Chapter 5.05
GENERAL BUSINESS LICENSE
Sections:
5.05.010 Authority and intent.
5.05.030 Business license required – Posting.
5.05.040 Exemptions from the city licensing fee.
5.05.050 Business license application, renewal, delinquency, and cancellation.
5.05.060 Term of business license.
5.05.070 Business license fee.
5.05.080 Transfer of licenses.
5.05.120 Rules and regulations.
5.05.130 Civil suit authorized.
5.05.010 Authority and intent.
The provisions of this chapter are an exercise of the power of the city to license and revoke the same for cause, to regulate, make inspections, and to impose excises for regulation or revenue in regard to all places and kinds of business, production, commerce, entertainment, and exhibition, and upon all occupations, trades and professions and any other lawful activity. (Ord. 2016-41 § 1 (part), 2016).
5.05.020 Definitions.
Unless otherwise defined in this chapter, words are to be given their meaning as defined in Section 1.05.010, and it shall be construed in accordance with Chapter 1.05; provided, however, that this title shall be liberally construed in favor of imposition of any requirement or charge established herein, and it shall be strictly construed against any limitation, exception or exclusion.
“Business” includes all activities, occupations, trades, pursuits, professions and matters located or engaged in business within the city or anywhere else within the city’s jurisdiction with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly; except activities regulated by Chapters 5.01 and 5.03 and franchisees of the city specifically regulated by separate city ordinance for which those engaged in such activity are in compliance with the provisions of the applicable chapter or ordinance.
“Business license” means the approval given by the city to a business to conduct the type of business for which was applied. “Business license” also means the document issued to a business providing proof of the business having been properly licensed with the city for the activity for which was applied.
“Business Licensing Service” or “BLS” means the office within the State Department of Revenue providing licensing services to the city.
“Employee” includes full-time employees, part-time employees, permanent employees, and temporary employees. An independent contractor is not considered to be an employee.
“Engaging in business” means:
1. 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 (1) of this definition. 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 (4) of this definition.
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.
“Taxpayer” includes any person who engages in business or temporary business, who is required to have a license, who is liable for any license charge, or who performs any act for which a license charge is imposed by this chapter. (Ord. 2018-39 § 1, 2018: Ord. 2016-41 § 1 (part), 2016).
5.05.030 Business license required – Posting.
A. No person may engage in business in the city without first having obtained and being the holder of a current and valid business license. To license under the program, a person must submit a business license application to the Business Licensing Service, and pay the applicable city license fee, all other license fees due, and the BLS handling fee authorized by RCW 19.02.075.
B. A business license will be issued to a business that has been approved by the city.
C. A business license must be posted in a conspicuous location at the physical place of business. In the case of nonresident businesses conducting business within the city, the business license must be present at the location business is being conducted. (Ord. 2016-41 § 1 (part), 2016).
5.05.040 Exemptions from the city licensing fee.
The licensing requirements apply but fee requirements of this chapter do not apply to:
A. Any person or business which the city is forbidden to tax by law;
B. Accredited public or private schools, colleges, or universities, as to their education endeavors only; churches and other religious bodies, as to their religious activities only; and fraternal organizations and lodges as to their fraternal and lodge activities only; civic and charitable organizations, including nonprofit hospitals and clinics, as to their civic and charitable activities only; but not as to any business activities by these entities;
C. Employee(s) who work solely for person(s) holding a current and valid business license; and
D. For the purpose of the license required by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business 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 business license fee requirements of this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit. If annual value of products, gross proceeds of sales, or gross income of the business exceeds the amount specified herein, a license fee is required and shall be for a term beginning from the date that the business activity commenced. (Ord. 2018-39 § 2, 2018: Ord. 2016-41 § 1 (part), 2016).
5.05.050 Business license application, renewal, delinquency, and cancellation.
A. A person must register a business with the city program by submitting a business license application to the BLS in coordination with the development services department, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter and to complete the application process through BLS.
B. When a taxpayer operates two or more businesses, a license is required for each business.
C. If a business is operated in two or more locations and is the same business, a separate application filing and business license is required for each business.
D. If a single business has at least one permanent location in the city and also conducts business on a temporary or seasonal basis from temporary or mobile locations, such as from portable stands or vehicles, the taxpayer must obtain a mobile vendor’s license as provided in Chapter 5.04 or a peddler/hawker/transient business license as provided in Chapter 5.27, whichever is applicable, for each such location or stand or vehicle. The chief of police may temporarily suspend or relocate a secondary location license allowing business activity on or adjacent to a public street or other public place when such business activity may endanger public safety or conflict with a permitted special event.
E. A person who has registered a business under the city’s program must renew the license on an annual basis, on or before the expiration date established by the Business Licensing Service, in order to continue conducting business in the city.
