Chapter 5.02
GENERAL BUSINESS LICENSES
Sections:
5.02.020 POWER TO LICENSE FOR REGULATION AND/OR REVENUE.
5.02.030 ADMINISTRATIVE PROVISIONS.
5.02.050 ADMINISTRATION AND ENFORCEMENT.
5.02.060 GENERAL BUSINESS LICENSE REQUIRED.
5.02.070 SEPARATE GENERAL BUSINESS LICENSE REQUIRED.
5.02.080 LICENSES NOT TRANSFERABLE.
5.02.090 LICENSE TO BE POSTED.
5.02.100 DISCLAIMER OF CITY LIABILITY.
5.02.110 GENERAL QUALIFICATIONS OF LICENSEES.
5.02.120 APPLICATION PROCEDURE, LICENSE FEE.
5.02.130 APPROVAL AND ISSUANCE OF BUSINESS LICENSE.
5.02.150 APPLICATION AS PUBLIC RECORD.
5.02.160 NONPAYMENT OF BUSINESS LICENSE FEE.
5.02.170 GROUNDS FOR DENIAL OR REVOCATION OF LICENSE.
5.02.180 DENIAL AND REVOCATION - PROCEDURE.
5.02.190 UNLAWFUL - VIOLATIONS AND PENALTIES.
5.02.010 TITLE.
This chapter shall constitute the business license code of the City and may be cited as such. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.020 POWER TO LICENSE FOR REGULATION AND/OR REVENUE.
This chapter is adopted by the City, exercising its power authorized under general law to license for the privilege of engaging in business in the City and revoke the license for cause, to regulate, make inspections and to impose excises for revenue or regulation in regard to all places and kinds of businesses, occupations, trades, professions and any other lawful activity, as such power is described in the RCW 35.22.280(32). The provisions of this chapter shall be liberally construed for the accomplishment of such purposes. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.030 ADMINISTRATIVE PROVISIONS.
The provisions contained in Chapter 3.86 BMC shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.040 DEFINITIONS.
For the purposes of this chapter, the definitions set forth in BMC 3.48.030, as currently enacted and as hereafter amended, shall apply to this chapter as applicable. In addition, the following definitions will apply:
"Ancillary rental" means (1) the renting and/or leasing of real property by a person as secondary to the primary business use by said person for which a business license is issued pursuant to this chapter, or (2) the renting or leasing of a single portion of a residence that is within the structure of the primary residence of the landlord, such as the renting of a single bedroom; this does not include a separate or secondary dwelling unit which includes all accessory dwelling units.
"Business Licensing Service" and "BLS" mean the office within the Washington State Department of Revenue providing general business licensing services to the City.
"Casual rental" means the renting of the primary residence of the landlord for a period of four (4) months or less in any given calendar year.
"Engaging in business" shall also include the renting and/or leasing of real property except for casual rentals or ancillary rentals.
"License to use" means a personal privilege to do some particular act or series of acts on real property without possessing any estate or interest therein.
"Possessory interest" means the right to exert control over specific real property, or a portion thereof, to the exclusion of others.
"Renting and/or leasing of real property" means the creation of a possessory interest in residential, commercial and/or industrial real property of another party by lease, sublease, expressed or implied rental agreement, or tenancy from period to period, for the purpose of gain, and includes leases or rentals in mixed use structures. The renting and/or leasing of real property does not include the license to use real property. (Ord. 5421 §11, 2021; Ord. 5333 §8, 2017: Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.050 ADMINISTRATION AND ENFORCEMENT.
(a) The Director of Community Development, or designee, shall have general charge of, and supervision over, the administration and enforcement of this chapter and shall exercise such power and perform all the duties imposed upon him or her.
(b) Applicant shall, upon reasonable request, provide or allow the Director to inspect relevant documentation of any licensee for verification of the information provided by applicant/licensee on the business license application.
(c) The Director may establish administrative rules and regulations as deemed appropriate, consistent with this chapter for the purpose of enforcing and carrying out its provisions. (Ord. 5421 §11, 2021; Ord. 5343 §8, 2017: Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.060 GENERAL BUSINESS LICENSE REQUIRED.
Any person who "engages in business" activities in the City as this term is defined in Chapter 3.48 BMC and this chapter shall first obtain a general business license, and pay the fees prescribed in this chapter. Applications for general business licenses must be submitted to the Business Licensing Service. Any general business license application required for rental property registrations pursuant to Chapter 5.06 BMC shall be included and processed in conjunction with the rental property registration applications. (Ord. 5421 §11, 2021; Ord. 5343 §9, 2017: Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.070 SEPARATE GENERAL BUSINESS LICENSE REQUIRED.
