Chapter 5.04 BUSINESS LICENSE REGULATIONS AND FEES

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 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 (B)(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, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, or 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 special event permit (Chapter 5.30) and parks lease ordinances (Chapter 21.02).

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 (B)(4) of this section.

The city expressly intends that engaging in business includes 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.

C. Person. The word “person” means any individual, firm, partnership, limited liability company, corporation, association, receiver, assignee, trustee in bankruptcy, trust, estate, joint venture, club, joint stock company, business trust, society, or any group of individuals acting as a unit.

D. Registrant. The word “registrant” shall include any person who engages in business or who is required to have a business license, or who performs any act for which a license fee is imposed by this chapter.

E. Business Licensing Service. The phrase “Business Licensing Service” shall mean that section of the State Department of Revenue authorized to provide such service pursuant to Chapter 19.02 RCW as now codified or as hereafter amended. (Ord. 3070 § 3, 2018).

5.04.010 License and fee payment required.

It is unlawful for any person to engage in business within the limits of the city of Prosser for which a license is required or a license fee provided without first procuring such license and paying such fee. All such licenses shall be renewed annually, shall be effective for one year or prorated fraction thereof, and shall expire on the date established by the Business Licensing Service. (Ord. 3070 § 4, 2018).

5.04.015 License of business location and posting of license.

All registrants shall post the license displaying the city license in their physical place of business. A business must license each physical location at which it conducts business in the city and a separate license displaying the city license is required for each physical location. Multiple businesses operating at the same physical location must each license its business separately, and post a separate license displaying the city license. Businesses located outside the city must carry a copy of the license displaying the city license while conducting business inside the city. (Ord. 3070 § 5, 2018).

5.04.030 Person subject to fee.

There is levied upon and shall be collected from every person who engages in business in the city an annual license fee for the privilege of engaging in business within the city limits of the city. (Ord. 3070 § 6, 2018).

5.04.040 Business located outside city limits.

Unless otherwise exempt, this chapter applies to a business located outside of the city that engages in any business inside the city. (Ord. 3070 § 7, 2018).

5.04.050 Exemptions.

To the extent set forth in this section, the following persons and businesses shall be exempt from the license fee requirements as outlined in this chapter:

A. Any religious organization or church or other religious assemblage.

B. Any person who is exempt from paying the license fee by the laws of the United States of America or by the state of Washington.

C. Any municipal corporation or political subdivision of the United States of America or the state of Washington.

D. Any charitable or fundraising organization; provided, however, the fundraising organization has a charitable or nonprofit purpose.

E. Suppliers who do not have a place of business in the city and who are engaged solely in wholesale selling to licensed retailers.

F. Vendors, artisans who produce their own art or craftwork, or sellers of prepared foods participating in a special event permit by Chapter 5.30 the sponsor of which has a city business license.

G. Vendors, artisans who produce their own art or craftwork, or sellers of prepared foods participating in a special event permitted by a lease entered into with the city of Prosser.

H. 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 five thousand dollars 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.

I. Persons selling trees solely used to celebrate a holiday.

J. Persons required to license pursuant to Chapter 15.30.>/p>

K. Any person who performs personal services pursuant to a personal services contract with the city of Prosser for an amount of less than five thousand dollars per year. (Ord. 3082 § 1, 2018: Ord. 3070 § 8, 2018).

5.04.060 Applicability of other ordinances.

The provisions of Section 5.04.050, dealing with exemptions from the provisions of this chapter, shall not allow any of the exempt organizations, or persons, to conduct business or activities which would subject it to the requirements of any other ordinance of the city relating to taxes, fees or licenses, particularly, although not so limited thereto, gambling, amusement devices, or any other tax or license fee required to be purchased or paid for carrying on that particular activity. (Ord. 3070 § 9, 2018).

5.04.070 Basic license fee.

The annual basic license fee shall be in the amount as provided for in a separate ordinance adopted by the city council. The license fee is a basic fee for the privilege of doing and conducting business within the city limits of the city of Prosser. Any other section of this chapter or any other ordinance of the city requiring a license or tax for conducting a specific and named activity shall be in addition to this basic license fee. There shall be no set-off or credit given for this basic license fee unless such ordinance or section of an ordinance so allows. The mayor, or his or her designee, is authorized to establish a refund fee for the basic license fee. Such fee may be charged to users requesting a refund. Such fee may be from a minimum of two dollars to the full amount of the fee. When an applicant has conducted business within the city after paying the basic license fee, the mayor, or his or her designee, shall not refund any portion of that basic license fee. (Ord. 3070 § 10, 2018).

