Chapter 5.04 BUSINESS LICENSES*

The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed in this section, except where the context clearly indicates a different meaning:

“Business” means and includes vocations, occupations, professions, enterprises, and establishments and all other activities and matters conducted for private profit or benefit, either directly or indirectly, anywhere within the city.

Engaging In Business.

(1) “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 definition are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection (1) of this definition. 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.

(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, consultants, 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 director 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 (4) of this definition.

(6) 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.

“Licensee” means any business granted a business license by the city.

“Person” means any individual, corporation, company, firm, joint stock company, copartnership, joint venture, trust, business trust, club, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, receiver, administrator, executor, assignee, or trustee in bankruptcy.

“Premises” shall mean and include all lands, structures and places, and also any personal property which either is affixed to, or is used in connection with, any such business conducted on such premises. (Ord. 1618 § 1, 2018; Ord. 1156 § 1, 1997; Ord. 243 § 1, 1954).

5.04.020 Business license required.

No person shall engage in business within the city limits, regardless of whether the person has a permanent business location within the city limits, without first having been issued a city business license through the master license service in coordination with the city, unless such activity is exempt as provided in FMC 5.04.100. (Ord. 1618 § 2, 2018; Ord. 1475 § 1, 2009; Ord. 1156 § 2, 1997; Ord. 243 § 2, 1954).

5.04.025 Application for business license.

Application for a city business license is accomplished by submitting a completed master business license service of the state Department of Licensing, including any appropriate supplemental application forms, and all license fees due, including the master license service application handling fee. (Ord. 1475 § 2, 2009).

5.04.030 Separate license required.

A separate business license shall be obtained for each separate physical location within the city at which the business is conducted unless such business typically provides temporary services to customers or clients at more than one location within the city. Examples of such businesses include, but are not limited to, building contractors and consultants.

A separate business license shall be obtained for each individual business conducted at a location within the city. (Ord. 1475 § 3, 2009; Ord. 1156 § 3, 1997; Ord. 243 § 3, 1954).

5.04.035 Supplemental requirements.

A business conducted within any residential dwelling unit requires a home occupation permit as provided in FMC 22.58.013 prior to approval of the city business license. A home occupation permit is processed separately by the city and must be issued prior to city manager approval of the license application.

Family day-care facilities must meet requirements as provided in FMC 22.58.010.

A transient merchant, peddler, street seller or canvasser that goes from place to place within the city limits in order to solicit business is subject to a transient merchant’s registration as provided in Chapter 5.08 FMC. A transient merchant’s registration is processed separately by the city. (Ord. 1475 § 4, 2009).

5.04.040 Change in nature or location of business.

Each business license shall authorize a particular type of business at the designated location. Any change in the type or nature of the business to be conducted at the licensed location requires the filing of a new application for a city business license with the master license service. The new business activity may not be conducted in the city limits until the new application has been reviewed and approved by the city.

A change of business location shall be reported in writing to the city manager and the master license service prior to the change, and, if in compliance with all applicable municipal code requirements, the existing business license shall be transferred to the new location at no charge to the applicant. (Ord. 1475 § 5, 2009; Ord. 1156 § 4, 1997; Ord. 243 § 4, 1954).

5.04.050 License fee.

Effective January 2, 2013, the initial annual business license fee shall be $75.00. Effective February 1, 2013, the renewal business license fee shall be $75.00. (Ord. 1531 § 1, 2012; Ord. 1326 § 1, 2003; Ord. 1267 § 1, 2000; Ord. 1233 § 1, 1999; Ord. 1156 § 5, 1997; Ord. 1054 § 1, 1993; Ord. 855 § 1, 1987; Ord. 794 § 1, 1984; Ord. 243 § 5, 1954).

5.04.060 Term of license.

A business license is effective for one year upon approval by the city manager, and will expire on the date established by the master license service, unless revoked sooner by the city manager as provided in this chapter. The license fee and term may be prorated to accommodate the expiration date established by the master license service. (Ord. 1475 § 6, 2009; Ord. 1156 § 6, 1997).

5.04.070 Renewal of license.

All business licenses must be renewed on or before the expiration date established by the master license service if the business is to be continued. Application for renewal shall be made through the master license service, and requires submitting any information determined by the city manager necessary for renewal, and payment of all license fees due, including the master license service renewal handling fee. (Ord. 1475 § 7, 2009; Ord. 1156 § 7, 1997; Ord. 243 § 8, 1954).

