Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.020 Rules of interpretation.
5.04.040 Business license requirement.
5.04.050 Businesses exempt from license requirements.
5.04.080 Application procedures.
5.04.090 Reasons for application denial.
5.04.100 Revocation of a business license.
5.04.110 Procedures for revocation.
5.04.010 Intent.
The purpose of this chapter is to provide a means of registering persons or entities engaging in business within the city for informational and economic development purposes and to disseminate information to businesses relating to city policies, regulations, and economic information. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.020 Rules of interpretation.
A. For the purposes of this chapter, all words used shall have their normal and customary meanings, unless specifically defined otherwise in the code.
B. Words used in their present tense include the future.
C. The plural includes the singular and vice versa.
D. The words “will” and “shall” indicate mandatory action.
E. The word “may” indicates that discretion is allowed.
F. The masculine gender includes the feminine and vice versa. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.030 Definitions.
The following definitions shall apply to this chapter:
“Applicant” means a person seeking a business license.
“Application” means a document, in the form approved by the city clerk-treasurer, for the purpose of collecting information from the applicant to meet the objectives and goals of this chapter.
“Building department” means the city of Cashmere building department.
“Business” or “commerce” means “engaging in business” as further set forth herein. “Business” shall also include operation of recreational or amusement enterprises, home occupations, door-to-door business, and child care centers.
“Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the city.
“Business, minor” means businesses operated or owned by persons under the age of 18 years. Examples of minor businesses are babysitting, newspaper delivery, lawn mowing, refreshment sales, and others conducted by persons under the age of 18.
“Certificate” means a city of Cashmere approved business license.
“City” means the city of Cashmere.
“City clerk-treasurer” means the city clerk-treasurer of the city of Cashmere.
“City council” means the city council of the city of Cashmere.
“Code” means the City of Cashmere Municipal Code.
“Day care center” means a building used to provide child care services for 12 or more children, including those of the day care center operator.
“Department of Ecology” means the Washington State Department of Ecology.
“Dwelling unit” means a building or portion thereof providing complete housekeeping facilities for one family. “Dwelling unit” does not include recreational vehicles.
“Engaging in business” 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 out to the public as conducting such business.
1. This section further 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 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.
2. 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 as further set forth in this chapter:
a. 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.
b. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.
c. Soliciting sales.
d. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
e. 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.
f. Installing, constructing, or supervising installation or construction of real or tangible personal property.
g. Soliciting, negotiating, or approving franchise, license, or other similar agreements.
h. Collecting current or delinquent accounts.
i. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
j. 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.
k. 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, and veterinarians.
l. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
m. 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.
n. Investigating, resolving, or otherwise assisting in resolving customer complaints.
o. In-store stocking or manipulating products or goods, sold to or owned by a customer, regardless of where sale and delivery of the goods took place.
p. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
3. 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:
a. Meeting with suppliers of goods and services as a customer.
b. Meeting government representatives in their official capacity, other than those performing contracting or purchasing functions.
c. 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.
d. Renting tangible or intangible property as a customer when the property is not used in the city.
e. 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.
f. Conducting advertising through the mail.
g. Soliciting sales by phone from a location outside the city.
4. 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 (3) of this definition.
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.
“Fire chief” means the fire chief of the city of Cashmere.
“Health district” means Chelan-Douglas Counties health district.
“Home occupation” means an economic enterprise to make and/or sell a product or perform a service that is conducted or operated within a residential dwelling unit or building accessory to a residential dwelling unit, by the resident, occupant, or owner, and which use shall be clearly incidental and secondary to the residential use of the dwelling unit, including by use of the dwelling unit as a business address in a directory or as a business mailing address.
“Notice of denial” means a document stating that an application for a business license has not been approved.
“Notice of violation” means a document signed by the mayor’s designee stating the specific code(s) or regulation(s) that is/are being violated, that the violation must cease, the required mitigation to correct the violation, the date by which the violation must cease, and a statement that legal action may be taken that may include penalties or fines.
“Person” means any individual, company, partnership, receiver, assignee, trustee in bankruptcy, trust, estate, firm, joint venture, club, corporation, association, society or any individual or group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise.
“Stock in trade” means any item or good that: (1) is produced, purchased, processed, finished or fabricated as part of a home occupation, or (2) is incorporated into any such item, or (3) is used to make, manufacture, produce, process, finish or fabricate any such item, or (4) is intended for resale on site; provided, that it does not include samples.
“Yard/garage sale” means a sale of used personal or household items and operated on a temporary basis (no more than two yard/garage sales per calendar year per parcel). Each sale shall last no longer than three days. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1177 § 1, 2010; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.040 Business license requirement.
A business license is required for any person engaging in business in the city, except those exempted in CMC 5.04.050. The business license is issued to the business owner or operator at a specific location. Change of ownership of the business requires application and approval of a business license for the new owner. A change of location of a business must be reported to the Business Licensing Service sufficiently prior to relocating the business to allow the city to review and approve the new location prior to commencing business at that location. A change of location may require submitting a new application as provided for in this chapter. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 954 § 1, 1999; Ord. 877 § 2, 1996).