5.04.080 Procedure for obtaining license.

A. Any person who conducts business, either directly or indirectly, within the city, unless otherwise exempt, shall apply for a business license by submitting a business license application with the Business Licensing Service, in cooperation with the office of the city clerk, before conducting any business within the city. The application for a business license shall include, but not be limited to, the following information and shall be accompanied by the required basic license fee as defined in Section 5.04.070 and the Business Licensing Service handling fee:

1. The name of the applicant, the applicant’s address and telephone number;

2. The name of the business and a complete list of all names by which the business conducts business in the city or by which the business is otherwise known or referred to;

3. The physical location, address, and telephone number of the places where the business will be conducted;

4. A description of the activities, purposes, and nature of the business;

5. The mailing address of the business; and

6. The names and telephone numbers of persons to contact in the case of an emergency.

B. The city clerk will verify proper zoning before issuing the business license. A business which does not meet the proper zoning requirements will not be issued a business license until the business complies with the proper zoning requirements.

C. The business license will be issued upon approval of the completed business license application and payment of the basic license and business licensing service fees. (Ord. 3070 § 11, 2018).

5.04.090 Business license renewal.

All business licenses must be renewed by the expiration date established by the Business Licensing Service. Renewals are filed with the Business Licensing Service. All renewals must be accompanied by payment of the license fee and the Business Licensing Service handling fee. A renewal filed after the expiration date must also include payment of the Business Licensing Service late fee. Failure to renew the city license may result in cancellation of the license. A cancelled license may require filing of a new business license application before continuing to conduct business in the city. (Ord. 3070 § 12, 2018).

5.04.100 Issuing official.

The city clerk, or his or her designee, in cooperation with the Business Licensing Service shall be the official of the city charged with the duty of issuing the licenses required under this chapter. (Ord. 3070 § 13, 2018).

5.04.110 Business license nontransferable.

No business license issued within the city limits shall be transferable. Only the persons to whom the license is issued shall be eligible to operate under that license. (Ord. 3070 § 14, 2018).

5.04.120 Right to refuse license.

A. The city clerk, or his or her designee, may deny a license to any applicant, or may suspend or revoke any license issued under this chapter after it has been issued or any person’s privilege to do business in the city of Prosser when, after investigation by city staff, any one or more of the following grounds are found to exist:

1. Issuance of the license or permit without authority or power;

2. Issuance under an unauthorized ordinance or under an ordinance illegally adopted;

3. Issuance in violation of an ordinance;

4. The business license was procured by fraud or misrepresentation of facts;

5. When issued through mistake or inadvertence;

6. When the license application contains false or misleading statements, evasions, or suppression and/or omission of material facts;

7. Conviction of a prior offense involving business licensing;

8. Substantial violations of the terms and conditions on which a license or permit is issued;

9. Violation of ordinances or law authorizing or regulating the license or permit, or regulating the business, activity, or thing for which it is issued;

10. Violations of local, state, or federal laws;

11. Wrongful behavior of a substantial character and of a public nature and/or concern in relation to the licensed activity;

12. When reasonably necessary in the interest of protection of the public health, safety, peace, or welfare;

13. When a business becomes an instrument of or a cover for public disorder, crime, or other danger to public safety, peace, health, or welfare.

B. Before any such license or licensing privilege shall be refused, canceled or revoked, the holder of such license or privilege shall be given ten business days’ notice of a hearing to be held by the city clerk, or his or her designee, at which time the applicant must show cause why such license and/or privilege to do business should not be revoked. The notice to be given the applicant shall state the grounds and the reasons for the forfeiture and revocation, and also the date set for the hearing thereon; provided, however, that the city clerk may deny the issuance of a license or immediately revoke the license of any business for any of the grounds set forth herein, when any such license has been issued for a period of less than seventy-two hours; any such determination by the city clerk shall be deemed conclusive unless the applicant appeals to the city council within five calendar days of notice of the revocation. Pending any such appeal to the city council, the business license shall remain revoked or denied. An adverse decision on the appeal shall be made by the city council within fifteen business days of the date on which the appeal is filed by applicant.

