Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.020 Business license required.
5.04.030 Application and renewal.
5.04.040 Exception – Applicability of provisions.
For statutory provisions authorizing a city to license, for purposes of regulation and revenue, all and every kind of business, see RCW 35.27.370(9).
Prior legislation: Ords. 348, 365, 400, 412, 429, 641, 644, 695, 971, 1008, 1067, 1107, 1119, 1174, 1181, 1255, 1265 and 1289.
5.04.010 Definitions.
The following definitions shall apply in construing the provisions of this chapter, except where otherwise declared or clearly apparent from the context:
(1) “Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the city of Westport.
(2) “Business,” “occupation” or “pursuit” means and includes all home occupations, wholesalers, retailers, service providers, towing operators, peddlers, canvassers, solicitors, for-hire vehicles, limousine services, pawnbrokers, secondhand dealers and junk dealers engaged in with the object of economic gain, benefit or advantage to the person, firm or corporation, or to another person or class, directly or indirectly, whether part-time or full-time, whether resident or nonresident except those businesses or activities for which licenses are required by any other chapter or section of the Westport Municipal Code as now or hereafter enacted or amended.
Every charter passenger fishing boat operating pursuant to this section may operate under the authority of the business license issued to the passenger charter fishing service through which it operates or receives services. If it does not operate under a charter fishing service, it must obtain its own license.
(3) “Canvasser,” “peddler,” or “solicitor” is defined as any individual, firm, or corporation, whether resident of the city or not, traveling either by foot, automobile, truck, or any other type of conveyance, from place to place, from house to house, or from street to street, taking or attempting to take orders for the sale of goods, wares or merchandise, including books, periodicals and subscriptions, selling personal property of any nature whatsoever for immediate or future delivery, or for service to be furnished or performed immediately or in the future, whether or not such individual has, carries or exposes for sale a sample of the subject of such sale or whether he is collecting advance payments on such sales or not.
(4) “City” means the city of Westport.
(5) “Clerk-treasurer” means the clerk-treasurer of the city of Westport.
(6) Corporation. See “person.”
(7) “Engage in business” means commence, conduct, or continue 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.
(A) This subsection (7) 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 minimus (being of no significance or importance) business activities in the city without having to pay a business license fee. The activities listed in this subsection (7) are illustrative only and are not intended to narrow the definition of “engage in business” in the basic definition in this subsection (7). 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.
(B) 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:
(i) 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.
(ii) Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.
(iii) Soliciting sales.
(iv) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
(v) 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.
(vi) Installing, constructing, or supervising installation or construction of real or tangible personal property.
(vii) Soliciting, negotiating, or approving franchise, license or other similar agreements.
(viii) Collecting current or delinquent accounts.
(ix) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
(x) 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.
(xi) 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, or veterinarians.
(xii) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
(xiii) 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.
(xiv) Investigating, resolving, or otherwise assisting in resolving customer complaints.
(xv) 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.
(xvi) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
(C) 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:
(i) Meeting with suppliers of goods and services as a customer.
(ii) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.
(iii) 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.
(iv) Renting tangible or intangible property as a customer when the property is not used in the city.
(v) Attending, but not participating in, a “trade show” or “multiple vendor event.” Persons participating at a trade show shall review the city’s trade show or multiple vendor event ordinances.
(vi) Conducting advertising through the mail.
(vii) Soliciting sales by phone from a location outside the city.
(D) 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 (7)(C) of this section.
(E) 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.
(8) Firm. See “person.”
(9) “For-hire vehicle” includes all vehicles used for the transportation of passengers for compensation, except auto stages, buses and ride share vehicles. The term primarily includes taxicabs.
(10) “Limousine” means a category of for-hire, chauffeur-driven, unmetered, unmarked luxury motor vehicles.
(11) Occupation. See “business.”
(12) Peddler. See “canvasser.”
(13) “Person” means any natural person of any gender, firms, corporations, partnerships or associations either acting by themselves or by servant, agent or employee. The singular shall include the plural.
(14) “Person,” “firm,” or “corporation,” used interchangeably in this chapter, means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, corporation, association, canvasser, peddler, solicitor, 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, for whom a valid business license may be required therefrom under the provisions of this chapter.
(15) Pursuit. See “person.”
(16) Solicitor. See “canvasser.”
(17) “Towing operator” is anyone engaged in the business of offering towing service by use of a vehicle wrecker or by a vehicle adapted to that purpose, whereby motor vehicles are towed or are otherwise removed from the place where they are disabled. (Ord. 1640, 2020; Ord. 1617, 2018; Ord. 1343, 2004)
5.04.020 Business license required.
(1) It is unlawful for any person, firm, or corporation to engage in any business, occupation or pursuit, as defined in WMC 5.04.010, in the city without first having obtained a business license therefor as provided in this chapter. Such business license is nontransferable. If more than one business is conducted on a single premises, a separate license shall be required for each separate business conducted, operated, engaged in or practiced.
