Chapter 5.05
BUSINESS LICENSE REGULATIONS AND FEES

Sections:

5.05.010    Purpose.

5.05.020    Definitions.

5.05.030    Persons subject to license.

5.05.040    Exemptions.

5.05.050    Issuance of licenses.

5.05.060    Posting of license.

5.05.070    Change of place of business.

5.05.075    Ownership change, license not transferable.

5.05.080    Fraudulent use of business license.

5.05.090    Revocation of business license.

5.05.100    License renewal.

5.05.110    Compliance with codes required.

5.05.120    Notice of noncompliance – Revocation – Final action.

5.05.130    Appeal to town council.

5.05.140    Violation – Misdemeanor.

Prior legislation: Ord. 340.

5.05.010 Purpose.

The purpose of this chapter is to provide a means for obtaining public information and compiling statistical information on existing and new business in the town to regulate and ensure the legal conduct of businesses, and to assist in the effective administration of health, fire, building, zoning and other codes of the town. (Ord. 407, 2009; Ord. 373, 2006)

5.05.020 Definitions.

For the purposes of this chapter, the words set out in this section shall have the following meanings:

(1) “Engaged in business” means commencing, conducting or continuing in business or carrying on of any form of activity for gain, profit or advantage, whether direct or indirect, with or without an office or place of business being located within the town.

(2) “Person” means any individual receiver, assignee, trustee in bankruptcy, trust, estate, partnership, joint venture, club, company, joint stock company, business trust, corporation, association, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise, and includes the United States or any instrumentality thereof. (Ord. 373, 2006)

5.05.030 Persons subject to license.

On or after the effective date of the ordinance codified in this chapter, all persons engaged in business in the town shall apply for a business license. No person shall engage in any business within the town without first having secured a license to do so as hereinafter provided unless exempted in this chapter. Licenses for short-term rentals are regulated by Chapter 18.16 SMC. (Ord. 474 § 2 (Exh. B), 2021; Ord. 373, 2006)

5.05.040 Exemptions.

(1) The provisions of this chapter shall not apply to:

(a) Minors doing business or operating a business concern where no other person is employed by the minor;

(b) The United States or any instrumentality thereof and the state of Washington or any municipal subdivision thereof;

(c) Participants in a street fair or exhibit pursuant to this chapter where the following conditions have been met:

(i) The participant is identified on a list of participants to be provided by the applicant for a license under this chapter to the clerk’s office at least three days in advance of the event,

(ii) The participant to be exempt participates in no more than 10 such street fair events in any calendar year;

(d) Persons whose sole activity is the rental of real property.

(2) The license fee portion of this chapter shall not apply to:

(a) Fraternal benefit associations or societies as defined in RCW 48.36A.010;

(b) Nonprofit religious organizations;

(c) Nonprofit associations, clubs, or corporations maintained for the purpose of organized sports, charity, public school-related activities or municipal corporation-related activities, including police and fire department reserve organizations. (Ord. 373, 2006)

5.05.050 Issuance of licenses.

Any new nonexempt business shall make application for a business license prior to commencing business in the town. Application for license shall be accomplished by filing a master application through the State Department of Licensing’s Master License Service, in coordination with the town clerk. Persons applying for a license must pay a fee as established by the town council by periodic resolution, and the Master License Service’s handling fee. (Ord. 373, 2006)

5.05.060 Posting of license.

Each person required to obtain a business license under this chapter shall at all times post said business license in the place of business for which it is issued. (Ord. 373, 2006)

5.05.070 Change of place of business.

When the place of business of a person required to obtain a business license under this chapter is changed, the person shall inform the master license service of the change, in coordination with the town clerk. A change of place of business may require the filing of a new master application with the Master License Service. Upon approval by the town of the new place of business, a new license shall be issued for the person’s new place of business. (Ord. 373, 2006)

5.05.075 Ownership change, license not transferable.

When a licensed business changes ownership, the license of the previous owner may not be transferred to the new owner. The new owner shall apply for a license for that place of business by filing a master application with the Master License Service, in coordination with the town clerk. (Ord. 373, 2006)

5.05.080 Fraudulent use of business license.

No person holding a town business license shall suffer or allow any other person for whom a separate license is required to operate under or display such person’s license and no person may maintain a business license obtained through a false or fraudulent application or return of any false statement or representation in or in connection with any such application or return for such business license. (Ord. 373, 2006)

5.05.090 Revocation of business license.

The clerk may revoke the license issued to any person required to obtain a business license who is in default in any payment of any license fee or who shall fail to comply with any of the provisions of this chapter. Notice of such revocation shall be mailed to the person by the town clerk, and on and after the date thereof any such person who continues to engage in business shall be deemed to be operating without a license and shall be subject to any or all penalties provided for in this chapter. (Ord. 373, 2006)

5.05.100 License renewal.

All businesses shall renew their business license each year. Businesses must pay a renewal fee as established by the town council of $50.00 and the Master License Service’s handling fee. This fee change shall be effective January 1, 2009. (Ord. 407, 2009; Ord. 373, 2006)

5.05.110 Compliance with codes required.

Notwithstanding any contrary provision hereof, a business license issued under this chapter may not be issued to any person using or occupying any real property in violation of the provisions of the Skykomish zoning, building and fire codes and all amendments thereto. (Ord. 373, 2006)

5.05.120 Notice of noncompliance – Revocation – Final action.

A pending application for renewal under this chapter shall be deemed in compliance with this chapter unless the applicant is notified by the town clerk in writing that said application may not be granted because of noncompliance with the provisions of this chapter. In the event such notice is given, the applicant shall have 90 days from the date of such notice to comply with any section violated under this chapter prior to final action upon said application for renewal unless an extension for compliance is granted by the council. (Ord. 373, 2006)

5.05.130 Appeal to town council.

Any person aggrieved under the provisions of this chapter may appeal to the town council from such finding of the town clerk within 15 days from the time as such taxpayer was given written notice of noncompliance with the provisions of this chapter. The clerk shall, as soon as practical, fix a time and place for hearing of such appeal, which time shall not be more than 30 days after filing a notice of appeal and the town council shall cause a notice of the time and place thereof to be mailed by certified mail, return receipt requested, to the person appealing the clerk’s proposed action. At such hearing, the taxpayer shall be entitled to be heard and to introduce evidence in his own behalf. The town council shall thereupon make a finding and notify the appellant thereof by mail. The town may, before the appeal is to be heard, by subpoena require the attendance at such hearing of any person and may require such person to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the town council as to any matter required of such person pertinent to the appeal and it shall be unlawful for such person to fail or refuse to do so.

Town council action shall be final unless within 30 days thereof an appeal has been filed with King County superior court by writ of certiorari. (Ord. 373, 2006)

5.05.140 Violation – Misdemeanor.

Any violation of this chapter shall be deemed a misdemeanor and shall be punished by a fine not to exceed $300.00 or by imprisonment not to exceed 90 days or by both such fine and imprisonment, and any person who engages in or carries on any business subject to the provisions of this chapter without obtaining a business license, or who carries on such activities in violation of this chapter shall be guilty of a separate violation of this chapter for each day during which the business is so engaged in or carried on, and any taxpayer who fails or refuses to pay the business license fee or any part thereof on or before the due date shall be deemed to be operating a business without having a proper license to do so. (Ord. 373, 2006)