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Form a Business

BUSINESS LICENSE TAX

SEA-MC tit. 5, subtit. II, ch. 5.45
in effect

Seattle Mun. Code § 5.45.010 Exercise of revenue license power.

5.45.010 - Exercise of revenue license power. The provisions of this chapter shall be deemed an exercise of the power of the City to license or tax 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. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.020 Administrative provisions.

5.45.020 - Administrative provisions. All of the provisions contained in Chapter 5.55 of the Seattle Municipal Code shall have full force and application with respect to taxes or license fees imposed under the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.030 Definitions.

5.45.030 - Definitions. The definitions contained in Chapter 5.30 of the Seattle Municipal Code shall be fully applicable to this chapter except as expressly stated to the contrary herein. (Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.040 Agency—Sales and services by agent, consignee, bailee, factor or auctioneer.

5.45.040 - 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 his or her or its 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; and 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 requirements in subsection A above 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, SMC Section 5.45.040 C, 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; and 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. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.050 Imposition of the tax—Tax or fee levied

5.45.050 - Imposition of the tax—Tax or fee levied Except as provided in subsection 5.55.040.D.1, 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 gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows: A. Upon every person engaging within the City in business as an extractor; as to such persons, the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted within the City for sale or for commercial or industrial use, multiplied by the rate of .00215 through December 31, 2016, and beginning January 1, 2017, through December 31, 2017, by the rate of .00219, beginning January 1, 2018, through December 31, 2025, by the rate of .00222, and beginning January 1, 2026, through December 31, 2032, by the rate of .00342, and beginning January 1, 2033, by the rate of .00273. The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. B. Upon every person engaging within the City in business as a manufacturer; as to such persons, the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured or processed within the City, multiplied by the rate of .00215 through December 31, 2016, and beginning January 1, 2017, through December 31, 2017, by the rate of .00219, beginning January 1, 2018, through December 31, 2025, by the rate of .00222, and beginning January 1, 2026, through December 31, 2032, by the rate of .00342, and beginning January 1, 2033, by the rate of .00273. The measure of the tax is the value of the products, including by-products, so manufactured or processed, regardless of the place of sale or the fact that deliveries may be made to points outside the City. C. Upon every person engaging within the City in the business of making sales of retail services, or making sales at wholesale or 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 .00215 through December 31, 2016, and beginning January 1, 2017, through December 31, 2017, by the rate of .00219, beginning January 1, 2018, through December 31, 2025, by the rate of .00222, and beginning January 1, 2026, through December 31, 2032, by the rate of .00342, and beginning January 1, 2033, by the rate of .00273. D. Upon every person engaging within the City in the business of: 1. Printing; 2. Both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items; 3. Publishing newspapers, magazines, and periodicals; 4. Extracting for hire; 5. Processing for hire; or 6. Conducting a tour operator business; 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 .00215 through December 31, 2016, and beginning January 1, 2017, through December 31, 2017, by the rate of .00219, beginning January 1, 2018, through December 31, 2025, by the rate of .00222, and beginning January 1, 2026, through December 31, 2032, by the rate of .00342, and beginning January 1, 2033, by the rate of .00273. E. Upon every motor carrier engaging within the City in the business of transporting freight for hire; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income from the transport of freight picked up in the City multiplied by the rate of .00415 through December 31, 2016, and beginning January 1, 2017, through December 31, 2017, by the rate of .00423, beginning January 1, 2018, through December 31, 2025, by the rate of .00427, and beginning January 1, 2026, through December 31, 2032, by the rate of .00658, and beginning January 1, 2033, by the rate of .00526. The business of transporting freight for hire includes the business of leasing or renting motor vehicles operated by the lessor, or by a person under the control of the lessor, to transport freight for hire. F. 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 .00415 through December 31, 2016, and beginning January 1, 2017, through December 31, 2017, by the rate of .00423, beginning January 1, 2018 through December 31, 2025, by the rate of .00427, and beginning January 1, 2026, through December 31, 2032, by the rate of .00658, and beginning January 1, 2033, by the rate of .00526. 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, persons engaged in the business of freight brokering, 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. 127267, § 2, 2025; Ord. 127259, § 2, 2025; Ord. 125211, § 3, 2016; Ord. 125084, § 1, 2016; Ord. 123704, § 1, 2011; Ord. 123099, § 2, 2009; Ord. 121679, § 8, 2004; Ord. 121266, § 1, 2003; Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes.

