Ordinance No. 88-13 CITY OF TIGARD, OREGON
vnuiiu iiVVt IUV. 66--
AN ORDINANCE AMENDING CHAPTER 5.04, BUSINESS TAX, OF TFIE TIGARD MUNICIPAL CODE:
AND DECLARING AN EMERGENCY.
WHEREAS, the City Council has enacted a Business 'Tax Ordinance, TMC Chapter
5.04; and
WHEREAS, the business tax fee schedule has not been changed since June 1986; and
WHEREAS, the quarterly schedules for business tax are both confusing and gime
consun►ing to administer'; and
WHEREAS, the City Council of the City of Tigard wishes to update the business
tax fee schedule, instiLute a single business tax schedule that coincides with
the calendar- year-, update procedures, and clarify language.
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
Section 1: Tigard Municipal Code Chapter 5.04 is .mended as in Exhibit "A".
Everything within [brackets] is deleted, and everything underlined
is new:
Section 2. Inasmuch as it is necessary for the peace, health and safety of the
people of the City of Tigard that this amendment: be made with the
least possible delay, an emergency is hereby declared to exist, and
this ordinance shall become effective immediately upon passage by
the Council, approval by the Mayor, and posting by the Recorder.
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PASSED: By vote of all Council members present after I
being read by number- and title only, this /Ls' day
-o f 1980.
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LSM '4' ta-, City Recorder
CA>aCRZ'„i_C Wh.e*gr445, L
APPROVED: This day of _ 1988.
__.omaes 1M
n .-
Th -�. ur.,,.��n, Mayor �.
Approved as to form: '
City Attorney
Date
ht/3314D
ORDINANCE NO. 88-_
Paye a
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EXChapter 5,U4 iii BIT "W
BUSINESS IAXE.x-x
# 1 - with fee increase
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Sections: '
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5.04.010 Short title.
5.04.020 Purpose.
5,04,030 Definitions.
5,04,040 Prohibited business operation.
5,04.050 One act constitutes doing business.
[5.04,055 Business tax for temporary uses.]
5,04.060 Agents responsible for, obtaining a business tax receipt:.
5.04.070 Separate tax for branch establishments.
5.04.080 Rental real property.
5.04.090 Joint tax.
5.04.100 No tax required for mere delivery. f
5.04.110 [Special certificates] 101.iness tax recei� s for n,nprofit.
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enterprises.
5.04,120 [Finance and services department.] Issuance of- business tax.
5.04.130 Procedure for obtaining and displaying a receipt.
5.04.140 Display, s
5.04.150 [Duplicate] issue of tax receipt.
5.04.160 Fee schedule. ¢`
[5.04.170 Duties Of husiness taxpayer.]
5.04.173 Temporary business
5.04.180 Enforcement.
5.04.1.90 Penalties.
5.04.200 Rate review and adjustment.
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For sign permit provisions, seL, Ch. 16.12 of this code.
For statutory provisions allcu.4ing cities to take all action necessary or y
convenient for the governing of its local affairs, see ORS 2.21.410. k
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5.04.010-.-5.04,030
5.04.010 Short title. The provisions of this chapter shall be known and
may be cited as the "Business Tax Ordinance of the City of Tigard."
5.04.020 Purpose. The purpose of this chapter is to provide revenue for
general municipal purposes and to recoup the necessary expenses required to
undertake the activities of the city in the administration and enforcement of
this chapter. These fees shall be in addition to, and riot in lieu of, any
license permit fee, charge or tax required under any ordinance of the City.
It is not intended by this chapter to repeal, abrogate or, annul or- in any
l ; way impair or interfere with the existing provisions of other laws or
ordinances, except those specifically repealed by the ordinance codified in
�
es a gr eater "`33tr1 C tion on persons,
this chapter. Where this chapter. im,n os_
premises or personal property than is imposed or required by such existing f
provisions of law, ordinance, contract: or deed, the provisions of this chapter
shall control.
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This chapter shall not be construed to constitute a regulation of any
business activity or as a permit of the city to persons engaged therein to
undertake unlawful, illegal or. prohibited -acts. Nothing in this chapter shall
be construed to apply to any person transacting or careying on any business
within the city of Tigard which is .:xempt from taxation by the city by virtue t
of the Constitution of the United States or theConstitution of the State of
Oregon or applicable statutes of the United States or the State of Oregon.
