Chapter 5.02 BUSINESS LICENSES

The ordinance codified in this chapter shall be known and may be cited as the “general licensing ordinance of the city.” (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 1, 1978).

5.02.020 Scope.

It is not intended by this chapter to repeal, abrogate, annul or in any way impair or interfere with the existing provisions of other laws or ordinances except those specifically repealed by the ordinance codified in this chapter. Where this chapter imposes a greater restriction upon persons, premises or personal property than is imposed or required by such existing provisions of law, ordinance, contract or deed, the provisions of this chapter shall control. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 2, 1978).

5.02.030 Definitions.

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meaning given in this section:

A. “Business” includes all kinds of vocations, occupations, professions, enterprises, establishments, and all other kinds of activities and matters, intended to generate revenue or conducted for private profit or benefit, either directly or indirectly, within the city’s jurisdiction, except when said vocation, occupation or otherwise is an undertaking primarily involving the use of land in the city for agricultural purposes. Transient merchants, peddlers and street peddlers are businesses for the purposes of this chapter.

B. “City license officer” is the city clerk.

C. “Employee” means and includes each of the following persons who are not required by the city to have his/her/its own separate city of Pacific business license:

1. Any person employed at any business who performs any part of their duties within the city of Pacific or reports from a location within the city’s corporate limits; and

2. Any person who is on the business’s payroll, and includes all full-time, part-time, and temporary employees or workers; and

3. Owners, officers, managers, and partners; and

4. Any other person who performs work, services or labor at the business including, but not limited to, family members, regardless of whether they receive a wage from the business;

5. Self-employed persons, sole proprietors, owners, officers, managers, and partners; and

6. Any other person who performs work, services or labor at the business, including an independent contractor who may be exempt from requirements to have a separate city of Pacific business license.

“Employee” is a unit of measure used to determine the business license fee.

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

h. Telecommuting from a residence located within the city for a business located outside of 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 (D)(4) of this section.

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.

E. “License” or “licensee,” as used generally in this chapter, includes respectively the words “permit” or “permittee,” or the holder for any use or period of time of any similar privilege, wherever relevant to any provision of this chapter or other law or ordinance.

F. “Peddler” means any person who sells, attempts to sell, or solicits the sale or purchase of goods, wares or merchandise, or services, by going from place to place or from house to house, whether he or she carries with him or her for delivery such property or whether he or she merely solicits orders for future delivery or performance.

G. “Person” includes individual natural persons, partnerships, joint ventures, societies, associations, clubs, trustees, trusts or corporations, or any officer, agent, employee, factor or any kind of personal representative thereof, in any capacity, acting either for himself or any other person, under either personal appointment or pursuant to law.

H. “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.

I. “Street peddler” means any person who sells, attempts to sell, or solicits the sale or purchase of goods, wares or merchandise, or services from a location on any street, alley, sidewalk or other public thoroughfare, whether he or she carries with him or her for such delivery such property or whether he or she merely solicits for future delivery or performance.

J. “Telecommuting” means a work flexibility arrangement under which an employee performs the duties and responsibilities of such employee’s position, and other authorized activities, from an approved work site located within the city but the employee’s employer business is located outside the city.

K. “Transient merchant” means any person, firm or corporation who engages in, does or transacts any temporary business at wholesale or retail for the sale of goods, wares or merchandise, or services, and who for such purpose shall use or occupy any building, vehicle, booth or other structure, either temporary or permanent, for the exhibition and/or sale of such property or services.

L. “Business Licensing Service” and “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the city. (Ord. 2044 § 1, 2021; Ord. 1984 § 1, 2018; Ord. 1610 § 1, 2005; Ord. 1338 § 1, 1997; Ord. 675 § 3, 1978).

5.02.040 Requirement generally.

A. Every person or business that intends to engage in business within the corporate limits of the city must first obtain a general business license from the city before commencing business within the city. The license is personal and not transferable.

B. It is unlawful for any person to conduct any business, either directly or indirectly, for which a license is required by any law or ordinance of the city, without first procuring and keeping said license in effect at all times as required by this chapter or other law or ordinance of this city.

C. Nonresident Businesses. For purposes of the license issued under 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, must obtain a business license from the city, but is exempt from the city license fee therefor. The threshold exemption does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 2044 § 1, 2021; Ord. 1984 § 2, 2018; Ord. 1610 § 1, 2005; Ord. 1338 § 2, 1997; Ord. 675 § 4, 1978).

5.02.045 Nonprofit exemptions.

A. The license requirements of this chapter do not apply to religious, charitable or benevolent societies or organizations such as are identified within 26 U.S.C. Section 501(c)(3) as being recognized by the federal Internal Revenue Service as being tax exempt.