A person, firm, or corporation may have multiple locations of the same business within the city limits without obtaining a separate business license as long as they are operating under the same tax ID number and state of Washington UBI number.
Each Westport business must abide by having each location licensed separately through the state and must pay all applicable fees for each location.
(2) A license is required for businesses accepting or executing a contract with the city, irrespective of whether goods or services are delivered within or without the city, or whether the person’s office or place of business is within or without the city.
The business license provided for in this chapter shall be posted in a conspicuous location at the place of the business.
(3) Business Threshold. All persons who engage in business within the city but do not maintain a physical place of business within the city shall be required to obtain a business license. For persons described in the preceding sentence whose annual value of products sold, gross proceeds of sales, or gross business income derived from engaging in business within the city does not exceed $2,000, the license shall be issued without payment of a license fee. All persons who engage in business within the city and who have a physical place of business within the city shall be required to obtain a business license and to pay the license fee established by the city without regard to the threshold established by this section.
(4) If a person wishes to change the location of their business within the city, they must notify the Business Licensing Service sufficiently before the intended move to allow the city to review and approve the move. Business may not commence at the new location prior to the approval of the city. Such a change may require the submission of a new application.
(5) In the event of the sale of a business, the new owner must obtain their own license. The new owner may not commence business within the city under the acquired business until the new license has been issued. (Ord. 1640, 2020; Ord. 1617, 2018; Ord. 1343, 2004)
5.04.030 Application and renewal.
(1) Application for a business license issued under this chapter is made through the Business Licensing Service, and must include all information required for all licenses requested, the total fees due for all licenses, including the $50.00 fee for the city business license issued under this chapter, and the application handling fee required by RCW 19.02.075.
(2) The city business license issued under this chapter expires on the date established by the Business Licensing Service (BLS), and must be renewed on or before that date to continue to engage in business in the city after that date.
(A) The renewal application is made through BLS, and must include all information required to renew all licenses involved, the total fees due for all licenses, including the $50.00 fee for the city business license issued under this chapter, and the renewal application handling fee required by RCW 19.02.075.
(B) The license term and respective license fee amount due may be prorated as necessary to synchronize the license expiration with expiration of the business license account maintained by BLS.
(C) Failure to complete the renewal by the expiration date will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due.
(D) Failure to complete the renewal within 120 days after the expiration date will result in the cancellation of the license and will require submitting a new application for license in order to engage in business in the city.
(3) No business doing business within the city shall be issued a business license nor have a business license renewed unless such business is current in all its financial obligations to the city. (Ord. 1640, 2020; Ord. 1617, 2018; Ord. 1343, 2004)
5.04.040 Exception – Applicability of provisions.
Certain respective requirements of this chapter shall not be applicable to businesses or organizations under the conditions described in this section:
(1)(A) Temporary sales activities of nonprofit organizations (those granted a federal tax exemption under a provision of 26 U.S.C. Section 501(c)(3) as religious, educational or charitable organizations), where such activities are incidental or customary to the charitable, educational or religious purpose of the organization, and such organization has notified the city in writing of the dates upon which the activities will be conducted.
(B) Religious organizations such as are deemed tax exempt under 26 U.S.C. Section 501(c)(3) by the Internal Revenue Service without the issuance of a determination letter are fully exempt from the license requirement of this chapter while performing their core religious services. Provided, such a religious organization engaging in any actual ongoing business activity outside of its core religious services must obtain a license issued under this chapter and pay full fees for the conduct of such additional business activity.
(C) Other nonprofit organizations granted a federal tax exemption under a provision of 26 U.S.C. Section 501(c) engaged in business in the city must obtain a business license issued under this chapter, but will be exempted from paying the city fee therefor, provided they submit a copy of the determination letter from the Internal Revenue Service as proof of such tax exemption.
(2) The sponsors of an event deemed a “special event” shall comply with WMC 5.24.050(1). The individual participants in the special event are not required to obtain a business license.
(3) Farmers who sell agricultural, horticultural or farm products which they have actually grown, harvested, or produced are exempt from the requirement to obtain a business license; provided, that this exception does not apply to the sale of firewood. (Ord. 1640, 2020; Ord. 1617, 2018; Ord. 1343, 2004)
5.04.050 Violation – Penalty.
Any person, firm or corporation violating or failing to comply with any provision of this chapter for the first time in any 24-month period shall be deemed guilty of a misdemeanor. Each subsequent violation within a 24-month period shall constitute a gross misdemeanor with a minimum fine of an additional $250.00 for each additional violation. (Ord. 1640, 2020; Ord. 1617, 2018; Ord. 1343, 2004)
5.04.060 Severability.
If any section, sentence, clause, or phrase of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this chapter. (Ord. 1640, 2020; Ord. 1617, 2018)
5.04.070 Effective date.
The ordinance codified in this chapter or a summary thereof consisting of the title shall be published in the official newspaper of the city and shall take effect five days after publication. (Ord. 1640, 2020; Ord. 1617, 2018)