Chapter 10.15 BUSINESS TAXES

There shall be and hereby is established a Tulalip Tribal Tax Commission, hereinafter called “Commission.” Authority and responsibility for administration of this chapter shall be vested in said Commission, except as specifically provided in this chapter.

The Commission shall consist of seven members. Persons elected as Directors of the Tribal Board of Directors shall be the members of the Commission upon election to the Board and shall serve on the Commission until their respective Board terms expire.

The majority of the members of the Commission shall constitute a quorum. No vacancy in the membership shall impair the right of the remaining members to act.

(b)

The principal office of the Commission shall be at the Tulalip Tribal Office, 6406 Marine Drive, Tulalip, Washington.

(c)

The Commission shall have the authority to collect any tax or license fee levied herein and enforce provisions of this chapter. The Commission shall keep accurate records of the issuance of any license and/or the collection of any tax or license fee authorized hereby, and shall keep accurate records and minutes of all proceedings of the Commission.

(d)

The Commission may employ such employees as in its judgment are required for the administration of this chapter.

(e)

The Commission may promulgate, upon 10 days’ public notice of time, place and purpose at public meeting, such rules and regulations as it deems necessary to administer this chapter.

(f)

There is hereby appropriated from Tribal funds to the use of the Commission for the administration of this chapter the sum of $5,000.

(g)

All monies received by the levy and collection of the taxes by this chapter imposed shall be held by the Commission in separate accounts under its name and quarterly paid by it to the General Fund of the Tulalip Tribes with full accounting therefor.

(h)

The Commission is hereby empowered to pay expenses of its operation and administration of this chapter and to deposit funds under its control at interest or in short-term obligations of the United States.

(i)

It may, in its discretion, pay as compensation for services rendered in its official duties such sum as it may fix by appropriate resolution.

(Ord. 45 § 4, 11-6-1979; Ord. 45 § 4, 12-5-1988 (Res. 98-334))

§ 10.15.050 Retail sales tax.

Retail Sales Tax Imposed. There is levied and there shall be collected a tax upon each retail sale within the exterior boundaries of the Reservation of the Tulalip Tribes by any person or entity required by the provisions of this chapter to apply for and procure a business license, equal to 0.0025 percent of the selling price. The tax imposed under this chapter shall apply to successive retail sales of the same property.

Adoption by Reference. Except as hereinafter expressly modified, RCW 82.08.010, 82.08.030, and 82.08.040 and administrative regulations promulgated thereunder, as now existing or hereinafter enacted or modified, are adopted by reference and incorporated herein as if set forth at length.

RCW 82.08.010(2), as adopted, is modified as follows:

“Seller” means every person or entity who is not a member of the Tulalip Tribes of Washington making sales at retail or retail sales to a buyer or consumer, whether as agent, broker, or principal.

Collection of Tax. The tax hereby imposed shall be paid by the buyer to the seller and each seller shall collect from buyer the full amount of the tax payable in respect to each taxable sale. The tax required by this section to be collected by the seller shall be deemed to be held in trust by the seller until paid to the Commission. In the event any seller fails to collect the tax herein imposed or, having collected the tax, fails to pay it to the Commission, whether such failure is the result of his own acts or the result of acts or conditions beyond his control, he shall, nevertheless, be personally liable to the Tulalip Tribes and its Tax Commission for the amount of the tax. The tax required by this chapter to be collected by the seller shall be stated separately from the selling price and for purposes of determining the tax due from the buyer to the seller and from the seller to the Commission it shall be conclusively presumed that the selling price quoted in any price list, sales document, contract or other agreement between the parties does not include the tax imposed by this chapter. Where a buyer has failed to pay to the seller the tax imposed by this chapter, and the seller has not paid the amount of the tax to the Commission, said Commission may, in its discretion, proceed directly against the buyer for collection of the tax, the amount of which, until paid by the buyer to the seller, or to the Commission, shall constitute a debt from the buyer to the seller, in which case a penalty of 12 percent may be added to the amount of the tax for failure of the buyer to pay the same to the seller regardless of when the tax may be collected by the Commission.

§ 10.15.060 Business and occupation tax.

Payment of Tax. The tax levied herein shall be paid to the Commission and each seller at the time he makes a sales tax return to the State of Washington as provided by RCW 82.08.070 shall file with the Commission a true copy of such return and shall pay the sales tax herein levied at the time of and in addition to the Washington State sales tax disclosed to be due and owing by said State sales tax return.

(5)

Failure to Pay the Tax. Upon failure to pay the tax herein levied at the time of making sales tax return to the State of Washington, or of filing a duplicate of such return with the Commission, there shall be assessed against the taxpayer the amount of tax found to be due plus interest at the rate of 12 percent per annum thereupon from the date said tax should have been remitted and paid as provided by this section.

