compute interest on refunds or credits of amounts paid or other recovery allowed a taxpayer in accordance with RCW 82.32.060 as it now exists or as it may be amended.

2. If subsection (F)(1) of this section is held to be invalid, then the provisions of RCW 82.32.060 as existing at the effective date of the ordinance codified in this section shall apply. (Ord. 5781 §§ 5, 6, 2007; Ord. 5605 § 3, 2005; Ord. 5558 § 3, 2004; Ord. 5436 § 1, 2003.)

4.03.110 Late payment – Disregard of written instructions – Evasion – Penalties.

A. If payment of any tax due on a return to be filed by a taxpayer is not received by the director by the due date, the director shall add a penalty in accordance with RCW 82.32.090(1) as it now exists or as it may be amended.

B. If the director determines that any tax has been substantially underpaid as defined in RCW 82.32.090(2), there shall be added a penalty in accordance with RCW 82.32.090(2) as it now exists or as it may be amended.

C. If a citation or criminal complaint is issued by the city for the collection of taxes, fees, assessments, interest or penalties, there shall be added thereto a penalty in accordance with RCW 82.32.090(3) as it now exists or as it may be amended.

D. If the director finds that a person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the director a license as required by BCC 4.03.025, the director shall impose a penalty in accordance with RCW 82.32.090(4) as it now exists or as it may be amended. No penalty shall be imposed under this subsection D if the person who has engaged in business without a license obtains a license prior to being notified by the director of the need to be licensed.

E. If the director determines that all or any part of a deficiency resulted from the taxpayer’s failure to follow specific written tax reporting instructions, there shall be assessed a penalty in accordance with RCW 82.32.090(5) as it now exists or as it may be amended.

F. If the director finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the director shall assess a penalty in accordance with RCW 82.32.090(6) as it now exists or as it may be amended.

G. The penalties imposed under subsections A through E of this section can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law.

H. The director shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due.

I. For the purposes of this section, “return” means any document a person is required by the city to file to satisfy or establish a tax or fee obligation that is administered or collected by the city, and that has a statutorily defined due date.

J. If incorporation into the city code of future changes to RCW 82.32.090 is deemed invalid, then the provisions of RCW 82.32.090 referenced in this section existing at the time the ordinance codified in this section is effective shall apply. (Ord. 5781 § 7, 2007; Ord. 5605 § 4, 2005; Ord. 5558 § 4, 2004; Ord. 5436 § 1, 2003.)

4.03.120 Cancellation of penalties and interest.

A. The director may cancel any penalties and/or interest imposed under BCC 4.03.110(A) if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the return and pay the tax but was nevertheless, due to circumstances beyond the taxpayer’s control, unable to file or pay by the due date. The director’s authority to waive or cancel penalties and/or interest under this subsection shall extend to amounts already paid and also includes any disputes currently pending. “Reasonable cause” may include the following and other similar circumstances:

1. The return was filed on time, but was inadvertently mailed to another agency or there was a delay or loss related to the postal service. The director may also cancel interest in this situation.

2. The delinquency was due to written erroneous information given the taxpayer by the department. The director may also cancel interest in this situation.

3. The delinquency was caused by the death or serious illness of the taxpayer or his/her immediate family, or by the illness or death of his/her tax preparer or a member of the tax preparer’s immediate family, prior to the filing date.

4. The delinquency was caused by the unavoidable absence of the taxpayer, prior to the filing date.

5. The delinquency was caused by the destruction, through no fault of the taxpayer, by fire or other casualty of the taxpayer’s place of business or business records.

6. The taxpayer, prior to the time of filing the return, made timely application to the department, in writing, for proper forms and these forms were not furnished in sufficient time to permit the completed return to be filed and the tax paid before the delinquent date.

7. The delinquency was the result of an unforeseen and unintentional circumstance, not immediately known to the taxpayer, caused by the malfeasance or misconduct of the taxpayer’s employee or accountant.

8. The director has reasonably determined that the taxpayer made a good faith effort to comply with the provisions of this chapter.

9. The taxpayer inadvertently failed to file a tax return because of a good faith belief that the taxpayer qualified for the filing exemption in BCC 4.03.040(D).

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 and/or interest must be received by the director within 30 days after the date the department mails the notice that the penalties and/or interest are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rests upon the taxpayer.

C. The director may cancel the penalties in BCC 4.03.110(A) one time if a person:

3. Obtained business licenses and filed past due tax returns within 30 days after being notified by the department.

D. The director shall not cancel any interest charged upon amounts due, except under subsections (A)(1) and (2) of this section. (Ord. 5781 § 8, 2007; Ord. 5605 § 5, 2005; Ord. 5558 § 5, 2004; Ord. 5436 § 1, 2003.)

4.03.125 Voluntary registration.

In the case of any unregistered taxpayer doing business in the city of Bellevue that voluntarily registers prior to being contacted by the department, the department shall not assess for back taxes or interest for more than four calendar years prior to the year of registration. In addition, the late payment penalty imposed under BCC 4.03.110(A) shall not apply. (Ord. 5436 § 1, 2003.)

4.03.130 Taxpayer quitting business – Liability of successor.

A. Whenever any taxpayer quits business, sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within 10 days thereafter, make a return and pay the tax due.

B. Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the city from the taxpayer until such time as:

1. The taxpayer shall produce a receipt from the city showing payment in full of any tax due or a certificate that no tax is due; or

2. More than six months have passed since the successor notified the director of the acquisition and the director has not issued and notified the successor of an assessment.

C. Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer.

D. Notwithstanding the above, if a successor gives written notice to the director of the acquisition, and the department does not within six months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. (Ord. 5436 § 1, 2003.)

4.03.140 Correction of tax – Administrative appeal.

A. Any person having been issued a notice of additional taxes, delinquent taxes, interest, or penalties assessed by the department may, within 30 days after the issuance of such notice or within the period covered by any extension of the due date granted by the department, request a correction of the amount of the assessment and a conference for review of the assessment. Interest and penalties assessed shall continue to accrue during the department’s review of a request for a correction, except and to the extent that the department later determines that a tax assessment was too high or the delay in issuing a determination is due to unreasonable delays caused by the department. After the conference, the department will make a final determination regarding the assessment and shall notify the taxpayer of the department’s determination within 60 days, unless otherwise notified in writing by the department. Such determination shall be subject to appeal pursuant to subsection B of this section. If no request for correction is filed within the time period provided herein, the assessment covered by such notice shall become final and immediately due and payable.

B. Any person aggrieved by the amount of any fee, tax, interest or penalty determined by the department to be due under the provisions of this chapter or Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; or Chapter 4.14 BCC, Gambling Tax Code, may appeal such determination pursuant to the following procedures:

1. Form of Appeal. Any appeal must be in writing and must contain the following:

b. A statement identifying the determination of the department from which the appeal is taken;

c. A statement setting forth the grounds upon which the appeal is taken and identifying specific errors the department is alleged to have made in making the determination; and

d. A statement identifying the requested relief from the determination being appealed.

2. Time and Place to Appeal. Any appeal shall be filed with the office of the hearing examiner with a copy to the director no later than 30 days following the date on which the determination of the department was mailed to the taxpayer. Failure to follow the appeal procedures in this section shall preclude the taxpayer’s right to appeal.

3. Appeal Hearing. The hearing examiner shall schedule a hearing date, notify the taxpayer and the director of such hearing date and shall then conduct an appeal hearing in accordance with this chapter and procedures developed by the hearing examiner, at which time the appellant taxpayer and the director shall have the opportunity to be heard and to introduce evidence relevant to the subject of the appeal.

4. Burden of Proof. The appellant taxpayer shall have the burden of proving by a preponderance of the evidence that the determination of the department is erroneous.

5. Hearing Record. The hearing examiner shall make an electronic sound recording of each appeal unless the hearing is conducted solely in writing.

6. Decision of the Hearing Examiner. Following the hearing, the hearing examiner shall enter a decision on the appeal, supported by written findings and conclusions in support thereof. A copy of the findings, conclusions and decision shall be mailed to the appellant taxpayer and to the director. The decision shall state the correct amount of the fee, tax, interest or penalty owing.

7. Interest Accrual or Payment. Interest and/or penalties shall continue to accrue on all unpaid amounts, in accordance with BCC 4.03.090 and 4.03.110, notwithstanding the fact that an appeal has been filed. If the hearing examiner determines that the taxpayer is owed a refund, such refund amount shall be paid to the taxpayer in accordance with BCC 4.03.100. (Ord. 5558 § 6, 2004; Ord. 5436 § 1, 2003.)

4.03.150 Judicial review of hearing examiner decision.

The decision of the hearing examiner may be appealed to the superior court of King County by the appellant taxpayer or by the director by filing a proper request for a writ of review with the superior court. A request for a writ of review must be filed within 30 calendar days following the date that the decision of the hearing examiner was mailed to the parties. Review by the superior court shall be on, and shall be limited to, the record on appeal created before the hearing examiner. (Ord. 5436 § 1, 2003.)

4.03.160 Administration – Director to make rules.

The administration of this chapter and Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; and Chapter 4.14 BCC, Gambling Tax Code, shall be accomplished under the direction of the director.

The director may prescribe forms and shall have the power, from time to time, to adopt, publish and enforce rules and regulations necessary for the administration of this chapter and for the administration of Chapters 4.04, 4.09, 4.10, and 4.14 BCC, not inconsistent with these chapters or with law. It shall be unlawful to violate or fail to comply with any such rule or regulation. (Ord. 5436 § 1, 2003.)

4.03.170 Ancillary allocation authority of director.

The director is authorized to enter into agreements with other Washington cities which impose an “eligible gross receipts tax”:

A. To conduct an audit or joint audit of a taxpayer by using an auditor employed by the city of Bellevue, another city, or a contract auditor; provided, that such contract auditor’s pay is not in any way based upon the amount of tax assessed;

B. To allocate or apportion, in a manner that fairly reflects the gross receipts earned from activities conducted within the respective cities, the gross proceeds of sales, gross receipts, or gross income of the business, or taxes due from any person that is required to pay an eligible gross receipts tax to more than one Washington city; provided, that for tax periods beginning on or after January 1, 2008, such agreement shall be consistent with the allocation or apportionment methods set forth in RCW 35.102.130 as it now exists or as it may be amended;

C. To apply the city’s tax prospectively where a taxpayer has no office or place of business within the city and has paid tax on all gross income to another Washington city where the taxpayer is located; provided, that the other city maintains an eligible gross receipts tax, and the income was not derived from contracts with the city. (Ord. 5781 § 9, 2007; Ord. 5558 § 7, 2004; Ord. 5436 § 1, 2003.)

4.03.180 Mailing of notices.

Any notice required by this chapter to be mailed to any taxpayer or licensee shall be sent by ordinary mail, addressed to the address of the taxpayer or licensee as shown by the records of the director. Failure of the taxpayer or licensee to receive any such mailed notice shall not release the taxpayer or licensee from any tax, fee, interest, or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. It is the responsibility of the taxpayer to inform the director in writing about a change in the taxpayer’s address. (Ord. 5436 § 1, 2003.)

4.03.190 Tax declared additional.

The license fee and tax levied in Chapters 4.04, 4.09, 4.10, and 4.14 BCC shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city of Bellevue except as herein otherwise expressly provided. (Ord. 5781 § 10, 2007; Ord. 5436 § 1, 2003.)

4.03.200 Public disclosure – Confidentiality – Information sharing.

Except as hereinafter provided, it shall be unlawful for the city or any official, employee, agent, or representative thereof to make known or reveal any facts or information contained in any return filed by any taxpayer or disclosed in any investigation or examination of the taxpayer’s books and records made in connection with the administration thereof; except where such disclosure or inspection is authorized or required by the Public Disclosure Act, Chapter 42.56 RCW, as it now exists or as it may be amended, or other state or federal law. The foregoing, however, shall not be construed to prohibit the city or any official, employee, agent or representative thereof from:

A. Giving such facts or information in evidence in any appeal before the hearing examiner or in any court action involving any tax, interest or penalty imposed pursuant to BCC Title 4 or involving a violation of the provisions thereof.

B. Giving such facts and information to the taxpayer or his duly authorized agent.

C. Publishing statistics so classified as to prevent the identification of particular taxpayers or their returns or reports or items thereof.

D. Giving such facts or information, for official purposes only, to any employee of the city, the mayor and city council, or to any subcommittee of the city council dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions.

E. Permitting the taxpayer’s records to be audited and examined by the proper city officer, agent or employee.

F. Giving such facts or information, for official purposes only, to the Federal Internal Revenue Service, State Department of Revenue, and tax or law enforcement officials of any federal or state agency or municipal subdivision of this state for official purposes only, but only if substantially similar privileges are granted to the proper offices of the city.

Any person acquiring knowledge of such facts or information in the course of his/her office, employment, or agency with the city and including any person acquiring knowledge of such facts and information as provided under subsections D, E and F of this section, who reveals or makes known any such facts or information to any person or entity not entitled to knowledge of such facts or information under the provisions of this section, may be punished by a civil penalty not exceeding $1,000 and, if the person violating this requirement is an officer or employee of the city, he/she may be required to forfeit such office or employment. (Ord. 5781 § 11, 2007; Ord. 5436 § 1, 2003.)

4.03.210 Tax constitutes debt.

Any license fee or tax due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the city and may be collected in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. 5781 § 12, 2007; Ord. 5436 § 1, 2003.)

4.03.220 Unlawful actions – Violation – Penalties.

A. It shall be unlawful for any person liable for fees or taxes under this chapter or Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; or Chapter 4.14 BCC, Gambling Tax Code:

1. To violate or fail to comply with any of the provisions of this chapter or Chapters 4.04, 4.09, 4.10 or 4.14 BCC or any lawful rule or regulation adopted by the director;

3. To aid or abet any person in any attempt to evade payment of a license fee or tax;

4. To fail to appear or testify in response to a subpoena issued pursuant to the rules of procedure of the office of the hearing examiner;

5. To testify falsely in any investigation, audit, or proceeding conducted pursuant to this chapter.

B. Violation of any of the provisions of this chapter is a gross misdemeanor. Any person convicted of a violation of this chapter may be punished by a fine not to exceed $5,000, imprisonment not to exceed one year, or both fine and imprisonment. Penalties or punishments provided in this chapter shall be in addition to all other penalties provided by law.

C. Any person, or officer of a corporation, convicted of continuing to engage in business after the revocation of a license shall be guilty of a gross misdemeanor and may be punished by a fine not to exceed $5,000, or imprisonment not to exceed one year, or both fine and imprisonment. (Ord. 5558 § 8, 2004; Ord. 5436 § 1, 2003.)

4.03.230 Suspension or revocation of business registration [license].

A. The director, or designee, shall have the power and authority to suspend or revoke any license issued under the provisions of this chapter or Chapter 4.04 BCC, Admission Tax Code; Chapter 4.09 BCC, Business and Occupation Tax Code; Chapter 4.10 BCC, Utility Occupation Tax Code; and Chapter 4.14 BCC, Gambling Tax Code, and to such other chapters and sections of the Bellevue City Code in such manner and to such extent as expressly indicated in each such chapter or section. The director, or designee, shall notify such licensee in writing by certified mail of the intended suspension or revocation of his or her license and the grounds therefor. Any license issued under this chapter may be suspended or revoked based on one or more of the following grounds:

3. The licensee has failed to comply with any provisions of the Bellevue City Code.

4. The licensee is in default in any payment of any license fee or tax under BCC Title 4.

5. The licensee or employee has been convicted of a crime involving the business.

B. Any licensee may, within 30 days from the date that the suspension or revocation notice was mailed to the licensee, appeal from such suspension or revocation by filing a written notice of appeal (“petition”) setting forth the grounds therefor with the hearing examiner. A copy of the petition must be provided by the licensee to the director and the city attorney on or before the date the petition is filed with the hearing examiner. The hearing examiner shall set a date for hearing said appeal and notify the licensee by mail of the time and place of the hearing. After the hearing thereon the hearing examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or overrule the suspension or revocation and reinstate the license, and may impose any terms upon the continuance of the license.

C. No suspension or revocation of a license issued pursuant to the provisions of this subchapter shall take effect until 30 days after the mailing of the notice thereof by the director, and if appeal is taken as herein prescribed the suspension or revocation shall be stayed pending final action by the hearing examiner. All licenses which are suspended or revoked shall be surrendered to the city on the effective date of such suspension or revocation.

D. The decision of the hearing examiner shall be final. The licensee and/or the director may seek review of the decision by the superior court of Washington in and for King County within 30 days from the date of the decision. If review is sought as herein prescribed the suspension or revocation shall be stayed pending final action by the superior court.

E. Upon revocation of any license as provided in this section no portion of the license fee shall be returned to the licensee. (Ord. 5436 § 1, 2003.)

4.03.240 Closing agreement provisions.

The director may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the chapters within this title and administered by this chapter for any taxable period(s). Upon approval of such agreement, evidenced by execution thereof by the director and the person so agreeing, the agreement shall be final and conclusive as to the tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact:

A. The case shall not be reopened as to the matters agreed upon, or the agreement modified, by the director or the taxpayer; and

B. In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. (Ord. 5436 § 1, 2003.)

4.03.250 Charge-off of uncollectible taxes.

The director may charge off any tax, penalty, or interest that is owed by a taxpayer, if the director reasonably ascertains that the cost of collecting such amounts would be greater than the total amount that is owed or likely to be collected from the taxpayer. (Ord. 5436 § 1, 2003.)

4.03.260 Severability.

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. (Ord. 5436 § 1, 2003.)