5.04.080 Penalties for late payment of new license fee or license renewal fee.

(a) A new license for a business commencing operations in the city shall be considered delinquent if not received within 30 days of the commencement of business operations in the city. A penalty of $35.00 shall be assessed on any delinquent license for a new business which has not paid the required license fee on or before the thirtieth day following commencement of business operations in the city. An additional penalty of $35.00 for a total penalty of $70.00 shall be assessed on any delinquent license for a new business which has not paid the required license fee on or before the sixtieth day following commencement of business operations in the city. An additional penalty of $430.00 for a total penalty of $500.00 shall be assessed on any delinquent license for a new business which has not paid the required fee on or before the one-hundred-fifth day following commencement of business operations in the city.

The late penalty will be collected separately by the city, outside of the city business license application process administered by the master license service.

(b) A city license renewal is delinquent if not submitted to the master license service on or before the expiration date established by the master license service for the license. A delinquent license renewal may be assessed a delinquent renewal penalty fee by the master license service in addition to the total license renewal and handling fees due, in accordance with RCW 19.02.085.

(c) A penalty of $35.00 shall be assessed on any delinquent license renewal for a business which has not paid the required renewal fee on or before the thirtieth day following renewal notification. An additional penalty of $35.00 for a total penalty of $70.00 shall be assessed on any delinquent license renewal for a business which has not paid the required renewal fee on or before the sixtieth day following renewal notification. An additional penalty of $430.00 for a total penalty of $500.00 shall be assessed on any delinquent license renewal for a business which has not paid the required fee on or before the one-hundred-fifth day following renewal notification.

The late renewal penalty will be collected separately by the city, outside of the city business license renewal process administered by the master license service. (Ord. 1475 § 8, 2009; Ord. 1267 § 2, 2000; Ord. 1233 § 2, 1999; Ord. 1156 § 8, 1997; Ord. 243 § 7, 1954).

5.04.085 Service charge for returned checks.

A service charge of $40.00 in addition to the restitution amount of the check shall be imposed upon any business who tenders a check to the city which is thereafter returned to the city unpaid. The city manager shall have the authority to waive the service charge. (Ord. 1618 § 3, 2018; Ord. 1475 § 9, 2009; Ord. 1328 § 3, 2003).

5.04.090 Penalties and violations.

(a) Criminal Penalties. Any person violating any of the terms of this chapter shall be guilty of a misdemeanor and upon conviction thereof be punished as provided in RCW 9A.20.021(3).

(b) Civil Penalties. Any person who fails to comply with the provisions of this chapter is, in addition to any criminal penalties, subject to a maximum civil penalty of $5,000 for each day or portion of the day that the violation continues.

(c) Other Legal Remedies. Nothing in this chapter limits the rights of the city to pursue other lawful, criminal, civil or equitable remedies to abate, discontinue, correct or discourage unlawful acts under or in violation of this chapter. (Ord. 1156 § 9, 1997; Ord. 987 § 1, 1991; Ord. 834 § 1, 1986; Ord. 243 § 9, 1954).

5.04.100 Exemptions.

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:

(a) Casual or isolated sales or services made by persons who are not engaged in the ongoing business of selling the type of property involved. “Casual or isolated” is defined as not more than four such sales made during any tax year. Examples include garage sales, yard sales, bake sales, or occasional parties for the sale or distribution of goods or services.

(b) Minors engaged in babysitting, delivery of newspapers, lawn mowing, car washing, and similar activities.

(c) Nonprofit organizations are required to apply for a city business license but are exempt from the fee, provided a certificate of tax exempt status under 26 U.S.C. Section 501(c)(3), or certified incorporation papers showing that the organization is nonprofit, is submitted as proof of charitable or nonprofit status.

(d) 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 (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. (Ord. 1618 § 4, 2018; Ord. 1475 § 10, 2009; Ord. 1156 § 10, 1997; Ord. 243 § 10, 1954).

5.04.110 Processing procedure.

Prior to approval of a city business license application, the city manager shall:

(a) Review all forms and information required to implement this chapter.

(b) Submit all applications to city departments, as necessary, for their endorsements as to compliance by applicant with all city regulations which they have the duty of enforcing.

(c) Notify any applicant and the master license service of the acceptance or rejection of this application and shall, upon denial of any license, state in writing the reason for rejection and the process for appeal. (Ord. 1475 § 11, 2009; Ord. 1156 § 11, 1997).

5.04.120 Mailing of notices.

Any notices required by this chapter 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, or if no such address is shown, to such address the city is able to ascertain by reasonable effort. Failure of the licensee or applicant to receive such mail notice shall not release the registrant or applicant from any fees or penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 1156 § 12, 1997).