5.45.070 - 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 (2) or more subsections of SMC Section 5.45.050 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 and that the taxpayer paid the amount of tax sought to be credited. 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. 121679 § 9, 2004; Ord. 121266 § 3, 2003; Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.075 Deductions to prevent multiple taxation of manufacturing activities and, prior to January 1, 2008, transactions involving more than one city with an eligible gross receipts tax.

5.45.075 - Deductions to prevent multiple taxation of manufacturing activities and, prior to January 1, 2008, 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 taxes due 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 who 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 is 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 the City. 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. 122563, § 4, 2007; Ord. 121679 § 10, 2004; Ord. 121266 § 1, 2003.)

Seattle Mun. Code § 5.45.076 Assignment of gross income derived from intangibles.

5.45.076 - 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. 121679 § 11, 2004)

Seattle Mun. Code § 5.45.081 Assignment of revenues

5.45.081 - Assignment of revenues Beginning on January 1, 2008, and with the exception of those persons subject to the provisions of chapter 82.14A RCW, this Section 5.45.081 will be used to assign revenue for purposes of the business license tax imposed under Section 5.45.050. A. Gross income derived from all activities other than those taxed under subsections 5.45.050.E and 5.45.050.F shall be assigned to the location where the activity takes place. B. For sales of tangible personal property, the activity takes place where delivery to the buyer occurs. C. In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: 1. The seller's place of business if the purchaser receives the digital product at the seller's place of business; 2. If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller; 3. If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith; 4. If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and 5. If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(c) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold. D. If none of the methods in subsection 5.45.081.C for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in subsections 5.45.081.C.1 through 5.45.081.C.5, then the city and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the city to use an alternative method under this subsection 5.45.081.D. The city may employ an alternative method for allocating the income from the sale of digital products if the methods provided in subsections 5.45.081.C.1 through 5.45.081.C.5 are not available and the taxpayer and the city are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. E. For purposes of subsection 5.45.081.C, "Receive" has the same meaning as in RCW 82.32.730. F. Effective January 1, 2008 through December 31, 2019, gross income derived from service and other business activity taxed under subsection 5.45.050.F shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service and other business activity 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 for compensation in the city during the tax period by the taxpayer 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 employee performs 50 percent or more of the employee's 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 the employee's service in any city, and the employee resides in the city. 2. The service and other business activity income factor is a fraction, the numerator of which is the total service and other business activity income of the taxpayer in the city during the tax period, and the denominator of which is the total service and other business activity income of the taxpayer everywhere during the tax period. Service and other business activity 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 and other business activity 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 5.45.081.F 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. G. Effective January 1, 2020, gross income derived from services and other activities taxed under subsection 5.45.050.F 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 employee performs 50 percent or more of the employee's 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 the employee's service in any city and the employee 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 the customer location is in the city. 3. Gross income of the business from engaging in an apportionable activity must be excluded from the denominator of the service and other business income factor if, in respect to such activity, at least some of the activity is performed in the city, and the gross income is attributable under subsection 5.45.081.G.2 to a city or unincorporated area of a county within the United States or to a foreign country in which the taxpayer is not taxable. For purposes of this subsection 5.45.081.G.3, "not taxable" means that the taxpayer is not subject to a business activities tax by that city or county within the United States or by that foreign country, except that a taxpayer is taxable in a city or county within the United States or in a foreign country in which it would be deemed to have a substantial nexus with the city or county within the United States or with the foreign country under the standards in RCW 35.102.050 regardless of whether that city or county within the United States or that foreign country imposes such a tax. 4. If the allocation and apportionment provisions of this subsection 5.45.081.G. do not fairly represent the extent of the taxpayer's business activity in the city, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable: a. Separate accounting; or b. The exclusion of any one or more of the factors; or 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. 