Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.020 Business license required.
5.04.030 Application procedure.
5.04.040 License issued on annual basis.
5.04.065 Expositions and outdoor sales.
5.04.080 Unlawful activities not licensed.
5.04.090 Business license revocation.
5.04.100 License revocation procedure.
5.04.110 Violations--Penalties.
5.04.010 Definitions.
For purposes of this chapter, the following definitions apply:
A. "Adult-use dispensary" means a licensed premises from which a person licensed by the Department of Revenue (the "Department") may: (1) obtain marijuana or marijuana products from a licensed cultivator, manufacturer, dispensary, or other licensee approved under Title 16, Chapter 12, MCA, and (2) sell marijuana or marijuana products to registered cardholders, adults that are twenty-one years of age or older, or both.
B. "Adult-use marijuana-infused products provider" means a person licensed by the Department to manufacture and provide marijuana-infused products for consumers.
C. "Business" means every trade, occupation, profession, vocation, enterprise, nonprofit enterprise, establishment, or activity that is conducted for private profit or benefit and that is not specifically exempted by state law or this chapter. "Business" also includes the lease or rental of commercial facilities/buildings and includes the lease or rental of residential facilities, such as single-family homes, apartments, mobile homes, or condominiums, whether nightly or long-term. "Business" excludes temporary or short-term fundraising activities conducted by a church, school or by a nonprofit civic, fraternal organization, or individual under the age of eighteen.
D. "Consumer" means a person twenty-one years of age or older who obtains or possesses marijuana or marijuana products for personal use from a licensed dispensary but not for resale.
E. "Cultivator" means a person licensed by the Department to: plant, cultivate, grow, harvest and dry marijuana; and package and relabel marijuana products at the location in a natural or naturally dried form that has not been converted, concentrated or compounded for sale through a licensed dispensary.
F. "Location" means an address on a specific lot which is a parcel or plot of land shown as an individual unit of ownership on the most recent plat or other record of subdivision.
G. "Lodging facility" means a residential or commercial building that contains individual sleeping rooms or suites and that provides overnight lodging for compensation for periods less than thirty days. "Lodging facility" includes a hotel, motel, resort, dormitory, inn, condominium, dude ranch, guest ranch, hostel, public lodging house, time share, bed and breakfast facility, or nightly rental. "Lodging facility" also includes any campground, recreational vehicle or trailer park, or similar facility.
H. "Manufacturer" means a person licensed by the Department to convert or compound marijuana into marijuana products, marijuana concentrates, or marijuana extracts and package, repackage, label, or relabel marijuana products.
I. "Marijuana" means all plant material from the genus Cannabis containing tetrahydrocannabinol (THC) or seeds of the genus capable of germination. The term does not include hemp, including any part of that plant, including the seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent on a dry weight basis, or commodities or products manufactured with hemp, or any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.
J. "Marijuana transporter" means a person that is licensed to transport marijuana and marijuana products from one marijuana business to another marijuana business, or to and from a testing laboratory, and to temporarily store the transported retail marijuana and retail marijuana products at its licensed premises (facility), but is not authorized to sell marijuana or marijuana products to consumers under any circumstances.
K. "Medical marijuana dispensary" means the location from which a registered cardholder (as defined in Montana Code Section 16-12-102) may obtain marijuana or marijuana products.
L. "Testing laboratory" means a marijuana testing laboratory which provides testing of representative samples of marijuana and marijuana products and provides information about the chemical composition and potency of a sample, as well as the presence of molds, pesticides or other contaminants.
M. "Wholesale merchant" means any person or entity engaged in the business of selling inventory to retailers or otherwise selling for the purpose of resale by another person or entity. (Ord. 273 §1, 2023; Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §1, 2006)
5.04.020 Business license required.
No person, corporation or other entity shall conduct, transact or engage in business of any kind within the town before first submitting an application, appropriate fee, parking plan, required fire and health inspection documentation and obtaining approval for a business license. Failure to obtain a business license prior to operating a business within the corporate limits of the town constitutes a violation of this chapter.
Multiple residential rental units located on different parcels around town and owned by a single entity may be listed on one business license. Parking plans for each location must be submitted with the business license application that have been approved by the planning board. Nightly rentals and residential rentals, even if they are on the same parcel and under the same ownership, must be on separate business licenses. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §2, 2006)
5.04.030 Application procedure.
A. Every person, corporation, or other entity applying for a business license under this chapter is subject to regulation, inspection, control, and supervision under the general police power of the town.
B. Upon receipt of a completed application which includes the business license fee, parking plan and applicable fire code and health department approvals for a new business license, the town clerk shall refer the application to appropriate employees of the town for the purpose of any investigation and inspection of the proposed business. Business license applications must contain all information prescribed or required by the town and must include a site plan delineating parking for the business or certification of parking in-lieu payment. Business license applications must be signed by both the business owner and, if different, the owner of the real property on which the business will operate. The town clerk shall refer investigations to appropriate staff for review and inclusion in the town council packet. Completed business license applications shall be approved or denied by the town council at the next regularly scheduled town council meeting unless the planning board needs additional time to review the parking plan.
