Chapter 5.05
BUSINESS LICENSES
Sections:
5.05.020 Business license required.
5.05.030 Separate licenses required.
5.05.040 Change in nature or location of business.
5.05.070 Processing procedure.
5.05.090 Inspections – Right of entry.
5.05.130 Penalty for late application.
5.05.140 Penalties and enforcement.
5.05.160 Revocation – Suspension – Denial.
5.05.170 Effect of registration denial, revocation or suspension.
5.05.200 Decision of the Hearings Examiner.
5.05.210 Appeal to the superior court.
5.05.220 Emergency suspension.
5.05.010 Definitions.
The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed in this section, except where the context clearly indicates a different meaning:
A. “Business” shall mean and include vocations, occupations, professions, enterprises, and establishments and all other activities and matters conducted for private profit or benefit, either directly or indirectly, anywhere within the City.
B. “Designee” shall mean the City Manager’s designee.
C. 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 definition 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 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.
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 (C)(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.
D. “Person” shall mean any individual, corporation, company, firm, joint stock company, co-partnership, joint venture, trust, business trust, club, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, receiver, administrator, executor, assignee, or trustee in bankruptcy.
E. “Premises” shall mean and include all lands, structures and places, and also any personal property which either is affixed to, or is used in connection with, any such business conducted on such premises.
(Ord. 709 § 1, 2018; Ord. 490 § 1, 2007; Ord. 357 § 1, 2002).
5.05.020 Business license required.
No person shall transact, engage in or carry on any business, trade, profession, occupation, calling or activity without first having been issued a business license unless such activity is exempt as provided in UPMC 5.05.060.
(Ord. 490 § 1, 2007; Ord. 357 § 2, 2002).
5.05.030 Separate licenses required.
A separate business license shall be obtained for each separate location within the City at which the business is conducted. A separate business license shall be obtained for each different and discrete business conducted within the City by any person, even if located at the same premises as another licensed business.
(Ord. 490 § 1, 2007; Ord. 357 § 3, 2002).
5.05.040 Change in nature or location of business.
Each business license shall authorize a particular type of business at the designated location. Any change in the nature of the business shall necessitate a new application for a business license. A change of location shall be reported in writing to the designee within 10 days of the change and, if in compliance with zoning and business regulatory ordinances, the existing business license shall be transferred to the new location.
(Ord. 490 § 1, 2007; Ord. 357 § 4, 2002).
5.05.050 Nonconforming uses.
Registration does not constitute vesting nor ratification of a nonconforming use. The purpose of this chapter is to identify and register businesses which are active in the City. Identification is necessary to protect public health, safety and welfare of the community. The issuance of a business license by the City does not constitute either approval of a business or the use of any particular parcel in the City for a business purpose. By issuing a business license, the City shall not be precluded from taking enforcement action against any use which is not authorized in the zone in which it is occurring. The procurement of a business license does not vest the licensee with any rights to continue a nonconforming use.
(Ord. 490 § 1, 2007; Ord. 357 § 5, 2002).
5.05.060 Exemptions.
The following shall be exempt from the registration, license and/or license fee provisions of this chapter:
A. Casual or isolated sales made by persons who are not engaged in the ongoing business of selling the type of property involved, providing that not more than four such sales events are made during any tax year.
B. All businesses with gross annual revenues of less than $12,000.
C. All businesses which are exempt from tax registration endorsement under WAC 458-20-101(2)(a).
D. Minors engaged in babysitting, delivery of newspapers, lawn mowing, car washing, and similar activities.
E. Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions.
F. All special events sponsored by the City, but not to include participating commercial vendors.
G. Nonprofit organizations, including but not limited to religious, civic, charitable, benevolent, nonprofit, cultural or youth organizations.
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 $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.
I. Any broker, managing broker or designated broker licensed under Chapter 18.85 RCW; provided, however, that a real estate firm as defined by Chapter 18.85 RCW with gross income exceeding the amount in subsection (H) of this section from activities within the City of University Place shall be required to obtain a business license under this chapter.
(Ord. 709 § 2, 2018; Ord. 575 § 1, 2010; Ord. 490 § 1, 2007; Ord. 364 § 1, 2002; Ord. 357 § 6, 2002).
5.05.070 Processing procedure.
The designee shall, directly or through a third party designee, issue registrations in the name of the City to all persons qualified under the provisions of this chapter and shall:
A. Adopt all forms and prescribe the information required to implement this chapter including, but not limited to, annual gross revenue declarations.
B. The designee shall establish procedures to carry out the business license exemption program and shall obtain a sworn declaration from business owners or managers that the business meets the exemption criteria of UPMC 5.05.060.
