Chapter 5.01
BUSINESS LICENSES
Sections:
5.01.008 Application procedure.
5.01.009 License issuance or denial.
5.01.012 Revocation of license.
5.01.001 Short title.
The provisions of this chapter create the terms of the “City of St. Helens Business License Code” and are referred to herein as “business license code” or “BLC.” (Ord. 3258, 2020)
5.01.002 Purpose.
The business license code facilitates the collection of information about businesses in the city. Police and fire departments are able to respond more effectively and safely to emergency situations at city businesses when they have information about the types of businesses and the contents of the structures in the city. Building code compliance, planning code compliance, fire code compliance, and wastewater discharge compliance are enhanced by obtaining data from business license applications about structures in which businesses are located. Business demographic information is also necessary to promote economic development. The business license code is designed to obtain that information. The public health, safety, and welfare are benefited by this business licensing code. (Ord. 3258, 2020)
5.01.003 Definitions.
(1) “Applicant” means owner, proprietor or duly authorized agent for the business requesting a license.
(2) “Business,” except as limited below, means any enterprise, trade, activity, profession, occupation, private educational facility, or any kind of activities conducted for profit within the city including businesses and rental properties that offer to rent or lease one or more residential rooms, units, or structures, and commercial building rentals containing one or more businesses. “Business” does not include the noncommercial on-premises sale of used household goods by a person who resides on the premises (a yard or garage sale) so long as the sales are conducted on no more than six days in any 12-month period.
(3) “City” means the city of St. Helens, Oregon.
(4) “City administrator” means the person holding the position of city administrator or designee.
(5) “Commercial building rental” means a building, portion of a building, or a group of buildings on a parcel of land within the city containing two or more businesses. A building or portion of a building containing two businesses shall not be considered a commercial building rental if the owner of the building conducts or has a majority ownership of a business in a portion of such building.
(6) “Community event” means an event which is open to the public and which is approved by the city administrator to use city street and sidewalk areas or held on private or public property with the consent of the owner or entity. A community event must be determined by the city administrator to provide an overall community benefit, and must be sponsored by a service group or other organization, not an individual business.
(7) “City council” means the St. Helens city council.
(8) “Doing business” means an act or series thereof performed in the course or pursuit of a business activity on more than one occasion or day in a calendar quarter and not as a one-time or isolated activity or event. A person is presumed to be doing business within the city if engaged in any of the following activities:
(a) Advertising or otherwise professing to be doing business within the city;
(b) Delivering goods or providing services to customers within the city;
(c) Owning, leasing, or renting personal or real property within the city which is used in a trade or business;
(d) Engaging in any transaction involving the production of income from holding property or the gain from the sale of property, which is not otherwise exempted in this chapter. Property may be personal, including intangible or real in nature; or
(e) Engaging in any activity in pursuit of gain which is not otherwise exempted in this chapter.
(9) “Employee” means a natural person who works for or on behalf of a business in exchange for compensation, not including those employees leased from another business, regardless of the number of hours per pay period or method of compensation. “Employee” includes, but is not limited to, a sales agent who works primarily for or under the direction of a principal or a broker.
(10) “Full-time equivalent employees” or “FTE” means the number of employees of a business calculated as shown in SHMC 5.01.007.
(11) “Hearings officer” means the city council, or an outside party not affiliated with the city, that is hired or selected to conduct an appeal proceeding.
(12) “Hobby business” means a business that makes less than $400.00 per year.
(13) “Home business” means a business located and operated out of a person’s place of residence.
(14) “License” or “business license” means the document issued by the city granting the privilege to carry on a business within the city.
(15) “Main contractor” means a prime contractor or general contractor that is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project.
(16) “Mobile business” means any business without a fixed location or which is operating from a self-propelled vehicle or which can be pushed or pulled on a sidewalk, street, or highway on which food, goods, or services are prepared, processed, or from which food or other goods are then sold or dispensed to the public.
(17) “Nonresident business” means a business operating in the city where the headquarters or main branch is located outside the city.
(18) “Person” means individuals and all sole proprietor, partnership, limited partnership, family limited partnership, joint venture, association, cooperative, trust, estate, corporation, personal holding company, limited liability company, limited liability partnership, or any other form of organization doing business in the city.