5. The party petitioning for, or the tax administrator requiring, the use of any method to effectuate an equitable allocation and apportionment of the taxpayer's income pursuant to subsection 5.45.081.G.4 must prove by a preponderance of the evidence: a. That the allocation and apportionment provisions of this subsection 5.45.081.G do not fairly represent the extent of the taxpayer's business activity in the city; and b. That the alternative to such provisions is reasonable. The same burden of proof shall apply whether the taxpayer is petitioning for, or the tax administrator is requiring, the use of an alternative, reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income. 6. If the tax administrator requires any method to effectuate an equitable allocation and apportionment of the taxpayer's income, the tax administrator cannot impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of this subsection 5.45.081.G. 7. A taxpayer that has received written permission from the tax administrator to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the tax administrator reasonably relied in approving a reasonable alternative method. H. The definitions in this subsection 5.45.081.H apply throughout this Section 5.45.081. "Apportionable income" means the gross income of the business taxable under the service and other business activity classification, including income received from activities outside the city if the income would be taxable under the service and other business activity classification if received from activities within the city, less any exemptions or deductions available. "Business activities tax" means a tax measured by the amount of, or economic results of, business activity conducted in a city or county within the United States or within a foreign country. The term includes taxes measured in whole or in part on net income or gross income or receipts. "Business activities tax" does not include a sales tax, use tax, or a similar transaction tax, imposed on the sale or acquisition of goods or services, whether or not denominated a gross receipts tax or a tax imposed on the privilege of doing business. "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. "Customer," effective January 1, 2020, means a person or entity to whom the taxpayer makes a sale or renders services or from whom the taxpayer otherwise receives gross income of the business. "Customer location," effective January 1, 2008 through December 31, 2019, means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. "Customer location," effective January 1, 2020, means the following: a. For a customer not engaged in business, if the service requires the customer to be physically present, where the service is performed. b. For a customer not engaged in business, if the service does not require the customer to be physically present: 1) The customer's residence; or 2) If the customer's residence is not known, the customer's billing/mailing address. c. For a customer engaged in business: 1) Where the services are ordered from; 2) At the customer's billing/mailing address if the location from which the services are ordered is not known; or 3) At the customer's commercial domicile if none of the above are known; "Digital automated services," "digital codes," and "digital goods" have the same meaning as in RCW 82.04.192. "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(c). "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. "Primarily assigned" means the business location of the taxpayer where the individual performs duties. "Service-taxable income" or "service income" means gross income of the business subject to tax under the service and other business activity classification, including but not limited to royalty income. "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. "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. I. Assignment or apportionment of revenue under this Section 5.45.081 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. J. This Section 5.45.081 does not apply to allocate gross income of motor carriers included in the measure of the tax pursuant to subsection 5.45.050.E. However, this Section 5.45.081 does apply to allocate gross receipts of motor carriers included in the measure of the tax pursuant to any other subsection of Section 5.45.050. K. Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this state from which the taxpayer's business is directed or managed. As used in this Section 5.45.081 until December 31, 2023, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the Department of Revenue. Beginning January 1, 2024, until January 1, 2034, as used in this Section 5.45.081, the activities of printing, and of publishing newspapers and periodicals or magazines are those activities to which the exemption in RCW 82.04.759 and the tax rate in RCW 82.04.280(1)(a) apply. (Ord. 126950, § 1, 2023; Ord. 125996, § 2, 2019; Ord. 125211, § 5, 2016; Ord. 124089, § 7, 2012; Ord. 123704, § 3, 2011 [cross-reference and style update]; Ord. 123239, § 5, 2010; Ord. 122563, § 6, 2007.)

Seattle Mun. Code § 5.45.082 Ancillary activities of motor carriers and freight brokers

5.45.082 - Ancillary activities of motor carriers and freight brokers A. Ancillary activities of motor carriers include but are not limited to stevedoring, separately billed charges for loading, unloading, sorting, storage, consolidation charges, and other charges not representing the actual transportation charge. The charges for ancillary activities shall be recorded separately from the transportation charges and reported under the "other business activity" classification (Subsection 5.45.050.F). B. Freight brokers should report revenue from brokering activities under the "other business activity" classification (Subsection 5.45.050.F). C. Gross receipts from the activities contained in subsections 5.45.082.A and 5.45.082.B are subject to the apportionment provisions contained in Section 5.45.081. (Ord. 125996, § 3, 2019; Ord. 125211, § 6, 2016 [cross-reference update]; Ord. 123704, § 4, 2011 [cross-reference and style update]; Ord. 123239, § 6, 2010; Ord. 121266, § 6, 2003.)