C. Submit all applications to the Department of Community and Economic Development, the Police Department, the Fire District, and any other City department or division as necessary for their endorsements as to compliance by applicant with all City regulations which they have the duty of enforcing.
D. Notify any applicant of the acceptance or rejection of the application and shall, upon denial of any registration, state in writing the reason for rejection and the process for appeal.
E. Deny any application for registration upon written findings: (1) that the granting would be detrimental to public peace, health, or welfare; (2) that such application for registration is not in compliance with any applicable City regulation; or (3) that the applicant has not paid any applicable tax penalty or fee imposed by the City.
F. When any such registration is denied, the applicant may appeal such decision to the Hearings Examiner pursuant to the process described in UPMC 5.05.190.
G. When a registration issuance is denied as well as any action instituted by the applicant to compel its issuance, such applicant shall not engage in the business for which the registration was refused unless or until the registration is issued pursuant to an administrative or judicial judgment.
(Ord. 749 § 11, 2021; Ord. 575 § 1, 2010; Ord. 490 § 1, 2007; Ord. 423 § 4, 2004; Ord. 364 § 2, 2002; Ord. 357 § 7, 2002).
5.05.080 License fees.
The annual license fees for businesses shall be set by resolution of the City Council.
(Ord. 575 § 1, 2010; Ord. 490 § 1, 2007; Ord. 357 § 8, 2002).
5.05.090 Inspections – Right of entry.
The designee or authorized representative of the Department of Community and Economic Development, specifically including the Building Official or Inspector, the Code Enforcement Officer, the Police Department, or the Fire District, is authorized to make such inspections of licensed premises and take such action as may be required to enforce the provisions of any business license or regulation ordinance.
(Ord. 749 § 12, 2021; Ord. 490 § 1, 2007; Ord. 423 § 5, 2004; Ord. 357 § 9, 2002).
5.05.100 Term of license.
All business licenses shall be effective for one year from the date of issuance. Unless renewed, as provided in this chapter, each business license shall expire and be of no force or effect unless sooner revoked as provided in this chapter.
(Ord. 575 § 1, 2010; Ord. 490 § 1, 2007; Ord. 357 § 10, 2002).
5.05.110 Renewal of license.
All business licenses shall be renewed on or before the expiration date of the current business license if the business is to be continued. Application for renewal shall be made on forms prescribed by the designee.
(Ord. 575 § 1, 2010; Ord. 490 § 1, 2007; Ord. 357 § 11, 2002).
5.05.120 Posting of license.
It shall be unlawful for any person to engage in business at any location within the City without posting and displaying, prominently and in clear view, the valid business license authorizing such business at such location.
(Ord. 490 § 1, 2007; Ord. 357 § 12, 2002).
5.05.130 Penalty for late application.
A. Any applicant or licensee who fails to make application for an original business license, or for renewal of an existing business license shall be subject to the following penalties based on the number of days delinquent:
|
Days Delinquent |
Penalty |
|---|---|
|
0 |
0 |
|
1 – 30 days |
$10.00 |
|
31 – 60 days |
$20.00 |
|
61 – 90 days |
$30.00 |
|
91 + |
Misdemeanor |
|
Days Delinquent |
Penalty |
|---|---|
|
0 |
0 |
|
1 – 30 days |
$5.00 |
|
31 – 60 days |
$10.00 |
|
61 – 90 days |
$15.00 |
|
91 + |
Misdemeanor |
B. A one-time-only late fee waiver may be granted to businesses who may otherwise incur late fees, upon approval by the designee’s office. The business owner shall write the City a letter explaining why the license renewal application is late and why the late fees should be waived. The designee will review the letter and make a determination in writing as to whether the late fees should be paid.
(Ord. 575 § 1, 2010; Ord. 490 § 1, 2007; Ord. 425 § 1, 2004; Ord. 357 § 13, 2002).
5.05.140 Penalties and enforcement.
A. Criminal Penalties. Any person who operates a business in the City of University Place without a valid business license shall be guilty of a misdemeanor and, upon conviction thereof, be penalized as provided in Chapter 1.15 UPMC.
B. Civil Penalties. In addition to any criminal penalties, any person who fails to comply with the provisions of this chapter shall be subject to a civil penalty in accordance with Chapter 1.15 UPMC.
C. Other Legal Remedies. Nothing in this chapter limits the right of the City to pursue other lawful, criminal, civil or equitable remedies to abate, discontinue, correct or discourage unlawful acts under or in violation of this chapter.