(19) “Rental property” means a building, portion thereof, or group of buildings within the city and which is rented, leased, let, or made available for compensation for sleeping or living purposes. The term includes all multi-dwelling unit premises having two or more dwelling units including hotels and motels, automobile or tourist courts, rooming or lodging houses, or mobile home and trailer parks. In the case of a mobile home or trailer park, the term “dwelling unit” refers to the space, pad, or stall.
(20) “Secondhand dealer” means a person engaged in conducting, managing, or carrying on the business of buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning or auctioning secondhand goods and articles.
(21) “Solicitation” means any oral or written request to purchase or trade any product or thing; to request a contribution or donation of money or property for any purpose or cause; to request opinions or answers to surveys on any subjects; or to request endorsement or support by petition any product, candidate, or cause.
(22) “Solicitor” means a person or persons engaged in solicitation.
(23) “Special event” means an event specifically approved by the city administrator granting privileges for the use of street and sidewalk areas, or held on private or public property where goods or services are purchased or sold, excluding the noncommercial on-premises sale of used household goods by a person who resides on the premises (a yard or garage sale) so long as the sales are conducted on no more than six days in any 12-month period. Such event must be held within a specifically defined area for a period of time not exceeding three consecutive days.
(24) “Subcontractor” means a company or person whom a general contractor (or prime contractor, or main contractor) hires to perform a specific task as part of an overall project.
(25) “Temporary business” means a person conducting or operating a business within the city for a period of less than 60 consecutive days in any calendar year. Examples include, but are not limited to, Christmas tree lots, fireworks, and fruit/vegetable/plant stands not part of a farmers’ market.
(26) “Temporary license” means a business license issued for a term of up to 60 consecutive days. (Ord. 3258, 2020)
5.01.004 License required.
(1) Except as may otherwise be provided in subsections (6) and (7) of this section, any person doing business within the city shall first obtain a license and pay the required annual fee.
(2) Nonresident businesses must obtain a city business license and pay the required fees.
(3) Solicitors must obtain a city business license and pay the required fees, except as may otherwise be provided in subsections (6) and (7) of this section. Additionally, solicitors must comply with Chapter 5.05 SHMC.
(4) Temporary businesses, mobile businesses and special events obtain a temporary business license and pay the fee specified by city council resolution. Additionally, temporary businesses, mobile businesses and special events must comply with Chapter 5.02 SHMC.
(5) No person shall conduct business within the city as an employee, agent, or representative of a business without first having obtained a valid business license regardless of the locale of the principal office(s) of that business.
(6) The following businesses and activities need not obtain a business license but instead will be issued, at no cost, an exemption certificate that shall record the location, purpose and contact information of the business or activity if one is applied for:
(a) Churches and government agencies, including publicly funded schools;
(b) Civic leagues or civic organizations operating exclusively for promotion of social welfare which may from time to time conduct business-like activities on a temporary basis, the earnings of which are devoted exclusively to social welfare, religious, and/or fraternal purposes;
(c) Independent contractors, including but not limited to medical care providers or beauticians, working in a building where the owner has obtained a business license under one business name covering those located in the building engaged in like profession under the business name indicated on the license;
(d) Community events where a special event and other applicable permits have been granted by the city;
(e) Any business or occupation specifically exempt from the payment of a business license fee under the state or federal law or constitution;
(f) Any business specifically exempted by city council; or
(g) Producers of farm products raised in the state and sold by them or their immediate families.
(7) The following businesses and activities neither need to obtain a business license nor an exemption certificate:
(a) A service business operated by a person under the age of 18, including but not limited to lawn mowing, newspaper delivery, or lemonade stands;
(b) Solicitations for contributions or donations which are exclusively devoted to charitable, social welfare, religious, educational, political, or fraternal purposes;
(c) Owner-occupied residential dwellings where one room is rented or leased for sleeping or living purposes;
(d) Utilities currently franchised by and paying a franchise fee to the city;
(e) A household or garage sale conducted consistent with the terms of the business license code;
(f) Any activity specifically exempt from licensing under the state law or constitution or federal law or constitution;
(g) A warehouse used in connection with a business, but maintained at a separate location within the city, if the business which owns the warehouse maintains a valid business license.
(8) A general contractor or prime contractor on a construction site is required to have a city of St. Helens business license. Subcontractors are not required to maintain a city business license. (Ord. 3258, 2020)
5.01.005 Term.
(1) A business license shall have a term of one year.