Seattle Mun. Code § 5.45.090 Exemptions

5.45.090 - Exemptions The provisions of this Chapter 5.45 and the licensing requirement in Section 5.55.030 shall not apply to the following: A. Adult family homes. This Chapter 5.45 does not apply to adult family homes that are licensed as such, or that are specifically exempt from licensing, under rules of the Washington State Department of Social and Health Services. B. Day care provided by churches. This Chapter 5.45 shall not apply to amounts derived by a church that is exempt from property tax under RCW 84.36.020 from the provision of care for children for periods of less than 24 hours. C. Child care resource and referral services by nonprofit organizations. This Chapter 5.45 does not apply to nonprofit organizations in respect to amounts derived from the provision of child-care resource and referral services. D. Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans. This Chapter 5.45 does not apply to gross income received by nonprofit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, that: 1. Are guarantee agencies under the federal guaranteed student loan program or that issue debt to provide or acquire student loans; or 2. Provide guarantees for student loans made through programs other than the federal guaranteed student loan program. E. Nonprofit organizations - Credit and debt services. This Chapter 5.45 does not apply to nonprofit organizations in respect to amounts derived from provision of the following services: 1. Presenting individual and community credit education programs including credit and debt counseling; 2. Obtaining creditor cooperation allowing a debtor to repay debt in an orderly manner; 3. Establishing and administering negotiated repayment programs for debtors; or 4. Providing advice or assistance to a debtor with regard to subsections 5.45.090.E.1, 5.45.090.E.2, or 5.45.090.E.3. F. Certain fraternal and beneficiary organizations. This Chapter 5.45 shall not apply to fraternal benefit societies or fraternal fire insurance associations, as described in Title 48 RCW; nor to beneficiary corporations or societies organized under and existing by virtue of Title 24 RCW, if such beneficiary corporations or societies provide in their bylaws for the payment of death benefits. This exemption is limited, however, to gross income from premiums, fees, assessments, dues or other charges directly attributable to the insurance or death benefits provided by such societies, associations, or corporations. G. Certain corporations furnishing aid and relief. This Chapter 5.45 shall not apply to the gross sales or the gross income received by corporations that have been incorporated under any act of Congress and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. H. Operation of sheltered workshops. This Chapter 5.45 shall not apply to income received from the Washington State Department of Social and Health Services for the cost of care, maintenance, support and training of persons with developmental disabilities at nonprofit group training homes as defined by chapter 71A.22 RCW or to the business activities of nonprofit organizations from the operation of sheltered workshops. For the purposes of this subsection 5.45.090.H, "the operation of sheltered workshops" means performance of business activities of any kind on or off the premises of such nonprofit organizations which are performed for the primary purpose of: 1. Providing gainful employment or rehabilitation services to the handicapped or disabled as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market or during such time as employment opportunities for them in the competitive labor market do not exist; or 2. Providing evaluation and work adjustment services for handicapped or disabled individuals. I. Investments—Dividends from subsidiary corporations. This Chapter 5.45 shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. J. Certain hospitals and clinics. This Chapter 5.45 shall not apply to the gross income received by the United States or any instrumentality thereof by the state, or any municipal subdivision thereof, or by any religious society, religious association, or religious corporation, through the operation of any hospital, clinic, resort, or other institution devoted exclusively to the care or healing of human beings; provided, that no exemption is granted where the income therefrom inures to the benefit of any physician, surgeon, stockholder, or individual by virtue of ownership or control of such hospital, clinic, resort, or other institution. K. Gross receipts taxed under other Seattle Municipal Code sections. This Chapter 5.45 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 5.48 or subsection 5.52.030.B.2, as amended. L. Credit unions. This Chapter 5.45 shall not apply to the gross income of credit unions organized under the laws of this state, any other state, or the United States. M. International banking facilities. This Chapter 5.45 shall not apply to the gross receipts of an international banking facility. As used in this subsection 5.45.090.M, 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 United States Code 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 United States Code 11 601-604(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). N. Insurance business. This Chapter 5.45 shall not apply to amounts received by any person who is an insurer or their appointed insurance producer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020, and provided further, that the provisions of this subsection 5.45.090.N shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. O. Farmers—Agriculture. This