Chapter 5.15
BUSINESS LICENSES
Sections:
5.15.025 Engaging in business.
5.15.030 Business license required.
5.15.040 Exceptions to business license requirements.
5.15.050 Application procedure.
5.15.060 Issuance of business license.
5.15.070 Business license term and renewal.
5.15.080 Denial or revocation of business license.
5.15.090 Appeal of denial or revocation of business license.
5.15.100 License not construed to permit prohibited uses or activities.
5.15.010 Purpose.
The city council finds that, in order for the city to responsibly carry out the duties and authorities delegated to it by the Washington State Constitution and the laws of the state of Washington as a noncharter code city, maintenance of current information with respect to business, trade, service, commercial and professional activities carried on within the city is necessary and essential to the public health, safety and welfare. The city council further finds that such information can best be accumulated and maintained on a current basis through the establishment of a program for the municipal licensing and registration of such activities. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.020 Definitions.
For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the following meaning:
A. This chapter incorporates by reference all definitions set forth in Chapter 82.04 RCW, as now existing or as hereafter amended, except where a conflicting definition is stated in this chapter.
B. Engaging in Business. See NMC 5.15.025 for definition.
C. “Premises” means and includes all lands, structures and places, and also any personal property which is either affixed to, or is otherwise used in connection with, any business conducted on such premises.
D. “City” means the city of Newcastle.
E. “Person” includes the singular and the plural and also means and includes any individual, sole proprietorship, partnership, association, cooperative, corporation, and any other organization or agency required to obtain one or more licenses from the state of Washington or any of its agencies and from the city.
F. “City manager” means the Newcastle city manager or his or her appointed designee.
G. “City license officer” means the director of finance or the director’s designee.
H. “Solicitor” shall have the same meaning as set forth in NMC 5.08.010. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2005-312 § 2; Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.025 Engaging in business.
A. For purposes of this chapter, 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, consultants, 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.
F. 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. (Ord. 2018-572 § 1 (Exh. 1).
5.15.030 Business license required.
A. Unless exempted in this chapter, a person engaging in business in the city shall obtain from the city a valid and current business license to carry on that business from the city license officer. This license shall be in addition to any other licenses or permits required by any other section of this code or by state or federal law, including, but not limited to, land use approval requirements of Chapter 18.08 NMC. Business licenses are nontransferable and a separate business license shall be obtained for each premises at which a business operates within the city.
B. It shall be unlawful for any person to engage in business, either directly or indirectly, for which a license is required by any law or ordinance of the city, without first procuring and maintaining said license in effect at all times as required by this chapter or other law or ordinance of the city. Solicitors are also required to comply with Chapter 5.08 NMC, Solicitor’s Permits, and obtain a solicitor’s permit prior to any sales occurring in Newcastle. A solicitor’s permit shall not be issued to an applicant prior to the approval of the applicant’s business license application.
C. If more than one business is conducted or operated on a single premises, a separate license shall be required for each business. If a business is conducted or operated on more than one premises in the city, a separate license shall be required for each premises in the city.
D. Every business shall post the license issued to the business pursuant to this chapter on the premises of the business prominently displayed so as to be viewable by the public. (Ord. 2019-598 § 4; Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.040 Exceptions to business license requirements.
The license requirements of this chapter shall not apply to the following exemptions:
A. Threshold with Fee-Free License/Registration-Only. For purposes of the license required by this chapter, 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 submit a business license registration to the director or designee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit.
B. Tax-Exempt Organizations. Any organization holding a current IRS 501(c)(3) exemption certificate issued by the Internal Revenue Service shall, upon filing a true and correct copy of the same with the city license officer, be exempt from the license and license fee requirements of this chapter; provided, that the organization shall file a license application form for information purposes only and pay the Washington State Department of Revenue Business Licensing Service handling fee.
C. Municipal Corporations. Municipal corporations and other governmental agencies shall be exempt from the license and license fee requirements of this chapter; provided, that each municipal corporation or other governmental agency shall file a license application form with the city for information purposes only and pay the Washington State Department of Revenue Business Licensing Service handling fee.
D. Religious Organizations. The nonbusiness activities of religious organizations are exempt from the provisions of this chapter; provided, that any religious organization which carries on any business activity for which it may be required by federal law to file a federal income tax return shall, to that extent only, be subject to the license and license fee requirements of this chapter.
E. Adult Entertainment Businesses. Adult entertainment businesses that are licensed under Chapter 5.10 NMC shall be exempt from the license and license fee requirements of this chapter. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.050 Application procedure.
A. Every person engaging in business in the city that is required to obtain a license under the provisions of this chapter shall make application for a business license prior to locating and/or commencing business in the city. Application for a business license shall be accomplished by filing a business license application through the Washington State Department of Revenue’s Business Licensing Service. The applicant shall be required to provide all information requested on the applicable form and failure to do so shall be grounds for refusing to issue the business license. In addition, the city license officer from time to time may request from a person holding a business license that they supply to the city an update of the information that was given on the original license application. Failure to supply said update as requested shall be sufficient grounds for revocation of the business license.