C. If one party seeks to transfer a business license to another party and the exact nature and location of the business remain the same, then the town clerk, upon payment of the required fee and an internal review of a current parking plan, shall transfer the business license. However, if the party seeking to transfer a business license to another party is delinquent on the obligation to report or pay resort tax under Chapter 3.12 for any business owned by the transferring party, the town clerk shall not transfer the business license until all delinquent resort tax, interest, and applicable penalties are paid in full or payment arrangements have been made with the town.
D. In lieu of a standard business license, an applicant may seek a short-term business license that is reviewed and approved by the finance department. A short-term business license is valid for ten calendar days only. All applicable permits and licenses required by other agencies, such as a food purveyor’s license from the Gallatin County health department or approval from the Grizzly Park architectural committee, must be in effect at time of application. The applicant must also provide a parking site plan for review by the town. Fees for the short-term business license and resort tax bond shall be set by resolution.
E. A business for contracted services that does not maintain an office or permanent residence in West Yellowstone, and whose business is not required to provide parking spaces, and is not required to collect resort tax, may obtain a business license that is reviewed and approved by the finance department without town council approval. Except as modified in this subsection, this business license is subject to all other provisions in this chapter concerning a standard business license.
F. Contracted service businesses located in town that do not have a parking requirement can be approved by the finance department without town council approval. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 233 §1, 2007: Ord. 232 §1, 2007: Ord. 220 §3, 2006)
5.04.040 License issued on annual basis.
The town issues business licenses on an annual basis with the exception of short-term licenses. The license period is effective from June 1st to May 31st of the following year. Businesses may renew or purchase a business license from the town after March 1st for the following license year. If an existing business license is renewed after June 30th, a late fee will be applied. A new license may be purchased at any time, but all licenses expire May 31st. The town does not prorate business license fees. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §4, 2006)
5.04.050 Fee schedule.
The town council shall by resolution set the fee schedule for business licenses, transfers of business licenses, and related fees. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §5, 2006)
5.04.060 Resort tax bonds.
A. If an applicant for a business license intends to sell any goods or provide services that are subject to the town’s resort tax pursuant to Chapter 3.12, then a resort tax bond in an amount set by resolution must accompany the business license application. The resort tax bond shall be executed by a surety company licensed to do business in Montana. In lieu of a surety bond, the applicant may submit a cash bond of equal value.
B. The bond must be approved by the town clerk and must be conditioned upon the applicant’s collection and remittance of resort tax in accordance with all requirements of Chapter 3.12. The resort tax bond must remain in full force and effect until four months after the end of the first full business license year.
C. When an existing business that is subject to resort tax collection pursuant to Chapter 3.12 changes ownership, the new owner must provide a resort tax bond to the town clerk in the same manner set forth above.
D. If a business fails to collect, report, and remit the resort tax or otherwise violates the provisions of Chapter 3.12, the town shall have a right of action on the bond for recovery of any unpaid resort tax, as well as interest, civil penalties and attorney’s fees allowed by ordinance or state law. The town may require a business to post a new or additional resort tax bond if the business fails to timely remit resort tax payments for more than two consecutive months or for any three months in a twelve-month period. The town may not renew a business license that has unpaid resort tax outstanding at the time a business license must be renewed.
E. After a business has collected and remitted the resort tax in accordance with all provisions of Chapter 3.12 for the first licensing period of business operation, the town clerk shall then return the resort tax bond to the business four months after the expiration of the original business license. Failure to remit any resort tax during the term of the initial issuance of a town business license shall constitute grounds for the town to retain the bond. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §6, 2006)
5.04.065 Expositions and outdoor sales.
A. Notwithstanding the other provisions of this chapter, any person engaged in the business of conducting an exposition, exhibit or sale of any merchandise or product, including artifacts and art objects, at an outdoor exposition or sale, or at an indoor exposition or bazaar, where two or more persons are gathered together for such purpose shall pay a business license fee as set by resolution.
B. The applicant shall:
1. Submit an application thirty calendar days prior to the event. Application forms shall be obtained from the finance department. Exposition licenses shall be issued by the finance department after consultation with the police department, the fire department, the public services department, and the town manager. It is recommended that the entity or person organizing or sponsoring the exposition start the licensing process at least thirty calendar days in advance. If the submittal is received by town at least thirty calendar days in advance of the event, the application may be circulated through intradepartmental mail. However, if it is received less than thirty calendar days prior to the event, a penalty fee of fifty dollars will be added to the license fee, and the applicant shall be responsible for going individually to the police, fire, and public services departments to obtain any necessary approval. Completing those approvals, the applicant must return the application to the finance department for review at least five business days before the beginning of the event. The request is then forwarded to the town manager for final consideration. It is unlawful to conduct an exposition regulated by this chapter without a license.
2. Post a resort tax bond in the amount set by resolution. The resort tax bond shall be executed by a surety company licensed to do business in Montana. In lieu of a surety bond, the applicant may submit a cash bond of equal value. If an applicant fails to collect, report, and remit the resort tax in accordance with the provisions of Chapter 3.12, the town shall have a right of action on the bond for recovery of any unpaid resort tax, as well as interest, civil penalties and attorney’s fees allowed by ordinance or state law. After provisions of Chapter 3.12 have been met, the town clerk will return the resort tax bond to the applicant within ninety calendar days.