5.04.030 Definitions. Forthe purpose of this chapter, the following s
terms, phrases, words and their• derivations shall haus the meaning given
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�- herein. 4lhen not inconsistent with the context, words the present tense
xn `
erin. the future, words in .the plural number include the singular number, . .
and words in the singular number include the plural number. The word "shah"
is always mandatory and not merely directory. '
(a) "Business" means all kinds of vocations, os:cupations, professions,
enterprises, establishments, and all kinds of activities and matters, together i
with all devices, machines, vehicles and appurtenances used therein, any of
which are conducted for private profit, or benefit, either directly or
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indirectly, on any premises in the city. €;
(b) A ,person "engages in business" within the meaning of this chapter
wher. soliciting orders for future delivery, selling or offering for sale any E
goods, merchandise or service, performing any service for profit, delivering :
any goods gar merchandise within the city, personally advertising by individual
contract with residents of the city any goods, merchandise or service to be
sold or performed within or without the city. Such activity shall also
include engaging in an enterprise, establishment, store, shop, activity,
profession or undertaking of any nature conducted, either directly or
indirectly, for private profit or benefit. -
(c) "The city" means the city of Tigard, Oregon.
(d) "City council" means the City Council of the City of Tigard, Oregon.
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5.04.030--5.04.050
[(e) "Finance and service department" means the department or departments
of the city of Tigard including the finance director and the city recorder•
with the finance director or designee having primary responsibility.]
Lel [(f)] "Full-time equivalent employee" means the total number of hours
worked by all employees working within the city of Tigard divided by two
thousand eighty hours equals the number of full-•time PgUivalent employees
working within the city of Tigard.
La [(g)] "Itinerant business" means all persons, firms or corporations,
including merchants, solicitors, peddlers, hawkers and agents, engaging in the
business in the city to sell or solicit for sale products or services, when
such persons, firms or corporations do riot maintain a permanent place of
business within the city or who are not engaging in "temporary business" as
defined below,
[(h) "Large" means a business that has fifty-one or more full--time
equivalent employees working within the city of Tigard.]
[(i) "Medium" means a business that has eleven to fifty full-time
equivalent employees working within the city of Tigard.]
[(j)] "Person" means and includes individual natural persons,
partnerships, joint ventures, societies, associations, clubs, trustees, trust
or corporations; or any officers, agents, employees, factors of any kind or
personal representatives thereof, in any capacity, either on that person's own
behalf, or for any other person, under either personal appointment or pursuant
to law.
[(k)] "Permanent business" means professions, trades, occupations, shops
and all and every kind of calling carried on for profit and livelihood at a
fixed or permanently established place of business maintained within the city.
[(1)] "Premises" means and includes all lands, structures, places and also
the equip-,rent and appurtenances connected or used therewith in any business,
and also any personal property which is affixed to or is otherwise used in j —
connection with any such business conducted on such premises.
[(m) "Small" means a business that has zero to ten full-time equivalent
employees working within the city of Tigard.l
[(n) "Temporary business" means all professions, trades, occupations, E
shops, or stands, itinerant: merchants, solicitors, or auctioneers engaging in
business within the city for a period of ten continuous days or less under
contract or agreement with a per•son, , firm or corporation operating a permanent
business within the city, when the owner or operator thereof maintains a i
permanent and principal place of business outside the city.] 4
"Temporary business" means any business_ that meets the criteria
outlined in Chapter 18.140 caf the
ommunj�X DeuelopmentCode and has a valid
temporaryuse permit. �
5.04.040 Prohibited business operation. It shall be unlawful for any
persons, either directly or indirectly, to engaged in any business without
having first paid the business tax provided by this chapter.
5.04.050 One act constitutes doing business. For the purpose of this
chapter, any persons shall be deemed to be engaging in business or engaging in
nonprofit enterprise, and thus subject to the requirements of Section
5.04.040, when undertaking one of the following acts:
(1) Selling any goods or service;
(2) Soliciting business or of=fering goods or services forsaleor hire;
(3) Acquiring or using any vehicle or any premises in the city for
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business purposes.
5.04.055----5.04,110
[5.04.055 Business tax for--t or'ary---uses. (a) For purposes of this
CC chapter, a temporary use shall be defined as a use which is operated by a
1. nonprofit entity, permitted in the zone in which it is located and has a valid
temporary use permit.
(1) The tax required under, this section shall be paid upon
submittal of the tempor-ary use application.
(b) The amount of the tax shall be fifty dollars for every seven
consecutive calendar days or portion thereof during which the business or
businesses operate in conjunction with a valid temporary use permit,
(c) In addition to payment of the required tax a list of all businesses
conducted in conjunction with the event shall be submitted to the lylanning
those
staff seven days prior to the starting date of the event,
businesses named on the approved list submitted as required in this subsection
will be allowed to operate.] s
5.04.060 Agents responsible for obtaining a business tax receipt.
The
agents or other representatives doing business in the city shall be personally
responsible for. the compliance of their principals and of the businesses they
represent with the provisions of this chapter.