4.03.270 Collection of tax.

The city may pursue collection of any fee, tax, interest or penalty due and unpaid to the fullest extent and in any manner authorized by law, including but not limited to the filing of a civil action against the taxpayer for the payment of such debt or the use by the city of a collection agency for such purposes. (Ord. 5436 § 1, 2003.)

4.03.280 City subject to tax.

4.03.290 Tax amnesty.

The director, with city council approval, may from time to time declare periods of tax amnesty to the extent that the director determines that such periods of tax amnesty are likely to have the effect of increasing revenues to the city. The director may promulgate rules and procedures to implement the provisions of this section. (Ord. 5436 § 1, 2003.)

Chapter 4.04
ADMISSION TAX CODE

4.04.010 Exercise of revenue license power.

The provisions of this Chapter 4.04 BCC constitute an exercise of the power of the city to license for revenue. (Ord. 4839 § 2, 1995.)

4.04.015 General administrative provisions apply.

The provisions of Chapter 4.03 BCC, the tax administration code, shall be fully applicable to the provisions of this Chapter 4.04 BCC except as may be expressly stated to the contrary herein. (Ord. 5436 § 3, 2003; Ord. 4839 § 2, 1995.)

4.04.020 Definitions.

The definitions set forth in Chapter 4.03 BCC shall apply throughout this chapter unless expressly provided otherwise herein. The following additional definitions shall apply throughout this chapter:

A. “Admission charge,” in addition to its usual and ordinary meaning, is a monetary charge for an event open to the public including, but not limited in meaning to:

b. A cover charge or a charge made for use of seats or tables, reserved or otherwise, and similar accommodations;

c. A charge made for food and refreshments in any place where any free entertainment, recreation or amusement is provided;

d. A charge made for admission to any theater, dance hall, cabaret, adult cabaret, amphitheater, club, haunted house, auditorium, stadium, athletic pavilion, park or field, baseball or athletic park, circus, amusement ride, or similar place;

e. A charge made for admission to or rental or use of equipment or facilities to any public golf course, facility, or driving range; if the rental of the equipment or facilities is necessary to the enjoyment of the golf course, facility, or driving range, at which a general admission is charged, the combined charges shall be considered as the admission charge.

a. A charge made for automobile parking where the amount of the charge is determined according to the number of passengers in an automobile;

b. A sum of money referred to as “a donation” or similar payment which must be paid before entrance is allowed.

3. For purposes of illustration only, the following table provides examples of activities subject to the admission tax (this list is not all inclusive):


Taxable	Not Taxable
1. For-profit theater	1. Annual dinner of a nonprofit organization which is open to members only
2. Movie theater	2. Tickets to a show performed for employees only of a for-profit company
3. Cover charge in restaurant lounge	3. Chamber of Commerce business fair which is open to members only
4. Charge for admittance to adult entertainment employees cabaret
5. Charge for entrance to a nonprofit organization’s trade show which is open to the public
6. Charge for a golf course which is open to the public

B. “Chapter” shall mean Chapter 4.04 BCC, as it may be amended or replaced from time to time.

C. “Nonprofit tax-exempt organization” means an organization, corporation, or association organized and operated for the advancement, appreciation, public exhibition or performance, preservation, study and/or teaching of the performing arts, visual arts, history, science, or public charity providing human services, or public education which is currently recognized by the United States of America as exempt from federal income taxation pursuant to Section 501(c)(1) or (3) of the Internal

Revenue Code, as it may be amended or replaced from time to time.

D. “Secondary or elementary school” means any public or private primary school, middle school, junior high school, high school, or any accredited college, junior college, university, or the recognized student body association thereof. (Ord. 5436 § 4, 2003; Ord. 4839 § 2, 1995.)

4.04.025 Tax imposed.

There is levied and shall be collected a tax from every person, without regard to age, who pays an admission charge. Such tax shall be measured by applying the rates set forth in this chapter to the admission charge. The tax herein levied shall be paid by the person paying the admission charge and shall be collected and remitted by the person to whom the admission charge is paid. The tax required to be collected under this chapter shall be deemed held in trust by the person required to collect the same until remitted to the clerk as provided in Chapter 4.03 BCC.

No tax shall be levied on any person who is admitted free and from whom no compensating payment is obtained. The tax on reduced admission charges shall be charged on such reduced charge and not on the regular admission charge. (Ord. 5436 § 5, 2003; Ord. 4839 § 2, 1995.)

4.04.030 Tax on admission.

Upon every person who pays an admission charge within the city; as to such persons, the amount of tax with respect to such activity shall be equal to the admission charge multiplied by the rate of three percent. (Ord. 4839 § 2, 1995.)

4.04.035 Exemptions.

The following shall be exempt from any tax imposed under this chapter:

A. Admission charges for any activity of any elementary or secondary school.

B. Admission charges which are $4.00 or less. The $4.00 exemption level set forth in this subsection shall be administratively adjusted by the director on January 1st of each year, beginning on January 1, 2004, to reflect any change in the cost of living, as defined and calculated pursuant to BCC 4.03.020(B). The amount of the exemption level so calculated shall be rounded to the nearest $1.00.

C. Events sponsored by nonprofit tax-exempt organizations as defined in BCC 4.04.020(C).

1. The admission tax levied and imposed pursuant to BCC 4.04.025 shall not apply to any person paying an admission charge to an event that is sponsored by a nonprofit tax-exempt organization, as defined in BCC 4.04.020(C), when the conditions of both of the following subsections (a) and (b) are met:

a. The nonprofit tax-exempt organization:

i. Publicly sponsors and through its members, representatives or personnel promotes and publicizes the event; or

ii. Publicly sponsors the event and:

(A) Performs a major portion of the performance; or

(B) Supplies a major portion of the materials on exhibit; or

(C) When the event is a part of a season or series of performances or exhibitions, performs the major portion of the performances or exhibitions in the season or series or supplies a major portion of the materials on exhibit;

b. The nonprofit tax-exempt organization receives the use and benefit of the admission charges collected.

2. The exemption to the admission tax provided in this section shall not apply to:

a. An event sponsored by a nonprofit tax-exempt organization in which the fee paid for any one for-profit contract is greater than 80 percent of anticipated gross proceeds where the anticipated gross proceeds of the event exceeds $300,000.

b. An event in which a nonprofit tax-exempt organization lends its name as an endorsement to an ineligible person or organization for the purpose of invoking the tax exemption provided by this section.

3. In order to receive the benefit of the tax exemption provided by this section, the nonprofit tax-exempt organization must be registered with the city of Bellevue tax office pursuant to BCC 4.03.025 at least 30 days prior to the first event for which an exemption is sought. (Ord. 5436 § 6, 2003; Ord. 4839 § 2, 1995.)

4.04.040 Deductions.

In computing the tax imposed by this chapter, the following amounts may be deducted from the measure of the tax: Amounts derived from business which the city is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States. (Ord. 4839 § 2, 1995.)

4.04.045 Signs posted.

Whenever a charge is made for admission to any place, a sign shall be posted in a conspicuous place on the entrance or ticket office or on the ticket stating that a city admission tax is included in the admission charge. (Ord. 5075 § 4, 1998.)

Chapter 4.06
REAL ESTATE EXCISE TAX

Sections:

4.06.010 Imposed.

4.06.015 Additional excise tax imposed.

4.06.020 Collection of tax.

4.06.030 Compliance with state rules and regulations.

4.06.040 Distribution of proceeds – Capital improvements – Authority to impose special assessments.

4.06.045 Distribution of proceeds – Authority to impose special assessments.

4.06.050 Tax – Obligation of seller.

4.06.060 Enforcement – Lien upon property.

4.06.070 Collection by county treasurer – Satisfaction of lien – Recording of conveyances.

4.06.080 Due and payable when – Interest on late payments.

4.06.090 Payment in excess of amount due – Refund.

4.06.010 Imposed.

There is hereby imposed a tax of one-quarter of one percent of the selling price on each sale of real property within the city of Bellevue. (Ord. 3213 § 1, 1982.)

4.06.015 Additional excise tax imposed.

There is hereby imposed an additional excise tax of one-quarter of one percent of the selling price on each sale of real property within the city of Bellevue. (Ord. 4366 § 1, 1992.)

4.06.020 Collection of tax.

The tax imposed by this chapter shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and Chapter 458-61 WAC upon the occurrence of any taxable event within the city of Bellevue. (Ord. 3213 § 2, 1982.)

4.06.030 Compliance with state rules and regulations.

The tax imposed by this chapter shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under Chapter 82.45 RCW and Chapter 458-61 WAC. The provisions of those chapters to the extent they are not inconsistent with this chapter, shall apply as though fully set forth in this chapter. (Ord. 3213 § 3, 1982.)

4.06.040 Distribution of proceeds – Capital improvements – Authority to impose special assessments.

The King County treasurer shall place one percent of the proceeds of the tax imposed by BCC 4.06.010 in the county current expense fund to defray costs of collection. The remaining proceeds from the tax imposed by BCC 4.06.010 shall be distributed to the city monthly and shall be placed in the real estate excise tax fund and shall be used for capital improvements in accordance with the requirements of RCW 82.46.010, as amended. This section shall not limit the existing authority of the city to impose special assessments on property benefited thereby in the manner prescribed by law. (Ord. 4366 § 8, 1992; Ord. 3213 § 4, 1982.)

4.06.045 Distribution of proceeds – Authority to impose special assessments.

The King County treasurer shall place one percent of the proceeds of the tax imposed by BCC 4.06.015 in the county current expense fund to defray costs of collection. Remaining proceeds from the tax imposed by BCC 4.06.015 shall be distributed to the city monthly and shall be placed in the real estate excise tax fund consistent with the requirements of RCW 82.46.035, as amended. This section shall not limit the existing authority of the city to impose special assessments on property benefited thereby in the manner prescribed by law. (Ord. 4366 § 3, 1992.)

4.06.050 Tax – Obligation of seller.

The tax imposed by this chapter is the obligation of the seller and may be enforced through the action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. (Ord. 3213 § 5, 1982.)

4.06.060 Enforcement – Lien upon property.

The tax imposed by this chapter and any interest or penalties thereon are a specific lien upon each piece of real property sold from the time of sale until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other. (Ord. 3213 § 6, 1982.)

4.06.070 Collection by county treasurer – Satisfaction of lien – Recording of conveyances.

The tax imposed by this chapter shall be paid to and collected by the King County treasurer. The King County treasurer shall act as agent for the city for such purposes. The King County treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales. A receipt issued by the county treasurer for the payment of the tax imposed by this chapter shall be evidence of the satisfaction of the lien imposed in BCC 4.06.060 and may be recorded in the manner prescribed for recording satisfactions or mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the county auditor for filing or recording until the tax is paid and the stamp affixed thereto; in case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the county treasurer. (Ord. 3213 § 7, 1982.)

4.06.080 Due and payable when – Interest on late payments.

The tax imposed by this chapter shall become due and payable immediately at the time of sale and, if not so paid within 30 days thereafter, shall bear interest at the rate of one percent per month from the time of sale until the date of payment. (Ord. 3213 § 8, 1982.)

4.06.090 Payment in excess of amount due – Refund.

If, upon written application by a taxpayer to the county treasurer for a refund, it appears a tax has been paid in excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess amount or improper payment shall be refunded by the county treasurer to the taxpayer; provided, that no refund shall be made unless the state has first authorized the refund of an excessive amount or an improper amount paid, unless such improper amount was paid as a result of a miscalculation. Any refund made shall be withheld from the next monthly distribution to the city. (Ord. 3213 § 9, 1982.)

Chapter 4.08
BUSINESS AND OCCUPATION TAX CODE

(Repealed by Ord. 5436)

Chapter 4.09
BUSINESS AND OCCUPATION TAX CODE

Sections:

4.09.010 Purpose.

4.09.020 Exercise of revenue license power.

4.09.025 Adoption by reference.

4.09.028 Administrative provisions.

4.09.030 Definitions.

4.09.040 Agency – Sales and services by agent, consignee, bailee, factor or auctioneer.

4.09.050 Imposition of the tax – Tax or fee levied.

4.09.060 Doing business with the city.

4.09.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes.

4.09.075 Deductions to prevent multiple taxation of manufacturing activities and, for tax periods prior to January 1, 2008, of transactions involving more than one city with an eligible gross receipts tax.

4.09.076 Assignment of gross income derived from intangibles.

4.09.077 Allocation and apportionment of income when activities take place in more than one jurisdiction.

4.09.078 Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction.

4.09.080 Reserved.

4.09.090 Exemptions.

4.09.100 Deductions.

4.09.120 Tax part of overhead.

4.09.130 Severability clause.

4.09.010 Purpose.

4.09.020 Exercise of revenue license power.

The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. (Ord. 5436 § 2, 2003.)

4.09.025 Adoption by reference.

Where provisions of the Revised Code of Washington ( RCW) are adopted or incorporated by reference in this chapter, the adoption or incorporation shall be deemed to refer to the provision as it now exists or as it may be hereafter amended. (Ord. 5780 § 2, 2007.)

4.09.028 Administrative provisions.

The administrative provisions contained in Chapter 4.03 BCC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 5436 § 2, 2003.)

4.09.030 Definitions.

In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular.

A. Advance – Reimbursement.

1. “Advance” means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client.

2. “Reimbursement” means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client.

B. Agricultural Product – Farmer.

1. “Agricultural product” means any product of plant cultivation or animal husbandry including, but not limited to, a product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.85.020; plantation Christmas trees; turf; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.85.020, or a bird, or insect, or the substances obtained from such an animal. “Agricultural product” does not include animals intended to be pets.

2. “Farmer” means any person engaged in the business of growing or producing, upon the person’s own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale. “Farmer” does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person’s own consumption. “Farmer” does not include a person selling any animal or substance obtained therefrom in connection with the person’s business of operating a stockyard or a slaughter or packing house. “Farmer” does not include any person in respect to the business of taking, cultivating, or raising timber.

C. “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.

D. “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.

E. “Chapter” shall mean Chapter 4.09 BCC, as it may be amended or replaced from time to time.

F. “Commercial or industrial use” means the following uses of products, including byproducts, by the extractor or manufacturer thereof:

1. Any use as a consumer;

2. The manufacturing of articles, substances or commodities.

G. “Competitive telephone service” means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.

H. “Consumer” means the following:

1. Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person’s business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of:

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 taxable under BCC 4.09.050(B)(7);

3. Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business;

4. Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in this section other than for resale in the regular course of business;

5. Any person who is an end user of software;

6. Any person engaged in the business of “public road construction” in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing 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;

9. Any person engaged in “government contracting.” Any such person shall be a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person.

Nothing contained in this or any other subsection of this section shall be construed to modify any other definition of “consumer.”

I. “Day care homes in residences” means child and adult day care facilities in residences otherwise occupied as private homes.

J. “Director” means the finance director of the city or any officer, agent or employee of the city designated to act on the director’s behalf.

K. “Eligible gross receipts tax” means a tax which:

1. Is imposed on the act or privilege of engaging in business activities within BCC 4.09.050(B); 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.

L. 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 section sets forth examples of activities that constitute engaging in business in the city, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the city without having to register and obtain a business license or pay city business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection (L)(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, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.

l. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.

m. Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the city, acting on its behalf, or for customers or potential customers.

n. Investigating, resolving, or otherwise assisting in resolving customer complaints.

o. In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place.

p. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.

q. Accepting or executing a contract with the city, irrespective of whether goods or services are delivered within or without the city, or whether the person’s office or place of business is within or without the city.

4. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf, engages in no other activities in or with the city but the following, it need not register and obtain a business license and pay tax:

a. Meeting with suppliers of goods and services as a customer.

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.

d. Renting tangible or intangible property as a customer when the property is not used in the city.

e. Attending, but not participating in a “trade show” or “multiple vendor events.” Persons participating at a trade show shall review the city’s trade show or multiple vendor event ordinances.

f. Mere delivery of goods via common carrier.

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 (L)(4) of this section.

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.

M. “Extracting” is the activity engaged in by an extractor and is reportable under the extracting classification.

N. “Extractor” means every person who from the person’s own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products. “Extractor” does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer.

O. “Extractor for hire” means a person who performs under contract necessary labor or mechanical services for an extractor.

P. “Gross income of the business” means the value proceeding or accruing by reason of the business activity 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.

Q. “Gross proceeds of sales” means the value proceeding or accruing from the sale of tangible personal property or for 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.

R. “In this city” or “within this city” includes all federal areas lying within the corporate city limits of the city of Bellevue.

S. 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 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.

T. “Manufacturing” means the activity conducted by a manufacturer and is reported under the manufacturing classification.

U. Newspaper – Magazine – Periodical.

1. “Newspaper” means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, 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.

V. “Nonprofit organization” means an organization exempt from federal income tax under Section 501(c)(3), (4), or (7) of the Internal Revenue Code, or as hereafter amended.

W. “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 its 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 itself out to the general public as conducting its regular business through signage or other means; and

4. Where the person is required to obtain any appropriate state and local business license or registration unless they are exempted by law from such requirement.

A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. If a person has an office or place of business, the person’s home is not an office or place of business unless it meets the criteria for office or place of business above. If a person has no office or place of business, the person’s home or apartment within the city will be deemed the place of business.

X. “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.

Y. Precious Metal Bullion or Monetized Bullion. “Precious metal bullion” means any precious metal which has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, rhodium, and palladium, and which is in such state or condition that its value depends upon its contents and not upon its form. For purposes of this section, “monetized bullion” means coins or other forms of money manufactured from gold, silver, or other metals and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation, but does not include coins or money sold to be manufactured into jewelry or works of art.