A separate license shall be obtained for each physical branch, establishment or location at which the business is carried on. Each license authorizes the licensee to carry on, pursue or conduct only that business, or business enterprise at that location. A separate license is required for each distinct business activity type regardless if conducted by the same person at the same location, provided, a separate license will not be required for a business activity determined by the Director to be an accessory activity to a branch, establishment or location for which a license is issued. A separate license shall not be required for the renting and/or leasing of real property in multiple locations which shall be considered a single business encompassing all rental or leased units in the City by a single owner. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.080 LICENSES NOT TRANSFERABLE.
The general business license issued under the provisions of this chapter is not transferable or assignable. A new license is required when a business changes its structure, the place of a business location within the City is changed, there is a change of ownership of a business or there is a substantial change in the type of business operated. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.090 LICENSE TO BE POSTED.
All licenses issued pursuant to this chapter must be posted in a conspicuous place at the location for which it was issued. No person to whom a license has been issued pursuant to this chapter may allow any person for whom a separate license is required, to operate under or to display such license, nor may such other person operate under or display such license. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.100 DISCLAIMER OF CITY LIABILITY.
Issuance of a license pursuant to this chapter does not constitute the creation of a duty by the city to indemnify the licensee for any wrongful acts against the public, or to guarantee the quality of goods, services or expertise of a licensee. The issuance of a license does not shift responsibility from the licensee to the City for proper training, conduct or equipment of the licensee or his agents, employees or representatives, even if specific regulations require standards of training, conduct or inspection. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.110 GENERAL QUALIFICATIONS OF LICENSEES.
(a) No license shall be issued, nor shall any license be renewed, pursuant to the provisions of this chapter to:
(1) An applicant who is not eighteen (18) years of age at the time of application;
(2) An applicant who has had a similar license denied or revoked pursuant to BMC 5.02.180;
(3) An applicant who shall not first comply with the general laws of the state; or
(4) An applicant who seeks such a license in order to practice some illegal act or some act injurious to the public health or safety. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.120 APPLICATION PROCEDURE, LICENSE FEE.
(a) The business license issued under this chapter must be obtained prior to commencing business in the City. Application for a business license required under this chapter is made through the Business Licensing Service, and must include all information required for all licenses requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075.
(b) The City’s fee for a business licensee shall be as set forth in Chapter 3.01 BMC as currently enacted and as hereinafter amended. (Ord. 5421 §11, 2021; Ord. 5343 §10, 2017: Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.130 APPROVAL AND ISSUANCE OF BUSINESS LICENSE.
All licenses approved for issuance by the Director shall be conditioned upon compliance at all times with all applicable ordinances, regulations and statutes of the city and the state. Upon issuance, the license will be valid until the expiration date established by the Business Licensing Service as long as the licensee continues in business and pays the city license fee and occupation tax due pursuant to the provisions of this chapter and Chapters 3.48 and 3.86 BMC. The license shall be in addition to any other license required under any law or ordinance of the City. Issuance of a business license does not imply compliance with other City codes. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.140 RENEWAL.
The business license issued under the provisions of this chapter expires on the date established by the Business Licensing Service (BLS) and must be renewed on or before that date to continue to engage in business in the City after that date.
(a) Application for renewal of the business license is made through the BLS, and must include all information required for each license being renewed, the total fees due for all licenses, and the renewal application handling fee required by RCW 19.02.075.
(b) The license term and respective fee amount may be prorated as needed to synchronize the license expiration with that of the business license account maintained by the BLS.
(c) Failure to complete the license renewal by the expiration date will incur the late renewal penalty pursuant to RCW 19.02.085 and as set forth in Chapter 3.01 BMC in addition to all other fees due.
(d) Failure to complete the license renewal within one hundred twenty (120) days after expiration will result in the cancellation of the license and will require applying for a new license as provided for in this chapter in order to engage in business in the City. Business may not continue until the new license has been approved by the City. The City may require payment of all past due amounts and any applicable City penalties prior to approving the new license. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.150 APPLICATION AS PUBLIC RECORD.
General business license applications and related business licensing information are subject to applicable controls and restrictions found in RCW 19.02.115. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.160 NONPAYMENT OF BUSINESS LICENSE FEE.
All City license fees unpaid under this chapter when due and all interest and penalties imposed by the City thereon, constitute a debt to the City and may be collected with any taxes owed and in the same manner as unpaid taxes under Chapters 3.48 and 3.86 BMC. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.170 GROUNDS FOR DENIAL OR REVOCATION OF LICENSE.