B. Nonprofit and not-for-profit agencies/businesses other than those identified in subsection A of this section must obtain a business license from the city without the city license fee charged, provided the business/agency submits proof of federal tax exemption under a provision of 26 U.S.C. Section 501(c). (Ord. 2044 § 1, 2021; Ord. 1832 § 1, 2012; Ord. 1791, 2011; Ord. 1610 § 1, 2005; Ord. 1354 § 1, 1997; Ord. 1338 § 3, 1997).

5.02.050 Regulations applicability to special sales.

This chapter shall apply to all business in the nature of special sales for which a license is required by any law or ordinance of the city, and it is unlawful for any person, either directly or indirectly, to conduct any such sale except in conformity with the provisions of this chapter. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 5, 1978).

5.02.060 Responsibility for regulation compliance by nonresidents.

The agents or other representatives of nonresidents who are engaging in business within the corporate limits of the city shall be personally responsible for the compliance of their principals and the businesses they represent with this chapter. (Ord. 2044 § 1, 2021; Ord. 1984 § 3, 2018; Ord. 1610 § 1, 2005; Ord. 675 § 6, 1978).

5.02.070 Separate licenses for distinct businesses and branch establishments.

A. A separate license must be obtained in the manner prescribed in this chapter for each branch establishment or location, as if each such branch establishment or location were a separate business; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter are not deemed to be separate places of business or branch establishments.

B. A person conducting more than one distinct business at the same physical location in the city must obtain a separate license for each such business.

C. Persons offering real property within the city for rent or lease for periods of 30 days or more at a time must obtain a general business license as provided for in this chapter. Each rental real property is deemed a branch establishment or separate place of business for the purpose of this chapter and must have a separate license. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 7, 1978).

5.02.080 Joint licenses.

Repealed by Ord. 2044. (Ord. 1832 § 2, 2012; Ord. 1610 § 1, 2005; Ord. 675 § 8, 1978).

5.02.090 License officer duties.

The city license officer must ensure all city license fees required by this chapter are properly collected, and that licenses are issued in the name of the city to all persons qualified under the provisions of this chapter and shall also:

A. Adopt all city forms and prescribe the information to be given therein as to character and other relevant matters for all necessary city papers;

B. Submit all applications, in a proper case, 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; and

C. Notify any applicant of the acceptance or rejection of the application for licensure, and, upon denial of any license or permit, at the applicant’s request, state in writing the reasons therefor and deliver them to the applicant in accordance with PMC 5.02.140. (Ord. 2044 § 1, 2021; Ord. 1758 § 1, 2010; Ord. 1610 § 1, 2005; Ord. 675 § 9, 1978).

5.02.100 Application – Required – Form.

Every person required to procure a license under the provisions of this chapter must submit an application for such license to the Business Licensing Service. The application must include all information required for all licenses requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 10, 1978).

5.02.110 Application – Fee accompanying.

The application for a city business license must be accompanied by the full amount of the city fee chargeable for such license. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 11, 1978).

5.02.120 Issuance delay – Fee payment receipt.

Repealed by Ord. 2044. (Ord. 1610 § 1, 2005; Ord. 675 § 12, 1978).

5.02.130 Duplicate license – Fee.

Repealed by Ord. 2044. (Ord. 1610 § 1, 2005; Ord. 1375 § 10, 1998; Ord. 675 § 13, 1978).

5.02.135 Application – Denial or revocation.

The city license office may deny an application for a business license or revoke a business license previously issued upon the following grounds:

A. In addition to the other penalties provided by law, any business license issued under the provisions of this chapter (or its predecessor) may be denied, revoked or suspended at any time, where the same was:

1. Procured by fraud, false representation or material omission of fact; or

2. For the violation of, or failure to comply with, any of the provisions of this chapter by the person holding such license, or any of his/her servants, agents or employees, while acting within the scope of their employment; or

3. If the licensee violates any applicable city, state or federal law; or

4. If the purpose for which the license was issued is being abused to the detriment of the public; or

5. If such license is being used for a purpose different from that for which it was issued.

6. No license shall be revoked or suspended except in accordance with the procedures provided in this chapter.

7. Failure to disclose a conviction of a felony or misdemeanor for a crime involving the intent to defraud when engaged in a business of entering private homes or transporting the public.

B. A business license may be suspended by the city without notice for any of the following causes:

1. The licensee or any of its officers, directors, agents or employees while acting within the scope of their duties has violated or failed to keep the building, structure or equipment of the licensed premises in compliance with applicable health, building, fire, or safety laws, ordinances, or regulations;

2. Has failed to comply with the standards of conduct specified in this chapter. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 1338 § 4, 1997).

5.02.138 Conduct of business licensees.

A. No license will be issued, nor be renewed, pursuant to the provisions of this chapter to:

1. An applicant who is not 18 years of age at the time of application.

2. An applicant who has had a similar license revoked or suspended pursuant to PMC 5.02.135.

3. An applicant who does not first comply with the general laws of the state.

4. An applicant who seeks such a license in order to practice some illegal act or some act injurious to the public health or safety.

