Chapter 5.05
BUSINESS LICENSES
Sections:
5.05.040 Procedure for obtaining a license.
5.05.045 License renewal – Penalties.
5.05.070 Reciprocal businesses.
5.05.090 Transportation passenger service.
5.05.110 Investigation of businesses and/or persons.
5.05.010 Definitions.
Except as otherwise expressly declared or clearly apparent from the context in which used, the following definitions shall be applied in construing the provisions of this chapter:
(1) Engaging in Business.
(a) 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.
(b) 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 (1)(a) 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.
(c) 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.
(d) 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 director 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.
(e) 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 (1)(d) 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.
(2) “Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the town of Coulee Dam. (Ord. 782 §§ 1, 2 (Exh. A), 2020; Ord. 770 § 1, 2019; Ord. 466 § 1, 1996)
5.05.015 Exemptions.
The provisions of this chapter shall not apply to the following:
(1) 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 be exempt from the general business registration requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit;
(2) Public utility companies;
(3) Farmers or gardeners selling their own unprocessed farm products raised or grown exclusively upon lands owned or occupied by them;
(4) Garage and yard sales;
(5) Any business which is owned and operated by a person under the age of 18 years and which does not generate a net income of more than $1,500 per year;
(6) Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions;
(7) All special events sponsored by the city but not to include participating commercial peddlers. (Ord. 770 § 2, 2019)
5.05.020 Purpose.
(1) To provide revenue for municipal planning purposes and to provide revenue to pay for the necessary expense required to issue the license for and to regulate the businesses licensed.
(2) The license fees levied by this chapter shall be independent and separate from any license or permit fees now or thereafter required of any person to engage in any business by any ordinance of the town, regulating any business herein required to be licensed, and all such businesses shall remain subject to the regulatory provisions of any such ordinances or ordinance now or hereinafter in effect, and the persons engaged in all such businesses shall be liable for the payment of any license fees for which provision has been made herein.
(3) The levy or collection of a license fee upon any business shall not be construed to be a license or permit of the town to the person engaged therein, to engage therein, in the event such business shall be unlawful, illegal, or prohibited by ordinance of the town or the laws of the state or the United States.
(4) All persons, firms and corporations who perform labor, services and construction within the town (as provided in Rule II, WAC 458-20-145), shall report the town “Location Code Number” in the town where the work is performed on their excise tax returns to the state of Washington, Department of Revenue. On any violation hereof the amount of local sales and use taxes due the town shall be paid to the town by the violator, together with a penalty of 100 percent in addition to all other penalties, fines and remedies in this chapter. (Ord. 466 § 2, 1996)
5.05.030 Licensing fees.
(1) No person may engage in business in the town without first having obtained the applicable license therefor and without having first complied with all applicable laws of the state of Washington, federal government and provisions of this chapter or other ordinances of the town.
(2) Each person engaged in business in the town must pay a nonrefundable license application fee as set by the town council by resolution.
(3) The license fee herein required is due with the submission of the application. If a person commences business in the city prior to having obtained a business license, the town may assess a delinquent application fee as prescribed by the town council.
(4) If a licensee wishes to change the location of the licensed business within the town, they must notify the Business Licensing Service sufficiently prior to the change to allow the town to review and approve the change. Such a change may require submitting a new application for license as provided for in this chapter. The town may assess an administrative transfer fee as set by the town council by resolution. All other applicable ordinances must be complied with before approval of the change.
(5) If a person conducts business at multiple locations in the town, they must obtain a separate business license for each such location.
(6) If a person conducts more than one business activity at the same business location, the person will be required to obtain only one business license and be assessed only one license application fee. If multiple persons each operate a separate business at the same location, each business owner must obtain a separate business license and each be assessed a separate license application fee.
(7) All applicable business license fees and penalties due and payable to the town may be submitted to a collection agency acting on behalf of the town upon 120 days of delinquency.