Z. “Processing for hire” means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person’s own materials or ingredients. If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to 20 percent or more of the total value of all materials or ingredients that become a part of the finished product the person will be deemed to be a manufacturer and not a processor for hire.

AA. Product – Byproduct.

1. “Product” means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort.

2. “Byproduct” 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.

BB. “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 sight-seeing 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;

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.

CC. “Retailing” means the activity of engaging in making sales at retail and is reported under the retailing classification.

DD. “Royalties” means compensation for the use of intangible property, such as copyrights, patents, licenses, franchises, trademarks, tradenames, and similar items.

EE. 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.

FF. 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 (FF)(1)(a), (b), (c), (d), or (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 (FF)(10) 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 BCC 4.09.050(B)(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 the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;

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 sale of or charge made for tangible personal property, labor and services to persons taxable under subsections (FF)(3)(a), (b), (c), (d), (e), and (f) 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 (FF)(1) of this section and nothing contained in subsection (FF)(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” shall also include the sale of canned 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, but shall not include custom software or the customization of canned software.

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 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).

8. “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.)

9. “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.)

10. “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 section, “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.

GG. “Sale at wholesale” or “wholesale sale” means any sale of tangible personal property 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.

HH. Software – Prewritten Software – Custom Software – Customization of Canned Software – Master Copies – Retained Rights.

1. “Prewritten software” or “canned software” means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. Prewritten computer software includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than such purchaser. Where a person modifies or enhances computer software of which such person is not the author or creator, the person shall be deemed to be the author or creator only of the person’s modifications or enhancements. Prewritten computer software or a prewritten portion thereof 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 describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All software is classified as either canned or custom.

II. “Taxpayer” means any “person,” as herein defined, required to have a business license under Chapter 4.03 BCC or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter.

JJ. “Tuition fee” includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. “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 the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for coursework successfully completed through the educational program, or an approved branch campus of a foreign degree-granting institution in compliance with Chapter 28B.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.

KK. “Value proceeding or accruing” means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer.

LL. Value of Products.

1. The value of products, including byproducts, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or byproducts by the seller.

2. Where such products, including byproducts, are extracted or manufactured for commercial or industrial use; and where such products, including byproducts, are shipped, transported or transferred out of the city, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or articles extracted or manufactured, including direct and indirect overhead costs. The director may prescribe rules for the purpose of ascertaining such values.

3. Not withstanding subsection (LL)(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.

MM. “Wholesaling” means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification.

NN. “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. (Ord. 5780 §§ 3 – 10, 2007; Ord. 5605 §§ 6, 7, 2005; Ord. 5558 § 9, 2004; Ord. 5436 § 2, 2003.)

4.09.040 Agency – Sales and services by agent, consignee, bailee, factor or auctioneer.

A. Sales in Own Name – Sales or Purchases as Agent. Every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal property or having possession of the documents of title thereto, with power to sell such tangible personal property in the person’s own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter.

The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promoting sales or making purchases for a principal. Such claim will be recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with:

1. The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made.

2. The books and records show the amount of the principal’s gross sales, the amount of commissions and any other incidental income derived by the broker or agent from such sales. The principal’s gross sales must not be reflected as the agent’s income on any of the agent’s books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement.

3. No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement. Sales or purchases of any goods by a person who has any ownership rights in such goods shall be taxed as retail or wholesale sales.

4. Bulk goods sold or purchased on behalf of a principal must not be co-mingled with goods belonging to another principal or lose their identity as belonging to the particular principal. Sales or purchases of any goods which have been co-mingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales.

B. If the above requirements are not met the consignor, bailor, principal or other shall be deemed a seller of such property to the agent, consignee, bailee, factor or auctioneer.

C. Services in Own Name – Procuring Services as Agent. For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply. Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured.

Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with:

1. The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made.

2. The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived by the agent for acting as such. Amounts received from the principal as advances and reimbursements must not be reflected as the agent’s income on any of the agent’s books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. (Ord. 5436 § 2, 2003.)

4.09.050 Imposition of the tax – Tax or fee levied.

Except as provided in BCC 4.09.090(A), there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the city, whether the person’s office or place of business be within or without the city. The tax shall be in amounts to be determined by application of rates against the square footage of office space in Bellevue and/or gross proceeds of sale, gross income of business, or value of products, including byproducts, as the case may be, as follows:

A. Square Footage Tax. Upon every person within this city who maintains an office(s) or facility(s), the amount of tax shall be equal to $0.1834 for each quarterly period of a calendar year for each square foot of floor area of office space calculated to the nearest square foot. The tax rate set forth herein shall be administratively adjusted on January 1st of each year, beginning January 1, 2004, by the director, to reflect any change in the cost of living, as defined and calculated pursuant to BCC 4.03.020(B).

1. As to such person who maintains an office or facility that performs or supports an activity for which such person pays gross receipts business and occupation tax under this chapter, an exemption from a portion of the tax of this section is granted. The exemption is calculated by taking the proportion that adjusted gross receipts bears to the total gross receipts of the business location multiplied by the taxable floor area (as defined in subsection (A)(2) of this section), used to perform or support the activity subject to gross receipts business and occupation tax (subsection B of this section).

“Adjusted gross receipts” for the purpose of this subsection shall include total gross receipts of the business location less receipts from tangible personal property delivered outside the city deductible pursuant to BCC 4.09.100(F) or 4.09.100(N) and not taxed under subsections (B)(1) (extracting tax) or (B)(2) (manufacturing tax) or (B)(5) (printing tax) of this section.

For any person with more than one location in the city, the floor space and receipts from locations within the city shall be combined for the purpose of calculating this exemption.

The director may promulgate rules and regulations regarding the manner, means and method of calculating the exemption.

2. The taxable floor area of office space shall be computed on the basis of net rentable area as follows:

a. Rentable Area – Single-Tenancy Floor. The rentable area of a single-tenancy floor, whether above or below grade, shall be computed by measuring to the inside finish of permanent outer building walls, or from the glass line if at least 50 percent of the outer building wall is glass. Rentable area shall include all area within outside walls, less stairs, elevator shafts, flues, pipe shafts, vertical ducts, air-conditioning rooms, fan rooms, janitor closets, electrical closets and such other rooms not actually available to the tenant for his/her furnishings and personnel, and their enclosing walls. Toilet rooms within and exclusively serving only that floor shall be included in the rentable area. No deductions from the rentable area calculation shall be made for columns and projections necessary to the building.

b. Rentable Area – Multiple-Tenancy Floor. The rentable area of a multiple-tenancy floor, whether above or below grade, shall be the sum of all rentable areas on that floor. The rentable area of an office on a multiple-tenancy floor shall be computed by measuring to the inside finish of permanent outer building walls, or to the glass line if at least 50 percent of the outer building wall is glass, to the office side of corridors and/or other permanent partitions, and to the center of partitions that separate the premises from adjoining rentable areas. No deductions from the rentable area calculation shall be made for columns and projections necessary to the building.

c. For purposes of this section, net rentable area shall not include warehouses, company gyms, cafeterias, and the retail selling area of a retail store.

d. When the taxable floor space of an office changes during a reporting period, the tax shall be computed on a monthly basis. For the purposes of this allocation, a month shall be deemed to be 16 or more days during any calendar month.

B. Gross Receipts Taxes.

1. Upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of 0.1496 of one percent (.001496). The measure of the tax is the value of the products, including byproducts, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the city.

2. Upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of 0.1496 of one percent (.001496). The measure of the tax is the value of the products, including byproducts, 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 without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of 0.1496 of one percent (.001496).

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, without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of 0.1496 of one percent (.001496).

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 0.1496 of one percent (.001496).

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 0.1496 of one percent (.001496).

7. Upon every other person engaging within the city in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 0.1496 of one percent (.001496). This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service. (Ord. 5780 § 11, 2007; Ord. 5558 § 10, 2004; Ord. 5436 § 2, 2003.)

4.09.060 Doing business with the city.

Except where such a tax is otherwise levied and collected by the city from such person, there is hereby levied a tax on the privilege of accepting or executing a contract with the city. Such tax shall be levied and collected whether goods or services are delivered within or without the city and whether or not such person has an office or place of business within or without the city.

Except as provided in BCC 4.09.077, as to such persons the amount of tax shall be equal to the gross contract price multiplied by the rate under BCC 4.09.050(B) that would otherwise apply if the sale or service were taxable pursuant to that section. (Ord. 5780 § 12, 2007; Ord. 5436 § 2, 2003.)

4.09.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes.

A. Persons who engage in business activities that are within the purview of two or more subsections of BCC 4.09.050(B) shall be taxable under each applicable subsection.

B. Notwithstanding anything to the contrary herein, if imposition of the city’s tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the city’s tax, and still apply the city tax to as much of the taxpayer’s activities as may be subject to the city’s taxing authority.

C. To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied.

D. Credit for Persons That Sell in the City Products That They Extract or Manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (1) with respect to the manufacturing of the products sold in the city, and (2) with respect to the extracting of the products, or the ingredients used in the products, sold in the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products.

E. Credit for Persons That Manufacture Products in the City Using Ingredients They Extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this city shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products.

F. Credit for Persons That Sell within the City Products That They Print, or Publish and Print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. (Ord. 5558 § 11, 2004; Ord. 5436 § 2, 2003.)

4.09.075 Deductions to prevent multiple taxation of manufacturing activities and, for tax periods prior to January 1, 2008, of transactions involving more than one city with an eligible gross receipts tax.

A. Amounts Subject to an Eligible Gross Receipts Tax in Another City That Also Maintains Nexus Over the Same Activity. For tax periods prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction may be entitled to a deduction as follows:

1. A taxpayer that has paid an eligible gross receipts tax, with respect to a sale of goods or services, to a jurisdiction in which the goods are delivered or the services are provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the city.

2. Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill shall assign those gross receipts to the jurisdiction where the person is domiciled (its headquarters are located).

3. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the city.

B. Person Manufacturing Products Within and Without. A person manufacturing products within the city using products manufactured by the same person outside the city may deduct from the measure of the manufacturing tax the value of products manufactured outside the city and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products. (Ord. 5780 § 13, 2007; Ord. 5558 § 12, 2004; Ord. 5436 § 2, 2003.)

4.09.076 Assignment of gross income derived from intangibles.

Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). (Ord. 5558 § 13, 2004.)

4.09.077 Allocation and apportionment of income when activities take place in more than one jurisdiction.

For tax periods beginning on or after January 1, 2008, gross income, other than persons subject to the provisions of Chapter 82.14A RCW, shall be allocated and apportioned as follows:

A. Gross income derived from all activities other than those taxed as service or royalties under BCC 4.09.050(B)(7) shall be allocated to the location where the activity takes place.

B. In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs.

C. Gross income derived from activities taxed as service and other activities taxed under BCC 4.09.050(B)(7) shall be apportioned to the city by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service income factor and the denominator of which is two.

1. The payroll factor is a fraction, the numerator of which is the total amount paid in the city during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the city if:

a. The individual is primarily assigned within the city;

b. The individual is not primarily assigned to any place of business for the tax period and the individual performs 50 percent or more of his or her service for the tax period in the city; or

c. The individual is not primarily assigned to any place of business for the tax period, the individual does not perform 50 percent or more of his or her service in any city and the individual resides in the city.

2. The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if:

a. The customer location is in the city; or

b. The income-producing activity is performed in more than one location and a greater proportion of the service-income-producing activity is performed in the city than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or

c. The service-income-producing activity is performed within the city, and the taxpayer is not taxable in the customer location.

3. If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer’s business activity in the city or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer’s business activity, that one of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable:

a. Separate accounting;

b. The use of a single factor;

c. The inclusion of one or more additional factors that will fairly represent the taxpayer’s business activity in the city; or

d. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.

D. The definitions in this subsection apply throughout this section.

1. “Apportionable income” means the gross income of the business taxable under the service classifications of a city’s gross receipts tax, including income received from activities outside the city if the income would be taxable under the service classification if received from activities within the city, less any exemptions or deductions available.

2. “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual’s gross income under the federal Internal Revenue Code.

3. “Individual” means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer.

4. “Customer location” means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place.

5. “Primarily assigned” means the business location of the taxpayer where the individual performs his or her duties.

6. “Service-taxable income” or “service income” means gross income of the business subject to tax under either the service or royalty classification.

7. “Tax period” means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year.

8. “Taxable in the customer location” means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax, regardless of whether, in fact, the government does so.

E. Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. (Ord. 5814 § 1, 2008; Ord. 5780 § 14, 2007.)

4.09.078 Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction.

Notwithstanding RCW 35.102.130 and BCC 4.09.077, for tax periods beginning on or after 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, 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. (Ord. 5780 § 15, 2007.)

4.09.080 Reserved.

(Ord. 5436 § 2, 2003.)

4.09.090 Exemptions.

A. Tax Exemption Thresholds. Any person engaging in any one or more business activities which are otherwise taxable pursuant to BCC 4.09.050(B), whose value of products, gross proceeds of sale, or gross income of business, less applicable deductions and exemptions, is less than or equal to $125,000 for an annual reporting period, regardless of assigned reporting frequency, shall be exempt from taxation under such section. In addition, any person whose net taxable income plus receipts from tangible personal property delivered outside the state is less than or equal to $125,000 shall be exempt from taxation from BCC 4.09.050(A). The exemption level set forth in this subsection shall be administratively adjusted by the director on January 1st of each year, beginning on January 1, 2006, to reflect any change in the cost of living, as defined and calculated pursuant to BCC 4.03.020(B). The amount of the exemption level so calculated shall be rounded to the nearest $5,000.

Any person otherwise taxable pursuant to BCC 4.09.050(A) and whose total floor area of office space does not exceed 250 taxable square feet shall be exempt from taxation under BCC 4.09.050(A).

B. Nonprofit Corporations or Nonprofit Organizations. This chapter shall not apply to nonprofit organizations exempt from federal income tax under Section 501(c)(3), (4), or (7) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons.

C. Adult Family Homes. This chapter shall not apply to adult family homes which are licensed as such, or which are specifically exempt from licensing, under rules of the Washington State Department of Social and Health Services.

D. Health Maintenance Organization, Health Care Service Contractor, Certified Health Plan. Beginning on January 1, 2000, this chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201.

E. Public Utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 4.10 BCC.

F. Gambling Taxes. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of Chapter 4.14 BCC.

G. 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.

H. International Banking Facilities. This chapter shall not apply to the gross receipts of an international banking facility. As used in this subsection, an “international banking facility” means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 U.S.C. 611 – 631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 U.S.C. 601 – 604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D).

I. Insurance Business. This chapter shall not apply to insurance agents. In addition, this chapter shall not apply to amounts received by any person who is an insurer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020; provided, that the provisions of this subsection shall not exempt any person engaging in the business of insurance as a broker as defined in RCW 48.17.020 or as a solicitor as defined in RCW 48.17.030; 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.

J. 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.

K. 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.

L. 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.

M. Real Estate Salesperson and Associate Broker Commissions. Where a real estate brokerage office has paid the gross receipts tax due under this chapter on real estate commissions earned, salespersons or associate brokers within the same brokerage office shall not be required to pay a similar tax upon the same transaction.

N. Ride Sharing. This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010.

O. Employees.

1. This chapter shall not apply to any person in respect to the person’s employment in the capacity as an employee or servant, as distinguished from that of an independent contractor. For the purposes of this subsection, the definition of “employee” shall include those persons that are defined in the Internal Revenue Code, as hereafter amended.

2. A booth renter is an independent contractor for the purposes of this chapter.

P. 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.

Q. Mortgage Brokers’ Third-Party Provider Services Trust Accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions.

R. Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle Fuel. This chapter shall not apply to the manufacturing, selling, or distributing of motor vehicle fuel, as the term “motor vehicle fuel” is defined in RCW 82.36.010 and exempt under RCW 82.36.440; provided, that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter.

S. Amounts Derived from Liquor, and the Sale or Distribution of Liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120.

T. Casual and Isolated Sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales.

U. Accommodation Sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where:

1. The amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article; and

2. The sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within 14 days to reimburse in kind a previous accommodation sale by the buyer to the seller.

V. Taxes Collected as Trust Funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax.

W. Day Care Homes in Residences. This chapter shall not apply to any “day care homes in residences” as defined in BCC 4.09.030(I).

X. City Exempt from Tax. The city of Bellevue is exempt from the tax levied by this chapter. (Ord. 5780 § 16, 2007; Ord. 5558 § 14, 2004; Ord. 5436 § 2, 2003.)

4.09.100 Deductions.

In computing the tax imposed by this chapter, the following items may be deducted from the measure of tax. The square footage tax levied pursuant to BCC 4.09.050(A) shall not apply unless otherwise noted.

A. Fees, Dues, Charges. In computing tax, there may be deducted from the measure of tax amounts derived from bona fide:

1. Initiation fees;

2. Dues;

3. Contributions;

4. Donations;

5. Tuition fees;

6. Endowment funds; and

7. Charges made for operation of privately operated kindergartens.

This subsection shall not be construed to exempt any person, association, or society from tax liability upon selling tangible personal property or upon providing facilities or services for which a special charge is made to members or others. If dues are in exchange for any significant amount of goods or services rendered by the recipient thereof to members without any additional charge to the member, or if the dues are graduated upon the amount of goods or services rendered, the value of such goods or services shall not be considered as a deduction under this subsection.