1. Renewal requires payment of the city license fee, all other license fees due, and the BLS handling fee authorized by RCW 19.02.075.
2. Failure to renew the license by the expiration date may accrue the BLS late renewal penalty authorized under RCW 19.02.085. In addition to the penalties provided for failure to obey the municipal code or a municipal ordinance, failure to pay any charge imposed by this chapter when due subjects the taxpayer to a minimum penalty of ten dollars or five percent of the amount of the license fee for each month, or part thereof, of delinquency, whichever is greater. Interest will accrue on the unpaid fee plus the penalty levied thereon at the rate of one percent of the amount of the unpaid charge plus penalty for each month, or part thereof, of delinquency.
3. A license that remains delinquent for at least one hundred twenty days past expiration is considered to be abandoned and may be cancelled by the city. A cancelled license may require submitting a new application to the Business Licensing Service and reapproval of the business by the city to resume conducting business in the city. (Ord. 2016-41 § 1 (part), 2016).
5.05.060 Term of business license.
A business license is valid for a term of twelve months, unless otherwise prorated, and expires on the date determined by the BLS. (Ord. 2016-41 § 1 (part), 2016).
5.05.070 Business license fee.
A person engaging in any business shall pay a basic charge of fifty dollars to the city of Walla Walla for the term of each business license or renewal thereof. (Ord. 2016-41 § 1 (part), 2016).
5.05.080 Transfer of licenses.
All licenses required by this chapter are personal. Whenever there is a change of ownership, the license holder must immediately surrender the license to the city for cancellation, a new license application must be immediately filed with the city by the new owner, and a new license obtained. If a business changes names or locations during a license year, without a change of ownership, the license holder must immediately surrender the license to the city for cancellation, a new license application must be immediately filed with the city, and a new license obtained. Upon any transfer of ownership, the new owner shall pay a transfer charge of thirty dollars to the city of Walla Walla. Upon any business name or location change, unaccompanied by a transfer of ownership, the new license holder shall pay a transfer charge of thirty dollars to the city of Walla Walla. (Ord. 2016-41 § 1 (part), 2016).
5.05.090 License denial.
If any person fails to fully comply with the requirements of this title, including the payment of any applicable charge, including penalty or interest, no license may be granted to that person until that person is in full compliance and the delinquent charge, together with penalties and interest, have been paid in full. (Ord. 2016-41 § 1 (part), 2016).
5.05.100 License revocation.
If any person fails to pay any applicable license or renewal charge imposed by this chapter, including penalty or interest, knowingly fails to comply with any of the provisions of this chapter, the city shall revoke any license which has been issued, and no new license may be granted to that person until that person is in full compliance and the delinquent fee, together with penalties and interest, have been paid in full. Any person whose license has been revoked shall be required to reapply to the city for a new license and shall be subject to any and all charges imposed by this chapter without credit for any other amounts owed or previously paid. (Ord. 2016-41 § 1 (part), 2016).
5.05.110 Records to be kept.
It shall be the duty of every person liable for any tax imposed by this chapter to keep and preserve for a period of two years, plus the current year, such suitable records as may be necessary to determine the amount of any charge for which the person may be liable under the provisions of this chapter. In the case of a person who does not keep the necessary records within the city, it shall be sufficient if the taxpayer produces within the city such records as required by the city, or if the taxpayer bears the cost of examination at the place where the records are kept. The records shall be available at all reasonable times for examination and audit by the city clerk or his or her designee. (Ord. 2016-41 § 1 (part), 2016).
5.05.120 Rules and regulations.
The development services department may adopt and promulgate rules and regulations for administration and enforcement of this chapter which are not inconsistent herewith or with superior law. The purpose of such rules and regulations is to carry out the provisions of this chapter, and it shall be unlawful to fail to comply with any such rule or regulation. (Ord. 2016-41 § 1 (part), 2016).
5.05.130 Civil suit authorized.
In addition to whatever other penalties may be available to enforce this chapter, civil suit may be commenced in the name of the city to collect any fee, interest, or penalty due the city or to enjoin any taxpayer who is not in compliance with this chapter from doing any activity for which a license is required until such taxpayer shall have come into full compliance. (Ord. 2016-41 § 1 (part), 2016).
5.05.140 Issuance of license shall not relieve compliance with any other applicable law or regulation.
The issuance of a license under this chapter shall not relieve any person from compliance with any other law or regulation, of any kind whatsoever, which may apply. (Ord. 2016-41 § 1 (part), 2016).
5.05.150 Violation – Penalty.
Any person who knowingly violates any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished as set forth in Section 1.24.010. Each day in which a violation of any of the provisions of this chapter continues shall be considered a separate offense. (Ord. 2016-41 § 1 (part), 2016).