(8) If payment is made directly to the town by draft or check, the respective fee will not be deemed paid unless the check or draft is duly honored in the usual course of business, nor will acceptance of any such check or draft by the town be an acquittance or discharge of any fee unless and until the check or draft is honored. (Ord. 782 § 3 (Exh. A), 2020; Ord. 466 § 3, 1996)
5.05.040 Procedure for obtaining a license.
(1) Application for a business license is made through the Business Licensing Service (BLS). BLS will provide the applicant’s information to the town clerk for review. If the town clerk determines the license may be issued, the clerk will approve its issuance through BLS. If, in the opinion of the town clerk, there exists any question regarding the approval of an application, said application will be submitted to the chief of police and/or considered by the town council at its next regularly scheduled meeting.
(2) The application for a business license 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.
(3) The business license is not transferable. Only the person to whom the license is issued is eligible to operate under the authority of that license. If multiple persons are listed on an application, each person may be investigated individually, and separate investigation fees may apply.
(4) The license must be conspicuously displayed at the business location for which it was issued. If a person operates a mobile business without a fixed place of business in the town, and individual bearing the license on their person fulfills the requirement of this subsection.
(5) No person will be issued a business license if the laws and regulations of the state of Washington or the United States government require such person to have a license or permit under state or federal law or regulation and such person does not possess such state or federal license or permit. (Ord. 782 § 3 (Exh. A), 2020; Ord. 466 § 4, 1996)
5.05.045 License renewal – Penalties.
The business license issued under this chapter expires on the date established by the Business Licensing Service, and must be renewed on or before that date to continue to conduct business in the town after that date.
(1) Application for renewal is made through the Business Licensing Service, and must include all information required to renew each license involved, the total fees due for all licenses, and the renewal application handling fee required by RCW 19.02.075.
(2) The license term and respective license fee amount may be prorated as necessary to synchronize the license expiration date with that of the business license account maintained by the Business Licensing Service.
(3) Failure to complete the 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.
(4) Failure to complete the renewal within 120 days after expiration will result in the cancellation of the license and will require submitting a new application for license in order to continue to engage in business in the town. (Ord. 782 § 3 (Exh. A), 2020)
5.05.050 Temporary business.
Repealed by Ord. 770. (Ord. 466 § 5(A), 1996)
5.05.060 Itinerant business.
Repealed by Ord. 770. (Ord. 466 § 5(B), 1996)
5.05.070 Reciprocal business.
Business licenses granted by the cities of Grand Coulee, Electric City or Elmer City shall be mutually and reciprocally honored in the town of Coulee Dam with respect to established business as defined in this chapter.
No reciprocal business shall conduct business without first procuring a business license.
A person seeking to conduct business as a reciprocal business shall present their approved business license to the city/town clerk. The city/town clerk shall contact the city/town issuing the business license to confirm the validity of said license and, if the business license qualifies, the city/town clerk shall endorse the business license by signature as such. (Ord. 782 § 4, 2020; Ord. 466 § 5(C), 1996)
5.05.080 Temporary bazaar of community affair master license.
Repealed by Ord. 770. (Ord. 466 § 5(D), 1996)
5.05.090 Transportation passenger service.
Before a person operates a transportation passenger service, he/she shall provide proof of general liability insurance as provided by Chapter 46.72 RCW. “Transportation passenger service” means and includes every motor vehicle used for the transportation of passengers and shall include motor vehicles of every type of operation, including, but not limited to, taxi, shuttle, cabulance, aeroporter, or any other type of operation. (Ord. 782 § 5, 2020; Ord. 770 § 4, 2019; Ord. 466 § 5(E), 1996)
5.05.100 Exempt business.
Repealed by Ord. 770. (Ord. 466 § 5(F), 1996)
5.05.110 Investigation of businesses and/or persons.
(1) Town officials shall have the authority to investigate and examine all places of business or person licensed or subject of license under this chapter at any reasonable time for the purpose of determining whether such place of business or person is complying with the provisions of the town’s municipal code, state and/or federal law.