B. Compensation from Public Entities for Health or Social Welfare Services – Exception. In computing tax, there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the state of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization (as defined in RCW 82.04.431) or by a municipal corporation or political subdivision, except deductions are not allowed under this subsection for amounts that are received under an employee benefit plan. For purposes of this subsection, “employee benefit plan” includes the military benefits program authorized in 10 U.S.C. Section 1071 et seq., as amended, or amounts payable pursuant thereto.

C. Interest on Investments or Loans Secured by Mortgages or Deeds of Trust. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on nontransient residential properties.

D. Interest on Obligations of the State, Its Political Subdivisions, and Municipal Corporations. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the state of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof.

E. Interest on Loans to Farmers and Ranchers, Producers or Harvesters of Aquatic Products, or Their Cooperatives. In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and which is engaged solely in the business of making loans and providing finance-related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm-related or aquatic-related services to these individuals or entities.

F. Receipts from Tangible Personal Property and Retail Services Delivered Outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property or retail services that are delivered by the seller to the buyer or the buyer’s representative at a location outside the state of Washington. The square footage tax pursuant to BCC 4.09.050(A) shall apply to deductions for receipts from tangible personal property delivered outside the state.

G. Cash Discount Taken by Purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the “value of product” provisions.

H. Credit Losses of Accrual Basis Taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis.

I. Repair, Maintenance, Replacement, Etc., of Residential Structures and Commonly Held Property – Eligible Organizations.

1. In computing tax, there may be deducted from the measure of tax amounts used solely for repair, maintenance, replacement, management, or improvement of the residential structures and commonly held property, but excluding property where fees or charges are made for use by the public who are not guests accompanied by a member, which are derived by:

a. A cooperative housing association, corporation, or partnership from a person who resides in a structure owned by the cooperative housing association, corporation, or partnership;

b. An association of owners of property as defined in RCW 64.32.010, as now or hereafter amended, from a person who is an apartment owner as defined in RCW 64.32.010; or

c. An association of owners of residential property from a person who is a member of the association. “Association of owners of residential property” means any organization of all the owners of residential property in a defined area who all hold the same property in common within the area.

2. For the purposes of this subsection “commonly held property” includes areas required for common access such as reception areas, halls, stairways, parking, etc., and may include recreation rooms, swimming pools and small parks or recreation areas; but is not intended to include more grounds than are normally required in a residential area, or to include such extensive areas as required for golf courses, campgrounds, hiking and riding areas, boating areas, etc.

3. To qualify for the deductions under this subsection:

a. The salary or compensation paid to officers, managers, or employees must be only for actual services rendered and at levels comparable to the salary or compensation of like positions within the county wherein the property is located;

b. Dues, fees, or assessments in excess of amounts needed for the purposes for which the deduction is allowed must be rebated to the members of the association;

c. Assets of the association or organization must be distributable to all members and must not inure to the benefit of any single member or group of members.

J. Sales at Wholesale or Retail of Precious Metal Bullion and Monetized Bullion. In computing tax, there may be deducted from the measure of the tax amounts derived from the sale at wholesale or retail of precious metal bullion and monetized bullion. However, no deduction is allowed on amounts received as commissions upon transactions for the accounts of customers over and above the amount paid to other dealers associated in such transactions, and no deduction or offset is allowed against such commissions on account of salaries or commissions paid to salesmen or other employees.

K. Amounts Representing Rental of Real Estate for Boarding Homes. In computing tax, there may be deducted from the measure of tax amounts representing the value of the rental of real estate for “boarding homes.” To qualify for the deduction, the boarding home must meet the definition of “boarding home,” and be licensed by the state of Washington under Chapter 18.20 RCW. The deduction shall be in the amount of 25 percent of the gross monthly billing when the boarder has resided within the boarding home for longer than 30 days.

L. Radio and Television Broadcasting – Advertising Agency Fees – National, Regional, and Network Advertising – Interstate Allocations. In computing tax, there may be deducted from the measure of tax by radio and television broadcasters amounts representing the following:

1. Advertising agencies’ fees when such fees or allowances are shown as a discount or price reduction in the billing or that the billing is on a net basis, i.e., less the discount;

2. Actual gross receipts from national network, and regional advertising or a “standard deduction” as provided by RCW 82.04.280; and

3. Local advertising revenue that represent advertising which is intended to reach potential customers of the advertiser who are located outside the state of Washington. The director may issue a rule that provides detailed guidance as to how these deductions are to be calculated.

M. Constitutional Prohibitions. In computing tax, there may be deducted from the measure of the tax amounts derived from business which the city is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States.

N. Receipts from the Sale of Tangible Personal Property and Retail Services Delivered Outside the City but Within Washington. For tax periods beginning on or after January 1, 2008, amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property delivered to the buyer or the buyer’s representative outside the city but within the state of Washington may be deducted from the measure of tax under the retailing, retail services, or wholesaling classification.

O. Professional Employer Services. In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and other salaries, benefits, workers’ compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement. For the purposes of this section, a “professional employer organization” and “professional employer services” shall have the same meanings as in RCW 82.04.540, as it now exists or as it may be amended. (Ord. 5780 §§ 17, 18, 2007; Ord. 5558 § 15, 2004; Ord. 5436 § 2, 2003.)

4.09.120 Tax part of overhead.

It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customers, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. (Ord. 5436 § 2, 2003.)

4.09.130 Severability clause.

Chapter 4.10
UTILITY OCCUPATION TAX CODE

Sections:

4.10.010 Exercise of revenue license power.

4.10.015 General administrative provisions apply.

4.10.020 Definitions.

4.10.025 Tax imposed.

4.10.030 Utility occupation activities subject to tax.

4.10.035 Cellular telephone service – Income allocation and administration.

4.10.040 Use tax on the privilege of using natural gas or manufactured gas as a consumer.

4.10.045 Exemptions.

4.10.050 Deductions.

4.10.053 Cable television utility tax credit.

4.10.055 Utility tax relief.

4.10.060 Utility tax relief – Qualifications.

4.10.065 Claim filing procedures for 1995 and prior years.

4.10.068 Claim filing procedures for 1996 and subsequent years.

4.10.070 Consumer Price Index changes.

4.10.010 Exercise of revenue license power.

The provisions of this Chapter 4.10 BCC constitute an exercise of the power of the city to license for revenue. (Ord. 4841 § 3, 1995.)

4.10.015 General administrative provisions apply.

The provisions of Chapter 4.03 BCC, the tax administration code, shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 5436 § 7, 2003; Ord. 4841 § 3, 1995.)

4.10.020 Definitions.

The definitions set forth in Chapter 4.03 BCC shall apply throughout this chapter, unless expressly provided otherwise herein. The following additional definitions shall apply throughout this chapter.

A. “Cable television services” means the one-way transmission of video programming and associated nonvideo signals to subscribers together with subscriber interaction, if any, which is provided in connection with video programming.

B. “Cellular telephone service” means two-way voice and data telephone/telecommunication system based in whole or substantially in part on wireless radio communications and which is not currently subject to regulation by the Washington Utilities and Transportation Commission (WUTC). Cellular telephone service includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS) and any other evolving wireless radio communications technology which accomplishes the same purpose as cellular mobile service.

C. “Chapter” shall mean Chapter 4.10 BCC, as it may be amended or replaced from time to time.

D. “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.

E. “Gas distribution business” means the business of operating a plant or system for the production or distribution for hire or sale of gas, whether manufactured or natural.

F. “Gross proceeds of sale” or “gross income of business” means the value proceeding or accruing from the sale of tangible personal property and/or for 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.

G. “Light and power business” means the business of operating a plant or system for the generation, production or distribution of electrical energy for hire or sale and/or for the wheeling of electricity for others.

H. “Network telephone service” means the providing by any person of access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. “Network telephone service” includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. “Network telephone service” does not include the providing of competitive telephone service, the providing of cable television service, or the providing of broadcast services by radio or television stations.

I. “Recyclable materials” means those solid wastes that are separated for recycling or reuse, such as papers, metals, and glass, that are designated as recyclable materials pursuant to BCC 9.26.030.

J. “Sewerage system business” means and includes:

1. Sanitary sewage disposal sewers and facilities, including without limitation on-site or off-site sanitary sewer facilities consisting of an approved septic tank or septic tank systems, or any other means of sewage treatment and disposal;

2. Combined sanitary sewage disposal and storm or surface water drains and facilities;

3. Storm or surface water drains, channels and facilities;

4. Outfalls for storm drainage or sanitary sewage and works, plants, and facilities for storm drainage or sanitary sewage treatment and disposal;

5. Any combination of or part of any or all of such facilities.

K. “Solid waste” or “wastes” means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction waste, abandoned vehicles or parts thereof, and recyclable materials.

L. “Solid waste collection business” means every person who receives solid waste or recyclable materials for transfer, storage, or disposal including but not limited to all collection services, public or private solid waste disposal sites, transfer stations, and similar operations.

M. “Telecommunications company” includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, and every city or town owning, operating or managing any facilities used to provide telecommunications for hire, sale, or resale to the general public within this state.

N. “Telegraph business” means the business of providing telegraphic communication for hire.

O. “Telephone business” means the business of providing network telephone service, as defined in this section. It includes cooperative or farmer line telephone companies or associations operating an exchange.

P. “Telephone service” means competitive telephone service or network telephone service, or both, as defined in this section.

Q. “Utility service” or “utility services” means any of the activities engaged in by taxpayers subject to the utility occupation tax pursuant to BCC 4.10.030.

R. “Water distribution business” means the business of operating a plant or system for the distribution of water for hire or sale. (Ord. 5815 § 1, 2008; Ord. 5436 § 8, 2003; Ord. 4841 § 3, 1995.)

4.10.025 Tax imposed.

There is levied and shall be collected from every person a tax for the act or privilege of engaging in utility occupation activities. Such tax shall be measured by the application of rates against gross proceeds of sales from customers within the city. (Ord. 4841 § 3, 1995.)

4.10.030 Utility occupation activities subject to tax.

Upon every person engaging within this city in the following activities; as to such persons, the amount of the tax due with respect to such business in the city shall be equal to the gross income of the business, multiplied by the following applicable rates:


	Activity	Tax Rate
A.	Gas Distribution Business	5.0%
B.	Water Distribution Business	5.0%
C.	Light and Power Business	5.0%
D.	Sewerage System Business	5.0%
E.	Cable Television Service	4.8%
F.	Telephone Business	6.0%
G.	Cellular Telephone Service	6.0%
H.	Solid Waste Collection Business	4.5%

(Ord. 5578 § 1, 2004; Ord. 4841 § 3, 1995.)

4.10.035 Cellular telephone service – Income allocation and administration.

A. Allocation of Income.

1. Service Address. Payments by a customer for cellular telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies.

2. Presumption. There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.

3. Roaming. When the cellular telephone service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call.

B. Dispute Resolution. If there is a dispute between or among the city and another city or cities as to the service address of a customer who is receiving cellular telephone services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the city and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). Once taxes on the disputed revenues have been paid to one of the contesting cities, the cellular telephone service company shall have no further liability with respect to additional taxes, penalties, or interest on the disputed revenues, so long as it promptly changes its billing records for future revenues to comport with the settlement facilitated by the AWC.

C. Authority of Administrator. The director is authorized to represent the city in negotiations with other cities for the proper allocation of cellular telephone service taxes imposed pursuant to this chapter.

D. Rate Change. No change in the rate of tax upon persons engaging in providing cellular telephone service shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than 60 days following the enactment of the ordinance establishing the change. The director shall send to each cellular telephone service company at the address of record a copy of any ordinance changing the rate of tax upon cellular telephone service promptly upon its enactment. (Ord. 4841 § 3, 1995.)

4.10.040 Use tax on the privilege of using natural gas or manufactured gas as a consumer.

A. As authorized by RCW 82.14.230, there is hereby fixed and imposed on every person a use tax for the privilege of using natural gas or manufactured gas in the city as a consumer. The tax shall be in an amount equal to the value of the article used by the taxpayer multiplied by the rate of tax on the gas distribution business set forth in BCC 4.10.030(A). The “value of the article used” shall have the meaning set forth in RCW 82.12.010(1), and does not include any amounts that are paid for the hire or use of a natural gas business in transporting the gas subject to tax under this section if those amounts are subject to tax under BCC 4.10.030(A).

B. The tax imposed under this section shall not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under BCC 4.10.030(A) with respect to the gas for which exemption is sought under this subsection.

C. There shall be a credit against the tax levied under this section in an amount equal to any tax paid by:

1. The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to BCC 4.10.030(A) by another state with respect to the gas for which a credit is sought under this subsection; or

2. The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another state with respect to the gas for which a credit is sought under this subsection.

D. The use tax hereby imposed shall be paid by the consumer. The administration and collection of the tax hereby imposed shall be by the Washington State Department of Revenue pursuant to RCW 82.14.050, as now or hereafter amended. (Ord. 4841 § 3, 1995.)

4.10.045 Exemptions.

The tax levied pursuant to this chapter is in lieu of any excise, privilege or occupational tax based on gross proceeds under any chapters of BCC Title 4 with respect to activities specifically within the provisions of this chapter. Nothing herein shall be construed to exempt persons taxable under the provisions of this chapter from tax under any other chapters of BCC Title 4, including but not limited to Chapter 4.09 BCC, Business and Occupation Tax Code, with respect to activities other than those specifically taxable within the provisions of this chapter. (Ord. 5815 § 2, 2008; Ord. 4841 § 3, 1995.)

4.10.050 Deductions.

In computing the tax imposed by this chapter, the following items may be deducted from the measure of the tax; provided, however, that such deductions may be subject to tax under other chapters of BCC Title 4, including but not limited to Chapter 4.09 BCC, Business and Occupation Tax Code:

A. The amount of credit losses actually sustained by taxpayers whose regular books are kept upon an accrual basis.

B. Charges by a taxpayer engaging in any utility occupation activity subject to this chapter for sales of utility services to any purchaser engaged in the same utility occupation activity that the purchaser buys for the purpose of resale.

C. That portion of the gross income derived from charges to another telecommunications company for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services.

D. Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and which was not properly a debt of the customer.

E. Amounts derived from business which the city is prohibited from taxing under the Constitution or laws of this state or of the United States. (Ord. 5815 § 3, 2008; Ord. 4841 § 3, 1995.)

4.10.053 Cable television utility tax credit.

Every person providing cable television service within this city will receive a credit toward the utility tax imposed pursuant to BCC 4.10.030 in the amount of the cable television franchise fee paid to the city. Provided, however, in no case shall the credit exceed the dollar amount of the utility tax due on the same revenue by the cable television service provider. (Ord. 5578 § 2, 2004.)

4.10.055 Utility tax relief.

There is granted to persons who meet the qualifications and requirements of BCC 4.10.060 and 4.10.065 relief from the utility occupation tax of the city as follows:

A. For all billings paid directly or indirectly by the person during a calendar year for service charges to any organization which paid the utility occupation tax of the city in 1995, the city shall pay to such person a “reimbursement” in an amount equal to the utility tax which applied to such billings or, in lieu thereof, at the election of the person, a minimum amount determined in accordance with BCC 4.10.055(C).

B. For all billings paid directly or indirectly by the person during a calendar year for service charges to any organization which paid the utility occupation tax of the city in 1996 or subsequent years, the city is authorized to pay to such person a “reimbursement” in a maximum amount determined in accordance with BCC 4.10.055(D); provided, that the total amount of all reimbursements paid pursuant to this subsection shall not exceed the total dollar amount established through the budget process.

C. The amount of minimum relief under BCC 4.10.055(A) for calendar year 1995 is $64.00, prorated for each month of residency in the city.

D. The amount of maximum relief under BCC 4.10.055(B) for a calendar year is $70.00 and shall be adjusted for calendar year 1997 and each subsequent year in accordance with BCC 4.10.070, prorated for each month of residency in the city. (Ord. 4843 § 1, 1995; Ord. 4841 § 3, 1995.)

4.10.060 Utility tax relief – Qualifications.

A. To qualify for the relief set forth in BCC 4.10.055(A), a person must be requesting reimbursement for the effect of city utility occupation taxes imposed in 1995 and must:

1. Meet one of the following criteria:

a. Be 62 years of age or older at all times during any period for which “reimbursement” is requested; or

b. Be permanently disabled under the definitions of subsections (2) or (3)(A), (3)(B) or (3)(C) of 42 U.S.C. Section 1382c(a) and receiving funds from a disability program such as Supplemental Security Income, Social Security Disability Insurance or Disabled Veterans payments; and

2. Have an income during the calendar year, or part thereof, for which a “reimbursement” is requested from all sources whatsoever, not exceeding 50 percent of the median income level for such calendar year for the Seattle-Bellevue-Everett Primary Metropolitan Statistical Area (PMSA) per household as published by the Secretary of Housing and Urban Development. If the annual update of the PMSA is not available, the median income level shall be determined by adjusting the prior year median income level in accordance with BCC 4.10.070. As used in this subsection, “income” means:

a. “Disposable income,” as that term is defined in RCW 84.36.383, as it may be amended or replaced from time to time, plus

b. The aggregate value of all gifts received during the calendar year for which a “reimbursement” is requested, excluding the first $5,008.69 thereof.

The aggregate value of gifts excludable from income as provided in this section shall be adjusted for the calendar year 1997 and each subsequent calendar year in accordance with BCC 4.10.070; and

3. Have been a resident of the dwelling unit within the city at all times during any period for which a reimbursement is requested, and have contributed to the payment of city utility charges from his or her income or resources.

