Chapter 5.02
GENERAL BUSINESS LICENSE PROVISIONS
Sections:
5.02.030 Applicability/application.
5.02.050 City license officer.
5.02.065 License term or expiration.
5.02.070 Suspension, revocation or denial of license.
5.02.075 Central computerized enforcement service system.
5.02.010 Definitions.
For the purpose of this title, the following terms, phrases, words and their derivations shall have the meanings given in this section. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word “shall” is always mandatory and not merely directory.
A. “City” is the city of Enumclaw, Washington.
B. “City council” is the city council of the city of Enumclaw, Washington.
C. “City license officer” is the community development director of Enumclaw, Washington.
D. “Day” means one full day and not two half days nor any fractional part of one day.
E. “Employee” means all full-time and permanent part-time employees and includes the owner or owners of the business if they work on the premises.
F. 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 (F)(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 (F)(4) 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.
G. “General business license” means a license issued under this chapter.
H. “License” or “licensee,” as used generally in this title, includes, respectively, the words “permit,” or “permittee,” or the “holder” for any use or period of time or any similar privilege, wherever relevant to any provision of this title or other law or ordinance.
I. “Nonprofit group” includes individual person(s), partnerships, joint ventures, societies, associations, clubs, trustees, trusts or corporations; or any officers, agents, employees, factors or any kind of personal representatives of any thereof, in any capacity, acting either for himself or any other person under either personal appointment or pursuant to law who qualifies under definition of and certification by the Internal Revenue Service as nonprofit.
J. “Person” includes individual natural persons, partnerships, joint ventures, societies, associations, clubs, trustees, trusts or corporations; or any officers, agents, employees, factors or any kind of personal representatives of any thereof, in any capacity, acting either for himself or any other person, under either personal appointment or pursuant to law.
K. “Premises” includes all lands, structures and places, and also any personal property which is either affixed to or is otherwise used in connection with any such business conducted on such premises.
L. “Special license” means any license required by this title in any chapter other than this chapter (General Business License Provisions).
M. “Surety bond” means a surety company bond with the licensee as principal and some surety company authorized to do business in the state as surety. Such bond must be approved by the city attorney, as to form, and by the mayor and clerk as to sufficiency of the surety.
N. “Year” means the period from July 1st through June 30th. (Ord. 2637 § 1, 2018; Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.020 Compliance required.
A. It is unlawful for any person, either directly or indirectly, to engage in any business for which a license or permit is required by any law or ordinance of the city, without a license or permit therefor being first procured and kept in effect at all such times as required by this title or other law or ordinance of the city.
B. All licenses issued pursuant to the provisions of this title shall be posted in a prominent location at the premises where the licensed business, profession, trade or occupation is carried out or on the person of anyone issued a solicitor’s or mobile vendor’s license.
C. Threshold Exemption. To the extent set forth in this section, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter:
1. Any nonprofit group, or 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 (or higher threshold as determined by city) and who does not maintain a place of business within the city shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit.
2. Any nonprofit group, or person or business whose annual value of products, gross proceeds of sales, or gross income of a business or business activity in the city is equal to or less than $2,000, where the group, person, or business maintains a place of business within the city shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit.
3. A property owner offering for rent or lease, or renting or leasing to tenants, up to two residential dwelling units, or two commercial or industrial tenant spaces, or a combination thereof not exceeding a total of two rentable or leasable spaces. If a property owner intends to lease or rent out more than two dwelling units or commercial/industrial spaces, or combination thereof, a business license shall be required. (Ord. 2637 § 2, 2018; Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.030 Applicability/application.
A. Every person, firm or corporation engaged in any business, profession, trade, occupation or other principal place of business or headquarters thereof located within the corporate limits of the city shall be licensed by the city under provisions of this title. Each branch establishment, warehouse, distributing plant or separate location shall be licensed separately and individually.
B. Application for a license is made by submitting a master business application and city addendum form to the Business Licensing Service of the State Department of Revenue. The application shall set forth the name of the applicant, place of business, the nature of the business, and such other information as may be required by the city or the Business Licensing Service. The application shall include payment of the license fee prescribed by this chapter, and the master business application fee.
C. Every person, firm or corporation engaged in any temporary business, profession, trade or occupation within the corporate city limits where the principal place of business or headquarters thereof is not located within the corporate limits of the city shall be licensed by the city except as otherwise provided under the provisions of this title.
D. Persons or organizations doing business within the city limits of the city and required to be licensed by the state of Washington (whether or not they are required by this title to be licensed by the city) shall carry the state license on his or her person at all times when doing business within the city, and shall exhibit such state license whenever he or she is requested to do so by any police officer or any person who asks to see the same. Holders of state licenses shall be required to provide copies of state licenses to the city license officer upon request.
E. A person engaged in two or more businesses at the same location shall be required to obtain separate licenses for conducting each of such businesses but shall not be required to pay renewal fees for more than one business, except that where a special license is required by another chapter of this title, that license shall also be required.
F. Every person required to procure a license under the provisions of any ordinance or law of the city shall submit an application for such license to the city license officer. The application shall be a written statement upon a form provided by the city license officer. (Ord. 2485 § 1 (Exh. A), 2011; Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.040 Transferability.
A. Licenses shall be issued to business owners, unless otherwise specifically provided, and no license issued shall be transferable to subsequent owners of the business.
B. Neither shall the transfer of a business license to another location within the city be permitted without prior notification to the city license officer. Changes of location of a business within the city must be reported immediately to the city license officer. Failure to do so may result in revocation of the license.
C. When a licensed business terminates its operation within the city for any reason, the license shall be surrendered to the city license officer.