5.04.050 Businesses exempt from license requirements.
A. The following businesses or activities are exempt from the licensing requirements set forth in this chapter:
1. Minor businesses.
2. Any municipality or political subdivision of the United States or of the state of Washington.
3. Any public utility companies.
4. Farmers or gardeners selling their own unprocessed farm products raised or grown exclusively upon lands owned or occupied by them.
5. Rental of single-family residential real property, including units within a duplex, by the owner. Rentals of multifamily residential properties containing or including three or more units are subject to the licensing requirements set forth in this chapter.
6. Yard/garage sales that meet the definition in CMC 5.04.030.
B. 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 registration to the city clerk or designee. However, such business shall be exempt from the requirements to pay a licensing fee. The licensing fee exemption applies only to the basic business license and does not apply to regulatory license requirements or activities that require a specialized permit.
C. Nonprofit, religious, educational, social, fraternal or other charitable organizations or entities engaging in business within the city shall be required to obtain a business license; however, such license shall be exempt from the licensing fee. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1177 § 2, 2010; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.060 License term.
All business licenses are issued annually and are effective for one year or fraction thereof and expire on the date established by the Business Licensing Service. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.070 License fees.
A. Unless otherwise exempt from licensing fees, the fee for all new licenses or initial applications for licenses shall be as set forth in a resolution adopted by the city council from time to time.
B. All renewal license fees, if applicable, shall be as set forth in a resolution adopted by the city council from time to time. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.080 Application procedures.
A. The applicant shall complete an application for a business license through the Business Licensing Service. The application must include all information and all fees due for all licenses requested, as well as the handling fee required by RCW 19.02.075.
B. The city clerk-treasurer shall provide information relating to services provided by the city and/or other agencies, applicable regulations, and other information as may be needed for all new applicants. Any changes in services, regulations, and other information shall be given to applicants renewing their business licenses.
C. The city clerk-treasurer or other designee authorized and appointed by the mayor (collectively referred to in this chapter as the “city clerk-treasurer”) shall review all applications for business licenses. The city clerk-treasurer may refer the application to the fire chief, building department, health district, Department of Ecology, or other agencies or departments he or she deems necessary. The city clerk-treasurer’s review and approval or denial shall be completed within 10 days of receipt of the application information unless additional time is needed by other agencies or a time extension is mutually agreed upon by the city clerk-treasurer and the applicant.
D. Upon approval, the city clerk-treasurer shall allow issuance of a city business license through the Business Licensing Service. In case of application denial, a notice of denial shall be mailed by the city clerk-treasurer. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.090 Reasons for application denial.
The city clerk-treasurer shall review and approve or deny applications in a timely manner. The city clerk-treasurer shall deny applications for only the following reasons:
A. Incomplete or inaccurate application;
B. The appropriate fee has not been submitted with the application (if applicable);
C. The business would violate any code;
D. The business would violate health district regulations;
E. The business would be illegal or in violation of any state or federal law, ordinance, rule or regulations. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.100 Revocation of a business license.
The city clerk-treasurer shall revoke a business license for the following reasons:
A. The application for the business was falsified; or
B. The business is in violation of the Cashmere Municipal Code, health district regulations, and/or other state and federal regulations. (Ord. 1275 § 1, 2019; Ord. 1274 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.110 Procedures for revocation.
The city clerk-treasurer shall follow the procedures below when revoking a business license.
A. A notice of violation shall be sent or delivered to the business. In the case of imminent danger to the public the notice shall also be posted at the business location.
B. The time for correcting the violation shall be determined by the city clerk-treasurer. The time for correction of the violation shall be reasonable and dependent on the severity of the situation and danger to the public.
C. The city clerk-treasurer may grant an extension in time because of extenuating circumstances, if there is no danger to the public.
D. If the violation(s) are not corrected within the time established by the city clerk-treasurer the business license shall become void and the city clerk-treasurer shall send a notice to the business that the business license has been revoked. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.120 Penalties.
A. It shall be unlawful for any person, persons, company, corporation or association to engage in business, either directly or indirectly, for which a license is hereafter required or a license fee provided without first procuring such license and paying such fee (as applicable). A person who fails to obtain the necessary license or fails to comply with a notice of violation shall be guilty of an infraction and shall be required to pay a penalty of $250.00, enforced and payable to the city.
B. The business license must be renewed by the expiration date established by the Business Licensing Service in order to continue conducting business in the city. The renewal must include all information and all fees due for all the licenses being renewed, as well as the handling fee required by RCW 19.02.075. Failure to renew the license by the expiration date will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due. Failure to renew a delinquent license within 120 days after expiration will result in the cancellation of the license, and will require reapplication for and approval of a new license in order to continue to engage in business in the city. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 899 § 1, 1997; Ord. 877 § 2, 1996).
5.04.130 Appeal to the mayor.
Any person may appeal a decision to approve or deny an application pertaining to this chapter to the mayor. Appeals shall be filed in accordance with the timelines and procedures for closed record appeals set forth in CMC 14.11.030. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).
5.04.140 Judicial appeal.
Any person may appeal the mayor’s decision relating to an appeal of the city clerk-treasurer’s decision through the court system. Judicial appeals shall be accomplished in accordance with CMC 14.11.040. (Ord. 1275 § 1, 2019; Ord. 1271 § 1, 2018; Ord. 1150 § 1 (Exh. A), 2009; Ord. 877 § 2, 1996).