C. The decision of the city council to revoke or deny a business license or licensing privilege or to sustain the decision of the city clerk, or his or her designee, revoking a license on an appeal shall be supported by written findings of fact in support of the decision. Each decision of the city council to revoke a business license and/or the business licensing privilege shall set forth a minimum period of time for which the business license and/or business licensing privilege is to be revoked. The minimum time period for the duration of the revocation of a business license and/or the business licensing privilege shall be one year, unless the city council determines that extraordinary circumstances exist justifying a shorter period of time, in which case the justification for such decision shall be set forth by the city council in writing. In determining the minimum time of the revocation period, the city council will consider, among other factors:

1. The degree of the business owner’s culpability and the conduct leading to the revocation;

2. The criminal nature of the conduct, if any;

3. The conduct’s effect on the community. (Ord. 3070 § 15, 2018).

5.04.125 Reinstatement procedures and standards for reviewing an application for reinstatement.

A. Procedures. At any time following the minimum time period for revocation of a business license and/or business licensing privilege set forth by the city council in its decision to revoke a license and/or business licensing privilege, reinstatement of the license and/or licensing privilege may be sought using the following procedure:

1. A written application shall be completed on a form available from the city clerk.

2. The application, when completed, shall be filed with the office of the city clerk, with copies to the city administrator and the city attorney.

3. The city clerk, or his or her designee, shall set a public hearing date with at least two weeks’ notice to the applicant to consider the application for reinstatement.

4. The public hearing shall be advertised by the city clerk, or his or her designee, in a newspaper of general circulation in the city of Prosser at least once, and at least ten days prior to the public hearing.

5. At the public hearing, the city clerk, or his or her designee, shall receive testimony from the applicant, from city staff, and from interested members of the public.

6. Upon conclusion of the public hearing, the city clerk, or his or her designee, shall decide whether or not to grant approval of the application.

7. All approvals or denials of an application shall be supported by written findings of fact.

B. Standards for Review. In making its determination on an application for reinstatement of a business license and/or the business licensing privilege, the city clerk, or his or her designee, shall consider all relevant factors brought to his or her attention, including, but not limited to:

1. The time since the revocation action was taken;

2. The degree of the applicant’s culpability, the conduct leading to the revocation, and the criminal nature of the conduct, if applicable;

3. The effect on the community of the conduct leading to the revocation and any lingering effects still experienced by the community;

4. The steps taken by the applicant to reform him/herself and/or to ensure that if placed in a similar business ownership position she/he would not revert to the same conduct which led to the revocation of his/her license and/or business licensing privilege; and

5. Any additional means by which the applicant can demonstrate to the city clerk, or his or her designee, that, if allowed a new business license, the prior wrongful conduct would not recur. (Ord. 3070 § 16, 2018).

5.04.130 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 Prosser “Location Code Number 0303” on their excise tax returns to the State of Washington Department of Revenue. On any violation, 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 one hundred percent of the amount of such tax in addition to all other penalties, fines and remedies provided in the chapter. (Ord. 3070 § 17, 2018).

5.04.140 Compliance with other laws.

The issuance of a business license shall not relieve the applicant from the requirement to comply with all other applicable laws of the state of Washington, laws of the United States, and city ordinances, including, but not limited to, zoning, building code, fire code, IRS regulations, and other tax and license regulations. (Ord. 3070 § 18, 2018).

5.04.150 Examinations of business premises.

City officials shall have the authority to investigate and examine all places of business registered or subject to license under this chapter at any reasonable time for the purpose of determining whether such place of business is complying with the provisions of this chapter. In addition, all places of business are subject to inspection for compliance with building codes and fire codes. (Ord. 3070 § 19, 2018).

5.04.160 Proof of license.

Every person licensing under this chapter, or their agent, shall provide proof of business license upon request of any Prosser police officer or other city official. Failure to provide such proof shall be punished as provided in Section 5.04.170 as now codified or hereafter amended. (Ord. 3070 § 20, 2018).

