Chapter 5.02
BUSINESS LICENSES
Sections:
5.02.015 Exemptions – Threshold exemption.
5.02.020 Business license – Required – Terms – Application.
5.02.030 Business license – Application – Issuance.
5.02.040 Business license fees.
5.02.050 Business license fee – When due – Renewals – Delinquencies.
5.02.060 Business license – Contents – Posting – Separate location – Nontransferable.
5.02.070 Business license – Conditions of revocation.
5.02.080 Business license appeals.
5.02.100 Liability for damages.
5.02.010 Definitions.
In construing the provisions of this chapter, unless otherwise specified or clearly apparent from the context, the definitions set forth in this section shall apply:
A. “Business” means and includes all activities engaged in with the object of gain, benefit or advantage to the licensee, or to another person or class, directly or indirectly.
B. “Business license” means a license, not including a regulatory license or temporary license, that the City requires all or most businesses to obtain to conduct business within the City.
C. “Regulatory business license” means a license, separate from the business license described in subsection B of this section, required for certain types of businesses that the City has determined warrant additional regulation and the utility business license described in Chapter 3.10 EMC.
D. Engaging in Business. The phrase “engaging in business” means commencing, conducting or continuing in business and also includes the exercise of corporate or franchise powers, as well as the liquidating of a business when the liquidators thereof hold themselves out to the public as conducting such a business.
1. 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” as defined herein. 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:
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 sport 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 meeting.
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.
3. 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 contract or subsequent contracts.
E. “Person” means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, 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, and includes the United States or any instrumentality thereof, provided a valid license fee may be levied upon or collected therefrom under the provisions of this chapter.
F. “Business Licensing Service” or “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the City. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.015 Exemptions – Threshold exemption.
To the extent set forth in this section, the following persons and companies are exempt from the business license requirements outlined in this chapter:
A. Any person, or an employee, agent, representative, independent contractor, broker, or another acting on a person’s behalf, who engages in no other activities in or with the City but the following:
1. Meeting with suppliers of goods and services as a customer.
2. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.
3. 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.
4. Renting tangible or intangible property as a customer when the property is not used in the City.
5. 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.
6. Conducting advertising through the mail.
7. Soliciting sales by phone from a location outside the City.
8. Causing radio, television or print advertising of one’s business to be broadcast or circulated or delivered within the City.
B. A seller located outside the City merely delivering goods into the City by means of common carrier; provided, that it engages in no other business activities in the City.
C. 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. The exemption does not apply to regulatory license or other regulatory requirements or activities that require a specialized permit.
D. Activity of a Federally tax exempt 501(c) organization within the scope of its tax exemption.
E. Any person that has no more than two private yard or garage sales on the same premises within any three consecutive months.
F. Participants of a City-organized or City-sponsored event.
G. All governmental entities, including public and private schools. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018.]
5.02.020 Business license – Required – Terms – Application.
A. No person may engage in any business in the City without having first obtained and being the holder of a valid and subsisting license so to do, to be known as a “business license,” issued under the provisions of this chapter, and without paying the license fee imposed by this chapter.
B. Such license expires on the date established by the Business Licensing Service, and must be renewed on or before that date in order to continue conducting business in the City. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.030 Business license – Application – Issuance.
A. Any person desiring a business license for an activity regulated by this chapter must make application therefor through the Business Licensing Service (BLS), providing at least the following information:
1. The name and mailing address of the owner;
2. The business name of the owner, if any;
3. The location address of the business;
4. The nature of the business;
5. Such other information as may be required for all licenses requested; and
6. The total fees due for all licenses requested, including the application handling fee required by RCW 19.02.075.
B. Upon receipt from BLS of the information for a completed application and the required fee having been submitted, the City Clerk will, if satisfied that there is no legitimate cause to deny the issuance of the business license, approve issuance of the same through BLS. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.040 Business license fees.
The City’s business license fees are as set forth in the City’s current master fee schedule adopted by resolution of the City Council. [Ord. 842 § 2, 2023; Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 597 § 1, 2002; Ord. 360 § 1, 1988.]