(2) A business license shall be effective as of the date of issuance and expire on the last day of the same month 12 months therefrom to be renewed annually thereafter no later than the last business day of that month.
(3) An amended application or reapplication for a business shall be made (and be exempt from payment of additional fees), prior to the effective date of any of the events listed below:
(a) A transfer in ownership or the name of the business; or
(b) A change of business location.
(4) The business license is deemed expired:
(a) At the point in time the type of business listed on the business license ceases to operate as said business; or
(b) As specified in subsection (2) of this section.
(5) A new application must be made and fees paid when:
(a) A business license has expired; or
(b) A material change in the type of business conducted occurs. (Ord. 3258, 2020)
5.01.006 Fees – Generally.
(1) There is imposed upon all persons doing business in the city the requirement to pay a fee established by city council and obtain a business license for the privilege of doing business in the city.
(2) Each branch of a business shall obtain a separate business license, except for warehouses used in connection with a licensed business.
(3) The fee shall be due and payable on the application date of the business license. A fee shall be deemed delinquent 30 days after it is due. License fees are not refundable. (Ord. 3258, 2020)
5.01.007 Fees – Calculation.
(1) The annual fee for a business license shall be set by city council resolution and be the combination of both a base amount and a charge for each full-time employee or full-time equivalent (FTE) employee, or blended into one fee, tiered by the number of FTEs.
(2) To determine the number of FTEs, the following applies:
(a) Employees normally working 32 or more hours per week throughout the year shall be considered full-time and shall count as one FTE.
(b) Employees working less than 32 hours per week or who are temporary or seasonal shall be counted as one-half of an FTE.
(c) The annual business license fee shall be based upon the number of employees employed at the time of application for or renewal of a business license.
(d) For purposes of determining the number of full-time equivalent employees when renewing an existing business license, the count shall be based on the average of FTE employees during the previous 12-month period. (Ord. 3258, 2020)
5.01.008 Application procedure.
(1) A person seeking a city business license or renewal shall submit an application for same on a form provided by the city. Application shall be made at least 30 days prior to the date the license is requested to be effective. The application shall contain information as the city administrator deems appropriate, including, but not limited to, the following:
(a) The name, mailing address, telephone number, and birth date of all owners;
(b) The name, mailing address, and telephone number of the business or proposed business and a description of the exact nature of the business to be operated;
(c) A brief summary of the applicant’s business history in any jurisdiction including:
(i) The business license or permit history of the applicant; and
(ii) Whether the applicant or any principal has ever had any business-related license or permit revoked or suspended, the reasons therefor and the business activity or occupation of the applicant or principal subsequent to the suspension or revocation;
(d) Whether the applicant will be a sole proprietor, partnership, limited partnership, family limited partnership, joint venture, association, cooperative, trust, estate, corporation, personal holding company, limited liability company, limited liability partnership, or any other form of organization for doing business.
(i) If a partnership, the application must set forth the names, birth dates, addresses, telephone numbers, and principal occupations, along with all other information required of any individual applicant, of each partner, whether general, limited, or silent, and the respective ownership shares owned by each;
(ii) If a corporation or limited liability company, the application must set forth the corporate or company name, copies of the articles of incorporation or organization and the corporate bylaws or operating agreement, and the names, addresses, birth dates, telephone numbers, and principal occupations, along with all other information required of any individual applicant, of every officer, director, member or manager, and shareholder (owning more than five percent of the outstanding shares) and the number of shares held by each;
(e) Proof of registration of the business with the state of Oregon, if applicable;
(f) Any other information that the chief of police may reasonably feel is necessary to accomplish the goals of these provisions.
A license may be denied if the applicant fails to supply required information or submits false or misleading information.
(2) On the basis of the application, the city administrator shall compute the fee consistent with the schedule of fees established by city council resolution.
(3) If more than one business takes place at the same location and is operated under the same ownership, or majority ownership, but operates under more than one business name, one application may be filed, provided each business is clearly identified and all relevant information is included in the unified application.
(4) If a transfer of ownership, name of business, or a change of business location occurs, an amended application or reapplication shall be made and be exempt from payment of additional fees.
(5) A currently licensed business that physically relocates shall file an amended business license application, at no charge, to register the change of address.
