CHAPTER 5.06
BUSINESS LICENSE Revised 9/24
Sections:
5.06.015 Terminology. Revised 9/24
5.06.020 Requirement to have a business license.
5.06.030 Application – Issuance.
5.06.050 Denial – Appeal. Revised 9/24
5.06.060 Denial – Hearing – Council determination.
5.06.080 License term – Renewal – Late penalty – Changes.
5.06.110 Posting – Inspection.
5.06.120 Transfer – Assignment.
5.06.160 Revocation – Permittee right to appeal. Revised 9/24
5.06.170 Revocation – Hearing.
5.06.010 Purpose and intent.
It is in the public’s interest the City be informed at all times of the persons who engage in business in the City. The Washington Legislature promulgated Chapters 19.02 and 35.90 RCW to provide a convenient, accessible, and timely one-stop system for businesses to obtain and maintain the necessary state and local licenses to conduct business through the Washington State Department of Revenue. This chapter’s purpose and intent is for the City to comply with its obligations under Chapters 19.02 and 35.90 RCW, require that all persons who engage in business in the City obtain and maintain a business license, and to establish 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. (Ord 19-527 §1; Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.015 Terminology. Revised 9/24
Unless the context otherwise requires, the following terms used in this chapter have the following meanings and terms defined in Sections 1.01.010 (terminology in the code) and 5.02.015 (terminology in this title) have the meanings defined in those sections:
"Business" means and includes all activities engaged in with the object of gain, benefit, or advantage to the person engaged or to another person or class, directly or indirectly.
"Business license" means the license the Administrator issues through the Business Licensing Service to a specific person, authorizing it to engage in business in the City under this chapter.
"Business Licensing Service" and "BLS" mean the office within the Washington State Department of Revenue providing business licensing administration services to the City under a contract required by Chapter 39.90 RCW.
"Engaging in business" and/or similar derivative terms mean the activities of commencing, conducting, or continuing in business; the exercise of corporate or franchise powers; and liquidating assets of a business when the liquidators hold themselves out to the public as engaged in such a business. Engaging in business expressly includes any activity sufficient to establish nexus for purposes of applying for a business license under the law and the Constitutions of the United States and the state of Washington. Nexus is presumed to continue as long as the person or business benefits from the activity that constituted the original nexus generating contact or subsequent contacts. Without limiting the generality of the foregoing, the following activities are examples of activities where a person engages in business. The Finance Director will determine whether an activity is the engagement of business if it is not listed below, after considering all the facts and circumstances and applicable law.
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 accounts for money owed;
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, and 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 at a location 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; and
16. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (Ord 24-620 §16; Ord 19-527 §2 (Ex A); Ord 18-521 §1 (Ex A, Ex B); Ord 737 §1, 1988: Ord 728 §1, 1987: Ord 719 §1, 1987. Formerly 5.06.015)
5.06.020 Requirement to have a business license.
A. General Rule. No person may engage in business in the City without obtaining and maintaining a business license.
B. Multiple Businesses at One Location. A person engaged in two or more distinct and separate business type activities at the same location in the City must obtain a business license for each business activity.
C. Multiple Locations. A person conducting the same type of business at two or more permanent locations in the City shall be required to obtain a separate license for each place of business. (Ord 19-527 §3; Ord 18-521 §1 (Ex A, Ex B))
5.06.025 Exemptions.
The following businesses or activities are exempt from obtaining and maintaining a business license:
A. Any business where the annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than two thousand dollars and who does not maintain a place of business within the City. The exemption does not apply to regulatory license requirements or activities that require a specialized permit.
B. The following activities, provided the person or business conducts no other activity in the City:
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 where 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 member of a board of directors 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;
6. Conducting advertising through the mail;
7. Soliciting sales by phone or the internet from a location outside the City; and
8. A seller physically located outside the City delivering goods into the City by means of common carrier. (Ord 18-521 §1 (Ex A, Ex B))
5.06.030 Application – Issuance.
A. The process for applying for, renewing and receiving a business license is based on the City’s contract with Business Licensing Services, where an applicant files an application with the Business Licensing Service, which then refers the application to the City. The application must include all information required for all licenses requested, and the total fees due for all licenses, as well as the handling fee required by RCW 19.02.075.