B. The application shall be consistent with other applicable city laws and ordinances for a new or changed use. This section shall not require that existing legally nonconforming standards be corrected, except as required by other applicable regulations for a change of use.

C. Any person, including city officials, may submit complaints or objections to the director regarding the application for any license, and the director is additionally authorized to request and receive information from all city departments as will tend to aid him in determining whether to issue or deny the license. Such information shall be confidential unless a hearing is requested on the application, or if the applicant shall request the information in writing. All information, complaints or objections shall be investigated and considered by the director prior to issuing, denying or renewing any license.

D. Standards of Conduct. Every licensee under this chapter must:

1. Permit reasonable inspections of the business premises by governmental authorities for the purpose of enforcing the provisions of this chapter;

2. Comply with all federal, state and city statutes, laws, ordinances and regulations relating to the business premises and the conduct of the business thereon;

3. Refrain from unfair or deceptive acts or practices, or consumer fraud, in the conduct of the business and avoid maintaining a public nuisance on the business premises;

4. Refrain from operating the business after expiration of a license or during the period that the license may be suspended or revoked. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005).

5.02.140 Denial of license procedure.

A. Upon denial of a license, the director shall, by certified mail, give written notice of such action to the applicant, which notice shall include a written report summarizing the complaints, objections and information received and considered by the director and further stating the basis for such action.

B. Any applicant whose application is denied may, within 10 calendar days after notice of denial as provided in this section, request a hearing in writing on such denial before the hearing examiner.

C. Any license for which renewal has been denied shall remain in effect pending the determination made as a result of such hearing examiner hearing.

D. If no request for hearing is received within the time specified, the director’s decision shall be final.

E. The license officer shall, upon disapproving any application submitted under the provisions of this chapter, refund all fees paid in advance to the applicant, provided the applicant is not otherwise indebted to the city.

When the issuance of a license is denied and any action instituted by the applicant to compel its issuance, such applicant shall not engage in business for which the license was refused unless a license is issued to him pursuant to a judgement ordering the same. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 14, 1978).

5.02.150 Business license – Fees.

A. Every person and business that is engaging in business within the corporate limits of the city must pay a city license fee as established by city resolution for the privilege of engaging in business in the city. The annual city license fees provided for in this section must be paid in full, except as otherwise provided for in this chapter.

B. Businesses without a place of business or headquarters located within the corporate limits of this city, whose employees are normally situated outside the city, but who work within the city for one day or more, such as a contractor’s employees, shall pay an annual license fee as established by city council, subject to the threshold provisions established in PMC 5.02.040(C).

C. Transient merchants, peddlers and street peddlers must pay an annual city license fee as established by city resolution.

D. The city license fee imposed in this chapter is in addition to all other fees and taxes imposed by the city.

E. The city license fee imposed by this chapter will be waived for businesses participating in city-sponsored community events. This fee waiver applies only to business conducted as a part of the city-sponsored community event and does not constitute a waiver for any other purpose.

F. The license fee imposed in this chapter will be waived for any person or business meeting the threshold limitations established in PMC 5.02.040(C) or the exemption established in PMC 5.02.045(B). All other licensing requirements of this chapter still apply to such persons or businesses. (Ord. 2044 § 1, 2021; Ord. 1984 § 4, 2018; Ord. 1610 § 1, 2005; Ord. 1456 § 1, 2000; Ord. 1375 § 11, 1998; Ord. 1338 § 5, 1997; Ord. 1279 § 1, 1995; Ord. 675 § 15, 1978).

5.02.155 Posting.

A. Every business shall keep and post the license issued it pursuant to this chapter on the premises of the business.

B. Every transient merchant, peddler or street peddler shall have in his or her possession at all times, while conducting business as such, the license issued pursuant to this chapter. No soliciting or peddling is permitted between the hours of 5:00 p.m. and 8:00 a.m. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 1338 § 6, 1997).

5.02.160 Renewal.

The city business license issued under this chapter expires on the date established by the Business Licensing Service (BLS), and must be renewed on or before that date to continue to engage in business in the city after that date.

A. Application for renewal of the license is made to the BLS and must include all information required to renew all licenses involved, the total fees due for renewal of all licenses, and the renewal application handling fee required by RCW 19.02.075.

B. The license renewal may be prorated as needed to synchronize the license expiration with the business location account maintained by the BLS.

C. Failure to complete the license renewal by the expiration date will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due.

D. Failure to complete the license renewal within 120 days after expiration will result in the cancellation of the license and will require obtaining a new license as provided for in this chapter to continue to engage in business in the city. The city may require payment of all past due amounts prior to approving the new license. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 1279 § 2, 1995; Ord. 675 § 16, 1978).