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5.04.070 Separate tax for branch establishments. A tax shall be paid in
the manner prescribed in this chapter for each branch establishment or
in, as if each such branch establishment or'
location of the business engaged t
; provided,
that warehouses and distributing
location were a separate business
plants used in connection with and incidental to a business taxed under the
laces Of
provisions of this chaptershall
Separately not be med to be separate franchised operatianspshall be
business or branch establishments.
deemed separate businesses even if operated under the same name.
5.04.080 Rental real property. Each rental real property shall Le deemed
a branch establishment or separate place of business for the purposes of this
chapter when there is a representative of the owner or the owner's agents on
the premises who is authorized to transact business for each owner or owner's
agent, of there is a regular employee of the owner- or of the owner's agent
working on the premises.
5.04.090 Joint tax, A person engaged in two or more businesses at the
same location shall not be required to pay separate taxes for conducting each
such business but, when eligible, shall be issued one receipt which shall
specify on its face all such businesses.
5,04,100 No tax required for mere delivery. No tax shall be required far
any person for any mere delivery in the city of any preper•'�y purchased or
acquired in good faith from such person at the regular place of business
outside the city.
[504�1I0 Special certificates for nonprofit enterprises• The finance
and services department shall issue exemption certificates, without the
payment of any tax or other charges therefor, to any persons or organization
for the conduct or operation of a nonprofit enterprise, either regularly or
temporarily, when the finance and services department finds that the applicant
operates without private profit, for a public, charitable, educational,
literary, fraternal _rar religious purpose.
s.04.110--5.04.12V
Exemption Ce xif�naue. An applicant for m
apeoial ce`�� fic' ` e ,h�ll oubmit an a .plioaC1on the. e[or Cu the finanoe arid
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services department upon for-ins prescribed by that of[ioer, and shall furnish
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such additional information and make such affidavits an the finance and !
services department ,hall require. i
(2) Exempted Nonprofit Enterprises Must Conform. A person or !
organization operating under an exemption certifioate shall operate the {
nonprofit enterprise in compliance with the provisions of this chapter- and all [
other applicable rules and regulations.] (
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5.04.110 Business tax receiRt'sl
en -orises. (a) The City
shall issue Bjisiness Tax receipts, without requinLirLq
_jhe a niqnt of any tax or
other to an _2 qn fi
applican� charitable,
___�jperat,±�L without Private profit f or, a public,
educational, lite ry, fraternal or religious Pu
therefor to the
(b) _A nonprofit applicant shall submit an application
—iish—su—c—h additional information
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[5,_LQ4.120 Finance and sqrviq2j__depaq--_meqt.
(a) Issuing f tax
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receipts. The finance and services departitent shall ct all taxes and
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the pruxzozonn of this chapter, and ,.=^^. `""^= ` ~^=~' ' . `'--=-'- and
enforce all reasonable rules and regulations necessary to the operation and
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enforcement of this chapter. Such rules ,hall be on ylle w�th the �i:c::e amd
services department and shall be a public record.
(h) All business tax receipts shall be issued upon written application
` and receipt of the applicable tax by the finance and services department.
(n) Duplicate Tax Receipt. A duplicate tax receipt shall be issued by
the finance and services department to replace any receipt previously issued,
or which has been loot, stolen, defaced or destroyed, without any wilful
conduct on the part of the business tax payer upon the filing by the business
tax payer of an affidavit attesting to such a fact and paying the finance and
'
services department a fee of ten 6ollaro.3
5:04. 130--5.04.160
5.04.130 procedure for, obtaining and displaying a receipt. (1) All
business tax receipts shall be issued upon written application and receipt of
the applicable tax by the [c]City [recorder].
[(2) The business tax information sheet shall contain the following
information:
(a) 'The business name, address and phone number;
(b) The name, address and phone number of the billing agent;
(c) A complete description of the business activity to be carried
out within the city;
(d) The contact's name and title;
(e) Date of the information sheet;
(,f) The amount tendered with the information sheet;
(g) The number of full-time equivalent employees working within the
city of Tigard; and
(h) "Che certification of the owner that the stated number of
full-time equivalent employees working within the city of Tigard is true and
accurate to the best of their knowledge.]
The business tax application shall be completed filled out before a
tax certificate is issued.
5.04.140 Display. Upon payment of the business tax, a person shall be
issued a receipt by the city, which receipt shah be kept posted in a
conspicuous place on the _ business premises at all times. If there is no
physical structure on which to display the receipt:, the receipt shall be in
the possession of the representative of the business present within the city
at all times during which business is being transacted.
[5.04_150 Duplicate tax receipt. A duplicate tax receipt shall be issued
by the city recorder to replace any receipt previously issued, or which has
been lost, stolen, defaced or destroyed, without any willful conduct or, the
part of the business taxpayer upon the filing by the business taxpayer of an }
affidavit attesting to such a fact and paying the city recorder a fee of ten g
dollars.]