B. To qualify for the relief set forth in BCC 4.10.055(B), a person must be requesting reimbursement for the effect of city utility occupation taxes imposed in 1996 or subsequent tax years and must:

1. Have an income during the calendar year, or part thereof, for which a “reimbursement” is requested from all sources whatsoever, not exceeding 50 percent of the median income level for such calendar year for the Seattle-Bellevue-Everett Primary Metropolitan Statistical Area (PMSA) per household as published by the Secretary of Housing and Urban Development or show satisfactory evidence of the prior year’s qualifying income and certify that income in the reimbursement year has not changed. If the annual update of the PMSA is not available, the median income level shall be determined by adjusting the prior year median income level in accordance with BCC 4.10.070. As used in this subsection, “income” means:

a. “Disposable income,” as that term is defined in RCW 84.36.383, as it may be amended or replaced from time to time, plus

b. The aggregate value of all gifts received during the calendar year for which a

“reimbursement” is requested, excluding the first $5,008.69 thereof.

The aggregate value of gifts excludable from income as provided in this section shall be adjusted for the calendar year 1997 and each subsequent calendar year in accordance with BCC 4.10.070; and

2. Have been a resident of the dwelling unit within the city at all times during any period for which a reimbursement is requested, and have contributed to the payment of city utility charges from his or her income or resources. (Ord. 4923 § 1, 1996; Ord. 4843 § 2, 1995; Ord. 4841 § 3, 1995.)

4.10.065 Claim filing procedures for 1995 and prior years.

A. All claims for relief under BCC 4.10.055(A) and 4.10.060(A) must be made annually and filed at any time during the calendar year following the calendar year, or portion thereof, for which a “reimbursement” is requested.

B. All billings for which claim is made under BCC 4.10.055(A) and 4.10.060(A) shall be submitted to the Bellevue utilities department as part of the claim for relief.

C. All claims or relief shall be submitted in writing on a form provided by the administering department and certified by the claimant that to the best of the claimant’s knowledge, all information provided in the claim is true and correct.

D. The administering department shall adopt rules and regulations to implement this section and BCC 4.10.055, 4.10.060 and 4.10.070. (Ord. 4923 § 2, 1996; Ord. 4841 § 3, 1995.)

4.10.068 Claim filing procedures for 1996 and subsequent years.

A. All claims for relief under BCC 4.10.055(B) and 4.10.060(B) must be filed with the city or its agent no later than the date established by the finance director for the calendar year for which a “reimbursement” is requested.

B. The finance director shall adopt rules and procedures for the filing of reimbursement claims for 1996 and subsequent years and for the administration of BCC 4.10.055, 4.10.060 and 4.10.068. (Ord. 4923 § 3, 1996.)

4.10.070 Consumer Price Index changes.

The amount of minimum relief established under BCC 4.10.055(B) and the aggregate value of gifts, subsidies and benefits excludable from income under BCC 4.10.060 and the median income level figure utilized when the Seattle-King County Primary Metropolitan Statistical Area (PMSA) update is not available pursuant to BCC 4.10.060 shall be administratively adjusted on January 1st of each year by the director of the Bellevue utilities department to reflect any change in the cost of living, as defined and calculated pursuant to BCC 4.03.020(B). (Ord. 5436 § 9, 2003; Ord. 4841 § 3, 1995.)

Chapter 4.12
SALES OR USE TAX

Sections:

4.12.010 Imposition.

4.12.020 Rate.

4.12.025 Additional sales and use tax – Imposition.

4.12.026 Additional sales and use tax – Rate.

4.12.030 Administration and collection.

4.12.040 Inspection of records.

4.12.050 Violation a misdemeanor.

4.12.010 Imposition.

There is imposed a sales or use tax, as the case may be, upon every taxable event, as defined in RCW 82.14.020, occurring within the city. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. (1961 code § 5.56.010.)

4.12.020 Rate.

The rate of the tax imposed by BCC 4.12.010 shall be one-half of one percent of the selling price or value of the article used, as the case may be; provided, however, that during such period as there is in effect a sales or use tax imposed by King County pursuant to RCW 82.14.030(1), the rate of tax imposed by BCC 4.12.010 shall be four hundred twenty-five/one-thousandths of one percent. (Ord. 3126 § 1, 1982; 1961 code § 5.56.020.)

4.12.025 Additional sales and use tax – Imposition.

There is hereby imposed an additional sales or use tax, as the case may be, upon every taxable event, as defined in RCW 82.14.020, occurring within the city of Bellevue. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. (Ord. 3126 § 2, 1982.)

4.12.026 Additional sales and use tax – Rate.

The rate of the tax imposed by BCC 4.12.025 shall be one-half of one percent of the selling price or value of the article used, as the case may be. (Ord. 3330 § 1, 1983; Ord. 3221 § 1, 1983; Ord. 3126 § 3, 1982.)

4.12.030 Administration and collection.

The administration and collection of the taxes imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050. (Ord. 3126 § 5, 1982; 1961 code § 5.56.030.)

4.12.040 Inspection of records.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue, pursuant to RCW 82.32.330. (1961 code § 5.56.040.)

4.12.050 Violation a misdemeanor.

Any seller who fails or refuses to collect the tax as required by this chapter with the intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any tax due under this chapter is guilty of a misdemeanor. (Ord. 3126 § 6, 1982; Ord. 2086 § 1, 1974; 1961 code § 5.56.050.)

Chapter 4.14
GAMBLING TAX CODE

Sections:

4.14.010 Exercise of revenue license power.

4.14.015 General administrative provisions apply.

4.14.020 Definitions.

4.14.025 Tax imposed.

4.14.030 Tax rate on gambling activities.

4.14.035 Punchboards and pull-tabs – Distribution of revenue.

4.14.040 Exemptions.

4.14.045 Deductions.

4.14.010 Exercise of revenue license power.

The provisions of this chapter constitute an exercise of the power of the city to license for revenue and to tax certain gambling activities pursuant to Chapter 9.46 RCW. (Ord. 4842 § 2, 1995.)

4.14.015 General administrative provisions apply.

4.14.020 Definitions.

A. “Amusement game” means a game played for entertainment in which the contestant actively participates, the outcome depends in a material degree upon the skill of the contestant and meets the requirements of RCW 9.46.0201, as it may be amended or replaced from time to time.

B. “Chapter” means Chapter 4.14 BCC, as it may be amended or replaced from time to time.

C. “Punchboard” means a board with many holes filled with rolled-up printed slips to be punched out on payment of a nominal sum in an effort to obtain a slip that entitles the player to a designated prize or meets the requirements of RCW 9.46.0273, as it may be amended or replaced from time to time.

D. “Pull-tabs” means a game in which the participant, on payment of a nominal sum, receives a paper tab from a dispenser which is pulled apart to reveal a designated prize or meets the requirements of RCW 9.46.0273, as it may be amended or replaced from time to time.

E. “Bingo” means a game in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and which meets the requirements of RCW 9.46.0205, as it may be amended or replaced from time to time.

F. “Raffle” means a game in which tickets bearing an individual number are sold for not more than $5.00 each and in which a prize or prizes are awarded on the basis of a drawing from the tickets and which meets the requirements of RCW 9.46.0277, as it may be amended or replaced from time to time.

G. “Bona fide charitable or nonprofit organization” shall have the meaning set forth in RCW 9.46.0209, as it may be amended or replaced from time to time. (Ord. 5436 § 11, 2003; Ord. 4842 § 2, 1995.)

4.14.025 Tax imposed.

There is levied and shall be collected from all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission a tax on the act of conducting or operating any bingo game, raffle, amusement game, punchboard or pull-tab activity. Such tax shall be levied at the rates set forth in this chapter on the gross revenue of activities taxable under this chapter. (Ord. 4842 § 2, 1995.)

4.14.030 Tax rate on gambling activities.

Upon every person engaging within this city in the act of conducting or operating the following gambling activities, as to such persons, the amount of tax with respect to such activities shall be equal to the gross revenue from such activities multiplied by the following tax rates:

Activity Tax Rate

A. Bingo Games 5.0%

B. Raffles 5.0%

C. Amusement Games 2.0%

D. Sales of Punchboards and Pull-Tabs 5.0%

(Ord. 5166 § 1, 1999; Ord. 4842 § 2, 1995.)

4.14.035 Punchboards and pull-tabs – Distribution of revenue.

All revenue from the tax levied on the gross revenues from sales of punchboards and pull-tabs pursuant to BCC 4.14.030(D), including any interest or other earnings thereon, shall, to the extent not required to enforce gambling laws in accordance with RCW 9.46.113, as it may be amended or replaced from time to time, be used for the purpose of providing youth facilities; provided, that nothing contained in this chapter shall preclude the use of such funds for facilities that may also be used by other persons. (Ord. 4842 § 2, 1995.)

4.14.040 Exemptions.

The tax levied pursuant to this chapter is in lieu of any excise privilege or occupational tax based on gross revenue under any other chapter of BCC Title 4 with respect to activities taxed under this chapter. Nothing herein shall be construed to exempt persons taxable under the provisions of this chapter from any tax imposed under any other chapter of BCC Title 4 with respect to activities other than those expressly taxed under this chapter.

The following shall be exempt from any tax imposed under this chapter:

A. Any bona fide charitable or nonprofit organization conducting or operating bingo games whose gross revenue from such activities, less applicable deductions, is less than $5,000 per tax year shall be exempt from the tax imposed under BCC 4.14.030(A).

B. Any bona fide charitable or nonprofit organization conducting or operating amusement games whose gross revenue from such activities, less applicable deductions, is less than $5,000 per tax year shall be exempt from the tax imposed under BCC 4.14.030(C). (Ord. 4842 § 2, 1995.)

4.14.045 Deductions.

In computing the tax imposed by this chapter, the following items may be deducted from the gross revenue otherwise subject to the tax.

A. The first $10,000 of gross revenue, less amounts paid out for prizes, from raffles conducted by bona fide charitable or nonprofit organizations.

B. Amounts paid out for prizes or as prizes for amusement games, bingo games, raffles and for sales of punchboards and pull-tabs, when the seller of the punchboard or pull-tab is a nonprofit organization, may be deducted from the gross revenue generated from those activities.

C. Amounts derived from business which the city is prohibited from taxing under the Constitution or laws of this state or of the United States. (Ord. 5075 § 7, 1998; Ord. 4842 § 2, 1995.)

Chapter 4.16
ACCOMMODATIONS TAX*

Sections:

4.16.010 Repealed.

4.16.020 Repealed.

4.16.030 Recodified.

Footnotes

*Code reviser’s note: The repeal and recodification of this chapter by Ord. No. 5077 takes effect on January 2, 1999. Until that time the prior provisions remain in full force and effect and are available at the office of the city clerk.

4.16.010 Levied – Purpose – Who must pay tax.

Repealed by Ord. 5077. (Ord. 3756 § 1, 1987; Ord. 3671 § 1, 1986; Ord. 2132 § 1, 1974: 1961 code § 5.64.010.)

4.16.020 Collection and remittance by state.

Repealed by Ord. 5077. (Ord. 2132 § 2, 1974; 1961 code § 5.64.020.)

4.16.030 Fund established.

Recodified as BCC 4.19.040 by Ord. 5077. (Ord. 4907 § 12, 1996; Ord. 4089 § 1, 1989; Ord. 3756 § 2, 1987; Ord. 2132 § 3, 1974; 1961 code § 5.64.030.)

Chapter 4.17
HOTEL/MOTEL SPECIAL EXCISE TAX*

(Repealed by Ord. 5077)

*Code reviser’s note: The repeal of this chapter by Ord. No. 5077 takes effect on January 2, 1999. Until that time the prior provisions remain in full force and effect and are available at the office of the city clerk.

Chapter 4.18
LEASEHOLD EXCISE TAX

Sections:

4.18.010 Levied.

4.18.020 Rate.

4.18.030 Administration and collection.

4.18.040 Exemptions.

4.18.050 Inspection of records.

4.18.060 Contract with state.

4.18.070 Severability.

4.18.010 Levied.

There is levied and shall be collected a leasehold excise tax on and after January 1, 1976, upon the act or privilege of occupying or using publicly owned real or personal property within the city, through a “leasehold interest” as defined by Section 2, Chapter 61, Washington Laws of 1975-76, Second Extraordinary Session (hereafter called “the state act”). The tax shall be paid, collected and remitted to the Department of Revenue of the state at the time and in the manner prescribed by Section 5 of the state act. (Ord. 2302 § 1, 1976.)

4.18.020 Rate.

The rate of the tax imposed by this chapter shall be four percent of the taxable rent (as defined by Section 2 of the state act); provided, that the credits required by Section 12 of the state act, as it now exists or may hereafter be amended, shall be allowed in determining the tax payable. (Ord. 2302 § 1, 1976.)

4.18.030 Administration and collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the state act. (Ord. 2302 § 1, 1976.)

4.18.040 Exemptions.

Leasehold interests exempted by Section 13 of the state act, as it now exists or may hereafter be amended, shall be exempt from the tax imposed pursuant to this chapter. (Ord. 2302 § 1, 1976.)

4.18.050 Inspection of records.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue pursuant to RCW 82.32.330. (Ord. 2302 § 1, 1976.)

4.18.060 Contract with state.

The city manager is authorized to execute a contract with the Department of Revenue of the state for the administration and collection of the tax imposed by this chapter. (Ord. 2302 § 1, 1976.)

4.18.070 Severability.

If any provision of this chapter, or its application to any person or circumstance is held invalid the remainder of the chapter or the application of the provision to other persons or circumstances is not affected. (Ord. 2302 § 1, 1976.)

Chapter 4.18A
LODGING EXCISE TAX*

(Repealed by Ord. 5077)

Chapter 4.19
LODGING EXCISE TAX*

Sections:

4.19.010 Levy of tax – Who must pay.

4.19.020 Collection and remittance by state.

4.19.030 Use of tax proceeds.

4.19.040 Fund established.

*Code reviser’s note: Per Ord. No. 5077, Section 1, this chapter takes effect on January 2, 1999.

4.19.010 Levy of tax – Who must pay.

There is imposed and levied and shall be collected an excise tax of five percent on the sale or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The tax applies to the sale or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel or trailer camp and the granting of any similar license to use real property as distinguished from the renting or leasing of real property. 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. (Ord. 5077 § 1, 1998.)

4.19.020 Collection and remittance by state.

The State Department of Revenue is designated as the agent of the city for the purposes of collection of the tax and remittance of the tax to the city. Taxes received by the city shall be deposited in the hotel/motel tax fund. (Ord. 5077 § 1, 1998.)

4.19.030 Use of tax proceeds.

The proceeds of the tax collected under this chapter shall be used solely for the purpose and in the manner provided by Chapter 67.28 RCW. (Ord. 5077 § 1, 1998.)

4.19.040 Fund established.

There is established a special fund to be known as the hotel/motel tax fund, and into which all sums received by this lodging excise tax levy shall be paid. Said fund shall be administered in conformity with the requirements contained in Chapter 67.28 RCW. (Ord. 5077 § 2, 1998; Ord. 4907 § 12, 1996; Ord. 4089 § 1, 1989; Ord. 3756 § 2, 1987; Ord. 2132 § 3, 1974; 1961 code § 5.64.030. Formerly 4.16.030.)

Chapter 4.20
WARRANTS

Sections:

4.20.010 Interest accrual date.

4.20.020 Interest rate fixed by manager or treasurer.

4.20.030 Method of fixing interest rate.

4.20.040 Method of payment.

4.20.050 Information shown on warrant.

4.20.010 Interest accrual date.

All warrants drawn upon the city treasurer and payable from general or special funds of the city shall bear interest from and after presentation to the treasurer at a rate to be specified on the warrant at the time of presentation to and refusal of payment by the treasurer for want of sufficient funds in the designated account at the time of such presentment. (1961 code § 2.32.010.)

4.20.020 Interest rate fixed by manager or treasurer.

The city manager or the city treasurer, at his direction, shall fix the rate of interest to be paid on such presented and deferred warrant between the date of first presentation and the date fixed for payment in any call issued therefor by the treasurer. (1961 code § 2.32.020.)

4.20.030 Method of fixing interest rate.

The rate-fixing officer shall make diligent monthly inquiry into the rates prevailing at Bellevue and Seattle, Washington, on similar general obligation or special fund warrants to ascertain the market value of the current warrants issued by him, and he shall, insofar as practicable, fix the rate of interest on the several classes of warrants issued by him during the ensuing month so that the par value shall be the market value thereof. In no event shall such interest rate exceed eight percent per year on general or special fund warrants, except utility warrants issued under the provisions of Chapter 35.92 RCW, the rates of which shall not exceed six percent per year. (Ord. 2087 § 1, 1974; 1961 code § 2.32.030.)

4.20.040 Method of payment.

The city treasurer shall pay all warrants in the order of their number and date of issue whenever there are sufficient funds in the city treasury and funds applicable to the payment. Whenever $500.00 is accumulated in any fund having warrants outstanding against it, the city treasurer shall publish a call in the city’s official newspaper describing the warrants so called by number, and specifying the fund upon which they are called; provided, that no call need be made until the amount accumulated is equal to the amount due on the warrant longest outstanding; provided further, that no more than two calls shall be made in any one month. (1961 code § 2.32.040.)

4.20.050 Information shown on warrant.

The treasurer may provide, by printing or stamp, on the face or back of the warrant, a place for acknowledgment of presentation and the rate of interest to be paid, and other pertinent information in substantially the following form:

NOTICE

This warrant presented and not paid for lack of funds. Bellevue City Treasurer will pay at call, the face amount plus interest at ___% per annum from this date until called.

CITY OF BELLEVUE

Date:

City Treasurer

(1961 code § 2.32.050.)

