Chapter 5.04
BUSINESS LICENSES GENERALLY
Sections:
5.04.010 Definitions—Exemptions.
5.04.015 Administrative partnership with Business Licensing Service.
5.04.020 Business license required.
5.04.040 Application procedure.
5.04.060 Relocation of business.
5.04.070 License renewal procedure.
5.04.080 Revocation or suspension of license.
5.04.090 Single location—Multiple nature of business.
5.04.100 Single location—Multiple business names.
5.04.110 Single business—Multiple locations.
5.04.120 Sale or transfer of business.
5.04.140 Violations—Penalties.
5.04.010 Definitions—Exemptions.
A. Definitions. Except as otherwise expressly declared or clearly apparent from the context in which used, the following definitions shall be applied in construing the provisions of this chapter:
1. Engaging in Business.
a. “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.
b. This section sets forth examples of activities that constitute engaging in business in the town, 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 town 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 (A)(1)(a) of this section. If an activity is not listed, whether it constitutes engaging in business in the town shall be determined by considering all the facts and circumstances and applicable law.
c. Without being all-inclusive, any one of the following activities conducted within the town by a person 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 town.
ii. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the town.
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, 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 town, 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.
2. “Home occupation” means an occupation carried on by a resident of a dwelling as an accessory use within the same dwelling, including bed and breakfasts.
3. “Peddler” means and includes the singular and the plural and shall also mean and include all persons, firms, associations, clubs, copartnerships or societies or any other organizations. The term “peddler” as used herein shall include all persons traveling by foot, automobile, vehicle or any other type of conveyance from place to place, from house to house or from street to street, carrying, conveying or transporting any goods or materials, appliances or personal property of any kind or nature and offering the same for sale or making sales and deliveries of such articles to purchasers or soliciting for orders or subscriptions thereof, or who without traveling from place to place shall sell or offer for sale from a vehicle or other conveyance or from the streets without having a fixed place of business, shall be deemed peddlers subject to the provisions of this chapter. Peddlers not moving from place to place will be confined to private property only with the owner’s permission and shall meet requirements of all other ordinances including setback requirements; provided, however, this chapter shall not apply to any salesman, jobber or manufacturer’s representative who solicits trade from wholesale or retail dealers in the town as long as the salesman, jobber or manufacturer’s representative remains on the dealer’s premises with permission and without interfering with the business of the dealer.
4. “Person” means one or more natural persons of either sex, corporations, partnerships, limited liability companies, associations or other entities capable of having an action at law brought against such entity.
5. “Special event” means those events or activities sponsored by the town.
6. “Business Licensing Service” and “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the town.
B. Exemptions. To the extent set forth in this subsection, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter: any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the town is equal to or less than two thousand dollars ($2,000.00) and who does not maintain a place of business within the town shall be exempt from the general business license requirement in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit or license.
1. 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 town 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 town.
e. Attending, but not participating in, a “trade show” or “multiple vendor events.” Persons participating at a trade show shall review the town’s trade show or multiple vendor event ordinances.
f. Conducting advertising through the mail.
g. Soliciting sales by phone from a location outside the town.
h. Fundraising activities carried on by religious, charitable, benevolent, fraternal or social organizations.
i. Garage and yard sales provided they are limited to a maximum of four days in length in any one instance and a limit of two per location per year.
j. Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions.
k. Any special event approved by the town.
2. A seller located outside the town merely delivering goods into the town 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 town. Such activities do not include those in subsection (B)(1) of this section.
The town 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. (Ord. 770 § 1, 2023; Ord. 751 §§ 1(a), (b), 2021; Ord. 708 § 1(A), 2018: Ord. 422 § 1, 1993)
5.04.015 Administrative partnership with Business Licensing Service.
The town clerk is directed and authorized to undertake all necessary and appropriate steps to accomplish a business licensing partnership between the town and the Business Licensing Service in accordance with state law and coordination provided by the Business Licensing Service. (Ord. 725 § 1, 2020)
5.04.020 Business license required.
It is unlawful for any person to engage in business in the town without having first obtained a business license from the town. (Ord. 708 § 1(B), 2018: Ord. 422 § 2, 1993)
5.04.040 Application procedure.
A. Application for a town business license is made to the BLS and must include all information required for all licenses requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075, as amended.
B. The BLS will provide information of the business license application to the town for review to determine whether to approve issuance of the business license.
