Ordinance 3711-19 - Laserfiche WebLink

Eligible Gross Receipts Tax.The term "eligible gross receipts tax" means a tax which: 1. Is imposed on the act or privilege of engaging in business activities identified in Section 3.24.050; and 2. Is measured by the gross volume of business, in terms of gross receipts, and is not an income tax or value added tax; and 3. Is not, pursuant to law or custom, separately stated from the sales price; and 4. Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and 5. Is a tax imposed by a local jurisdiction, whether within or without the state of Washington, and not by a country, state, province, or any other nonlocal jurisdiction above the county level. 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 pay a business license fee 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 ill of this definition. If an activity is not listed, whether it constitutes engaging in business in the city shall be determined by considering all the relevant 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. mii lz 2019 ORDINANCE: Business and Occupation Tax Page 5 of 40