Chapter 4.28
PURCHASING

Sections:

4.28.010 Purpose.

4.28.012 Application.

4.28.015 Real estate.

4.28.016 Federal funds.

4.28.017 Grants.

4.28.018 Professional service contracts.

4.28.019 Lease agreements.

4.28.020 Responsibility for purchasing.

4.28.030 Cooperative purchasing.

4.28.040 Competitive bidding – Materials, supplies and equipment.

4.28.050 Small purchases of materials, supplies and equipment.

4.28.060 Small purchases – Filing of statements on awards to other than vendor submitting lowest quotation.

4.28.070 Small purchases – Rejection of quotations.

4.28.080 Noncompetitive purchases.

4.28.085 Materials, supplies and equipment – Sole source procurement.

4.28.090 Emergency procurements.

4.28.095 Cancellation of invitations for bids or requests for proposals.

4.28.099 City procurement records.

4.28.100 Unauthorized purchases.

4.28.110 Inspection and testing.

4.28.120 Procurement of recycled and recyclable products.

4.28.130 Public work or improvement – Estimated cost in excess of $2,500 but less than $20,000 – Publication of estimates.

4.28.140 When bids required for public works and improvements.

4.28.141 Cost of public works or improvements.

4.28.143 Equal opportunity requirements for contractual service providers.

4.28.150 Bids to comply with regulations.

4.28.155 Specifications.

4.28.160 Bonds and bid security – Noncollusion affidavit – Insurance.

4.28.170 Bid opening.

4.28.180 Award or rejection of bids.

4.28.185 Bid irregularities.

4.28.190 General standards for determining lowest responsible bidder.

4.28.210 Rejecting bids – Recalling for bids.

4.28.215 Administrative procedures – Public works contracts.

4.28.216 Administrative guidelines, policies and procedures – Purchases for special events.

4.28.220 Time for calling for bids for newspaper publications.

4.28.230 Other contracts.

4.28.010 Purpose.

The purpose of this chapter is to protect and advance the public interest by providing for the fair and equitable treatment of all persons involved in the purchasing process, by maximizing the purchasing value of public funds and by providing safeguards for maintaining a purchasing system of quality and integrity. (Ord. 3593 § 1, 1986; 1961 code § 2.20.100.)

4.28.012 Application.

This chapter applies to the award of contracts by the city for: (1) public works and improvements and (2) purchases of materials, supplies, and equipment. This chapter does not apply to the reimbursement of business expenses incurred by employees as governed by Ordinance No. 3397 as now or hereafter amended. (Ord. 4040 § 1, 1989; Ord. 3593 § 2, 1986.)

4.28.015 Real estate.

This chapter does not apply to the purchase of real estate. (Ord. 4040 § 1, 1989.)

4.28.016 Federal funds.

When a purchase involves the expenditure of federal funds, purchasing shall be conducted in accordance with any applicable federal law or regulation. (Ord. 3593 § 3, 1986.)

4.28.017 Grants.

A. Nothing in this chapter shall prevent the city from complying with the terms and conditions of any grant, gift or bequest which is otherwise consistent with law.

B. The city manager or his/her designee is authorized to apply for grants in any amount and to execute grant contracts for grants of not more than $50,000. The city manager or his/her designee shall notify the city council periodically of such grant contracts. (Ord. 4968 § 2, 1997; Ord. 3593 § 4, 1986.)

4.28.018 Professional service contracts.

Contracts for professional services, including contracts for architectural, engineering, legal and consulting services, are not subject to the requirements of this chapter. The city manager or his/her designee shall promulgate procedures and standards for the approval of such contracts. Contracts for architectural and engineering services shall be awarded in accordance with Chapter 39.80 RCW. For purposes of this section, “professional services” are those services involving skill, education and special knowledge and where the work is predominately mental and intellectual, rather than physical and mechanical. (Ord. 4968 § 3, 1997; Ord. 4040 § 2, 1989; Ord. 3593 § 5, 1986.)

4.28.019 Lease agreements.

Lease agreements for materials, supplies and equipment are not subject to the requirements of this chapter, but shall be subject to such procedures as are established by the city manager or his/her designee. All such agreements in excess of $35,000 must, however, be approved by the city council. Lease agreements shall comply with any applicable state law regarding debt capacity. (Ord. 4968 § 4, 1997; Ord. 4040 § 3, 1989; Ord. 3593 § 6, 1986.)

4.28.020 Responsibility for purchasing.

A. General. The finance director shall be responsible for all city purchasing under this chapter except where otherwise provided. The director shall appoint a purchasing manager who shall, subject to the direction and control of the director, administer this chapter.

B. Duties. In accordance with this chapter, the purchasing manager shall:

1. Purchase or supervise the purchase of all materials, supplies, equipment, and nonprofessional services, and supervise the award of all public works and improvement contracts by the city;

2. Sell, trade or otherwise dispose of surplus personal property belonging to the city; provided the city property manager shall be responsible for the disposal of real property; and

3. Establish and maintain programs for specifications development, contract administration and inspection and acceptance, in cooperation with the city departments using the items purchased.

C. Operational Procedures. Consistent with this chapter, and with the approval of the finance director, the purchasing manager may propose operational procedures relating to the execution of his/her duties. Such procedures shall be followed by all city departments. These will be set forth in a purchasing handbook (purchasing cookbook).

D. Insurance Requirements. Liability and property damage insurance requirements for any contract entered into by the city under this chapter shall be determined by the city risk manager. The risk manager shall determine coverage requirements, limits of liability, necessary endorsements, and other matters relating to insurance.

E. Sheltered Workshops. With the approval of the finance director, the purchasing manager shall establish a process, consistent with state law, for the procurement of goods and services offered by sheltered workshops whenever it is reasonable to do so, and to such extent as is reasonable. “Sheltered workshop” shall have the meaning provided in RCW 82.04.385, and as such provision may be amended. (Ord. 4968 § 5, 1997; Ord. 4040 § 4, 1989; Ord. 3593 § 7, 1986; Ord. 2284 § 1, 1976; 1961 code § 2.20.110.)

4.28.030 Cooperative purchasing.

The purchasing manager is authorized to join in cooperative purchasing arrangements with other public agencies similarly authorized, when the best interests of the city would be served thereby. Any cooperative purchasing agreement shall set forth fully the purposes, powers, rights, objectives and responsibilities of the contracting parties and shall be governed by the requirements of state law in regard to competitive bidding when applicable. (Ord. 3593 § 8, 1986; 1961 code § 2.20.120.)

4.28.040 Competitive bidding – Materials, supplies and equipment.

A. General. Any purchase of material, supplies, and equipment, where the cost thereof exceeds $35,000 shall be by competitive bidding, except for purchases made pursuant to BCC 4.28.030, 4.28.085 and 4.28.090.

B. Invitation for Bids. An invitation for bids shall be issued which shall include the specifications and the contractual terms and conditions applicable to the procurement.

C. Public Notice. Public notice of the invitation for bids shall be given not less than 14 calendar days prior to the date set forth therein for the opening of bids. Such notice shall be published at least once in a newspaper of general circulation. The public notice shall state the date and time of bid opening. Bids not received by the date and time stated for bid opening will not be accepted or considered.

D. Bid Opening. Bids shall be opened publicly by the purchasing manager or his/her designee at the time and place designated in the invitation for bids. The amount of each bid, and such other relevant information as the purchasing manager deems appropriate, together with the name of each bidder, shall be recorded. The record and each bid shall be open to public inspection.

E. Bid Evaluation. Bids shall be evaluated based on the specifications and other relevant evaluation criteria set forth in the bid specifications. The evaluation criteria shall be objectively measurable whenever possible, and may include such factors as discounts, transportation costs, and total or life cycle costs, inspection or testing which has been done of the product bid, quality, workmanship, delivery time, and suitability for a particular purpose.

F. Correction or Withdrawal of Bids; Cancellation of Awards. Correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, may be permitted by the city. Mistakes discovered before bid opening may be modified or the bid may be withdrawn by written or telegraphic notice received in the office designated in the invitation for bids prior to the time set for opening. After bid opening, corrections in or withdrawal of bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake was made, the nature of the mistake, and the bid price actually intended. However, downward correction of a bid, which would displace the apparent low bidder, shall only be permitted if the error made and the intended bid price can be determined solely from the bid documents. All decisions to permit the correction or withdrawal of bids after bid opening, or to cancel awards or contracts based on bid mistakes, shall be made by the city council.

G. Award. The bids shall be submitted to the city council by the city manager, along with the recommendation of the appropriate department. The city council may award the bid to the lowest responsible bidder as determined under the standards set forth in BCC 4.28.190, or may reject all bids in its discretion. The contract shall be awarded to the lowest responsible bidder whose bid meets the specifications and evaluation criteria set forth in the invitation for bids. (Ord. 4040 § 5, 1989; Ord. 3847 § 1, 1987; Ord. 3593 § 9, 1986; Ord. 2822 § 1, 1980; Ord. 2284 § 2, 1976; 1961 code § 2.20.130.)

4.28.050 Small purchases of materials, supplies and equipment.

Any purchase not exceeding the amount specified in BCC 4.28.040A shall be considered a “small purchase” and may be made in accordance with small purchase procedures to be adopted by the purchasing manager. The requirements of BCC 4.28.040 shall not apply to such purchases. Insofar as it is practical, three businesses shall be solicited to submit quotations. The purchasing manager shall keep a record of all small purchases and quotations submitted in competition thereon and such records shall be open for public inspection during regular office hours. The purchasing manager shall award the purchase order on small purchases to such vendor as the purchasing manager determines to have submitted the lowest responsible quotation, in accordance with the provisions of this chapter. (Ord. 4040 § 6, 1989; Ord. 3593 § 10, 1986; Ord. 2822 § 2, 1980; Ord. 2284 § 3, 1976; 1961 code § 2.20.140.)

4.28.060 Small purchases – Filing of statements on awards to other than vendor submitting lowest quotation.

When the award for a small purchase is not given to the vendor submitting the lowest quotation, a statement of the reasons for placing the order elsewhere shall be prepared and filed with the other papers relating to the transaction and shall be open to public inspection during regular office hours. (Ord. 3593 § 11, 1986; Ord. 2822 § 3, 1980; Ord. 2284 § 4, 1976; 1961 code § 2.20.150.)

4.28.070 Small purchases – Rejection of quotations.

The purchasing manager shall have the authority to reject all quotations or parts thereof, with regard to a small purchase of any materials, supplies, or equipment when he/she determines the public interest will be served thereby, and upon rejection of such quotations shall include the reason therefor in the records of the transaction, which shall be open for public inspection. (Ord. 3593 § 12, 1986; Ord. 2822 § 4, 1980; Ord. 2284 § 5, 1976; 1961 code § 2.20.160.)

4.28.080 Noncompetitive purchases.

A. The purchasing manager shall be authorized to make open market purchases without obtaining competitive bids or quotations therefor as required under BCC 4.28.040 and 4.28.050 under the following conditions:

1. Items of Special Design. When an item required is of special design, shape or manufacture to match or fit in with an existing installation and competitive bidding is impracticable;

2. Surplus or Distress Sales. When it is possible to procure obvious bargains in surplus or distress material, supplies or equipment;

3. Items for Quick Delivery. When the obtaining of competitive bids or quotations will cause delay resulting in an appreciable loss to the city;

B. Small Items Not Stocked, Monthly Purchase Orders. The purchasing manager is authorized to establish monthly purchase orders with local vendors for periods of not more than 12 months for the purchase of items which are not stocked by the departments of the city and are available at usual market prices. Such local vendors shall be selected on the basis of best overall price policies, breadth and depth of stocks and delivery service;

C. Petty Cash Accounts. The purchasing manager is authorized to establish petty cash accounts for city departments for reimbursement of legally payable expenses incurred on behalf of the city, which shall be paid in accordance with rules and regulations established by the finance department. (Ord. 3593 § 13, 1986; Ord. 2822 § 5, 1980; Ord. 2284 § 6, 1976; 1961 code § 2.20.170.)

4.28.085 Materials, supplies and equipment – Sole source procurement.

A contract for the purchase of materials, supplies or equipment may be awarded without complying with the bidding requirements of this chapter when the purchasing manager determines in writing, subject to the approval of the city attorney, after conducting a good faith review of available sources, that there is only one source for the required materials, supplies or equipment. The purchasing manager shall conduct negotiations, as appropriate, as to price, terms, and delivery time. A record of sole source procurements shall be maintained that lists each contractor’s name, the amount and type of each contract, and a listing of the item(s) procured under each contract. (Ord. 3593 § 14, 1986.)

4.28.090 Emergency procurements.

Notwithstanding any other provisions of this chapter, the city manager or his/her designated agent may make or authorize others to make emergency procurements of materials, supplies, or equipment, without complying with the requirements of this chapter when there exists a threat to public health, welfare, or safety or where the city may suffer a substantial monetary loss by reason of the time required to follow regular purchasing procedures; provided, that such emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. As soon as practicable, a record of each emergency procurement shall be made and shall set forth the contractor’s name, the amount and type of the contract, and a listing of the item(s) procured under the contract, which shall be reported to the city council at the next subsequent meeting. (Ord. 3593 § 15, 1986; 1961 code § 2.20.180.)

4.28.095 Cancellation of invitations for bids or requests for proposals.

An invitation for bids may be canceled in the discretion of the purchasing manager. The reasons therefor shall be made part of the contract file. Each invitation for bids issued by the city shall state that the invitation may be canceled. Notice of cancellation shall be sent to all parties that have been provided with a copy of the invitation. The notice shall identify the invitation for bids and state briefly the reasons for cancellation. (Ord. 3593 § 16, 1986.)

4.28.099 City procurement records.

A. Contract File. All determinations and other written records pertaining to the invitation to bid, award, or performance of a contract shall be maintained for the city in a contract file by the purchasing manager or city clerk.

B. Retention of Procurement Records. All procurement records shall be retained and disposed of by the city in accordance with state law and city ordinances, regulations and guidelines. If a contract is being funded in whole or in part by assistance from a federal agency, then all procurement records pertaining to that contract shall be maintained in accordance with any applicable requirements of federal law. (Ord. 4040 § 7, 1989; Ord. 3593 § 17, 1986.)

4.28.100 Unauthorized purchases.

Except as provided in this chapter and except as authorized by operational procedures adopted by the purchasing manager under BCC 4.28.020C, no city employee shall purchase or contract for any material, supplies or equipment or make any contract within the purview of this chapter other than through the purchasing manager. Any purchase or contract made contrary to the provisions hereof shall not be approved by any city officer and the city shall not be bound thereby, except as may be required or provided by law. (Ord. 3593 § 18, 1986; Ord. 2284 § 17, 1976; 1961 code § 2.20.190.)

4.28.110 Inspection and testing.

The purchasing manager shall inspect or supervise the inspection of all deliveries of materials, supplies, or equipment to determine their conformance with the specifications set forth in the invitation to bid.

A. Inspection by Using Department. The purchasing manager may authorize a using department having the staff and facilities for adequate inspection to inspect all deliveries made to such using departments, under procedures he/she shall prescribe.

B. Tests. The purchasing manager may require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with the specifications. In the performance of such tests, he/she shall have the authority to make use of laboratory facilities of any outside laboratory. (Ord. 3593 § 19, 1986; Ord. 2284 § 8, 1976; 1961 code § 2.20.200.)

4.28.120 Procurement of recycled and recyclable products.

With the approval of the finance director, the purchasing manager is hereby authorized and directed to promulgate procedures and guidelines to govern the procurement of products and materials made from recycled or recyclable materials to the maximum extent practicable by all city departments, and to encourage waste reduction. The purchasing manager shall list products and materials that have significant levels of recovered materials that can and should be readily procurable. Designated products or materials shall qualify as recycled products if they meet minimum content standards as defined by the purchasing manager.

The guidelines promulgated by the purchasing manager shall include the following requirements:

A. In procuring designated products and materials, the city shall require recovered material and/or post-consumer material content to be factors in determining the lowest responsible bid in any competitive bidding procurement process initiated pursuant to city ordinance. Guidelines for purchasing materials, supplies and equipment which encourage recycled or recyclable products shall be developed.

B. The city shall promote the use of recycled and recyclable products by publicizing its procurement program and by disseminating information about recycled and recyclable products.

C. The city manager shall report periodically to the city council on progress in procuring recycled and recyclable products.

D. It is not intended that the city or its contractors procure products that do not perform adequately for their intended end use or products that are not available at a reasonable price within a reasonable period of time. (Ord. 4968 § 6, 1997.)

4.28.130 Public work or improvement – Estimated cost in excess of $2,500 but less than $20,000 – Publication of estimates.

When it is determined that a public work or improvement of an estimated cost of $20,000 or less shall be executed by any means or method other than by contract, and it appears that the estimated probable cost of executing the work will exceed $2,500, then, at least 15 days before the work is begun, the purchasing manager shall cause such estimate, together with a description of the work, to be published at least once in a newspaper of general circulation within the county; except that when any emergency requires the immediate execution of such public work or improvement, upon a finding of the existence of an emergency by the authority having power to direct such public work or improvement to be done, duly entered of record, publication of description and estimate may be made within seven days after the commencement of the work. (Ord. 4320 § 1, 1992; Ord. 3593 § 22, 1986; Ord. 2822 § 8, 1980; Ord. 2284 § 10, 1976; 1961 code § 2.20.220.)