The Commission shall notify the taxpayer by mail of the tax due, together with interest thereupon, and the same shall become due and payable within 10 days of the date of said notice. If payment is not received by the due date of said notice there shall be added to the amount due a penalty of 12 percent and the Tribal license of the taxpayer to do business may, upon hearing before the Board of Review hereinafter created, be revoked.

(Ord. 45 § 6, 11-6-1979; Ord. 45 § 5, 12-5-1988 (Res. 98-334))

Business and Occupation Tax Imposed. There is hereby levied and shall be collected from every person a tax for the act or privilege of engaging in business activities. Such tax shall be measured by the application of rates against value of products, gross proceeds of sales, or gross income of the business, as the case may be, and shall be in addition to any similar tax levied by the State of Washington under and pursuant to Chapter 82.04 RCW as now enacted or hereafter amended.

Definitions. For the purposes of this section and tax, unless otherwise required by the context thereof, the terms used herein shall have the meaning given to them by Chapter 82.04 RCW et seq. as now enacted or hereinafter amended (RCW 82.04.020), which law and code is by this reference included herein as though set forth in full. With particularity for the purpose of clarity of the foregoing reference, and not in limitation thereof, the words “person” and “company” shall have the meaning set forth in RCW 82.04.030; “sale” and “casual or isolated sale” shall have the meaning set forth in RCW 82.04.040; “sale at retail” and “retail sale” shall have the meaning set forth in RCW 82.04.050; the terms “sale at wholesale” and “wholesale sale” shall have the meaning set forth in RCW 82.04.060; the terms “gross proceeds of sales” and “gross income of the business” shall have the meanings set forth in RCW 82.04.070 and 82.04.080; the term “value proceeding or accruing” shall have the meaning set forth in RCW 82.04.090; the terms “extractor,” “manufacturer,” and “to manufacture” shall have the meaning set forth in RCW 82.04.100, 82.04.110 and 82.04.120; the term “commercial or industrial use” shall have the meaning set forth in RCW 82.04.130; the terms “business” and “engaging in business” shall have the meaning set forth in RCW 82.04.140 and 82.04.150.

Tax upon Manufacturers and Extractors. Upon every person engaging within the exterior boundaries of the Tulalip Indian Reservation in business as a manufacturer or extractor, as to such person the amount of tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured or extracted for sale or for commercial or industrial use, multiplied by the rate of 0.00165; 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 of the exterior boundaries of the Tulalip Indian Reservation.

Tax on Retailers. Upon every person engaged within the exterior boundaries of the Tulalip Indian Reservation in the business of making sales at retail, as to such person, the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the business multiplied by the rate of 0.0022.

(5)

Tax on Wholesalers and Distributors. Upon every person engaging within the exterior boundaries of the Tulalip Indian Reservation in the business of making sales at wholesale a tax with respect to such business equal to the gross proceeds of sales of such business multiplied by the rate of 0.0011.

(6)

Tax on Business or Service Activities. Upon every person engaged within the exterior boundaries of the Tulalip Indian Reservation in any business activity other than or in addition to those enumerated in the foregoing sections of this chapter, a tax on account of such activities equal to the gross income of the business multiplied by the rate of 0.0025. It is the intent of this section to include, among others, and without limiting the scope thereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a “sale at retail” or a “sale at wholesale.”

(7)

Tax on Harvesters of Timber. Upon every person engaged within the exterior boundaries of the Tulalip Indian Reservation in business as a harvester of timber a tax with respect to such business equal to the stumpage value of timber harvested for sale or for commercial or industrial use multiplied by 0.00065.

(8)

Exemptions. Any person engaging in any business activity taxable under this section shall have exempted from the tax hereby levied and to be collected the first $500.00 per month of the value of products, gross proceeds of sales, or gross income of the business upon claiming exemption accordingly; provided, this exemption shall not relieve the taxpayer of the duty to file returns even though no tax is due; further provided, the tax imposed hereby shall not apply, or be deemed to apply, to amounts or value paid for similar taxes to the State of Washington or any political subdivision or municipal corporation thereof, and such similar taxes shall not be deductible or credited upon the tax hereby imposed.

(9)

Business Within and Without the Exterior Boundaries of the Tulalip Indian Reservation. Any person rendering services taxable under this section maintaining places of business both within and without the exterior boundaries of the Tulalip Indian Reservation which contribute to the rendition of such services shall, for the purpose of computing tax liability hereunder, apportion to the Tulalip Tribes that portion of his gross income which is derived from services rendered or business performed within the exterior boundaries of the Tulalip Indian Reservation.

