Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.010 City power to license.
5.04.040 Application – Issuance conditions.
5.04.050 Nontransferable – More than one required when – Posting.
5.04.060 Operating under another’s license prohibited.
5.04.070 Time limit – Delinquency.
5.04.090 Fee – Levied annually – Business activities designated.
5.04.160 Fee – Additional to others.
5.04.170 Tax constitutes debt to city – Collection.
5.04.180 Recordkeeping and disposition of fees – Enforcement.
5.04.190 Violations – Penalties.
5.04.010 City power to license.
The licenses provided for herein shall be for the purpose of regulation. The provisions of this chapter shall be deemed an exercise of the police power of the city for the protection of the public, economic and social welfare, health, peace and morals, and all of its provisions shall be liberally construed for the accomplishment of that purpose. (Ord. 1874, 2019; Ord. 1590 § 1, 2005).
5.04.020 Definitions.
A. In construing the provisions of this chapter, except when otherwise declared or clearly apparent from the context, the following definitions shall be applied:
1. “Business” includes all activities engaged in the object of gain, benefit or advantage to the licensee or to another person or class, directly or indirectly.
2. “Engage in business” or “engaging in business activities” means commencing, conducting or continuing in business and also the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves up to the public as conducting such business.
a. This section sets forth examples of activities that constitute engaging in business in the city, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the city without having to pay a business license fee. The activities listed in this section are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection (2) of this section. If an activity is not listed, whether it constitutes engaging in business in the city shall be determined by considering all the facts and circumstances and applicable law.
b. Without being all inclusive, any one of the following activities conducted within the city by a person, or its employee, agent, representative, independent contractor, broker, or another acting on its behalf, constitutes engaging in business and requires a person to register and obtain a business license:
i. Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the city.
ii. Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the city.
iii. Soliciting sales.
iv. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
v. Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf.
vi. Installing, constructing, or supervising installation or construction of, real or tangible personal property.
vii. Soliciting, negotiating, or approving franchise, license, or other similar agreements.
viii. Collecting current or delinquent accounts.
ix. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
x. Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property.
xi. Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.
xii. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
xiii. Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the city, acting on its behalf, or for customers or potential customers.
xiv. Investigating, resolving, or otherwise assisting in resolving customer complaints.
xv. In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place.
xvi. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
c. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf, engages in no other activities in or with the city but the following, it need not register and obtain a business license:
i. Meeting with suppliers of goods and services as a customer.
ii. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.
iii. Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of directors member or attendee engaging in business such as a member of a board of directors who attends a board meeting.
iv. Renting tangible or intangible property as a customer when the property is not used in the city.
v. Attending, but not participating in a “trade show” or “multiple vendor events.” Persons participating at a trade show shall review the city’s trade show or multiple vendor event ordinances.
vi. Conducting advertising through the mail.
vii. Soliciting sales by phone from a location outside the city.
d. A seller located outside the city merely delivering goods into the city by means of common carrier is not required to register and obtain a business license; provided, that it engages in no other business activities in the city. Such activities do not include those in subsection (A)(2)(c) of this section. The city expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the license fee under the law and the constitutions of the United States and the state of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus-generating contact or subsequent contacts.
3. “Person” means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, corporation, association, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise.
4. “Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the city.
B. Words in the singular number include the plural and the plural includes the singular. Words in one gender include all other genders. (Ord. 1874, 2019; Ord. 573 § 2, 1960).
5.04.030 Exemptions.
The provisions of this chapter shall not apply to:
A. Any instrumentality of the United States, the state of Washington, or political subdivisions thereof with respect to the exercise of governmental functions;
B. Any person paying a business and occupation tax to the city under the terms of chapter 5.12 BMC or under the terms of future ordinances of the city shall be exempt from the payment of any license or tax under this chapter during the year or years covered by such other ordinances;
C. Employees of any business entity, while such employees engage in business solely on behalf of that business entity;
D. Newspaper carriers under the age of 18;
E. Any business entity located outside the corporate limits of Burlington solely making delivery of goods purchased outside the city’s corporate limits, where such business entity is not otherwise subject to the licensing provisions of this chapter;
F. The nonbusiness activities of religious organizations are exempt from the provisions of this chapter; provided, that any religious organization which engages in business for which it may be required by federal law to file a federal income tax return shall, to that extent only, be subject to the license and license fee requirements of this chapter;
G. Any person, business, enterprise, firm, or corporation which the city is forbidden to tax under state or federal law; or
H. Unless otherwise exempt in this section or elsewhere in this chapter, this chapter covers and applies to any business located outside the city that engages in some business activity inside the city limits of the city of Burlington.
For purposes of the license required by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 and who does not maintain a place of business within the city shall submit a business license application as provided for in this chapter, but be exempt from the city license fee. The threshold and fee exemption does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 1874, 2019; Ord. 1861, 2018; Ord. 1590 § 2, 2005).
5.04.040 Application – Issuance conditions.
Applications for a business license and/or business registration will be submitted to the State of Washington’s Business Licensing Service (BLS). The application must contain all information required for all licenses requested, and the total fees due for all licenses, as well as the handling fee required by RCW 19.02.075. The content of the application will be determined by the business licensing application and the city’s addendum used by BLS. The city will determine approval of the applications, and once approved, the license will be issued through the BLS and not the city. Once approved through the BLS, and upon payment of the fee, the BLS will issue the license. (Ord. 1874, 2019; Ord. 1861, 2018; Ord. 1590 § 3, 2005).