Chapter 5.45 shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats, or any other agricultural product that is raised, caught, produced, or manufactured by such persons. P. Athletic exhibitions. This Chapter 5.45 shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. Q. Racing. This Chapter 5.45 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 Horse Racing Commission. R. Ride sharing. This Chapter 5.45 does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. S. Employees. This Chapter 5.45 shall not apply to any person in respect to his or her employment in the capacity as an employee or servant as distinguished from that of an independent contractor. For the purposes of this subsection 5.45.090.S, the definition of employee shall include those persons that are defined in section 3121(d)(3)(B) of the Internal Revenue Code, as hereafter amended. For purposes of this Chapter 5.45, a booth renter, as defined by RCW 18.16.020, is an independent contractor. T. Amounts derived from sale of real estate. This Chapter 5.45 shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest, or similar financial charges resulting from, or relating to, real estate transactions. This Chapter 5.45 shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of 30 days or longer. U. Mortgage brokers' third party provider services trust account. This Chapter 5.45 shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. V. Amounts derived from manufacturing, selling, or distributing motor vehicle fuel. This Chapter 5.45 shall not apply to the manufacturing, selling or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.38.020 and exempted under RCW 82.38.280, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this Chapter 5.45. W. Amounts derived from liquor, and the sale or distribution of liquor. This Chapter 5.45 shall not apply to liquor as defined in RCW 66.04.010 and exempted in RCW 66.08.120. X. Casual and isolated sales. This Chapter 5.45 shall not apply to the gross proceeds derived from casual or isolated sales. Y. Health maintenance organization, health care service contractor, or certified health plan. Beginning on January 1, 2000, this Chapter 5.45 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. This exemption is limited to premiums and payments for health benefit plans offered by health care service contractors under chapter 48.44 RCW and health maintenance organizations under chapter 48.46 RCW and does not apply to health care services directly delivered by the employees of a health maintenance organization under chapter 48.46 RCW. Z. Accommodation sales. This Chapter 5.45 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 his 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. Provided, that where the seller holds himself or herself out as being regularly engaged in the business of making sales at wholesale of such property, such sales shall be included in his principal business activity, and not exempt from tax. AA. Real estate brokers and associated brokers, agents, or salesmen. This Chapter 5.45 does not apply to that portion of a real estate commission assigned to another brokerage office pursuant to the division of revenue between the originating brokerage office and a cooperating brokerage office on a particular transaction. Each brokerage office shall pay the tax upon its respective revenue share of the transaction. Furthermore, where a brokerage office has paid the business license tax on the gross commission earned by that brokerage office, associate brokers, salesmen, or agents within the same office shall not be required to pay the tax upon their share of the commission from the same transaction. BB. Taxes collected as trust funds. This Chapter 5.45 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, commercial parking tax, and admission tax. CC. This Chapter 5.45 shall not apply to any person with respect to the value proceeding or accruing from relief from debt or other legal obligation, that: 1. Does not otherwise qualify for an exemption or deduction under this Chapter 5.45; 2. Is received directly from the United States government, the state of Washington or any of its municipal corporations or political subdivisions, or a federally recognized Indian tribe located at least partially within the geographical boundaries in the state of Washington, except that the relief from debt or other legal obligation may also be received from a private entity under circumstances where, in exchange for providing the relief, the private entity receives some form of direct financial benefit from any of these government entities; 3. Is provided to address the impacts of conditions giving rise to an official proclamation of a national emergency by the president of the United States or an official proclamation of a state of emergency by the Governor of this state. DD. Bingo and non-profit raffles. This Chapter 5.45 shall not apply to amounts derived as receipts from bingo games, or from raffles, conducted by any bona-fide charitable organization or bona-fide nonprofit organization. (Ord. 127144, § 1, 2024 [amended K and added DD]; Ord. 126236, § 1, 2020 [added CC]; Ord. 125996, § 4, 2019 [amended I and V]; Ord. 124089, § 8, 2012 [amended N]; Ord. 123063, § 10, 2009 [amended portion before subsections and A and I]; Ord. 122842, § 6, 2008 [deleted CC]; Ord. 122192, § 13, 2006 [amended BB]; Ord. 121679, § 12, 2004 [amended T and Z and added CC]; Ord. 121266, § 7, 2003 [amended D, N, S, and Z and added BB]; Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.100 Deductions.