(6) No such application shall be accepted by the city unless all information contained therein is complete and verifiable. (Ord. 3258, 2020)
5.01.009 License issuance or denial.
(1) The city administrator shall issue or renew a business license upon approval of the application and receipt of all required fees.
(2) The city administrator may deny issuance or renewal of a business license if the applicant fails to supply required information, pay required fees, or submits false or misleading information. (Ord. 3258, 2020)
5.01.010 Notice.
In the event any person has failed to obtain a business license and is doing business in the city, the city’s code enforcement officer may:
(1) If the license required has an effective period in excess of one day, send notice to such person at the person’s place of business or residence notifying the person that a license must be secured within five calendar days. If, after the five-day period, the person has failed to secure the license, the failure constitutes a violation of the business license code; or
(2) If the license requires an effective period of one day, notify the city’s police department and the police department shall notify such person that a license is required immediately. If the notified person refuses to secure a license or attempts to conduct such business, such conduct is a violation of the business license code. (Ord. 3258, 2020)
5.01.011 Limitations.
No license required under this chapter shall:
(1) Be assignable or transferable;
(2) Authorize a person other than the one named therein to operate the licensed business or activity; or
(3) Authorize any other business or activity than set out in the license. (Ord. 3258, 2020)
5.01.012 Revocation of license.
(1) The city administrator may revoke a license upon finding that:
(a) Information supplied in the license application is found to be false or misleading.
(b) The requirements of this chapter are not being met or the business is in violation of this chapter.
(c) The business is in violation of applicable local laws including but not limited to the community development code.
(d) The business is conducted in a manner or is otherwise contrary to public health, safety, and welfare.
(2) If the city administrator determines that grounds for revocation exist, the city administrator shall cause the licensee to be notified in writing of the revocation, stating the reasons therefor and informing the licensee of the appeal provisions of SHMC 5.01.013. Notice shall be mailed by first-class mail, return receipt requested.
(3) The city administrator may discontinue the revocation proceeding if the basis of the revocation is corrected. (Ord. 3258, 2020)
5.01.013 Appeal.
(1) An applicant whose application to the city for a license has been revoked may, within 10 business days after notice of the revocation is received by them, appeal said action to the city council.
(2) The appeal shall be in writing and received by the city recorder’s office not later than the fifteenth business day after the notice is shown to have been received and set out the following:
(a) The name and address of the appellant;
(b) The nature of the determination being appealed;
(c) The reason the determination is being appealed;
(d) What the correct determination of the appeal should be.
(3) Failure to have the appeal in the city recorder’s office within 15 business days will result in loss of the appeal.
(4) If a notice of revocation is timely appealed, the revocation does not take effect until the final determination of the appeal. The city council shall hear and determine the appeal based on the written statement and such additional evidence as it deems appropriate. (Ord. 3258, 2020)
5.01.014 Posting of license.
(1) The license shall be posted in a conspicuous place upon the business premises, available for inspection by the public, city enforcement officers, employees, and prospective employees of the business.
(2) The license for a mobile business shall be posted in a conspicuous place upon the vehicle or carried on the person doing business and be available for inspection by the public, city enforcement officers, employees, and prospective employees of the business.
(3) The license for a solicitor shall be carried on the person doing business and be available for inspection by the public, city enforcement officers, employees, and prospective employees of the business. (Ord. 3258, 2020)
5.01.015 Penalty.
(1) It is unlawful for any person to make any false or misleading statement to the city for the purpose of determining the amount of any license fee to be paid to the city, or to fail or refuse to comply with any of the provisions of this chapter.
(2) All persons doing business within the city for which a business license is required by this chapter shall make all records showing the number of employees or persons engaged in the business available to the city at its request for purposes of auditing and verifying license fees charged based upon employee counts. Such records shall be held to the extent permitted in confidence consistent with state law.
(3) A business license fee due from any person and not paid in full when due is delinquent, and the city may avail itself of any and all remedies available to it to collect the fee from that person.
(4) A person required by this chapter who fails to timely secure a license under this chapter before becoming delinquent is in violation of this code. The city shall collect, in addition to the appropriate license fee and other fines assessed, an additional penalty of 10 percent of the fee for each calendar month or fraction thereof the license is delinquent, up to a maximum total of fines and penalties of $1,000.
(5) In the event any provision of this chapter is violated by an entity, the officer(s) or person(s) in charge shall be personally liable for the penalties imposed by this section. (Ord. 3258, 2020)