5.04.050 Nontransferable – More than one required when – Posting.
The license shall be personal and nontransferable. In case business is transacted at two or more separate places by one person within the city, a separate license for each place in which business is transacted with the public shall be required, in accordance with the classifications set forth in this chapter, and the person shall pay for each place of business a fee in accordance with said classification. Each license shall at all times be conspicuously posted in the place of business for which it is issued. If a business intends to change its place of business location within the city it must immediately notify the Business Licensing Service. A change of location may require submission of a new application as provided in this chapter. (Ord. 1874, 2019; Ord. 573 § 4, 1960).
5.04.060 Operating under another’s license prohibited.
No person to whom a license has been issued pursuant to this chapter shall suffer or allow any other person for whom a separate license is required, to operate under or display such license, nor shall any such other person operate under or display such license. (Ord. 1874, 2019; Ord. 573 § 4, 1960).
5.04.070 Time limit – Delinquency.
The licenses required by the terms of this chapter shall be procured prior to the commencement of operation of business in the city. For any license not procured prior to commencing business, there is assessed, and there shall be collected by the city clerk-treasurer, in addition to the required annual license fee, a delinquency charge of 10 percent of the annual license fee for each month or part of a month accruing between the time such license is procured and the time when the same should have been procured under the terms of this chapter. This penalty will be assessed by and collected directly by the city, and is not payable through the Business Licensing Service. (Ord. 1874, 2019; Ord. 573 § 7, 1960).
5.04.080 Expiration.
The business license referred to in this chapter shall expire on the date established by the Business Licensing Service, and must be renewed through the Business Licensing Service on or before that date to continue conducting business in the city. Failure to renew by the expiration date will incur the late renewal penalty charge required by RCW 19.02.085. Failure to renew within 120 days after expiration will result in cancellation of the license and will require reapplication for a license, as provided in this chapter, in order to continue conducting business in the city. (Ord. 1874, 2019; Ord. 573 § 4, 1960).
5.04.090 Fee – Levied annually – Business activities designated.
On or after the effective date of the ordinance codified in this chapter, there is levied upon and shall be collected from and paid as hereinafter provided, by every person, on account and for the privilege of engaging in business activities within the city an initial and annual license fee in an amount determined by resolution of the city council. (Ord. 1874, 2019; Ord. 1132 § 1, 1988; Ord. 590 § 1, 1962; Ord. 573 § 3, 1960).
5.04.140 Fee – Publishers.
Publishers of newspapers, periodicals or any other publications, may, in lieu of procuring any license provided for by this chapter, pay directly to the city a sum of money equal in amount of the appropriate license fee set forth in BMC 5.04.090, and upon payment thereof shall be exempt from the requirements of this chapter, said exemption to apply for one calendar year, and to be renewable from year to year upon an additional payment of the sum. (Ord. 1874, 2019; Ord. 573 § 8, 1960).
5.04.150 Fee – Prorated when.
The license term and respective license fee amount for a person may be prorated by the Business Licensing Service in order to synchronize the expiration date of the license with the business licensing account administered by the Business Licensing Service. (Ord. 1874, 2019; Ord. 573 § 9, 1960).
5.04.160 Fee – Additional to others.
The license fee and tax levied in this chapter shall be in addition to any license fee or tax imposed or levied under any law or any other ordinance of the city, except as otherwise expressly provided in this chapter. (Ord. 1874, 2019; Ord. 573 § 5, 1960).
5.04.170 Tax constitutes debt to city – Collection.
Any city license fee or tax due or unpaid under this chapter, and all city-imposed penalties thereon, shall constitute a debt to the city, and may be collected by court proceeding in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. 1874, 2019; Ord. 573 § 10, 1960).
5.04.180 Recordkeeping and disposition of fees – Enforcement.
A. The city clerk-treasurer shall keep full and accurate records of all funds received under the provisions of this chapter. Upon receipt of any license fee or city-imposed penalties collected under the provisions of this chapter, he or she shall deposit the same to the credit of the current expense fund.
B. It shall be the duty of the city clerk-treasurer to require all parties engaging in any business activity to procure such license, and should there be any license fee not paid by any person, it shall be the duty of the city clerk-treasurer to enforce collection thereof in the manner provided in this chapter. (Ord. 1874, 2019; Ord. 573 § 12, 1960).
5.04.190 Violations – Penalties.
Any person violating or failing to comply with any of the provisions of this chapter shall be deemed to have committed an infraction, and upon a final determination of having committed such infraction, such person shall be subject to the following monetary penalties:
A. Any person who engages in or carries on any business subject to licensing hereunder without having a business license to do so shall be guilty of a violation of this chapter for each day during which the business is engaged in or carried on, and any person who fails or refuses to pay the license fee or tax or any part thereof on or before the due date shall be deemed to be operating without having a license so to do.
B. All violations of the provisions of this chapter shall be subject to the monetary penalty for like violations as set forth in the Infraction Rules for Courts of Limited Jurisdiction promulgated by the Washington State Supreme Court, as such rules now exist or may hereafter be amended. (Ord. 1874, 2019; Ord. 1590 § 4, 2005).