Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.010 Business license required.
5.04.030 License application and renewal – Penalty.
5.04.050 Excise tax returns – State of Washington Department of Revenue.
5.04.070 Building and premises.
5.04.110 Suspension or revocation – Appeal.
5.04.130 Business license penalty.
5.04.140 Violation – Penalties.
5.04.010 Business license required.
A. All businesses engaging in business within the city of Grandview are required to be licensed except as hereinafter provided. No person shall operate a business within the limits of the city of Grandview for which a license is required or a license fee provided without first obtaining such a license and paying such fee.
B. Any person or business whose annual value of products, gross proceeds of sale, or gross income of the business in the city of Grandview is equal to or less than $2,000 and who does not maintain a place of business within the city of Grandview shall be exempt from the general business license requirements of this chapter. This exemption does not apply to regulatory license requirements or activities that require a specialized permit.
C. The city may not issue a license to any business, or for the conduct of any business activity, that does not comply with any local or state law or regulation. (Ord. 2019-9 § 1; Ord. 2018-14 § 1; Ord. 2014-2 § 1; Ord. 2011-27 § 2; Ord. 2008-27 § 2).
5.04.015 Definitions.
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 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:
1. 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.
2. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.
3. Soliciting sales.
4. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
5. 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.
6. Installing, constructing, or supervising installation or construction of real or tangible personal property.
7. Soliciting, negotiating, or approving franchise, license, or other similar agreements.
8. Collecting current or delinquent accounts.
9. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
10. 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.
11. 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.
12. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
13. 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.
14. Investigating, resolving, or otherwise assisting in resolving customer complaints.
15. 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.
16. 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:
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 director 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.
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 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 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. (Ord. 2018-14 § 2).
5.04.020 Exemptions.
The provisions of this chapter shall not apply to the following:
A. Any fraternal, charitable or social corporation or organization whose purpose is charitable and nonprofit, other than those operating pursuant to Chapter 69.51A RCW;
B. Any religious organization or church, or other religious assemblage;
C. Any person who is, by the laws of the United States of America or the state of Washington, exempt from such tax, other than those operating pursuant to Chapter 69.51A RCW;
D. Any municipality or political subdivision of the United States or the state of Washington;
E. Vendors in a temporary bazaar or community fair for which a master license has been given to the sponsor thereof. (Ord. 2018-14 § 3; Ord. 2011-27 § 3; Ord. 2008-27 § 2).
5.04.030 License application and renewal – Penalty.
Application for a business license is made through the Business Licensing Service. Each application must include the total fees due for all licenses requested, as well as the handling fee required by RCW 19.02.075, and must include the respective applicant information required for each license requested on the application, including the Department of Labor and Industries’ contractor registration number if such business is required to be registered as a contractor under RCW Title 18.
The business license will expire on the date established by the Business Licensing Service, and must be renewed by that date to continue to conduct business in the city. Renewal of the business license is made through the Business Licensing Service and must include all information required for all licenses involved in the renewal, and the total fees due for all licenses, as well as the handling fee required by RCW 19.02.075. Failure to renew by the expiration date will incur the late renewal penalty required by RCW 19.02.085. Failure to renew within 120 days after the expiration date will result in the cancellation of the license, and will require application for a license, as provided in this chapter, in order to continue to conduct business in the city. (Ord. 2019-9 § 2; Ord. 2008-27 § 2).
5.04.040 Fee.
A. Unless otherwise provided in the chapter dealing with specific types of business, the city fee for a new city business license is $50.00 and the city fee for an annual renewal of a city business license is $50.00. This annual license fee is a basic fee for the privilege of doing and conducting business within the city limits of the city. The license term and respective fee amount may be prorated as necessary to synchronize the license expiration date with the expiration date of the business account administered by the Business Licensing Service.
B. Unless otherwise exempted in this chapter, the city business license fee applies to any business located outside the city that engages in some business activity inside the city limits of the city.
C. If any person is engaged in operating or carrying on business in the city at more than one business location in the city, then such person must obtain a license and pay the license fee herein prescribed for as many of said businesses as are carried on by such person.
D. If two or more persons conduct their own business but at the same physical business location in the city, each such person must obtain their own business license as provided for in this chapter. (Ord. 2019-9 § 3; Ord. 2008-27 § 2).
5.04.050 Excise tax returns – State of Washington Department of Revenue.
All persons, firms and corporations who perform labor, services and construction, or who sell goods or any other items deemed taxable by the State of Washington Department of Revenue within the city (as provided in Rule II, WAC 458-20-145), shall report the city of Grandview “Location Code Number 3901” on their excise tax returns to the State of Washington Department of Revenue. On any violation hereof the amount of the local sales and use taxes due the city shall be paid to the city by the violator, together with a penalty of 100 percent in addition to all other penalties, fines and remedies provided in this chapter. (Ord. 2008-27 § 2).
5.04.060 Investigations.
Within 72 hours of the time of the receipt of the information of an application for a city license where ordinances of the city necessitate an inspection or investigation before the issuance of such licenses, the city clerk’s office shall refer such application to the proper city department for making such investigation. The person charged with the duty of making the investigation shall make a report thereon, favorable or otherwise, within seven days after receiving the application information. (Ord. 2019-9 § 4; Ord. 2008-27 § 2).