B. After referral from BLS and the Administrator’s determination of whether the applicant’s business complies with the City’s and the state’s laws and regulations, the Administrator will approve or deny the application and allow the issuance of the City business license through BLS. If the Administrator determines the business license should not be issued, he or she will make the necessary update to the application record, and will provide to the applicant the basis for the denial, citing the specific provisions of the laws and regulations. (Ord 19-527 §4; Ord 18-521 §1 (Ex A, Ex B); Ord 737 §1, 1988: Ord 728 §1, 1987: Ord 719 §1, 1987)
5.06.050 Denial – Appeal. Revised 9/24
Any applicant denied a permit by the Finance Director shall have a right of appeal to the City Council. The applicant shall, within ten days of mailing by the Finance Director of notice of denial, give a notice of appeal to the City Clerk in writing. The City Clerk shall place the applicant’s appeal on the agenda of the next regularly scheduled City Council meeting occurring more than five days after receipt of the notice of appeal, and inform the applicant in writing of the date, time and location of the meeting. (Ord 24-620 §17; Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.060 Denial – Hearing – Council determination.
A. The City Council shall hold a public hearing at which the applicant may present testimony as to his compliance with the statutes or ordinances which he is alleged to not be conforming with.
B. After the close of the public hearing, the City Council shall either grant the permit or sustain the denial. The City Council shall make findings of fact which shall be incorporated in its minutes as to the basis for its decision. The council’s decision shall be final.
C. Conduct of business after denial of a permit is unlawful. (Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.080 License term – Renewal – Late penalty – Changes.
A. A business license is effective for one year unless otherwise prorated by the Business Licensing Services, or unless otherwise sooner revoked. The expiration date of a license is established by the Business Licensing Service; the license must be renewed by the expiration date to continue conducting business in the City after the current expiration. The renewal application must be submitted to the Business Licensing Service and must include all information required to renew all licenses held, and the total fees due for all licenses, as well as the handling fee required by RCW 19.02.075. Failure to complete the renewal by the expiration date will incur the late penalty required by RCW 19.02.085. Failure to complete the renewal within one hundred twenty days after expiration will result in the cancellation of the license and will require submission of a new application as provided for in this chapter to continue conducting business in the City.
B. A person must immediately notify the Business Licensing Service when it plans to make material changes in size, nature or conduct from that identified in the current application for the current business license, or is relocated in the City. Such changes may require submission of a new business license application as provided in this chapter. (Ord 19-527 §5; Ord 18-521 §1 (Ex A, Ex B); Ord 737 §1, 1988: Ord 719 §1, 1987)
5.06.110 Posting – Inspection.
A business license shall be conspicuously posted at the business for which it was issued, and shall be produced for inspection upon the request of any authorized City official; provided, however, that if the permittee has no permanent place of business, then such permit must be carried on the person of such permittee or attached to and conspicuously displayed on any personal property which is an integral part of the business in which the permittee is engaged. Said license shall be produced for inspection upon the request of any authorized City official. (Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.120 Transfer – Assignment.
Business licenses shall not be transferable or assignable; provided, that in the event of death of the permittee, the surviving spouse, partner, estate, or other heir may operate the business under the existing license, pending completion of any actions required to assume the business or otherwise administer the estate of the deceased owner. In the event of the sale of a business, the new owner shall be required to apply for and obtain a license as provided for in this chapter prior to commencing that business in the City. (Ord 19-527 §6; Ord 18-521 §1 (Ex A, Ex B); Ord 737 §1, 1988: Ord 719 §1, 1987)
5.06.150 Revocation.
All permits are subject to revocation at any time by the City Council upon determination that the permittee is not in compliance with any statute or ordinance. Conduct of business after notice of revocation of the permit is given is unlawful. (Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.160 Revocation – Permittee right to appeal. Revised 9/24
Upon revocation, the permittee shall have a right of appeal to the Council. The permittee shall, within ten days of the notice of the revocation, give notice to the City Clerk, in writing, of their intent to appeal the revocation to the Council. The City Clerk shall place the permittee’s appeal on the agenda of the next regularly scheduled Council meeting occurring more than five days after receipt of the notice of appeal, and inform the permittee, in writing, of the date, time and location of the meeting. (Ord 24-620 §18; Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.170 Revocation – Hearing.
A. The Council shall hold a public hearing at which the permittee may present testimony as to his compliance with the statutes or ordinances which he allegedly has failed to comply with.
B. After the close of the public hearing, the Council shall make findings of fact which shall be incorporated in its minutes as to the basis of its decision. The Council may sustain the revocation of the permit, reinstate the permit with conditions, reinstate the permit after a certain time, or immediately reinstate the permit. (Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.180 Service of required notices.
Any written notice required by this chapter to be given to any permittee or applicant shall be sent by ordinary mail to the address of the permittee or applicant as shown on the permit application. (Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)
5.06.200 Penalty for violation.
It is unlawful to operate any business within the City without a business license. Upon conviction of a violation of this chapter, punishment shall be imposed pursuant to the terms of Section 1.01.118. (Ord 18-521 §1 (Ex A, Ex B); Ord 719 §1, 1987)