D. Enforcement by the City shall be in accordance with Chapter 1.20 and/or 1.30 UPMC at the City’s discretion.
(Ord. 688 § 1 (Exh. E), 2017; Ord. 490 § 1, 2007; Ord. 357 § 14, 2002).
5.05.150 Mailing of notices.
Any notices required by this chapter to be mailed to any registrant or applicant shall be sent by ordinary mail, addressed to the address of the registrant or applicant, as shown by the records of the designee; or if no such address is shown, to such address the designee is able to ascertain by reasonable effort. Failure of the registrant or applicant to receive such mail notice shall not release the registrant or applicant from any fees or penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter.
(Ord. 490 § 1, 2007; Ord. 357 § 15, 2002).
5.05.160 Revocation – Suspension – Denial.
A registration issued under this chapter may be revoked, suspended, or denied for any one or more of the following reasons:
A. Failure to comply with any federal, state, or local laws or regulations;
B. Failure to comply with any of the terms and conditions imposed by the City on the issuance of the registration;
C. Failure to pay any applicable tax, penalty, or fee imposed by the City;
D. Failure to operate the business or activity in accordance with any federal, state or local law or regulation;
E. Conduct of the business or activity in a manner which endangers the public health, welfare, or safety;
F. When the registration was procured by fraud or false representation of facts;
G. When the registration was issued through mistake or inadvertence;
H. When the registration application contains false or misleading statements, evasions or suppression of material facts.
(Ord. 490 § 1, 2007; Ord. 364 § 3, 2002; Ord. 357 § 16, 2002).
5.05.170 Effect of registration denial, revocation or suspension.
If any registrant has a business registration denied or revoked for any reason, a new business registration shall not be granted to the registrant and/or any entity in which the registrant has an ownership interest for a minimum period of one year from the date of such denial or revocation, and all business activity shall immediately cease from the date of such denial or revocation. The designee may suspend a license for no more than six months. During the period of any suspension, all business activity shall cease.
(Ord. 490 § 1, 2007; Ord. 357 § 17, 2002).
5.05.180 Notice of hearing.
Prior to suspension or revocation of a registration under this chapter, the registrant shall be notified in writing of the grounds for suspension or revocation of the registration. Deposit in the U.S. Mail with postage prepaid of the notice of suspension or revocation by the designee shall constitute compliance with this section. Suspension or revocation of the registration shall occur 10 days after the date of the mailing of the notice of suspension or revocation unless such action is appealed by registrant in the manner described in this chapter.
(Ord. 490 § 1, 2007; Ord. 357 § 18, 2002).
5.05.190 Appeal period.
A registrant under this chapter must appeal the decision for revocation, suspension, or denial within 10 days of the mailing of the notice of revocation, suspension, or denial by filing a notice of appeal with the designee. Upon receipt by the designee of the appeal notice, a hearing shall be held before a Hearings Examiner designated by the City. Notice of the hearing shall be given to the appellant at least 10 days prior to the hearing. At such hearing, the appellant shall be entitled to be heard and introduce evidence on his or her own behalf.
(Ord. 490 § 1, 2007; Ord. 357 § 19, 2002).
5.05.200 Decision of the Hearings Examiner.
The decision of the Hearings Examiner shall be rendered within five days of the close of the hearing. The decision shall be in writing and shall:
A. Affirm the designee’s decision; or
B. Revise or modify the designee’s decision.
(Ord. 490 § 1, 2007; Ord. 357 § 20, 2002).
5.05.210 Appeal to the superior court.
The decision of the Hearings Examiner is final unless an appeal of the decision of the Hearings Examiner is filed with superior court within 21 calendar days from the date the Hearings Examiner’s decision was personally served upon or was mailed to the appellant. The decision for suspension or revocation of a license under this chapter shall be stayed during administrative and judicial review, but refusal to issue an initial license shall not be stayed.
(Ord. 490 § 1, 2007; Ord. 357 § 21, 2002).
5.05.220 Emergency suspension.
In the event of conduct or activities which create an imminent risk of harm to public health, safety or welfare, the registration of such business may be summarily suspended upon notice to the registrant; provided, that the registrant shall be entitled to a hearing before a Hearings Examiner designated by the City upon a written appeal being filed with the designee by the registrant within 10 days of the registration suspension. In the event of an appeal by registrant, a hearing shall be provided within 10 days of notice of appeal. The provisions of UPMC 5.05.190 and 5.05.200 shall apply to any appeal of the Hearings Examiner decision regarding emergency suspensions.
(Ord. 490 § 1, 2007; Ord. 357 § 22, 2002).