D. No license issued by the city license officer shall be duplicated except as provided in EMC 5.02.060 (except that the city license officer may hold duplicate copies on file). (Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.050 City license officer.
The Business Licensing Service of the State Department of Revenue shall collect all fees and issue licenses in the name of the city to all persons qualified under the provisions of this chapter, except for nonprofit, charitable religious or philanthropic organizations, and shall:
A. Adopt all forms and prescribe the information required to implement this title;
B. Submit all applications as appropriate to interested city officials for their endorsements thereon as to compliance by the applicant with all city regulations which they have the duty of enforcing;
C. Any notice required by this title to be mailed to any licensee or applicant shall be sent by ordinary mail, addressed to the address of the licensee or applicant as shown by the records of the city license officer, or if no such address is shown, to such address as the city license officer is able to ascertain by reasonable effort. Failure of the licensee or applicant to receive such mailed notice shall not release the licensee or applicant from any fee or penalties thereon, nor shall such failure serve to extend any time limit set by the provisions of this title. (Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.060 Fees.
A. The application for license shall be accompanied by the full amount of the fee chargeable for such license.
B. License fees levied in this title shall be additional to any other ordinance of the city except as herein otherwise expressly provided, and shall be as contained in the fee resolution adopted by the city council, as it now reads or is hereinafter amended, plus the Business Licensing Service handling fee.
C. Payment of application fees shall not be construed as the approval of the city license officer for the issuance of a license; nor shall it entitle or authorize the applicant to open or maintain business contrary to the provisions of this chapter.
D. There shall be no refund of license fees.
E. This section grants an exemption from paying a fee for any licenses required under the provisions of this title to bona fide nonprofit, charitable, religious or philanthropic persons or organizations.
1. Any person or organization claiming the exemptions of this section shall file with the city license officer an affidavit setting forth facts sufficient to show the application of this section and the right to such exemption, including filing a copy of the Federal Internal Revenue Service form granting nonprofit status.
2. Any person or organization claiming exemptions of this section is not exempt from this title, but is exempt only from paying the fees.
F. Special licenses applied for after January 1st shall only be assessed 50 percent license fee set forth in the city’s fee resolution. (Ord. 2731 § 1 (Exh. A), 2022; Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.065 License term or expiration.
A. Each city license issued shall have a term as determined by the State of Washington Department of Revenue in cooperation with the city. The city license term or expiration date will be coordinated with the terms or expiration dates of all other licenses or permits required by the state for each business.
B. Each annual license fee herein provided for shall become due and payable on the date established by the Business Licensing Service. The annual license fee amount may be prorated to accommodate setting an expiration date for a license that matches the expiration date established for the business by the Business Licensing Service. (Ord. 2485 § 1 (Exh. A), 2011).
5.02.070 Suspension, revocation or denial of license.
A. The city license officer, with the approval of the mayor or the city administrator, shall have the right to revoke, suspend or deny any license or license application at any time on the following grounds:
1. That the license was procured by fraud or false representation of facts or that the application was fraudulent or included false representation of facts;
2. That the applicant or licensee or any of his servants, agents or employees while acting within the scope of their employment has violated or failed to comply with any of the provisions of the license code;
3. That the applicant or licensee or any of his servants, agents or employees has been convicted of either a felony or misdemeanor involving moral turpitude, or involving fraud or an attempt to defraud while acting within the scope of their employment;
4. That the fire marshal and/or building official has determined that the premises in which the business operates or intends to operate endangers the safety of the public;
5. That the police chief has determined that the operation or continued operation of the business will be detrimental to the public peace, morals and safety;
6. The business does not comply with applicable local, state or federal law.
B. Conviction of a violation of any provision of this title shall be prima facie evidence to warrant revocation or suspension of the license.
C. The license officer shall, upon disapproval of any application or upon suspension or revocation of any license, notify the applicant/licensee in writing.
D. Within 10 days after revocation or suspension of any license issued and suspended or any application denied pursuant to this title, the licensee so revoked or suspended or applicant so denied may file an appeal with the city council. Upon receipt of such notice, the licensee shall be afforded a hearing before the city council after reasonable notice has been given. The appeal shall be in writing and addressed to the city council, attention: city clerk. Notice of such appeal shall be given by delivering a copy of the notice to the holder of the license or the applicant by mailing a copy thereof to the holder or applicant at his last address as shown by the city license officer’s license records, which notice shall be mailed or delivered at least five days before the date fixed for the hearing. The city council shall, within 30 days after the conclusion of such hearings, issue a written decision as to the revocation, suspension or denial of such license or its retention or such application or its approval. Such decision of the city council shall be final; if the city council decides that the license shall be revoked, the revocation shall be effective as of the date of city council’s decision unless otherwise ordered by a court of competent jurisdiction. Proceedings to review such matters must be instituted within 15 days of final action of the city council.
E. It is unlawful for any person whose license has been revoked or suspended to keep the license issued to him in his possession or under his control, and the same shall immediately be surrendered to the city license officer. When revoked, the license shall be canceled, and when suspended the city license officer shall retain the same during the period of suspension. (Ord. 2507 § 1, 2012; Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).
5.02.075 Central computerized enforcement service system.
A central computerized enforcement service system (ACCESS) may be utilized for noncriminal justice purposes, specifically background checks for business licenses. (Ord. 2485 § 1 (Exh. A), 2011; Ord. 2179 § 1, 2003).
5.02.080 Violation – Penalty.
Any person willfully violating or failing to comply with any of the provisions of this title or any lawful rule or regulations adopted by the council pursuant hereto is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in Chapter 1.08 EMC. In addition, the person’s business license shall be revoked without right to refund. (Ord. 2485 § 1 (Exh. A), 2011; Ord. 1798 § 3, 1993).