1. Persons applying for a license must pay a nonrefundable fee to the city, as well as the Washington State Department of Revenue Business Licensing Service handling fee authorized by RCW 19.02.075, at the time of application submittal. A license fee submitted with a business license application shall not be prorated based upon the date of filing of the business license application.
2. Persons engaged in business in the city prior to the effective date of this chapter must acquire a business license through the Business Licensing Service.
B. If the applicant for the business license is a partnership, the application shall be made by one of the partners of the business. If the applicant is a corporation, the application shall be made by one of the officers of the corporation. If the applicant is a foreign corporation or partnership, or nonresident individual, the application shall be made by the resident agent or the local manager of the corporation, partnership or individual. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.060 Issuance of business license.
A. Upon receipt of notification from the Washington State Department of Revenue’s Business Licensing Service of a complete business license application, the city license officer shall cause an investigation and review of the application to be made by the appropriate city officials. The city license officer shall forward the business license application to the department of community development for review, and, where appropriate, the director of community development shall forward the application to the appropriate agencies within the jurisdiction to determine if applicable state standards have been met.
B. The city license officer shall approve or deny the license application within 30 days of the date of filing of the application. If the city license officer fails to issue or deny the license within 30 days of the date of filing of a complete application and fee, the applicant shall be permitted, subject to all other applicable laws, to operate the business for which the license was sought until notification by the city license officer that the license has been denied; provided, that in no event may the city license officer extend the application review time for more than an additional 20 days. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.070 Business license term and renewal.
A. Term. Business licenses required by this chapter shall be issued or renewed annually. Subject to the revocation provisions of this chapter, a business license shall be valid as of the date of the issuance of the license and shall expire on the last day of the month 12 months thereafter or as indicated on the business license document as authorized by RCW 19.02.090.
B. Renewal. Persons continuing to engage in business within the city shall renew their business license(s) each year. Businesses must pay a nonrefundable renewal fee, as well as the state of Washington Department of Revenue’s Business Licensing Service handling fee authorized by RCW 19.02.075. Persons not renewing their business license by the expiration date may be subject to a late renewal penalty authorized by RCW 19.02.085. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.080 Denial or revocation of business license.
A. The city license officer may deny an application for a business license or renewal of a business license, or revoke a business license previously issued, for the reasons set forth in RCW 19.02.100 or upon the following grounds as determined by the city license officer:
1. The making of a false statement of material fact in the application for a business license or in any data or information required to be submitted with such application; or
2. With respect to businesses in which the applicant or licensee, or any agent or employee of the applicant or licensee, may enter private residences or transport members of the public, any conviction of the applicant or licensee of a felony or misdemeanor involving an intent to defraud, or any conviction of any agents or employees of a felony or of a misdemeanor involving an intent to defraud committed while acting in the scope of their employment; or
3. Occupying any real property in violation of the city’s zoning, building and fire codes and ordinances and all amendments thereto; operating or intending to operate in violation of any city code or ordinance and all amendments thereto; or operating or intending to operate in violation of applicable laws.
B. If an application is denied, or license revoked, by the city license officer, the officer shall set forth in writing the reasons for denial, and shall mail the written denial or revocation, via certified mail, return receipt requested, to the applicant at the mailing address set forth in the application. The written denial or revocation shall state that the city license officer’s decision shall be final, unless the applicant or license holder files a written appeal with the city license officer within 15 business days of the date of the written denial or revocation.
C. The city license officer shall, upon denial of the application, refund all license fees paid in advance by the applicant.
D. Upon the denial or revocation of a business license, the applicant shall not engage in the business for which the license was denied or revoked unless and until the city license officer reissues the license pursuant to a decision or judgment requiring the reissuance. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.090 Appeal of denial or revocation of business license.
Within 10 days after receiving a timely submitted written appeal of a business license denial or revocation, the city license officer shall fix a time and place for the appeal and shall provide the applicant or business holder at least 10 days’ written notice of the hearing date, time and place. Notice of the hearing shall be personally delivered or mailed via certified mail, return receipt requested. Pursuant to Chapter 2.20 NMC, the hearing examiner shall hear all appeals made pursuant to this section within 60 days of the filing of the written appeal. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.100 License not construed to permit prohibited uses or activities.
Notwithstanding any provisions in this chapter to the contrary, it is not the city’s intent in issuing a business license to any person who uses or occupies, or proposes to use or occupy, any real property in violation of the provisions of the city’s zoning, building and fire codes and ordinances and all amendments thereto; nor who conducts, or proposes to conduct, any business in violation of the provisions of any city ordinance or state statute, to condone or authorize such violations or activities. The granting of a business license shall in no way be construed as permission or acquiescence in a prohibited activity or other violation of the law. (Ord. 2019-598 § 5; Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).
5.15.110 Penalty.
Any person violating or failing to comply with any provision of this chapter shall have committed a civil infraction and shall be prosecuted pursuant to the general penalty provisions of Chapter 1.10 NMC and Chapter 19.02 RCW. For the purposes of this chapter, each day or portion of a day that a violation of any provision of this chapter occurs or continues to occur shall constitute a separate offense. (Ord. 2018-572 § 1 (Exh. 1); Ord. 2014-500 § 2 (Exh. B); Ord. 2000-228 § 1; Ord. 99-203 § 1).