3. Notify each participant in writing, prior to accepting any application or approving participation in the exposition, bazaar, exhibit or sale, that the participant is responsible for submitting the following on or before the twentieth day of the month following the event to receive the resort tax administrative fee and no later than the last day of the month to avoid a penalty:
a. A completed town of West Yellowstone resort tax form; and
b. A check payable to the town of West Yellowstone for the three percent resort tax required under the guidelines as specified by Chapter 3.12.
4. Acquire and keep on file the names, addresses and phone numbers of all participants and, further, collect and remit, from each vendor, the completed resort tax form and payment due.
C. The provisions of this section do not require additional licenses for merchants or vendors participating in such events when all of the participants are regularly licensed under other provisions of this chapter. Events sponsored by nonprofit organizations where the merchandise is non-business-related personal property sold by individuals not regularly engaged on a full-time or part-time basis in the business of selling, manufacturing or distributing such merchandise are not required to obtain a business license.
D. Applicants may file an appeal with the town council for a reduction or waiver of license fees and bond requirements.(Ord. 266 §1 (Exh. A)(part), 2018: Ord. 239 §1, 2008)
5.04.070 Interstate commerce.
Nothing contained in this chapter is intended to operate so as to interfere with the power of the Congress of the United States to regulate commerce between states. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §7, 2006)
5.04.080 Unlawful activities not licensed.
This chapter may not be construed to allow licensing of any business or activity that is prohibited by any law of the United States, the state of Montana or the town. It is unlawful for any person or entity to sell merchandise, goods, or services of any kind, or solicit orders for merchandise, goods, or services, on any street, alley, sidewalk or other public place in the town, except as permitted in Section 5.20.030.
As authorized by Title 16, Chapter 12, MCA, and based on the affirmative vote of the electors of the town of West Yellowstone, the following marijuana businesses are permanently prohibited from opening or operating within the boundaries of the town:
A. Cultivator;
B. Manufacturer;
C. Medical marijuana dispensary;
D. Adult use dispensary;
E. Testing laboratory; and
F. Marijuana transporter facility.
Violation of this section is a municipal infraction and shall be punished as set out in Chapters 1.08 and 1.12. (Ord. 273 §2, 2023; Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §8, 2006)
5.04.090 Business license revocation.
The town may revoke a business license under the following circumstances:
A. Failure to report or remit resort tax by payment deadlines in Section 3.12.060;
B. The violation of any provision of Chapter 3.12 concerning resort tax;
C. The violation of any provision of this chapter concerning business licenses;
D. Misrepresentation of ownership, nature of business, or any material fact on a business license application;
E. The violation by the business of any other provision of the West Yellowstone Municipal Code. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 233 §2, 2007: Ord. 220 §9, 2006)
5.04.100 License revocation procedure.
A. A business license may be revoked for any violation of this chapter, including those specified in Section 5.04.090. A business license may be revoked either by order of the town judge or by an administrative order by the town manager.
B. If the town manager determines that the town has valid grounds to revoke a business license, the town manager must notify the business in writing of these grounds at least ten business days before issuing an administrative order revoking a business license. The notice must also inform the business that it has ten business days from the date of the notice to provide the town with any documents or information contesting the stated grounds for revocation. After reviewing all pertinent documents and information, including any submittal by the business contesting the stated grounds, the town manager may issue an administrative order revoking a business license if the business has committed any violation of this chapter, including those specified in Section 5.04.090.
C. A business may appeal an administrative order by the town manager revoking its business license by filing a written notice of appeal with the town clerk within ten business days after the date of the administrative order. The administrative order of revocation is stayed during any appeal to the town business license review board. The business license review board shall consist of the finance director (or designee), the mayor (or designee) and a member of the town council other than the mayor. The business license review board will conduct an investigation of the circumstances resulting in the administrative order to revoke the business license within fifteen business days. As part of the investigation, the business may present any relevant evidence contesting the administrative order of revocation by the town manager. After hearing and reviewing all relevant evidence, the business license review board may uphold, overturn, or modify the administrative order of revocation by the town manager.
D. A business may make a final appeal on the decision of the business license review board by filing a written notice of appeal with the town clerk within ten calendar days after the date of the decision. The appeal will be placed on the agenda of the next regularly scheduled council meeting. After hearing and reviewing all relevant evidence, the town council may uphold, overturn, or modify the decision by the business license review board. All revoked business licenses will be subjected to a reinstatement fee. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 223 §1, 2007; Ord. 220 §10, 2006)
5.04.110 Violations--Penalties.
Violation of this chapter is a municipal infraction subject to the provisions of Sections 7-1-4150 through 7-1-4152, MCA. In addition to any civil penalty ordered by virtue of a municipal infraction, the town judge may enter a civil judgment against the defendant for the amount of the license found due and unpaid and may issue an order revoking a defendant’s business license. (Ord. 266 §1 (Exh. A)(part), 2018: Ord. 220 §11, 2006)