C. The town will review the business license application information provided by the BLS and determine whether to approve issuance of the license within ten (10) working days from the time of receipt of the application information. (Ord. 751 § 1(c), 2021; Ord. 708 § 1(C), 2018: Ord. 422 § 4, 1993)
5.04.050 Fees.
There is levied upon and shall be collected from and paid as hereinafter provided, by every person or account, for the privilege of engaging in business within the town, as herein defined, an annual town business license fee in an amount as determined by resolution of the town council. (Ord. 751 § 1(d), 2021; Ord. 708 § 1(D), 2018: Ord. 422 § 5, 1993)
5.04.060 Relocation of business.
If a person wishes to relocate a business to another location inside the town, they must notify the BLS sufficiently prior to the intended move to allow the town to review the intended move. The BLS will provide information of the intended relocation to the town for review. Business may not commence at the new location until a move has been approved by the town. The town may require payment of an administrative transfer fee of five dollars prior to the final approval of the relocation. (Ord. 751 § 1(e), 2021; Ord. 422 § 6, 1993)
5.04.070 License renewal procedure.
All town business licenses issued pursuant to the provisions of this chapter expire on the date established by the BLS, and must be renewed on or before that date to continue to engage in business in the town after that date.
A. Application for renewal of the town business license is made through the BLS and must include all information required to renew all licenses involved, total fees for all licenses, and a renewal application handling fee required by RCW 19.02.075, as amended.
B. The term of the town business license and the respective fee amount may be prorated as necessary to synchronize the license expiration date with the expiration of the business license account maintained by the BLS.
C. Failure to complete the renewal of the town business license by the expiration date will incur the late renewal penalty required by RCW 19.02.085, as amended, in addition to all other fees due.
D. Failure to complete the town business license renewal within one hundred twenty (120) days after expiration of the town business license will result in the cancellation of the town business license and will require obtaining a new license as provided for in this chapter to continue to engage in business in the town. The town clerk is authorized to require payment of all past due amounts before approval of the new town business license. (Ord. 751 § 1(f), 2021; Ord. 422 § 7, 1993)
5.04.080 Revocation or suspension of license.
The town council may at any time, suspend or revoke any license issued under the provisions of this chapter whenever the licensee, or any officer or partner thereof:
A. Has violated any federal, state or town law, regulation or ordinance upon the business premises stated in the license, whether or not the licensee, or officer or partner thereof, has been convicted in any court of competent jurisdiction of such violation; or
B. Has conducted, engaged in or operated the business stated in the license upon the premises which does not conform to the ordinances of the town; or
C. Has maintained or permitted the business stated in the license to be conducted, engaged in or operated in such manner as to constitute a public nuisance as defined by the town; or
D. Has made any material false statement or representation in connection with obtaining the license; or
E. Has conducted, engaged in or operated the business in violation of a zoning, building, plumbing or fire code of the town. (Ord. 422 § 8, 1993)
5.04.090 Single location—Multiple nature of business.
Engaging in business conducted or carried on in a single location under one management or ownership shall only be required to obtain one business license and pay annual license fees for one business, regardless of the multiple nature of engaging in business. (Ord. 708 § 1(E), 2018: Ord. 422 § 9, 1993)
5.04.100 Single location—Multiple business names.
In the case where more than one person is engaging in business in a single location, business licenses shall be required of all persons engaging in such business. (Ord. 708 § 1(F), 2018: Ord. 422 § 10, 1993)
5.04.110 Single business—Multiple locations.
In the case of a person engaging in business at two or more separate locations, a separate business license and fees for each location shall be required. (Ord. 708 § 1(G), 2018: Ord. 422 § 11, 1993)
5.04.120 Sale or transfer of business.
Upon the sale or transfer of any business licensed pursuant to this chapter, the license issued to the prior owner or transferor shall automatically expire on the date of such sale or transfer and the new owner intending to continue engaging in business in the town shall apply for and obtain a new business license pursuant to the procedures established by this chapter prior to engaging in business. (Ord. 708 § 1(H), 2018: Ord. 422 § 12, 1993)
5.04.130 Temporary licenses.
The town shall not issue any licenses on a temporary, daily or short-term basis. (Ord. 422 § 13, 1993)
5.04.140 Violations—Penalties.
A. The town may assess a late payment penalty of five dollars for each thirty (30) days of delinquency after a town business license fee or renewal fee is due. This penalty is payable directly to the town, and is in addition to any other fee required under this chapter.
B. Any person who violates the provisions of this chapter shall be guilty of a civil infraction for each day during which the person is engaged in business, and any person who fails or refuses to pay the license fee or any part thereof on or before the due date shall be deemed to be operating without a business license to do so. Each violation of this chapter shall be punishable by a civil penalty of not more than two hundred fifty dollars ($250.00) for each such violation. Each day that the violation occurs shall be deemed to be a separate offense. (Ord. 751 § 1(g), 2021; Ord. 708 § 1(I), 2018: Ord. 422 § 14, 1993)