Chapter 5.06
BUSINESS REGULATIONS
Sections:
5.06.050 License – Application.
5.06.070 Application for new business.
5.06.120 Payment of fee – Time limit.
5.06.130 Disposition of money.
5.06.140 Transferability of licenses.
5.06.150 Collection of fees by court action.
5.06.180 Consent to inspections and searches.
5.06.190 Revocation of license.
5.06.200 Appeal of denial or revocation.
5.06.010 Statutory authority.
The provisions of this chapter shall be deemed an exercise of the authority and power of the city to license, for the purposes of regulation and revenue, all and every kind of business authorized by law and transacted and carried on within the corporate limits of the city, as provided by law. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.020 Definitions.
As used in this chapter, the following words shall have the meanings set forth in this section:
A. “Business, trade or profession” means any activity or venture carried on for profit or held out as a service for fees, whether paid in cash or by means of barter or trade.
B. 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 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, 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 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 trade show or multiple vendor event ordinances.
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 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.
C. “Peddler” means any person, whether a resident of the city of Soap Lake or not, traveling by foot, wagon, automotive vehicle or any other type of conveyance, from place to place, from house to house, or from street to street, carrying, conveying or transporting goods, wares, merchandise, meats, fish, vegetables, fruits, garden truck, farm products or provisions, offering and exposing the same for sale, or making sales and delivering articles to purchasers, or who, without traveling from place to place, shall sell or offer the same for sale from a wagon, automotive vehicle, railroad car or other vehicle or conveyance; and further provided, that one who solicits orders and as a separate transaction makes deliveries to purchasers as a part of a scheme or design to evade the provisions of this chapter shall be deemed a peddler subject to the provisions of this chapter. However, persons who regularly exhibit samples only for the purpose of securing orders for future delivery only shall not be defined as a peddler. The word “peddler” shall include the words “hawker” and “huckster.”
D. “Person” means the singular and the plural and shall also mean and include any person, firm or corporation, association, club, copartnership, joint venture or society or any other organization.
E. “Transient merchant,” “itinerant merchant” or “itinerant vendor” means any person, firm or corporation, whether as owner, agent, consignee or employee, whether a resident of the city or not, who engages in a temporary business of selling or delivering goods, wares and merchandise within the city, and who, in the furtherance of such purpose, hires, leases, uses or occupies any building, structure, motor vehicle, tent, railroad boxcar, boat, public room in hotels, lodging houses, apartments, shops or any street, alley, lot, yard or any other place within the city, for the exhibition and sale of such goods, wares and merchandise, either privately or at public auction; provided, that such definition shall not be construed to include any person, firm or corporation who, while occupying such temporary location, does not sell from stock, but exhibits samples only for the purpose of securing orders for future delivery only. The person, firm or corporation so engaged shall not be relieved from complying with the provisions of this chapter merely by reason of associating temporarily with any local dealer, trader, merchant or auctioneer, or by conducting such transient business in connection with, as a part of, or in the name of any local dealer, trader, merchant or auctioneer.
F. “Transient business” or “itinerant business” means a business operated by a transient merchant, itinerant merchant or itinerant vendor.
G. “Bona fide charitable or nonprofit organization” means any tax exempt nonprofit corporation, association, corporation, or organization recognized by the state of Washington and federal government. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.030 License – Required.
It is unlawful for any person, company, association, corporation, or partnership to engage in any kind of business, trade or profession authorized by law within the city without first obtaining a license as provided for by this chapter. This shall include all peddlers, hawkers, solicitors and itinerant merchants or vendors. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.040 Exemptions.
To the extent set forth in this section, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter:
A. A person selling products, fruits or crops actually produced by the seller where the seller makes sale at a designated farmer’s market location.
B. A person making casual or isolated sales of goods or merchandise not in the course of a business at a flea market, rummage sale, yard sale, garage sale, bazaar or like sale when such sales, markets or bazaars are conducted on a Friday, Saturday, Sunday or any city-recognized holiday; and provided also, that such flea markets, bazaars or the like shall be licensed by the city of Soap Lake for operation at the particular location indicated on that license.
C. Sales conducted by bona fide charitable or nonprofit organizations.
D. Sales conducted by students of public or private primary and secondary schools.
E. 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 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.
F. 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 maintains 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. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.050 License – Application.