(10)

Tax Returns and Payments. The taxes imposed under this section shall be due and payable in monthly installments and remittance there-for shall be made at the time the taxpayer makes a tax return to the State of Washington as provided by RCW 82.04.490, and said taxpayer shall file with the Commission a true copy of such return, which shall be prima facie evidence of the amount of tax due to the Tulalip Tribes at the rates herein-above stated, less and except deductions and exemptions and credits which shall be determined as in this chapter provided.

(11)

Failure to Pay the Tax. Upon failure to pay the tax hereby imposed, an additional assessment shall be made as provided in TTC § 10.15.050(5).

(Ord. 45 § 7, 11-6-1979; Ord. 45 § 6, 12-5-1988 (Res. 98-334))

§ 10.15.070 Public utility tax.

Tax Imposed. There is hereby levied and there shall be collected from purveyors of utilities within the exterior boundaries of the Tulalip Indian Reservation a public service business and utility tax equal to three percent of the gross subscriber’s monthly service charge or charge for products sold billed to customers within said boundaries. Such tax shall be paid monthly on or before the twentieth day of the following month. In computing the tax, there shall be deducted from said gross revenues the amount of uncollectible service or product sold charges actually sustained by the taxpayer, and the provisions of the laws of the State of Washington as codified under RCW 82.04.417 and 82.16.050(1), (2), (3) and (6) are hereby adopted and enacted by this reference and made a part hereof as though set forth in full wherever the same are applicable and the exemptions and deductions from tax there set forth may be taken and declared by the taxpayer.

Definitions. For the purpose of this section, “purveyor of utilities” and “public service business and utility” mean any business now subject to control by the State of Washington as declared or hereafter declared to be by its Legislature of public service nature, including, but not necessarily limited to, the following:

A water distribution business of operating a plant and system for distributing water to the public for domestic, commercial or industrial use and consumption.

(b)

A light and power business of operating a plant or system for the generation, production or distribution of light and power to the public for hire or sale.

(c)

A telephone business of operating or managing any telephone line or part thereof and exchange or exchanges used in the conduct of business of affording public telephonic communications for hire.

(d)

A sewer business of operating a plant, system or part of a system for collection, treatment and disposal of sewage and effluents emanating from residential occupation or industrial or commercial establishments.

(e)

A business engaged in sale to residents or industrial or commercial establishments of artificial, natural, or mixed gases.

Remittances. The taxes imposed hereunder may, at the discretion of the taxpayer, be due and payable and remitted to the Tulalip Tribes at the same time and in the same manner as taxes levied and collected by the State of Washington under and pursuant to its laws as codified in RCW 82.16.070, which section is hereby adopted by this reference and made a part hereof as though set forth in full with the exception that any reference therein to the Department of Revenue of the State of Washington shall be deemed to refer to and be a reference to the Commission and the Tulalip Tribes.

All reporting procedures and forms in said statute required of the taxpayer by the State of Washington shall be duplicated and filed simultaneously with the Commission by verified true copies and remittance made accordingly in accordance with the tax hereby imposed and levied upon that part or portion of said taxpayer’s business conducted within the exterior boundaries of the Tulalip Indian Reservation.

(b)

The determination of the taxable portion of said business so conducted within said exterior boundaries shall be made by the Commission, and it is hereby empowered to make and execute with each and any of said taxpayers an agreement fixing said portion for tax purposes provided such is consistent with the purpose, intent and provisions of this chapter and based upon a rational accounting method.

(Ord. 45 § 8, 11-6-1979; Ord. 45 § 7, 12-5-1988 (Res. 98-334))

§ 10.15.080 Administration.

Records. Every person subject to taxation under this chapter shall maintain and keep current, at his or her place of business on the Reservation, books and other records of the business and the sales thereof, which books and records shall be available at all times to the Commission for inspection upon request.

Reassessment. If, upon examination of the taxpayer’s records or upon other records, the Commission determines that the tax due from a taxpayer is different in amount than the tax reported or paid by the taxpayer, it shall promptly send the taxpayer a revised statement of tax due or a refund, as is appropriate.

Appeal. A taxpayer to whom the Commission issues a notice of tax due, additional tax due, delinquent taxes reassessment, penalties assessed or of license revocation, and who disagrees with or objects to the revocation tax or such penalties, may request in writing a hearing before the Board of Review hereinafter in this chapter established; provided, that no person shall be entitled to such hearing who has not first posted a bond in form and amount as hereinafter required.