5.04.130 Inspections – Right of entry.

The city manager, or designee, are authorized to make such inspections of licensed premises and take such action as may be required to enforce the provisions of any business license or regulation ordinance. (Ord. 1156 § 13, 1997).

5.04.140 Posting of license.

It shall be unlawful for any person to engage in business at any location within the city without posting and displaying, prominently and in clear view, the valid business license authorizing such business at such location. If the person is engaged in business whereby services are provided to customers or clients at more than one location within the city then he/she shall carry the license on his/her person. (Ord. 1156 § 14, 1997).

5.04.150 Revocation, suspension, denial.

A license issued under this chapter may be revoked, suspended, or denied for any one or more of the following reasons:

(a) Failure to comply with any federal, state or local laws or regulations;

(b) Failure to comply with any of the terms and conditions imposed by the city on the issuance of the license;

(d) Conduct of the business or activity in a manner which endangers the public health, welfare, or safety;

(e) When the license was procured by fraud or false representation of facts;

(f) When the license was issued through mistake or inadvertence;

(g) When the license application contains false or misleading statements, evasions or suppression of material facts;

(h) Failure to complete a renewal of the business license within 120 days after the expiration date established by the master license service. (Ord. 1475 § 12, 2009; Ord. 1156 § 15, 1997).

5.04.160 Effect of license denial, revocation or suspension.

If a business license is revoked for any reason, a new business license shall not be granted to the person and/or any entity in which the person has an ownership interest for a minimum period of one year from the date of such revocation and all business activity shall immediately cease from the date of such revocation.

The city manager may suspend a license for no more than six months to allow for the business to return to compliance. During the period of any suspension, all business activity shall cease. If at the end of six months the business is still out of compliance, the business license shall be revoked. No person whose license has been so revoked or suspended shall be entitled to a return of any portion of the license fee previously paid. (Ord. 1475 § 13, 2009; Ord. 1156 § 16, 1997).

5.04.170 Notice of hearing.

Prior to suspension or revocation of a license under this chapter, the licensee shall be notified in writing of the grounds for suspension or revocation of the license. Deposit in the U.S. mail by registered mail of the notice of suspension or revocation by the city manager shall constitute compliance with this section. Suspension or revocation of the registration shall occur 10 days after the date of the mailing of the notice of suspension or revocation unless such action is appealed by licensee in the manner described in this chapter. (Ord. 1156 § 17, 1997).

5.04.180 Appeals.

An applicant or licensee under this chapter must appeal the decision for revocation, suspension or denial within 10 days of the mailing of the notice of revocation, suspension or denial by filing a notice of appeal with the city manager. Upon receipt by the city manager of the appeal notice, a hearing shall be held before the city council. Notice of the hearing shall be given to the appellant at least 10 days prior to the hearing. At such hearing, the appellant shall be entitled to be heard and introduce evidence on his or her own behalf. (Ord. 1156 § 18, 1997).

5.04.190 Decision of the city council.

The decision of the city council shall be rendered within 14 days of the close of the hearing. The decision shall be in writing and shall:

(a) Affirm the city manager’s decision; or

(b) Revise or modify the city manager’s decision. (Ord. 1156 § 19, 1997).

5.04.200 Appeal to the superior court.

The decision of the city council is final unless an appeal of the decision of the city council is filed with superior court within 30 calendar days from the date the city council’s decision was personally served upon or was mailed to the appellant. The decision for suspension or revocation of a license under this chapter shall be stayed during administrative and judicial review, but refusal to issue an initial license shall not be stayed. (Ord. 1156 § 20, 1997).

5.04.210 Emergency suspension.

In the event of conduct or activities which create an eminent risk of harm to public health, safety or welfare, the license of such business may be summarily suspended upon notice to the licensee; provided, that the licensee shall be entitled to a hearing before the city council upon a written appeal being filed with the city manager by the licensee within 10 days of the license suspension. In the event of an appeal by the licensee, a hearing shall be provided within 14 days of notice of appeal. The provisions of FMC 5.04.200 shall apply to any appeal of the city council’s decision regarding emergency suspension. (Ord. 1156 § 21, 1997).

5.04.220 Nonconforming uses.

A license does not constitute vesting nor ratification of a nonconforming use. The purpose of this chapter is to identify and license businesses which are active in the city. Identification is necessary to protect public health, safety, and the welfare of the community. The issuance of a business license by the city does not constitute either approval of a business or the use of any particular parcel in the city for a business purpose. By issuing a business license, the city shall not be precluded from taking enforcement action against any use which is not authorized in the zone in which it is occurring. The procurement of a business license does not vest the license with any rights to continue a nonconforming use. (Ord. 1156 § 22, 1997).