5.04.150 Re-Issue of 'Tax Receipt. A _Business Tax receipt may be
re-issued if incorrect information is recorded on the certificate.
(a) If the re-issue is the re .u.1t of incorrect information due to an ,
error by the City or a it employee, there will be no fee.
(b) If the re--issue is the _result of incorrect information due to an ;
error by the applicant or an agent- of the applicant, a re-issue fee in the
same amount as the initial issue fee, will be required.
(c) If a business tax receipt holder relocates !urin_g__the calendar years
City files will be updated but a new receipt will not be issued until the next
renewal receipt is issued.
5.04.160 Fee schedule. (a) The taxes required in this chapter shall be
paid in the amount specified below prior to the issuance of a receipt.
[Administration Total
Type of Tax_ and Enforcement Tax Business Tax
Small business $15.00 $ 35.00 $ 50.00
Medium business $15.00 $ 85.00 $100.00 k
�+F 00 $185 00 $200.00 e
Large. business $P 5. .._.._.__
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5.04.160--5.04. 170
For purposes of this subsection, the word "year" commences on the first day of
the quarter in which the tax receipt is obtained.
(b) The initial payment of ars annual business tax may be made at any
time. Thereafter the annual tax shall be Paid before the expiration of the
quarter in which the initial tax was paid.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
July 1-- Oct 1-••-- Jars. 1--- April 1---
June 30 Sept 30 Dec. 31 March 31]
NUMnrn 01- FULL-TIME ADIAT*NISTRATION TOTAL ANNUAL
w �rocas yr
EQUIVALENT EMPLOYEES AND ENFORCEMENT TAX BUSINESS TAX
0-10 19.0.00 135.00 155.00
11-50 $20.00 1102kq x•110.00
51 or more $20.00 L200.00 $220.00
A Business Tax Receipt will be valid from the date of payment
through December 31 of that year.
The initial payment of an annual_ business tax can be made at any,
time. Thereafter the annual tax shall be due in full January 1•
The annual fee will be pro-rated accordinq to the followinc schedule:
0-10 11-50 51 or more - number of full--time equivalent
emplaees
$4.58 9.17 $18.33 a for the initial month when
issued on or before the 15th
of the month
a $2.29 • 4.59 9.17 -- for the initial month when
issued after the 15th of the
month
4.58 5927 16.33 for each month after the
initial month until the next
annual billing cycle be ins
S3anuar 1�
LcZ There will be no business tax refunds for businesses who cease
operation or who move out of Ticsard durinq the tax year.
'5.04.170 Duties of business taxpayer'. Every taxpayer under this chapter
shall:
(1) Post and maintain a business tax receipt upon the taxed premises in a
place where it may be seen at all tines;
(2) Carry such tax receipt on his or her Terson when there is no business
premises.]
5.04.173--5.04.200
5.04.173 Temporary business. dal A temporary business as defined in
Sec:tion�5.04.030 j), must comply with all regulations in this chapter.
b The business tax fee „�_�
�_Zfor a temporar business shall be $1Q.00. A
business tax receipt_Tfor as temporary business shall be valid until the initial
Temporary Use Permit expires. Any extension or renewal of a T'empor•ar, Use
Permit shall require an additional business tax payment.
5.04.180 Enforcement. The city is authorized to conduct inspections to
insure the administration and enforcement of this chapter. The code
enforcement officer(s) shall be responsible for the enforcement of this
chapter.
5.04.190 Penalties. (a) Violation of this chapter shall constitute a
Class 2 civil infraction which shall be processed according to the procedures
established in Chapter 1.16 of this code, Civil Infractions,
(b) Each violation of a separate provision of this chapter shall
constitute a separate infraction, and each day that a violation of this
chapter is committed or permitted to continue shall constitute a separate
infraction.
(c) A finding that a person has committed a civil infraction in violation
of this chapter shall riot act to relieve the person from payment of any unpaid
business tax, including delinquent charges, for which the person is liai•le.
The penalties imposed by this section are in addition to and riot in lieu of
any remedies available to the city.
(d) Payment of the business tax after the complaint and summons is served
is not a defense.
(e) If a provision of this chapter is violated by a firm or corporation,
the officer or officer.-, o. person n o persons responsible for the violation
shall be subject to the penali-iesimposed by this chapter.
5.04.200 Rate review and adjustment. Adjustments in the administration
and enforcement portion of this chapter, [shall be based upon the provisions of
Ordinance No. 82-72 adjusted by the council following a cost analysis to occur
annually during the budget cycle.] may be made by the C'ty Council followirig a
cost analysis to occur- annually during the budget__cycle and in conformance
with Chapter 3.32 of the TMC.
ht/3584P