Revocation of Privilege. Notwithstanding any other measures which it has taken or may take pursuant to this chapter, the Commission, acting for and on behalf of the Tulalip Tribes, may prohibit any taxpayer who fails to pay taxes, license fees or penalties due as provided herein from engaging in business within the exterior boundaries of the Tulalip Indian Reservation. The amount of said delinquent taxes, license fees and penalties shall constitute a debt which may be collected in a civil action in any court of law having jurisdiction and judgment entered in favor of the Tulalip Tribes for the same. Notice of any prohibition of a taxpayer from engaging in business shall be posted at the main office of the Tulalip Tribes and personally served upon the taxpayer at its place of business and posted thereat. Such notice shall state the amount of tax due, license fee owed and penalties and the reasons therefor, and shall provide that the taxpayer may appeal therefrom to the Board of Review hereinafter established. The taxpayer not appealing within the time hereinafter fixed, said determination and business license revocation shall be final and binding upon the taxpayer.

(Ord. 45 § 9, 11-6-1979; Ord. 45 § 8, 12-5-1988 (Res. 98-334))

§ 10.15.090 Board of Review.

Establishment. There is hereby created and established a Board of Review which shall be composed of three persons appointed thereto by the Board of Directors of the Tulalip Tribes to serve for such time as said Board of Directors, in its sole discretion, deems fit and to receive such compensation as said Board of Directors shall fix. The members thereof may be nonmembers of the Tulalip Tribes.

Powers. Such Board is hereby empowered to hear and determine all appeals thereto by taxpayers affected by this chapter and to do and perform any and all necessary acts to carry out its duties hereunder including formulation of rules or procedures. It shall keep written formal minutes of its proceeding and decisions and all such decisions shall be final and binding upon the parties before it.

Appellate Procedure. Any taxpayer feeling aggrieved by the levy of any tax or fee under this chapter or revocation of license may appeal therefrom to the Board of Review. Such taxpayer, upon first posting cash or executing a bond with sufficient sureties payable to the Tulalip Tribes in the penal sum of $200.00 conditioned that if such one shall fail in said appeal to reduce said levy or preserve said license he will pay the taxable costs of the hearings hereinafter provided, not exceeding the amount of said cash or bond, may file a written complaint with the Commission not later than 10 days after the making and entering of the levy, imposing the fee or revoking the license setting forth in detail the objections to such action. Upon the filing of the complaint, the Commission shall forthwith transmit a copy of said complaint to the Board of Review, which shall fix a date of hearing on said complaint at the earliest convenient time, which hearing shall be held at the offices of the Tulalip Tribes and notice of time and place of said hearing shall be given to the complaining taxpayer by registered mail at least 10 days prior to the date of said hearing.

Final Determination. At such hearings all interested parties may be heard and evidence adduced. After the hearing the Board of Review shall either affirm, disaffirm or decrease the levy or fee or revocation of license complained of and its action with respect to such shall be final and conclusive upon all parties before it.

(5)

Taxable Costs. The compensation of the members of the Board of Review allocated to the proceeding on the complaint before it and its actual costs similarly so allocated shall be deemed the costs to be taxed.

(Ord. 45 § 10, 11-6-1979; Ord. 45 § 9, 12-5-1988 (Res. 98-334))

§ 10.15.100 Definitions and exemption.

“Person”

as used herein shall be deemed to be and include any individual, partnership, private or municipal corporation, or other entity of any kind whatsoever.

“Member”

as used herein shall be deemed to be and include any Indian duly enrolled by the Tulalip Tribes as a member thereof.

Exemption.

Anything herein contained to the contrary notwithstanding, this chapter shall not apply as to any tax levied hereunder to a member of the Tulalip Tribes, or to any corporation, partnership, or entity composed of such members wherein such members by virtue of their aggregate proprietary interests therein own at the time of levy of any such tax more than 50 percent of said corporation, partnership or entity, or to any business or activity conducted by the Tulalip Tribes, the Tulalip Tribes, its chartered corporation, or organizations and cooperative associations chartered and regulated pursuant to Article VI, Section 1(m) of the Tribal Constitution and Bylaws.

(Ord. 45 § 11, 11-6-1979; Ord. 45 § 10, 12-5-1988 (Res. 98-334))

§ 10.15.110 Prior ordinance repeal.

Ordinance Nos. 43 and 44 heretofore adopted by the Tulalip Tribes are hereby repealed and by this chapter superseded in their entirety.

(Ord. 45 § 12, 11-6-1979; Ord. 45 § 11, 12-5-1988 (Res. 98-334))

§ 10.15.120 Review and savings clause.

Effective Date. This chapter shall become effective forthwith subject to review by the Secretary of the Interior as provided by Article VI, Section 2 of the Constitution and Bylaws of the Tulalip Tribes.

Savings Clause. If any section, paragraph, clause or word of this chapter shall not be approved by the Secretary of the Interior or for any reason be adjudged invalid, such shall not invalidate the remainder thereof but shall be confined in its operation to said section, paragraph, clause or word.