Applicants for licenses under this chapter, whether a person, firm, partnership, limited liability company or corporation, shall file a written sworn application signed by the applicant, if an individual, by all partners if a partnership, and by the president if a corporation, with the city clerk showing:
A. The name or names of the person or persons having the management or supervision of applicant’s business during the time that it is proposed that it will be carried on in the city of Soap Lake; the local address or addresses of such person or persons while engaged in such business; the permanent address or addresses of such person or persons if it is not the same as the local address; the capacity in which such person or persons will act (that is, whether as proprietor, agent or otherwise); the name and address of the person, firm or corporation for whose account the business will be carried on, if any; and if a corporation, under the laws of what state the same is incorporated and the name of the registered agent for service of process;
B. The place or places in the city of Soap Lake where it is proposed to carry on applicant’s business, and if it is a temporary or itinerant business, the length of time during which it is proposed that said business shall be conducted;
C. The place or places, other than the permanent place of business of the applicant, where the applicant within the six months immediately preceding the date of the application conducted any peddler activities or any transient business, stating the nature thereof and giving the post office and street address of any building or office in which such business was conducted;
D. Whether or not the person or persons having the management or supervision of the applicant’s business have been convicted of a crime, misdemeanor or the violation of any municipal ordinance, the nature of such offense and the punishment assessed therefor;
E. Credentials from the person, firm or corporation for which the applicant proposes to do business, authorizing the applicant to act as such representative; and
F. Proof of the tax identification number of the business and a showing that provision has been made to report all sales within the city to the account of the city with the State Department of Revenue. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.060 License – Contents.
All licenses provided for in this chapter shall be issued by the city clerk upon paying to the city clerk the proper license fee as provided in this chapter. All licenses shall bear the name of the licensee and shall designate the nature of the business, trade or profession operated by the licensee. The licenses shall also designate the location where the business, trade or profession is carried on, the date of expiration of the license, the date of the issuance of the license, and the amount paid for the license. Each licensee shall conspicuously post such license in his place of business or office, and shall produce such license for inspection if required to do so by any customer, police officer or authorized city official. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.070 Application for new business.
If the licensee is a new business operating at one or more fixed locations, prior to the issuance of the business license, the city clerk shall submit the application therefor to the fire chief, the building official, and the senior planner for approval of the location where the licensee is to carry on the business, trade or profession, and the business license shall be issued only if the location is in compliance with building codes, fire codes, and zoning regulations of the city as those codes relate to application. If the licensee is a new business operating as a peddler or transient or itinerant merchant, prior to the issuance of the business license, the city clerk shall submit the application therefor to the senior planner for approval of the area or locations where the licensee is to carry on the business, trade or profession, and the business license shall be issued only if the location is in compliance with zoning regulations of the city as those codes relate to application. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.080 Location change.
If the existing licensee desires to change the location of the business, trade or profession from the location designated on the business license, application must be made to the city clerk prior to the change in location and the city clerk shall, prior to the issuance of a new business license, submit the application therefor to the fire chief, the building official, and the senior planner for approval of the new location where the licensee is to carry on the business, trade or profession, and the business license shall be issued only if the location is in compliance with building codes, fire codes and zoning regulations of the city as those codes relate to the application to change location. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.090 Term of license.
All licenses shall be for a period of one year, unless otherwise provided in this chapter; such license is to begin January 1st of each year and terminate the following December 31st, and it must be renewed annually in advance. Any business, service, trade, occupation or profession commencing business within the city after June 30th of any year shall pay one-half of the annual fee for the remainder of that calendar year. License renewals shall be issued by the city clerk upon receipt from the business of a request for renewal of business license in the form prescribed by the city clerk; providing, that no change in ownership, character of business or location is indicated. If such change is indicated, a new application shall be submitted and fee paid. (Ord. 1282 § 1, 2018; Ord. 1011 § 1, 2004; Ord. 970 § 1, 2002).
5.06.100 Temporary licenses.
A. Licenses issued for the following businesses by the city clerk shall be temporary and a permanent license shall not be issued by the city clerk until the business has been approved by the Grant County health district, which approval must be obtained within 30 days after the issuance of said temporary licenses:
1. Bakeries;
2. Cafes and restaurants;
3. Confectioneries;
4. Grocery stores;
5. Meat markets;
6. Produce stores (wholesale and retail);
7. Soda fountains;
8. Taverns;
9. Motels;
10. Hotels;
11. Any other business which is or shall be required by law to obtain a health permit.
B. If at any time any of the businesses licensed in this section do not meet the approval of the Grant County health district, the business license shall be revoked and shall not be reissued until such business again meets with the approval of the Grant County health district. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.110 Fee schedule.
The business license fee schedule is fixed in the amount of $50.00, payable in advance, for each business, trade or profession conducted or carried on within the corporate limits of the city. No business, profession or trade conducted or carried on in a single location under one management or ownership shall pay more than one license fee regardless of the multiple nature of the business carried on. Only one annual license fee of $50.00 shall be paid for the sale, trade, and barter of used merchandise, antiques, and collectibles where such business is conducted at a single location and is supervised by the license holder. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.120 Payment of fee – Time limit.