5.04.070 Building and premises.
Before a license is issued, the applicant may be required to certify to the city that to the best of their knowledge and belief the premises and building where the business is to be conducted are in substantial compliance with the requirements of the city ordinances, including but not limited to the zoning ordinance, fire code, building code, plumbing code, electrical code, and other applicable ordinances or regulations. (Ord. 2019-9 § 5; Ord. 2008-27 § 2).
5.04.080 Inspections.
Whenever inspections of the premises used for or in connection with the operation of a licensed business are provided for or required by ordinance, or are reasonably necessary to secure compliance with any ordinance provision or to detect violations hereof, it shall be the duty of the licensee, or the person in charge of the premises to be inspected, to admit thereto for the purpose of making the inspection any officer or employee of the city who is authorized or directed to make such inspection at any reasonable time that admission is requested. (Ord. 2008-27 § 2).
5.04.090 Regulations.
The regulations set forth in this chapter are not exclusive. Other regulations set forth in other sections of this title shall apply when appropriate from their meaning and context. A violation of any of the provisions of this title, including the business regulations, shall be punishable as provided in GMC 5.04.140. (Ord. 2008-27 § 2).
5.04.100 Posting license.
It shall be the duty of any person conducting a licensed business in the city to keep his license posted in a prominent place on the premises used for such business at all times, except that transient licensees shall carry their license on their persons at all times when conducting their business and shall display it upon request. (Ord. 2008-27 § 2).
5.04.110 Suspension or revocation – Appeal.
A. Upon receiving written approval from the city administrator, the city clerk may suspend or revoke any license issued under this title at any time during the term of such license for any violation of the licensee of any of the provisions of this code related to the license, the subject matter of the license, or to the premises occupied or upon the following grounds:
1. Illegal issuance of the permit or license;
2. Issuance of the permit or license without authority or power;
3. Issuance under an unauthorized ordinance or under an ordinance illegally adopted;
4. Issuance in violation of an ordinance;
5. When the business license or permit was procured by fraud or false representation of facts;
6. When issued through mistake or inadvertence;
7. When the license or permit application contains false or misleading statements, evasions or suppression of material facts; or upon:
a. Substantial violations of the terms and conditions on which a license or permit is issued;
b. Violation of ordinances or laws authorizing or regulating the license or permit, or regulating the business activity or purpose for which the license or permit is issued;
c. Conviction of infractions or offenses under such an ordinance or law;
d. Wrongful behavior of a substantial character and of a public concern in relation to the licensed activity. Conviction of a crime is not necessary to establish wrongful behavior of a substantial character;
8. When the licensee fails to pass any fire inspection;
9. When reasonably necessary in the interests of protection of the public health, safety, peace or welfare;
10. When a business becomes an instrument of or a cover for public disorder, crime, or other danger to public safety, morals or health;
11. When it reasonably and objectively appears that business or activities occurring at a business violate federal, state or local laws, ordinances or regulations, regardless of whether the business owner or manager knows about or condones such activity;
12. When a business has failed to comply with any order or notice issued pursuant to GMC Title 8, Title 14, Title 15, Title 16 or Title 17.
B. Such suspension or revocation may be in addition to any fine imposed.
C. If a determination is made by the city administrator that a licensee has violated any of the provisions of this title or any of the provisions of this code, the city clerk may suspend a business license for a period of time not to exceed 30 days or revoke a business license, in his/her discretion. The city clerk shall mail written notice of such determination to the licensee at the address stated on the license application. The written notice shall explain the basis for the city’s decision. The licensee may obtain an appeal of such suspension or revocation by appealing in writing pursuant to the appeal procedures set forth in Chapter 2.50 GMC. (Ord. 2012-8 § 1; Ord. 2008-27 § 2).
5.04.120 Prohibited refunds.
No surrender, revocation or other cancellation, irrespective of the cause of any license issued, shall entitle the holder thereof to any refund of any license fee paid or any part thereof. In addition, no refunds shall be paid if the licensee shall fail to operate the business for the full period of the license. (Ord. 2008-27 § 2).
5.04.130 Business license penalty.
There is established a city-assessed penalty that may be charged in addition to each annual business license fee for failure to pay said fee by the due date, and which is payable directly to the city. The applicable due dates are two weeks prior to commencing business for any new business, and the license expiration date established by the Business Licensing Service for any currently licensed business. The amount of the city-assessed penalty is double the basic fee. Failure to pay the annual fee and city-assessed penalty is grounds for denial of the application or renewal and/or imposition of penalties as provided for in GMC 5.04.140. (Ord. 2019-9 § 6; Ord. 2008-27 § 2).
5.04.140 Violation – Penalties.
A. In addition to the suspension or revocation provided in GMC 5.04.110, any violation of this chapter shall be a civil infraction and may be punishable by a fine of not less than $100.00 per day for any such violation of this chapter.
B. In addition to the remedies and penalties provided in this chapter, and as distinct and separate remedies, the city may sue in any court of competent jurisdiction to obtain a judgment and enforce collection thereof by execution for any license fee due under this chapter, or the city may seek an injunction prohibiting a person from engaging in any unlicensed business. In any action or suit authorized by this section, the city, if it prevails, shall be entitled to recover a reasonable attorney’s fee to be set by the court along with its costs and disbursements. (Ord. 2008-27 § 2).