5.02.050 Business license fee – When due – Renewals – Delinquencies.
A. The initial business license fees provided for in this chapter must be paid with the license application prior to commencing business in the City.
B. The annual renewal fee must be submitted with the renewal application. The renewal must be submitted through the Business Licensing Service and must include all information required to renew all the licenses being renewed, and the total fees due for all licenses, including the renewal handling fee required by RCW 19.02.075. The term of license and respective fee amount due may be prorated in order to synchronize the license expiration date with the expiration of the business account maintained by the Business Licensing Service.
C. Failure to complete the license renewal by the license expiration date will incur the late renewal penalty required by RCW 19.02.085.
D. Failure to complete the renewal within 120 days after the license expiration date will result in cancellation of the license, and will require reapplication and approval of the license, as provided for in this chapter, to continue conducting business in the City. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.060 Business license – Contents – Posting – Separate location – Nontransferable.
A. A business license is personal and nontransferable.
B. In the event business is transacted at two or more locations by one licensee, a separate business license for each location shall be required, but for such additional business licenses no City business license fee shall be required. If two or more persons each operate their own business at the same physical location, each such person must obtain their own license for their respective business, as provided for under this chapter, including paying the full amount of fees due.
C. Each business license will be numbered, show the name and place of business of the taxpayer, and such other information as necessary, and must at all times be conspicuously posted in the place of business for which it is issued.
D. In the event a licensed business is relocated, the licensee must notify the Business Licensing Service sufficiently prior to the move to allow the City Clerk to review and approve the move prior to commencing business in the new location. Such a relocation may require submitting a new application as provided for by this chapter.
E. No person to whom a business license has been issued pursuant to this chapter may allow any other person for whom a separate business license is required to operate under or display his or her business license; nor may such other person operate under or display such business license. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.070 Business license – Conditions of revocation.
The City Clerk may revoke the business license issued to any person:
A. Who fails to pay the business license fee required by this chapter;
B. Who provides false or misleading information on the application for business license; or
C. For any business not entitled to engage in business at the licensed location.
Notice of such revocation shall be mailed to the licensee by the City Clerk, and on and after the date thereof any such person who continues to engage in business shall be deemed to be operating without a license. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.080 Business license appeals.
Any person applying for or holding a business license under this chapter, who feels aggrieved by any action of the City Clerk or other City official in connection with a business license, may appeal the matter to the City Council by:
A. Filing a letter with the City Clerk, stating the matter complained of, within 30 days of the action complained of; and
B. Appearing in person before the City Council at its next following regularly scheduled meeting. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.100 Liability for damages.
This chapter is intended to create a central registry of businesses by which the City may more effectively know of the activities extant within the City, ensure that all taxes are properly credited, provide contact addresses in the event of emergency and for the conduct of the business of the City, and better administer the codes and ordinances of the City, all for the ease and convenience of the City and its personnel in performing their municipal duties within the limited scope of resources available to them.
A. It is expressly the purpose of this chapter to provide for and promote the general health, safety and welfare of the public, and not to create or designate any particular class of persons to be specially protected by its terms.
B. It is the specific intent of this chapter to place the obligation of complying with its terms on the licensee, and no provision of this chapter is intended to impose any duty whatsoever upon the City or any of its officers, for whom the implementation or enforcement of this chapter is discretionary and not mandatory.
C. Nothing contained in this chapter is intended to be, nor shall be construed to create, the basis for any liability on the part of the City or its officers for any injury on the part of the City or its officers for any injury or damage resulting from the failure of any licensee to comply with the provisions of this chapter, or by reason or in consequence of any act or omission in the connection with part of the City. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]
5.02.110 Violation – Penalty.
Any person violating or failing to comply fully with any of the provisions of this chapter or any law or regulation adopted by the City Clerk pursuant thereto, upon conviction thereof, shall be punished by a fine in any sum not to exceed $300.00. [Ord. 815 § 1 (Exh. A), 2020; Ord. 799 § 1 (Exh. A), 2018; Ord. 360 § 1, 1988.]