(a) In addition to the other penalties provided by law, any business license issued under the provisions of this chapter may be denied or revoked pursuant to the provisions of this chapter at any time, where:
(1) The license was procured by fraud, false representation or material omission of fact, or for the violation of or failure to comply with any of the provisions of this chapter by the person holding such license, or any of his servants, agents or employees, while acting within the scope of their employment; or
(2) The licensee or employee of the licensee violates any of the provisions of this chapter or any applicable City, state or federal law, including, but not limited to Chapters 3.48, 3.50 and 3.86 BMC, or the purpose for which the license was issued is being abused to the detriment of the public, or such license is being used for a purpose different from that for which it was issued.
(3) The licensee submits a false or fraudulent City tax return or makes a false statement on any City tax return.
(4) The licensee fails to pay any license fee or tax to the City when due including, but not limited to, any taxes pursuant to BMC Title 3.
(5) The licensee or employee has been convicted of a crime involving the business. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.180 DENIAL AND REVOCATION - PROCEDURE.
(a) Any application for the issuance or renewal of a license issued under this chapter may be denied, or any license issued under this chapter may be revoked based on one or more of the grounds set forth in BMC 5.02.170.
(b) The Director shall have the power and authority to deny the issuance of or revoke any license issued under the provisions of this chapter. The Director shall notify such licensee in writing by certified mail or personal service of the denial or revocation of his or her license application or license and the grounds therefor.
(c) Any applicant or licensee may, within fourteen (14) calendar days from the date that the denial or revocation notice was mailed to the applicant or licensee, appeal from such denial or revocation by filing a written notice of appeal setting forth the grounds therefor with the Administrative Hearing Examiner pursuant to Chapter 2.13 BMC. A filing fee as set forth in Chapter 3.01 BMC shall be submitted with the appeal, which filing fee is required to process the appeal. The hearing shall be conducted in accordance with the procedures for hearing contested cases set out in Chapter 2.13 BMC. After the hearing thereon the Administrative Hearing Examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or overrule the denial or revocation and order issuance or reinstatement of the license, and may impose any terms thereupon.
(d) No renewal or revocation of a license issued pursuant to the provisions of this chapter shall take effect until fourteen (14) calendar days after service of the notice thereof by the Director, and if the appeal is timely filed, the renewal or revocation shall be stayed pending final action by the Administrative Hearing Examiner. All licenses which are revoked shall be surrendered to the City on the effective date of such revocation.
(e) The decision of the Administrative Hearing Examiner shall be final. The applicant or licensee and/or the City may seek review of the decision by the Superior Court of Washington in and for Kitsap County within twenty-one (21) calendar days from the date of the decision. If review is sought as herein prescribed the renewal or revocation shall be stayed pending final action by the Superior Court.
(f) When revoked, the license shall be canceled and immediately surrendered to the Director. Upon revocation of any license as provided in this chapter no portion of the license fee shall be returned to the licensee.
(g) Upon denial or revocation, the person whose application was denied or license revoked shall not be granted a license for a business, upon any new application that may be made, for a period of ninety (90) calendar days from date of denial or revocation and further, no license shall be issued until such person cures any defaults that resulted in the denial or revocation. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)
5.02.190 UNLAWFUL - VIOLATIONS AND PENALTIES.
(a) It shall be unlawful:
(1) For any person to engage in business without having obtained a business license or for a person to engage in business after denial of a business license application or renewal or after revocation of a business license.
(2) For the president, vice-president, secretary, treasurer, or other officer of any company to engage in business without having obtained a business license or for a person to engage in business after denial of a business license application or renewal or after revocation of a business license.
(3) For any person to violate any provision of this chapter.
(b) Nonpayment Penalty. In addition to any other applicable penalty provided for in this chapter, failure to pay the City license fee prior to engaging in business in the City, or otherwise within ninety (90) days after such payment is due, pursuant to subsection (a) of this section, may subject the licensee to a monetary penalty imposed directly by the City in the amount of fifty dollars ($50) or as otherwise amended as set forth in Chapter 3.01 BMC in addition to the required license fee.
(c) Civil Penalties. In addition to any violation set forth in Chapter 3.86 BMC relating to the administration of this chapter, any violation of subsection (a) of this section constitutes a civil violation under Chapter 1.04 BMC for which a monetary penalty may be assessed and enforcement may be required as provided therein.
(d) Criminal Penalties. In addition to the foregoing penalties or any violation set forth in Chapter 3.86 BMC relating to the administration of this chapter, any person who violates or fails to comply with subsection (a) of this section shall, upon conviction, be punished as described in the general criminal penalty provisions of BMC 1.12.020(2). Such person will be guilty of this violation for each day, or portion thereof, during which the business is so engaged or carried on. (Ord. 5421 §11, 2021; Ord. 4842, Repealed & Replaced, 01/03/2003)