4.28.140 When bids required for public works and improvements.

Except as otherwise authorized by Chapters 39.04 and 39.28 RCW, or RCW 35.22.620, relating to emergency public works, or other applicable general state law, as now enacted or as hereafter amended, all public works and improvements shall be done by contract pursuant to public notice and call for competitive bids in accordance with BCC 4.28.040 hereof whenever the estimated cost of such public work or improvement, including the cost of materials, supplies, equipment and labor will exceed the sum of $35,000 if more than one craft or trade is involved with the public works project, or in excess of $20,000 if only a single craft or trade is involved with the public works project or the public works project is street signalization or street lighting; provided, the city may use a small works roster pursuant to RCW 35.22.620.

Whenever the estimated cost of the public work or improvement is less than the amounts provided above, a contract for the public work or improve-

ment may be awarded by the applicable department director, or other person designated by the city manager, consistent with the procedures set forth in BCC 4.28.050, 4.28.060 and 4.28.070 for the purchases of materials, supplies and equipment or, within the limits and to the extent authorized by RCW 35.22.620(2), the public work or improvement shall be performed by city employees.

The city manager, or his designee, is authorized to accept the public works and improvements performed under any contract awarded hereunder after determining that such work has been satisfactorily completed in accordance with the contract terms thereof. (Ord. 4888 § 1, 1996; Ord. 4320 § 2, 1992; Ord. 3847 § 3, 1987; Ord. 3593 § 23, 1986; Ord. 2284 § 11, 1976; 1961 code § 2.20.230.)

4.28.141 Cost of public works or improvements.

The cost of any public work or improvement for the purposes of this chapter shall be the aggregate of all amounts to be paid for labor, material, supplies, and equipment on one continuous or interrelated project where work is to be performed simultaneously or in close sequence; provided, that the cost of water services and metering equipment furnished in the course of water service installation form the utility-owned main to and including the meter box assembly shall not be included as part of the aggregate cost as provided in this chapter. The breaking down of any public work or improvement into units or accomplishing any public work or improvement by phases for the purpose of avoiding the minimum dollar amount prescribed in this chapter is contrary to public policy and is prohibited. (Ord. 3593 § 24, 1986; Ord. 2284 § 12, 1976.)

4.28.143 Equal opportunity requirements for contractual service providers.

A. All contractors, subcontractors, consultants, vendors and suppliers who contract with the city in a total amount of $35,000 or more within any given year are required to take affirmative action and comply with the following requirements of this section. There shall be included in any contract between such contractual services provider and the city the following provisions:

1. Contractor shall make specific and constant recruitment efforts with minority and women’s organizations, schools, and training institutions. This shall be done by notifying relevant minority and women’s organizations.

2. Contractor shall seek out eligible minority and women contractors to receive subcontract awards. Appropriate minority and women contractors shall be notified in writing of any bids advertised for subcontract work.

3. Contractor shall provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer and the steps taken to ensure equal treatment of all persons.

4. Contractor shall actively consider for promotion and advancement available minorities and women.

5. Contractor is encouraged to make specific efforts to encourage present minority and women employees to help recruit qualified members of protected groups.

6. Contractor is encouraged to provide traditional and nontraditional employment opportunities to female and minority youth through after-school and summer employment.

7. Contractor is encouraged to assist in developing the skills of minorities and women by providing or sponsoring training programs.

B. Wilful disregard of the city’s nondiscrimination and affirmative action requirements shall be considered breach of contract and suspension or termination of all or part of the contract may follow.

C. All contractors, subcontractors, vendors, consultants or suppliers of the city required to take affirmative action must sign the affidavit of compliance and submit with the bid proposal or upon the request of the purchasing manager. All documents related to compliance steps listed above shall be presented upon the request of the purchasing manager. The purchasing manager shall serve as the compliance officer for the city and is authorized to develop and issue procedures for the administration of this section. (Ord. 4320 § 3, 1992; Ord. 4040 § 8, 1989; Ord. 3328 § 2, 1983.)

4.28.150 Bids to comply with regulations.

All bids offered by persons, associations or corporations desiring to sell or supply material, equipment, or supplies to, or to construct a public work or improvement for, the city, shall comply strictly with the terms of the notice of invitation for bids and the specifications and evaluation criteria issued or published by the city in connection therewith, together with all relevant state laws, the terms of which shall be deemed included in such specifications whether or not they are expressly set out therein. (Ord. 3593 § 25, 1986; Ord. 2284 § 14, 1976; 1961 code § 2.20.240.)

4.28.155 Specifications.

A. Maximum Practicable Competition. All specifications shall be drafted so as to promote overall economy for the purposes intended and encourage maximum free and open competition in satisfying the city’s needs. The policy enunciated in this section applies to all specifications including but not limited to, those prepared for the city by architects, engineers, designers, and draftsmen.

B. “Brand Name or Equal” Specification. Brand name or equal specifications may be used when the purchasing manager determines that use of a brand name or equal specification is the city’s best interest.

C. Brand Name Specification. Because use of a brand name specification is restrictive of competition, it may be used only when the purchasing manager makes a written determination that only the identified brand name item or items will satisfy the city’s needs. (Ord. 3593 § 26, 1986.)

4.28.160 Bonds and bid security – Noncollusion affidavit – Insurance.

A. Bid Security.

1. Requirement for Bid Security. Bid security shall be required for all competitive bidding for public work or improvement contracts. Bid security shall be of a type and in a form approved by the purchasing manager, which may include a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, or certified check and shall be included in the bid package. Bid security shall be required on bids for materials, supplies and equipment only if determined necessary by the purchasing manager.

2. Amount of Bid Security. Bid security shall be in an amount equal to at least five percent of the amount of the bid.

3. Rejection of Bids for Noncompliance with Bid Security Requirements. When the invitation for bids requires submittal of bid security, noncompliance will result in rejection of the bid.

4. Withdrawal of Bids. If a bidder is permitted to withdraw its bid before award as provided in BCC 4.28.040F, the bidder’s bid security shall be returned.

B. Contract Performance and Payment Bonds.

1. When Required – Amounts. When a public works or improvement contract is awarded as a result of a call for bids under BCC 4.28.140, the following bonds or security shall be delivered to the city and shall become binding on the parties upon the execution of the contract:

a. A performance bond satisfactory to the city, executed by a surety company authorized to do business in this state, in an amount equal to 100 percent of the price specified in the contract; and

b. A payment bond satisfactory to the city, executed by a surety company authorized to do business in this state or otherwise secured in a manner satisfactory to the city for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100 percent of the price specified in the contract.

2. Authority to Require Additional Bonds. Nothing in this section shall be construed to limit the authority of the city to require a performance bond or other security in addition to the bonds specified herein.

C. Noncollusion Affidavit. As part of any bid submitted, the bidder shall be required to warrant that the bid is a genuine bid and that he has not entered into collusion with any other bidder or any other person by submitting with his bid an executed and notarized noncollusion affidavit on a form approved by the city attorney.

D. Insurance. Contracts for public works and improvements shall contain such requirements for the provision of insurance by the contractor as are determined by the city risk manager. (Ord. 4040 § 9, 1989; Ord. 3593 § 27, 1986; Ord. 2284 § 15, 1976; 1961 code § 2.20.250.)

4.28.170 Bid opening.

Bids shall be submitted sealed to the office of the purchasing agent at any time within regular business hours and shall be identified as bids on the envelope. Bids shall be opened in public by the purchasing agent at the time and place stated in the call for bids. The purchasing agent shall tabulate the bids and submit them to the department concerned which will make appropriate recommendations to the city manager. (Ord. 4040 § 10, 1989; 1961 code § 2.20.260.)

4.28.180 Award or rejection of bids.

For the purchase of materials, supplies, and equipment which are required to be competitively bid under BCC 4.28.040, and for contracts for public works or improvements which are required to be competitively bid under BCC 4.28.140, the city manager shall present the bids received, together with recommendations of the department or departments concerned, to the city council at a regular meeting. The council shall award the contract to the lowest responsible bidder or may reject any and all bids for any transaction when the public interest will be served thereby. (Ord. 4040 § 11, 1989; Ord. 2822 § 9, 1980; Ord. 2284 § 16, 1976; 1961 code § 2.20.270.)

4.28.185 Bid irregularities.

Except where otherwise provided in this chapter, bids containing irregularities will be accepted by the city and presented for consideration by the city council. Any action concerning the bid(s) containing irregularities shall be at the discretion of the city council. The call for bids for all bids shall state the reserved right of the city to reject any and all bids and to waive irregularities in any bid, provided that no bidder shall be permitted to gain unfair advantage over other bidders by action of the city council pertaining to this section. (Ord. 3593 § 28, 1986; Ord. 2822 § 10, 1980.)

4.28.190 General standards for determining lowest responsible bidder.

In determining lowest responsible bidder, in addition to price, the following may be considered:

A. The ability, capacity and skill of the bidder to perform the contract;

B. Whether the bidder can perform the contract promptly, or within the time specified, without delay or interference;

C. The reputation, experience and efficiency of the bidder;

D. The quality of performance of previous contracts by the bidder;

E. The previous and existing compliance by the bidder with laws and ordinances relating to contracts or services;

F. The sufficiency of the financial resources and ability of the bidder to perform the contract;

G. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

H. The number and scope of conditions attached to the bid. (Ord. 4040 § 12, 1989; Ord. 3593 § 29, 1986; Ord. 2284 § 17, 1976; 1961 code § 2.20.280.)

4.28.210 Rejecting bids – Recalling for bids.

The city council may reject any or all bids and make further calls for bids in the same manner as the original call. If no responsive bid is received on the first call, the city may readvertise and make a second call, or may enter into a contract without any further call or may purchase the supplies, materials, or equipment or perform such work and improvement by day labor. (Ord. 4040 § 14, 1989; Ord. 3593 § 31, 1986; Ord. 2284 § 18, 1976; 1961 code § 2.20.300.)

4.28.215 Administrative procedures – Public works contracts.

The city manager or his/her designee may promulgate procedures for the purpose of administering public works improvement contracts. Such procedures may define the levels of authority pertaining to review and approval of contract change orders. (Ord. 4968 § 7, 1997; Ord. 4040 § 15, 1989.)

4.28.216 Administrative guidelines, policies and procedures – Purchases for special events.

The city manager or his/her designee may promulgate procedures to govern the purchase of supplies, such as food, beverages, decorations and awards, for public events and employee activities, including employee of the year recognition, volunteer recognition and ceremonial openings of public facilities. (Ord. 4968 § 8, 1997; Ord. 4040 § 16, 1989.)

4.28.220 Time for calling for bids for newspaper publications.

Annually in January, the city manager or the purchasing manager shall call for bids for publication in a newspaper of general circulation in the city of all notices or newspaper publications required by law. (Ord. 3593 § 32, 1986; 1961 code § 2.20.310.)

4.28.230 Other contracts.

The city manager or his/her designee may promulgate procedures for the approval of all other contracts not otherwise covered by this chapter. These contracts shall include, but shall not be limited to: nonprofessional service contracts, maintenance agreements and contracts, instructor contracts, entertainment contracts and any other personal service contract. (Ord. 4968 § 9, 1997; Ord. 4320 § 4, 1992; Ord. 3593 § 33, 1986; Ord. 2822 § 11, 1980.)

Chapter 4.30
REAL PROPERTY ACQUISITION AND LEASING

Sections:

4.30.010 Real property – Manager’s acquisition authority.

4.30.020 Real property – Manager’s leasing authority.

4.30.010 Real property – Manager’s acquisition authority.

A. The city manager or his designee is authorized, in the following instances, to accept by gift or acquire dedications, easements, rights-of-way, fee estates or other interests in real property for use by or on behalf of the city or any department of the city:

1. Minor Acquisitions. Any such acquisition where the purchase price is less than $10,000;

2. Approved Projects. Any such acquisition which is part of an approved and funded project included in the city’s capital improvement plan or a local improvement district ordered by the council; provided, that the cost of the property is less than $50,000 and does not exceed by more than 10 percent the fair market value of the property as determined by the city’s appraiser or review appraiser.

B. All other real property acquisitions not authorized in advance will be submitted to the council for approval. (Ord. 5012 § 1, 1997; Ord. 4002 § 2, 1989.)

4.30.020 Real property – Manager’s leasing authority.

A. The city manager or his designee is authorized to execute leases of real property on behalf of the city where the term of the lease does not exceed one year and the consideration does not exceed $50,000 per year.

B. A lease that exceeds the limits stated in subsection A of this section, or one where city property is leased for less than fair market rent, will be submitted to the council for approval. (Ord. 4315 § 1, 1991.)

Chapter 4.32
SALE OF CITY PROPERTY

Sections:

4.32.010 Sale of unneeded property owned by the city.

4.32.015 Sale of real or personal property or equipment originally acquired for public utility purposes.

4.32.017 Intergovernmental transfer of real or personal property over $50,000 in value.

4.32.020 Sale of personal property of $2,000 value or less.

4.32.030 Sale of personal property over $2,000 in value.

4.32.031 Repealed.

4.32.040 Bid deposit for the sale of personal property over $2,000 in value.

4.32.050 Bid opening in the sale of personal property over $2,000 in value.

4.32.060 Award or rejection of bids in the sale of personal property over $2,000 in value.

4.32.070 Alternate method of sale – Auction.

4.32.080 Disposition of confiscated, forfeited and released firearms.

4.32.090 Sale of other city real property.

4.32.010 Sale of unneeded property owned by the city.

Except as provided in BCC 4.32.015 and 4.32.017, the city manager may authorize department directors to declare as surplus any personal property owned by the city and which is in the custody of their departments when they have certified in writing to the purchasing manager that the properties are no longer of public use to the city, or that the sale thereof would be in the best interests of the city. (Ord. 5760 § 1, 2007; Ord. 5626 § 1, 2005; 1961 code § 2.21.010.)

4.32.015 Sale of real or personal property or equipment originally acquired for public utility purposes.

Whenever the city shall determine, by council resolution, that any lands, property or equipment originally acquired for public utility purposes is surplus to the city’s needs and is not required for providing continued public utility service, then the council by resolution and after a public hearing may cause such lands, property or equipment to be sold. Such resolution shall state the fair market value and such other terms and conditions for such disposition as the council deems to be in the best public interest ( RCW 35.94.040). (Ord. 5760 § 2, 2007; Ord. 5626 § 1, 2005.)

4.32.017 Intergovernmental transfer of real or personal property over $50,000 in value.

Before disposing of surplus real or personal property with an estimated value of more than $50,000 in an intergovernmental transfer as authorized by RCW 39.33.010, now or as hereafter amended, the city shall hold a public hearing in the manner and with notice as prescribed by RCW 39.33.020, now or as hereafter amended. (Ord. 5760 § 3, 2007.)

4.32.020 Sale of personal property of $2,000 value or less.

Approval of the council is given for the sale or disposition of any personal property with an estimated value of $2,000 or less which has been certified for disposition by the purchasing manager, such sale or disposition to be made by the purchasing manager in accordance with informal procedures and in the best interest of the city. (Ord. 5626 § 1, 2005; Ord. 1981 § 1, 1973; 1961 code § 2.21.020.)

4.32.030 Sale of personal property over $2,000 in value.

The purchasing manager is authorized to sell personal property owned by the city valued at more than $2,000, and may call for sealed bids thereon. Such call shall specify the time and place of bid opening and shall contain a description of the property to be sold, the location thereof, the name and address of the person with whom the bid is to be filed, the last date for filing bids and other pertinent information. Such call shall be published at least once in a newspaper of general circulation in the city, not less than five days before the last date for filing of bids. (Ord. 5626 § 1, 2005; Ord. 1981 § 1, 1973; 1961 code § 2.21.030.)

4.32.031 Disposal of property over $50,000 in value.

Repealed by Ord. 5760. (Ord. 5626 § 1, 2005.)

4.32.040 Bid deposit for the sale of personal property over $2,000 in value.

Each bid shall be accompanied by a deposit in the form of a certified check in an amount equal to not less than 10 percent of the amount of the bid. All such deposits so made shall be returned to the unsuccessful bidders depositing the same after award of sale has been made. The deposit of the successful bidder shall be applied toward the purchase price, or upon failure of such bidder to consummate the purchase, such deposit shall be forfeited as liquidated damages; and such deposit so forfeited shall be credited to the appropriate account. (Ord. 5626 § 1, 2005; Ord. 1981 § 1, 1973; 1961 code § 2.21.040.)

4.32.050 Bid opening in the sale of personal property over $2,000 in value.

Sealed bids shall be opened in public by the purchasing manager or his/her authorized agent at the time and place specified in the call for bids. The purchasing manager or his/her designee shall make a tabulation of all bids received and forward the bids to the city manager. (Ord. 5626 § 1, 2005; Ord. 1981 § 1, 1973; 1961 code § 2.21.050.)

4.32.060 Award or rejection of bids in the sale of personal property over $2,000 in value.

The city manager shall present all bids, together with recommendations, to the city council at a regularly scheduled meeting for approval or rejection by council resolution. (Ord. 5626 § 1, 2005; Ord. 1981 § 1, 1973; 1961 code § 2.21.060.)

4.32.070 Alternate method of sale – Auction.

Notwithstanding any other section of this chapter, when an accumulation of city property is to be sold, the value of which exceeds $2,000, the purchasing manager may, with prior approval of the city manager or his/her designee, sell said accumulated property at public auction to the highest bidder. Notice of such sale, stating the time and place thereof, and containing a description in general terms of the property to be sold, shall be published at least once in a newspaper of general circulation within the city at least 10 days prior to the date fixed for said sale. (Ord. 5626 § 1, 2005; Ord. 2331 § 1, 1976.)