5.02.170 Fee – Nonpayment action – Monetary penalty.

In addition to all other penalties provided for under this chapter, the city may also impose an additional penalty for failure to obtain a license, or failure to pay the license fee within 30 days after the day on which it is due, at the rate of 50 percent of the amount of the city license fee due for the first month of delinquency and an additional penalty of 10 percent for each succeeding month of delinquency; provided, that the total city penalty so assessed may not exceed the amount of the license fee. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 1279 § 3, 1995; Ord. 675 § 17, 1978).

5.02.180 Revocation of license.

A. Actions to suspend or revoke any license shall be commenced by filing with the city clerk a written complaint setting forth in specific terms the basis therefor. Upon receipt of such complaint, the city clerk shall review the allegations set forth in the complaint and perform a preliminary review of the facts as deemed appropriate under the circumstances to determine if the allegations in the complaint may constitute cause for suspension or revocation. If the city clerk determines that the allegations in the complaint may constitute cause for suspension or revocation, a copy of such complaint shall be mailed by certified mail to the licensee at his/her last address as shown by the license records of the city clerk, and shall be accompanied by a notice that the license may be suspended or revoked.

B. The licensee shall, within 10 working days after receiving any such complaint, mail by certified mail to the complainant and file with the city clerk his/her written answer which shall admit or deny the allegations of the complaint. The licensee may provide other information with the answer licensee deems relevant for consideration by the city clerk.

C. Upon failure of any licensee to file an answer as provided in this section, or in the event that no hearing is requested, as set forth below, the city clerk shall investigate the allegations of the complaint and, if cause exists therefor, may recommend suspension or revocation of the license, or otherwise he/she shall dismiss the complaint; provided, that if the city clerk finds upon a sufficient showing that the conduct complained of has been corrected and is unlikely to be repeated, he/she may dismiss such complaint; and provided further, that the complaint shall be dismissed where the conduct complained of has been corrected.

D. Notice of the action of the city clerk summarizing his/her findings and conclusions and recommended action to be taken on the permit, if any, shall be mailed by certified mail to the complainant and to the licensee. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 1279 § 4, 1005; Ord. 675 § 18, 1978).

5.02.185 Appeal to the hearing examiner.

A. In all cases in which a complaint is dismissed, other than upon a written agreement between the complainant and the licensee, or in which the license is denied, suspended or revoked, or related action as provided for herein is taken by the city, the aggrieved party may within 10 working days from the date of the mailing of the notice of the city’s action, request a hearing before the hearing examiner. The request for a hearing must be in writing, filed with the city clerk and accompanied by a check in the amount identified within the most recently adopted city fee schedule. The city clerk shall transmit the request for a hearing to the hearing examiner. If no request for a hearing is received within the time specified, the city’s action shall be final.

B. The hearing before the hearing examiner shall be held according to the applicable procedures set forth in Chapter 2.06 PMC. When hearing an appeal of a denial, suspension or revocation of a business license, the hearing examiner shall be guided by the standards set forth in PMC 5.02.138. The decision of the city clerk shall be given substantial weight by the hearing examiner. The hearing examiner shall give at least 10 days’ written notice of the hearing to the appellant. No public notice shall be required. The hearing examiner shall issue a decision within 14 days following the closure of the record. The hearing examiner’s decision on such business license shall represent the final action by the city, unless an appeal is filed in the King County superior court within 14 calendar days from the date the final decision of the hearing examiner is rendered requesting a review of such decision.

C. When a hearing before the hearing examiner has been requested by a licensee in connection with the suspension or revocation of a license, the license shall remain in effect pending the determination made as a result of such hearing; provided, that in cases involving a substantial threat to the public health, safety or welfare, the license may be summarily suspended and in such case the date for the hearing before the hearing examiner shall be set within five days following the filing of the request for a hearing. (Ord. 2044 § 1, 2021; Ord. 1758 § 2, 2010; Ord. 1613 § 1, 2005; Ord. 1610 § 1, 2005).

5.02.190 Fee – Collection by civil action.

Any city license fee due and unpaid and delinquent under this chapter, and all city penalties thereon, may be collected by civil action, which remedy is in addition to any and all other existing remedies and penalties. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 675 § 19, 1978).

5.02.200 Criminal penalty.

Any business enterprise violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the council pursuant to this chapter, upon conviction thereof, shall be punished by a fine not to exceed $500.00 or by imprisonment in jail for a term not exceeding 90 days, or by both such fine and imprisonment. Any business enterprise which engages in any business required to be licensed hereunder without having a business license shall be guilty of a separate violation of this chapter for each day during which the business is so engaged. (Ord. 2044 § 1, 2021; Ord. 1610 § 1, 2005; Ord. 1279 § 5, 1995; Ord. 1167 § 3, 1992; Ord. 675 § 20, 1978).