5.45.100 - Deductions. In computing the license fee or tax, the following may be deducted from the measure of tax: A. Membership Fees and Certain Service Fees by Nonprofit Youth Organization. For purposes of this subsection, "nonprofit youth organization" means a nonprofit organization engaged in character building of youth which is exempt from property tax under RCW 84.36.030. In computing tax due under this chapter, there may be deducted from the measure of tax all amounts received by a nonprofit youth organization: 1. As membership fees or dues, irrespective of the fact that the payment of the membership fees or dues to the organization may entitle its members, in addition to other rights or privileges, to receive services from the organization or to use the organization's facilities; or 2. From members of the organization for camping and recreational services provided by the organization or for the use of the organization's camping and recreational facilities. B. 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. Charges made by a nonprofit trade or professional organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the nonprofit trade or professional organization, which trade show, convention, or educational seminar is not open to the general public; 7. Charges made for operation of privately operated kindergartens; and 8. Endowment funds. Subsection SMC 5.45.100.B, 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. C. Artistic and Cultural Organizations—Income From Business Activities. In computing tax, there may be deducted from the measure of tax those amounts received by artistic or cultural organizations, as defined in Section 5.30.110, which represent: 1. Income derived from business activities conducted by the organization, provided that this deduction does not apply to retail sales made by artistic and cultural organizations (the rental of space and the casual sales of props and fixtures used in or culture productions will be exempt from tax); 2. Amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or subdivision thereof as compensation for, or to support, artistic or cultural exhibitions, performances, or programs provided by an artistic or cultural organization for attendance or viewing by the general public; or 3. Amounts received as tuition charges collected for the privilege of attending artistic or cultural education programs. D. Artistic or Cultural Organization—Deduction for Tax Under the Manufacturing Classification—Value of Articles for Use in Displaying Art Objects or Presenting Artistic or Cultural Exhibitions, Performances, or Programs. In computing tax, there may be deducted from the measure of tax by persons subject to payment of the tax under the manufacturing classification, the value of articles to the extent manufacturing activities are undertaken by an artistic or cultural organization, as defined in Section 5.30.110, solely for the purpose of manufacturing articles for use by the organization in displaying art objects or presenting artistic or cultural exhibitions, performances, or programs for attendance or viewing by the general public. E. Day Care Activities. In computing tax, nursery schools, preschools, child care providers and privately operated kindergartens may deduct from the measure of tax amounts derived from the care or education, for periods less than 24 hours, of children who are under eight years of age and not enrolled in or above the first grade. Such persons are, however, subject to the tax upon the gross proceeds derived from providing child care to children who are eight years of age or older or enrolled in or above the first grade. Amounts derived from selling, altering or repairing tangible personal property shall not be deductible. F. 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 section 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. Sec. 1071 et seq., as amended, or amounts payable pursuant thereto. G. Interest on Investments or Loans Secured by Mortgages or Deeds of Trust. In computing tax, to the extent permitted by Chapter 82.14A RCW, 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 non-transient residential properties. H. 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. I. 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. J. Receipts From the Sale of Tangible Personal Property 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 that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. K. Cash Discount Taken by Purchaser. In computing tax, there may be deducted from the measure of tax the amount of cash discount 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. L. 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. M. 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 apartment owners", 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; and 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. N. 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 of 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. O. 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 the 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 represents advertising which is intended to reach potential customers of the advertiser who are located outside the State of Washington. The Director of Finance and Administrative Services may issue a rule that provides detailed guidance as to how these deductions are to be calculated. P. 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. Q. Distribution Affiliate or Cooperative. In computing tax, there may be deducted from the measure of the tax an amount equal to the actual cost of the merchandise that a distribution cooperative or its distribution affiliate sells to a customer-owner of the distribution cooperative for the customer-owner's resale at retail. Actual cost means the cost actually paid by the distribution cooperative or distribution affiliate after taking into account all cash discounts and other price reductions. R. In computing tax imposed by subsection 5.45.050.E, there may be deducted from the measure of the tax gross income from the transport of empty containers picked up in the City if 1) a full container transported from outside the City is exchanged for the empty container at the time of pick-up, and 2) the job is billed to the customer as a round trip charge. S. Interstate Trucking. The tax imposed on motor carriers under subsection 5.45.050.E shall not apply to gross income from freight picked up in the City and transported by the taxpayer to a location outside the State of Washington. A motor carrier that does not transport freight across the state boundary is not entitled to a deduction, even though the freight is destined for and is ultimately transported to a location outside Washington. T. Sales of Water to Water Districts, Municipalities and other Political Subdivisions of the State of Washington for Resale. In computing tax, there may be deducted from the measure of the tax under the wholesaling classification, amounts derived from the sale of water to any water district, municipality or other political subdivision of the State of Washington. U. Sales of Electricity for Resale. In computing tax, there may be deducted from the measure of the tax amounts derived from the sale of electricity to any purchaser of electricity for resale. V. Receipts From the Sale of Tangible Personal Property or Retail Services Delivered Outside the City but Within Washington. Effective January 1, 2008, amounts included in the gross receipts reported on the tax return and which are derived from the sale of tangible personal property or retail services 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 or wholesaling classifications. Retail services include those services defined as such pursuant to Section 5.30.345. W. Standard deduction. In computing tax, taxpayers may deduct $2 million from the measure of the tax. Taxpayers reporting multiple business activity types may choose the business activities to which they apply the standard deduction. This deduction is available to taxpayers for tax years beginning January 1, 2026. (Ord. 127259, § 4, 2025; Ord. 124089, § 9, 2012; Ord. 123877, § 1, 2012; Ord. 123704, § 5, 2011; Ord. 123361, § 157, 2010; Ord. 123063, § 12, 2009; Ord. 123063, § 11, 2009; Ord. 122842, § 7, 2008; Ord. 122563, § 7, 2007; Ord. 122322, § 1, 2007; Ord. 121987 § 1, 2005; Ord. 121266 § 8, 2003; Ord. 120794, § 118, 2002; Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.105 Credits