4.32.080 Disposition of confiscated, forfeited and released firearms.

All firearms taken into the custody of the Bellevue police department, not retained for law enforcement use and no longer needed for evidence, shall be disposed of as follows:

A. Antique firearms and firearms recognized as curios, relics and firearms of particular historical significance by the United States Treasury Department, Bureau of Alcohol, Tobacco and Firearms shall be disposed of by auction or trade to licensed dealers.

B. Firearms lawful to possess that have been ordered by a court of competent jurisdiction to be returned to the owner under RCW 9.41.098(3), or for which a timely claim has been filed by the owner under RCW 63.32.010, shall be returned to the owner.

C. The Bellevue police department may retain legal forfeited firearms for law enforcement use as determined by the chief of police.

D. All other firearms that are judicially or administratively forfeited, forfeited due to failure to timely claim them following notice from the city pursuant to Chapter 63.32 RCW, or released by their owner to the department for destruction shall be destroyed. (Ord. 5626 § 1, 2005; Ord. 5209 § 1, 2000.)

4.32.090 Sale of other city real property.

Except as provided in BCC 4.32.015 and 4.32.017, any sale of real property shall be submitted to the council for approval. A public hearing on the proposed sale is not required. (Ord. 5760 § 5, 2007.)

Chapter 4.36
DAMAGE CLAIMS AGAINST THE CITY

Sections:

4.36.010 Place for filing claims.

4.36.020 Report and requisites of claim.

4.36.030 City procedure.

4.36.038 Legal representation.

4.36.040 Procedures mandatory.

4.36.050 Filing claim with city clerk mandatory.

4.36.060 Severability.

4.36.010 Place for filing claims.

Claims for damages against the city, and/or its officers, employees, or volunteers, acting in such capacity, shall be filed with the city clerk, who is hereby appointed the city’s agent to receive claims. The city clerk’s office is located at Bellevue City Hall, 450 110th Avenue N.E., Bellevue, Washington 98004. The clerk’s office is open to the public Monday through Friday, between the hours of 8:00 a.m. and 5:00 p.m., except holidays. The city clerk shall immediately forward copies of such claims to the city attorney and to the city’s risk manager. (Ord. 5674 § 1, 2006; Ord. 5360 § 1, 2002; Ord. 4342 § 1, 1992; Ord. 2695 § 1, 1979; Ord. 2420 § 2, 1977.)

4.36.020 Report and requisites of claim.

All such claims for damages must accurately locate and describe the conduct and circumstances that caused the injury or damage, reasonably describe the injury or damage, state the time and place the injury or damage occurred, state the names of all persons involved, if known, state the amount of damages claimed, state the actual residence of the claimant at the time of presenting and filing the claim and for a period of six months immediately prior to the time the claim arose, and be verified by the claimant. If the claimant is incapacitated from verifying, presenting, and filing the claim in the time prescribed or if the claimant is a minor, or is a nonresident of the state absent therefrom during the time within which the claim is required to be filed, the claim may be verified, presented and filed of behalf of the claimant by any relative, attorney, or agent authorized to represent the claimant. (Ord. 5360 § 2, 2002; Ord. 2420 § 2, 1977.)

4.36.030 City procedure.

All damage claims shall be investigated by the risk manager or the risk manager’s designee. Settlement and authorization for payment of such claims shall be as follows:

A. Settlements for $20,000 or less may be paid by the city upon written authorization of the city manager or the city manager’s designee.

B. Settlements exceeding $20,000 may be paid upon authorization of the city council after receiving a report of the city manager.

The council auditor shall audit settlements paid under subsections A and B of this section, and shall report bimonthly to the city council on said settlements. (Ord. 4342 § 2, 1992; Ord. 2695 § 2, 1979; Ord. 2420 § 2, 1977.)

4.36.038 Legal representation.

The city attorney is hereby authorized to hire and retain private attorneys for representation of the city and/or its officers, employees, or volunteers, acting in such capacity regarding any evaluation of or litigation involving damage claims; fees for such services shall be paid from the general self-insurance fund. (Ord. 5674 § 2, 2006; Ord. 4342 § 4, 1992; Ord. 2695 § 4, 1979.)

4.36.040 Procedures mandatory.

No claim for damages against the city and/or its officers, employees, or volunteers acting in such capacity or any part thereof shall be paid, and no money shall be appropriated to pay or satisfy any such claim unless there is compliance with the procedures set forth in this chapter. (Ord. 5674 § 3, 2006; Ord. 2420 § 2, 1977.)

4.36.050 Filing claim with city clerk mandatory.

No action shall be maintained against the city and/or its officers, employees, or volunteers, acting in such capacity for damages arising out of tortuous conduct until 60 days have elapsed after a claim has first been presented to and filed with the city clerk. The requirements of this section shall not affect the applicable period of limitations within which an action must be commenced, except that such period of limitations within which an action must be commenced shall be tolled during the 60-day period after a claim has been presented and filed with the city clerk. (Ord. 5674 § 4, 2006; Ord. 5360 § 3, 2002; Ord. 3751 § 1, 1987; Ord. 2420 § 2, 1977.)

4.36.060 Severability.

If any provision of this chapter, or its application to any person or circumstance is held invalid, the remainder of this chapter, or the application of the provision to other persons or circumstances is not affected. (Ord. 2420 § 2, 1977.)

Chapter 4.40
AUDIT OF CLAIMS

Sections:

4.40.010 Examination of claims by city officials.

4.40.020 Examination by finance director.

4.40.030 Finance director’s report to city council.

4.40.040 Services of auditor.

4.40.045 Expedited payment of claim.

4.40.045 Repealed.

4.40.050 Damage claims.

4.40.010 Examination of claims by city officials.

All claims presented to the city shall first be examined by the appropriate administrative official thereof. If said official determines a claim to be just, due and unpaid he shall so indicate to the finance director or his/her designee, and shall further indicate the fund from which payment is to be made and whether the appropriate funds are available. (Ord. 5629 § 1, 2005; Ord. 2042 § 3, 1974; 1961 code § 2.30.020. Formerly 4.40.020.)

4.40.020 Examination by finance director.

The finance director or his/her designee shall examine all claims presented to him/her by the appropriate administrative officials of the city, and following said examination shall take action as follows:

A. If she/he concurs in a finding of the appropriate administrative official that a claim is just, due and owing, and if funds are available, and if funds are available and if she/he further finds that payment of said claim would not be in violation of any city ordinance, state statute or general law, she/he may authorize payment of the same. Said authorization shall be sufficient for the honoring and payment of such claim.

B. If she/he disagrees with a finding of the appropriate administrative official of the city that a claim is just, due and owing, she/he shall so indicate in his/her report to the city council. No voucher shall be approved or payment ordered on any claim upon which the finance director or his/her designee shall have noted an objection pending presentation thereof to the city council. (Ord. 5629 § 1, 2005; Ord. 2042 § 4, 1974; 1961 code § 2.30.030. Formerly 4.40.030.)

4.40.030 Finance director’s report to city council.

The finance director or his/her designee shall periodically, as the city council may designate, prepare a written report regarding his/her examination of claims. Such report shall indicate the action taken on each claim presented, together with such information thereon as may enable the city council to act upon all claims which have not been approved by the finance director or his/her designee. (Ord. 5629 § 1, 2005; Ord. 2042 § 5, 1974; 1961 code § 2.30.040. Formerly 4.40.040.)

4.40.040 Services of auditor.

Notwithstanding the foregoing, the mayor may contract for the services of a city council auditor pursuant to the provisions of RCW 35A.13.080(2), upon concurrence of the city council, for the purpose of conducting nonroutine audits of city officers and departments. The city council auditor shall be under the direction of the city council and shall not be considered an employee of the city nor under the control of the city administration. (Ord. 5629 § 1, 2005; Ord. 4173 § 1, 1990; Ord. 2519 § 1, 1978; Ord. 2042 § 2, 1974; 1961 code § 2.30.010. Formerly 4.40.010.)

4.40.045 Expedited payment of claim.

Repealed by Ord. 5629. (Ord. 4173 § 2, 1990.)

4.40.050 Damage claims.

This chapter does not apply to claims for damages covered by Chapter 4.36 BCC. (Ord. 5629 § 1, 2005; Ord. 2695 § 5, 1979; Ord. 2042 § 6, 1974; 1961 code § 2.30.050.)

Chapter 4.44
GOLF COURSE OPERATING FUND

Sections:

4.44.010 Creation.

There is created and established in the office of the city treasurer a special fund to be known as the “golf course operating fund,” and, after the golf course improvement is substantially completed, all rentals, charges, income and revenue arising from the operation and ownership of the golf course shall be deposited to the credit of said special fund and held in custody of the city treasurer separate and apart from all other funds. (Ord. 2317 § 3, 1976.)

Chapter 4.48
MUNICIPAL ART PROGRAM

Sections:

4.48.010 Purpose.

4.48.020 Definitions.

4.48.030 Municipal art fund.

4.48.040 Procedure.

4.48.050 Municipal art funding – Source of funds – Capital investment program.

4.48.060 Transfer of funds.

4.48.070 Additional revenue sources.

4.48.010 Purpose.

The city of Bellevue accepts a responsibility for expanding the public experience with visual arts. Such works of art create a more visually pleasing, humane environment and add to the overall beautification and cultural climate of the city of Bellevue and the quality of life of its citizens. Artists capable of creating art for public places must be encouraged and Bellevue’s standing as a leader in public art enhanced. A policy is therefore established to provide funding for works of art in public places of the city of Bellevue. Works of art purchased with these funds will become part of the city art collection. (Ord. 3712 § 2, 1986.)

4.48.020 Definitions.

A. “Commission” means the Bellevue arts commission.

B. “Municipal art fund” means a special purpose interest-bearing city fund into which shall be deposited all art funding authorized by this chapter together with other moneys as the city council shall authorize for works of art.

C. “Works of art” means all forms of original creations of visual art.

D. “Municipal art program” means a program through which designated funds are deposited into the interest-bearing municipal art fund to be used for the purchase and maintenance of works of art in public places of the city. (Ord. 3712 § 2, 1986.)

4.48.030 Municipal art fund.*

There is hereby created and established a special purpose interest-bearing fund designated the “Municipal Art Fund” into which shall be deposited moneys described in this chapter, together with such other moneys as the city council shall designate for works of art. Money so deposited shall be expended for the selection, acquisition, display and/or maintenance of works of art. Such works of art shall be placed outside or inside of any construction project of any public agency or other publicly owned, leased, or rented property in locations where they are readily accessible for public viewing. No work of art may be placed in any office or other area not open to the general public. Such works of art may be attached or detached about such property and may be either temporary or permanent. (Ord. 4715 § 1, 1994; Ord. 3797 § 1, 1987; Ord. 3712 § 2, 1986.)

*Ord. 4907 § 4 provides:

[The Municipal Art Fund] shall be consolidated into the “General Capital Investment Program Fund” and thereby closed. All assets and operations of such funds shall be transferred to the “General Capital Investment Program Fund” which shall carry out the purposes and functions for which such consolidated funds were originally created. . . . Whenever the term “Municipal Art Fund” is used, it shall hereafter refer to the appropriation for municipal art in the Capital Investment Fund.

4.48.040 Procedure.

Upon consultation with the arts commission, the city manager or his/her designee shall prepare guidelines for the implementation of programs under this chapter. (Ord. 3712 § 2, 1986.)

4.48.050 Municipal art funding – Source of funds – Capital investment program.

The city’s capital investment program plan, as biennially updated, will budget an amount not to exceed $250,000 per year of the capital investment program general funding, as defined and displayed in the current capital investment program plan, as a revenue source for municipal art funding. (Ord. 5265 § 1, 2000; Ord. 3712 § 2, 1986.)

4.48.060 Transfer of funds.

The finance director or his/her designee shall transfer each month from the city’s general capital improvement program fund to the municipal art fund an amount equal to one-twelfth of the amount designated in BCC 4.48.050 where it shall accumulate in that interest-bearing fund until expended for approved art work. (Ord. 3712 § 2, 1986.)

4.48.070 Additional revenue sources.

The city council may approve, as future revenue sources for the municipal arts program, future capital improvement plan related general obligation bond issues. Future funds for the municipal art program may include that revenue which is not restricted in its use by prior agreements with the granting agencies, or local improvement district property owners or developers participating in the cost of a project; by ordinance governing expenditure of proceeds for particular bond issues; or by other legislation defining the eligible expenditures of the related fund. (Ord. 3712 § 2, 1986.)

Title 4REVENUE AND FINANCE

Chapter 4.02TAX ADMINISTRATION CODE

Chapter 4.03TAX ADMINISTRATIVE CODE

4.03.010 Purpose.

4.03.015 Application of chapter stated.

4.03.020 Definitions.

4.03.021 Definitions – References to Chapter 82.32 RCW.

4.03.025 Registration/license requirements.

4.03.030 Registration/license certificates.

4.03.035 City subject to tax.

4.03.040 When due and payable – Reporting periods – Monthly, quarterly, and annual returns – Threshold provisions or relief from filing requirements – Computing time periods – Failure to file returns.

4.03.050 Payment methods – Mailing returns or remittances – Time extension – Deposits – Recording payments – Payment must accompany return – NSF checks.

4.03.060 Records to be preserved – Examination – Estoppel to question assessment.

4.03.070 Accounting methods.

4.03.080 Public work contracts – Payment of fee and tax before final payment for work.

4.03.090 Underpayment of tax, interest, or penalty – Interest.

4.03.095 Time in which assessment may be made.

4.03.100 Overpayment of tax, penalty, or interest – Credit or refund – Interest rate – Statute of limitations.

4.03.110 Late payment – Disregard of written instructions – Evasion – Penalties.

4.03.120 Cancellation of penalties and interest.

4.03.125 Voluntary registration.

4.03.130 Taxpayer quitting business – Liability of successor.

4.03.140 Correction of tax – Administrative appeal.

4.03.150 Judicial review of hearing examiner decision.

4.03.160 Administration – Director to make rules.

4.03.170 Ancillary allocation authority of director.

4.03.180 Mailing of notices.

4.03.190 Tax declared additional.

4.03.200 Public disclosure – Confidentiality – Information sharing.

4.03.210 Tax constitutes debt.

4.03.220 Unlawful actions – Violation – Penalties.

4.03.230 Suspension or revocation of business registration [license].

4.03.240 Closing agreement provisions.

4.03.250 Charge-off of uncollectible taxes.

4.03.260 Severability.

4.03.270 Collection of tax.

4.03.280 City subject to tax.

4.03.290 Tax amnesty.

Chapter 4.04ADMISSION TAX CODE

4.04.010 Exercise of revenue license power.

4.04.015 General administrative provisions apply.

4.04.020 Definitions.

4.04.025 Tax imposed.

4.04.030 Tax on admission.

4.04.035 Exemptions.

4.04.040 Deductions.

4.04.045 Signs posted.

Chapter 4.06REAL ESTATE EXCISE TAX

4.06.010 Imposed.

4.06.015 Additional excise tax imposed.

4.06.020 Collection of tax.

4.06.030 Compliance with state rules and regulations.

4.06.040 Distribution of proceeds – Capital improvements – Authority to impose special assessments.

4.06.045 Distribution of proceeds – Authority to impose special assessments.

4.06.050 Tax – Obligation of seller.

4.06.060 Enforcement – Lien upon property.

4.06.070 Collection by county treasurer – Satisfaction of lien – Recording of conveyances.

4.06.080 Due and payable when – Interest on late payments.

4.06.090 Payment in excess of amount due – Refund.

Chapter 4.08BUSINESS AND OCCUPATION TAX CODE

Chapter 4.09BUSINESS AND OCCUPATION TAX CODE

4.09.010 Purpose.

4.09.020 Exercise of revenue license power.

4.09.025 Adoption by reference.

4.09.028 Administrative provisions.

4.09.030 Definitions.

4.09.040 Agency – Sales and services by agent, consignee, bailee, factor or auctioneer.

4.09.050 Imposition of the tax – Tax or fee levied.

4.09.060 Doing business with the city.

4.09.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes.

4.09.075 Deductions to prevent multiple taxation of manufacturing activities and, for tax periods prior to January 1, 2008, of transactions involving more than one city with an eligible gross receipts tax.

4.09.076 Assignment of gross income derived from intangibles.

4.09.077 Allocation and apportionment of income when activities take place in more than one jurisdiction.

4.09.078 Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction.

4.09.080 Reserved.

4.09.090 Exemptions.

4.09.100 Deductions.

4.09.120 Tax part of overhead.

4.09.130 Severability clause.

Chapter 4.10UTILITY OCCUPATION TAX CODE

Title 4
REVENUE AND FINANCE

Chapter 4.02
TAX ADMINISTRATION CODE

Chapter 4.03
TAX ADMINISTRATIVE CODE

Chapter 4.04
ADMISSION TAX CODE

Chapter 4.06
REAL ESTATE EXCISE TAX

Chapter 4.08
BUSINESS AND OCCUPATION TAX CODE

Chapter 4.09
BUSINESS AND OCCUPATION TAX CODE

Chapter 4.10
UTILITY OCCUPATION TAX CODE

Chapter 4.12
SALES OR USE TAX

Chapter 4.14
GAMBLING TAX CODE

Chapter 4.16
ACCOMMODATIONS TAX*

Chapter 4.17
HOTEL/MOTEL SPECIAL EXCISE TAX*

Chapter 4.18
LEASEHOLD EXCISE TAX

Chapter 4.18A
LODGING EXCISE TAX*

Chapter 4.19
LODGING EXCISE TAX*

Chapter 4.20
WARRANTS

Chapter 4.28
PURCHASING