Chapter 5.02
BUSINESS REGISTRATION
Sections:
5.02.020 Registration required.
5.02.050 Transfer or sale of business.
5.02.055 Business location changes.
5.02.060 Penalty for failure to register.
5.02.010 Definitions.
As used in this chapter, the following words or terms shall have the following meanings:
A. “Business” means a person or entity engaging in business as further set forth below.
B. Engaging in Business.
1. The term “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.
2. 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 (B)(1) 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.
3. 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:
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, 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 and 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.
4. 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 with 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.
5. 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 (B)(4) of this section.
The city expressly intends that engaging in business include any activities 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.
C. “Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the city of Colville. (Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).
5.02.020 Registration required.
Unless exempted under CMC 5.02.010 or 5.02.025, it is unlawful for any person to engage in business in the city or with the city, whether from a commercial or residential location inside the limits of the city or from a location outside the city, without first having registered the business as required herein. In addition, applicants must comply with city of Colville Municipal Code provisions including but not limited to zoning, building, fire, and police department issues.
A. If a person conducts more than one type of business activity at the same physical premises only one license and one city license fee is required for that location.
B. If a person conducts their business in more than one location in the city each such separate location must be licensed separately.
C. If two or more persons each conduct their own distinct business at the same physical premises in the city, each such person must obtain their own license for their respective business. (Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).
5.02.025 Exemptions.
A. The business licensing requirements of this chapter do not apply to the following:
1. Pursuant to RCW 36.71.090, no business license shall be required of any farmer, gardener or other person to sell, deliver or peddle any fruits, vegetables, berries, eggs, or any farm produce or edibles raised, gathered, produced, or manufactured by such person.
2. No business license shall be required of any person under the age of 18 years old engaging in a de minimis entrepreneurial venture with permission of the property owner, including, but not limited to, such trade and activities as running a lemonade stand.
3. The rental of one single-family dwelling. This exemption shall not apply to a person operating a mobile home park.
4. The casual sale of items of personal property where the person conducting such sale is not regularly engaged in the business of selling items of personal property (for example, garage sales, service agency bake sales, yard sales).
5. Any instrumentality of the United States, state of Washington, or political subdivision thereof with respect to the exercise of governmental functions.
6. Threshold with Fee-Free License (Effective January 1, 2019). 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, must still submit a business license registration application to the director or designee. The fee for this submission is $0.00. The threshold does not apply to regulatory license requirements or activities that require a specialized permit.
7. Religious, charitable, educational, or fraternal organizations engaged solely in their respective core religious, charitable, educational, or fraternal activities, and have no other form of actual commercial business engagement.
8. Nonprofit organizations, other than those identified in subsection (A)(7) of this section, engaged in business in the city must obtain a business license as required. (Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).
5.02.030 Application form.
The application for registration and business license is through the Business Licensing Service, and must include all information required for each license requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075. (Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).
5.02.035 License renewal.
The city business license expires on the date established by the Business Licensing Service (BLS), and must be renewed on or before that date in order to continue to engage in business in the city after that date.
A. Application for renewal of the license is made through BLS and must include all information required to renew each license involved, the total fees due for renewal of all licenses, and the renewal application handling fee required by RCW 19.02.075.
B. The license term and respective city license fee amount may be prorated as necessary to synchronize the license expiration with that of the respective business license account maintained by BLS.
C. Failure to complete the license renewal by the expiration date will incur the late renewal penalty fee required by RCW 19.02.085 in addition to all other fees due.
D. Failure to complete the license renewal within 120 days after the expiration will result in cancellation of the license and will require submitting a new application, as provided for in this chapter, in order to continue to engage in business in the city. (Ord. 1670 NS § 1, 2020).
5.02.040 Fees and renewal.
A. Each business is required to register prior to the opening of the business. Business licenses are valid for one year, unless otherwise prorated as provided for in this chapter, and must be renewed as provided for in CMC 5.02.035.
B. The initial city registration fee is $10.00. The annual city renewal fee is $5.00. (Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).
5.02.050 Transfer or sale of business.
Upon the sale or transfer of any business registered by this chapter, the registration authorized by the prior owner expires on the date of such sale or transfer and the new owner intending to continue such business in the city must apply for a new business registration as provided for in this chapter, providing updated information as applicable. (Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).
5.02.055 Business location changes.
If a person wishes to change the location of their business within the city, they must notify the Business Licensing Service sufficiently prior to the proposed change to allow the city to review the request. Business may not commence at the new location prior to approval by the city. Such a change may require submitting a new application for license, as provided for in this chapter. (Ord. 1670 NS § 1, 2020).
5.02.060 Penalty for failure to register.
In addition to whatever other penalties may be available to enforce this chapter, a person who violates any provision of this chapter is guilty of a misdemeanor punishable as set forth in CMC 1.08.010. (Ord. 1689 NS § 1, 2022; Ord. 1670 NS § 1, 2020; Ord. 1625 NS § 1, 2018).