5.45.105 - Credits A. Credit for comprehensive cancer centers. Persons taxable under Section 5.45.050 that receive gross receipts that are exempt from state business and occupation tax under RCW 82.04.4265 shall be allowed a credit against those taxes equal to the amount of gross receipts that is exempt from state business and occupation tax under RCW 82.04.4265 multiplied by: the rate of the tax for that business, minus the rate immediately preceding the effective date of this ordinance. B. Credit for pediatric hospitals. Nonprofit hospitals specializing primarily in pediatric medicine taxable under Section 5.45.050 shall be allowed a credit against those taxes equal to the amount of gross receipts that is taxable under Section 5.45.050 multiplied by: the rate of the tax for that business, minus the rate immediately preceding the effective date of this ordinance. 1. For the purposes of this section: a. "Hospital" has the meaning established in Revised Code of Washington Chapter 70.41.020. b. "Nonprofit" means a corporation or organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. c. "Specializing primarily in pediatric medicine" means a hospital providing clinically appropriate health care for the special needs of pediatric and young adult patients whose care and diagnosis is best treated with pediatric expertise. 2. The calculation of the credit applies solely to gross receipts from hospital services and shall not include gross receipts from retail, wholesale, or manufacturing business activity. (Ord. 127259, § 5, 2025)

Seattle Mun. Code § 5.45.110 Application to City's business activities

5.45.110 - Application to City's business activities Any department, division, employee association, or other entity of the City that engages in any business activity which if engaged in by any person would, under this Chapter 5.45 or Chapter 5.55, require a business license tax certificate and the payment of any tax or fee shall make application, file returns, and pay any taxes or fees imposed by this Chapter 5.45 or Chapter 5.55. (Ord. 124808, § 7, 2015; Ord. 120668, § 2, 2001.)

Seattle Mun. Code § 5.45.120 Tax part of operating overhead.

5.45.120 - Tax part of operating 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 customer, but that 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 operating overhead or cost of doing business of such persons. (Ord. 120668, § 2, 2001.)
Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IITA_CH5.45BULITAFetched: 11/1/2026

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