(2) Prior to the issuance of a new business license, a submitted application shall be reviewed by and a proposed business location and building thereto, inspected and approved by the fire chief, building official, police chief and when applicable the county health department. The business license shall be issued only if the location and building are in compliance with building codes, fire codes, and zoning regulation of the town as those codes and regulations relate to existing and/or new structures.
(3) Within five business days after receipt of any new applications, the town police department shall investigate the statements contained therein and make a recommendation to the town clerk to grant or deny the license, or to require further information from the applicant. Applicable fees will be collected as prescribed by resolution of the town council. Any changes on a renewal application shall require investigation. (Ord. 770 § 5, 2019; Ord. 466 § 6, 1996)
5.05.120 License denial.
(1) False or misleading statements on an application, or conviction of a felony related to the sale or presentation of any goods, wares, merchandise or anything of value including burglary, felony theft or felonies against the person are grounds for denial of the business license.
(2) Denial shall be subject to appeal by the applicant to the town council as provided in this chapter. (Ord. 466 § 7, 1996)
5.05.130 Enforcement.
(1) It shall be the duty of the chief of police, or a designee, of the town to require any person to produce a business license and to enforce the provisions of this chapter against any person found to be violating the same.
(2) The chief of police, or a designee, shall report to the town clerk all violations of this chapter and the town clerk shall maintain a record of each license issued and record the reports of violations therein. (Ord. 466 § 8, 1996)
5.05.140 Grievance procedure.
If the town denies an application the applicant or person shall have 15 days after the date of the license denial to appeal, in writing, to the town council. Upon receiving a written notice from the applicant or person the town council shall conduct a public hearing at their next regularly scheduled meeting. The decision of the council shall be announced at the conclusion of the hearing and shall be final. The town clerk shall notify the applicant or person in writing of the decision of the council. (Ord. 466 § 9, 1996)
5.05.150 Violation – Penalty.
(1) It is unlawful for any person to wilfully make any false or misleading statement to the town clerk for the purpose of determining the amount of any license fee herein provided to be paid by such person, or to fail or refuse to comply with any of the provisions of this chapter or other applicable town ordinances.
(2) Any person violating any of the provisions hereof shall be deemed to have committed a civil infraction and shall be subject to a penalty of $250.00. Each violation shall constitute a separate violation. Each day a violation exists constitutes a separate violation of this chapter. (Ord. 466 § 10, 1996)
5.05.160 Revocation.
(1) The town council may at any time suspend or revoke any license issued under the provisions of this chapter whenever the business, manager, officer, director, agent or employee of the business, has caused, permitted or knowingly done any of the following:
(a) Fraud, misrepresentation or incorrect statements contained in the application for license;
(b) Fraud, misrepresentation or incorrect statements made in the course of carrying on a license to business;
(c) Violation of any federal, state or town statute, law regulation or ordinance upon the business premises, or in connection with the business operation, whether or not any party has been convicted in any court of competent jurisdiction of such violation;
(d) Conviction of a crime;
(e) Conducting business in an unlawful manner, or in such a manner as to constitute a breach of peace, or to constitute a menace to the health, safety or general welfare of the public;
(f) Conducted, engaged in or operated the business on premises in the town which do not conform to the ordinances of the town;
(g) Engaged in unfair or deceptive act or practices in the conduct of the business, operated the business in such a manner as to constitute a public nuisance.
(2) Notice of the hearing for revocation of a business license shall be given by the town clerk in writing to the licensee setting forth specifically the grounds of complaint and the time and place of the hearing. Such notice shall be mailed to the licensee at his or her address as presented on the business license application at least five days prior to the date set for hearing, or shall be personally delivered in the same manner as a summons at least three days prior to the date set for hearing. (Ord. 466 § 11, 1996)