5.04.165 Door-to-door sales.

In addition to compliance with any other regulations under this code, every person required to license who conducts door-to-door sales shall comply with the following rules:

A. That person shall not engage or attempt to engage in business at any home, residence, apartment complex or business that prominently displays a “No Solicitors” sign or any other similar sign that communicates the occupants’ desire to not be contacted by such persons.

B. That person shall not engage in business outside of the hours of eight a.m. until eight p.m.

C. That person shall carry proof of their business license on their person. (Ord. 3070 § 21, 2018).

5.04.170 Penalties.

A. It is unlawful for any person to willfully make any false or misleading statement to the city clerk for the purpose of determining the amount of any license fee to be paid by any such person, or to fail or refuse to comply with any of the provisions of this chapter to be complied with, or to fail or refuse to pay before the same shall be delinquent any license fee or penalty required to be paid by any such person.

B. Nothing contained in this chapter shall be taken or construed as vesting any right in any license as a contract obligation on the part of the city as to the amount of the fee required. Other or additional taxes or fees and the fees provided for in this chapter may be increased or decreased and additional or other fees provided for and levied in any and all instances at any time by the city.

C. The citation of any person for violation of any of the provisions of this chapter shall not operate to relieve such person from paying any fee or penalty thereupon for which such person shall be liable, nor shall the payment of any such fee be a bar to or prevent citation and prosecution in the district court of Benton County of any citation for the violation of any of the provisions of this chapter.

D. Except as otherwise provided in this chapter, any violation of this chapter shall constitute a civil infraction. Civil infractions shall be written in conformance with the procedures provided for in Chapter 1.40. Each day any person shall conduct any business within the city in violation of this chapter shall constitute a separate class 1 civil infraction. The amount of the fine for each citation shall be as provided for in Chapter 1.40. (Ord. 3070 § 22, 2018).

5.04.175 Additional penalties—Contractors—Building permits.

A. Unless exempt from obtaining a business license, no contractor may commence work on any project requiring a building permit unless the property owner or his agents or assigns has obtained a building permit from the city of Prosser which permit includes the scope of work to be performed by the contractor.

B. The provisions of this section shall prevail over any conflicting provisions contained in the Prosser Municipal Code except for exemptions from obtaining a business license. The penalty provided in this section shall be an addition to the penalty provided for in Section 5.04.170.

C. The penalties provided for in this section shall be in addition to any other penalty provided for in this chapter and in the Prosser Municipal Code. The first violation of this section shall result in the city clerk’s office sending the contractor a warning letter containing a copy of this section. The second violation of this section shall result in the revocation of the contractor’s license to do business in the city of Prosser for a period of one year. Third and subsequent violations of this section shall result in the revocation of the contractor’s license to do business in the city of Prosser for a period of one year without any right to early reinstatement. The city clerk, or his or her designee, shall mail notice to the contractor that the contractor’s business license has been revoked. Such notice shall be effective three days after the date of mailing. For a contractor’s second violation of this section, the contractor may reinstate the contractor’s business license by the payment of a reissue fee as provided in a separate ordinance adopted by the city council. Such reissue fee shall be paid by means of a cashier’s check. The business license shall remain revoked until the city has both received the reissue fee and has reissued the contractor’s business license.

D. The contractor may appeal the revocation as provided in Sections 5.04.120(B) and (C).

E. The term “contractor,” for the purposes of this section, shall be defined as any person, company, corporation, limited liability company, partnership or other legal entity which performs services the provision of which requires a business license in accordance with this title. (Ord. 3070 § 23, 2018).

5.04.180 Additional remedies.

A. In addition to the penalties provided for in this chapter and as separate and distinct 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.

B. The city clerk, or his or her designee, may seek an injunction prohibiting a person from engaging in any unregistered business.

C. In any action or suit authorized by this section, the city, if it prevails, shall recover reasonable attorneys’ fee to be set by the court, in addition to its costs and disbursements. (Ord. 3070 § 24, 2018).

5.04.900 Severability.

The provisions of this chapter are hereby declared to be severable. If any section, subsection, sentence, clause, or phrase of this chapter or its application to any person or circumstance is for any reason held to be invalid or unconstitutional, the remainder of this chapter shall not as a result of said section, subsection, sentence, clause, or phrase be held unconstitutional or invalid. (Ord. 3070 § 25, 2018).