A. All persons, partnerships, companies, associations or corporations who are engaged in business or in practice of their trades or professions in the city on January 1st of any year shall procure their license to continue to operate in the city of Soap Lake within 30 days after that January 1st. In the event the license is not so procured the following penalties shall apply in addition to any civil penalties for violations of the municipal code:
1. If the license fee is not paid within 30 days of January 1st, the sum of $50.00 shall be assessed as a penalty;
2. The sum of $100.00 shall be assessed as a penalty if the license fee is not paid within 90 days after January 1st. An additional $100.00 penalty shall be assessed for each 30-day period thereafter that the business license is not obtained as required.
B. All persons, partnerships, companies, associations or corporations who commence business or practice of their trades or professions in the city shall, prior to the commencement of business, procure their license to operate and, if the license to operate is not procured prior to the commencement of business, then the penalties provided for in subsection (A) of this section shall apply and be imposed using the date the business began operation as January 1st for purposes of computing time limits and dates for the imposition of penalties. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.130 Disposition of money.
All funds received by the city under the terms of this chapter shall be paid into the current expense fund of the city and budgeted annually for any municipal purpose, as provided by law. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.140 Transferability of licenses.
All licenses provided for in this chapter shall be transferable to a successor in interest at the same location operating the same type of business, trade or profession under the same name with the written approval of the city clerk and upon payment of a transfer fee of $50.00. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.150 Collection of fees by court action.
In addition to any other penalties or remedies, the city shall have the power to institute suit or action in the municipal department of the district court for the purpose of collecting any license fees that are due and payable. In any action upon a civil infraction for failure to obtain a business license, the city shall be deemed to have requested as a portion of its relief that the court require the defendant to obtain a business license as one of the terms of the penalty in addition to any other penalties to be imposed. If the defendant is found to have committed the infraction, the court shall order the defendant to obtain a business license as one of the penalties to be imposed. The cost of that license shall include all penalties as provided herein for obtaining a business license after January 30th of any year. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.170 Enforcement.
It shall be the duty of the police officers of the city of Soap Lake to examine the places of business and persons in their respective territories subject to the provisions of this chapter, to determine if this chapter has been complied with and to enforce the provisions of this chapter against any person found to be violating the same. Enforcement is not limited to actions by law enforcement personnel. Any employee of the city authorized to enforce this chapter or any state law or rule applicable to any entity subject to this chapter shall have enforcement powers. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.180 Consent to inspections and searches.
Every person who obtains a business license hereunder agrees to subject their place of business, whether it be a building, room, cart, stand, vehicle or stock of merchandise, to inspection by city, county and health district and state officials with jurisdiction to enforce health, safety, occupational and tax laws. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.190 Revocation of license.
A. The permits and licenses issued pursuant to this chapter may be revoked by the clerk of the city of Soap Lake, after notice to the licensee and an opportunity for the licensee to respond, for any of the following causes:
1. Any fraud, misrepresentation or false statement contained in the application for license;
2. Any fraud, misrepresentation or false statement made in connection with the selling of goods, wares or merchandise;
3. Any violation of this chapter;
4. Any operation of a place of business in violation of the provisions of the zoning regulations of the city contained in this code;
5. Conviction of the licensee of any felony or of a misdemeanor involving moral turpitude;
6. Conducting the business licensed under this chapter in any unlawful manner or in such a manner as to constitute a breach of the peace or to constitute a menace to the health, safety or general welfare of the public; or
7. Failure of the licensee, or any other person occupying the location where the licensee operates, to pay, submit or provide before the established due date or delinquency any payment, report or submittal required by this code or any other law applicable to the licensee. The items to be provided include but are not limited to license fees, permit fees, tax reports and tax payments.
B. Notice of hearing for revocation of a license shall be given in writing, setting forth specifically the grounds of the complaint and the time and place of the hearing. Such notice shall be mailed, postage prepaid, to the licensee, at his last known address, at least five days prior to the date set for the hearing. Such mailing is conclusive proof of delivery of the notice of the hearing. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.200 Appeal of denial or revocation.
Any person aggrieved by the decision of the city clerk in regard to the denial of application for license or in connection with the revocation of a license as provided for in this chapter shall have the right to appeal pursuant to the provisions of SLMC 1.30.120 – 1.30.140. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).
5.06.210 Violation – Penalty.
Any person operating a business, trade or profession without a license as required herein shall be deemed to have committed a civil infraction and shall be subject to payment of a penalty of up to $1,000 together with all penalties and assessments for each violation. Each separate day of operation without a business license is deemed a separate violation. This penalty is in addition to any other remedies available to the city under this code. (Ord. 1282 § 1, 2018; Ord. 970 § 1, 2002).