Chapter 5.12
BUSINESS LICENSES1
Sections:
5.12.010 Purpose.
5.12.020 Definitions.
5.12.030 Business license required.
5.12.040 One act constitutes doing business.
5.12.050 Presumption of engaging in business.
5.12.060 Exemptions.
5.12.062 License applications.
5.12.065 Transient business regulations.
5.12.068 License – Approval process.
5.12.070 License – Renewal.
5.12.080 License – Display.
5.12.090 License – Nontransferable.
5.12.100 Two or more businesses on the same premises.
5.12.110 Two or more business premises.
5.12.120 Grounds for revocation.
5.12.130 Appeal.
5.12.140 Appeal – Hearing.
5.12.150 License – Reissuance.
5.12.160 Violation – Penalty.
5.12.010 Purpose.
A. The ordinance codified in this chapter is enacted, except as otherwise specified in this section, to provide revenue for municipal purposes including police protection, marketing, tourism promotion, economic development, and to provide revenue to pay for the necessary expenses required to issue the license for and regulate the business licensed.
B. The license fees levied by the ordinance codified in this chapter shall be independent and separate of any license or permit fees now or hereafter required of any person to engage in any business by any ordinance of the city regulating any business required to be licensed by this chapter. All such businesses shall remain subject to the regulatory provisions of any such ordinances or ordinance now or hereafter in effect, and the persons engaged therein liable to the payment of any license fees therein provided for.
C. Nothing in this chapter shall be construed to apply to any person transacting and carrying on any business within the city which is exempt from taxation or regulation by the city by virtue of the Constitution of the United States or of the state of Oregon or applicable statutes of the United States or the state of Oregon.
D. The levy or collection of a license fee upon any business shall not be construed to be a license or permit of the city to the person engaged therein in the event such business shall be unlawful, illegal or prohibited by the laws of the state of Oregon or the United States or ordinances of the city. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.020 Definitions.
As used in this chapter, except where the context otherwise indicates, the following definitions apply:
A. “Business” means any occupation, profession, or commercial activity engaged in for profit or livelihood in the city. This definition includes but is not limited to transient merchants and home occupations.
B. “Carnival” means a traveling show featuring exhibits, games of chance, sales of various sundries, and rides.
C. “City” means the city of Silverton.
D. “City manager” means the city manager of the city of Silverton or his/her designee.
E. “Council” means the city council of the city of Silverton.
F. “Garage sale” means a commercial activity open to the public, conducted at a private residence where personal property is sold to others; provided, that no more than three garage sales per residence per year shall occur and that no garage sale shall exceed three days in duration.
G. “Home occupation” means an occupation carried on within a dwelling, provided the residential character of the building is maintained and the occupation is conducted in such a manner as not to give an outward appearance nor manifest any characteristics of a business in the ordinary meaning of the term, nor infringe upon the right of neighboring residents to enjoy the peaceful occupancy of their homes.
H. “License” means the permission granted by the city to engage in a business or activity regulated by this chapter.
I. “Licensee” means a person who has a valid license issued pursuant to this chapter.
J. “Merchandise” means goods or commodities that may be bought or sold. Nothing in this chapter is intended to limit or restrict sales of books or newspapers based on the content of the material.
K. “Owner” means any person having proprietary interest in residential property, to include but not limited to a renter, tenant, or authorized agent of such person.
L. “Nonprofit” means any business or organization which holds a certificate of exemption from taxes from the Internal Revenue Service. In the instances where a nonprofit business or organization serves as sponsor of an event they may coordinate the licensing of individual permits under the sponsoring organization.
M. “Person” means every natural person, corporation, partnership, association or any other group acting as a unit.
N. “Posted” means the placing of a clearly readable sign or placard in English stating “No Solicitors” or “No Solicitation” readily visible to any person attempting to enter the property from the nearest street or public sidewalk.
O. “Principal” means a person who would be directly involved in the management or operation of the business.
P. “Sales” means the act of selling involving the transfer of money.
Q. “Solicitation” means any oral or written request to purchase or trade any product or thing; to contribute or donate money or property for any purpose or cause; to render opinions or answer surveys on any subject or to endorse or support by petition any product, candidate, or cause.
R. “Transient business” means any person, either as a principal or agent, who sells goods, wares, services, or merchandise, at a fixed temporary location, or door-to-door, on public or private property or otherwise conducts business for a fixed temporary period of time. A person shall not be relieved from the provisions of this section by reason of associating temporarily with any local dealer, trader, merchant, or auctioneer or by conducting such temporary business in connection with or as a part of, or in the name of, any local dealer, trader, merchant, or auctioneer.
S. “Valid license” means a license issued pursuant to this chapter, and which license’s effective period has not expired. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.030 Business license required.
It shall be unlawful for any persons, for themselves or as agent or employee of another, to transact and carry on any business, trade, profession, calling, or occupation within the city of Silverton, Oregon, unless:
A. Such business activity has been duly licensed as herein provided; and
B. The license is valid at the time of the transaction. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.040 One act constitutes doing business.
For the purpose of this chapter, any persons shall be deemed to be engaging in business or engaging in nonprofit enterprise, and thus subject to the requirement of SMC 5.12.030, when undertaking one of the following acts:
A. Selling any goods or service;
B. Soliciting business or offering goods or services for sale or hire; and/or
C. Acquiring or using any vehicle or any premises in the city for business purposes. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.050 Presumption of engaging in business.
Any person that advertises or otherwise holds himself out to the public as engaged in any business, profession, trade or calling for which a license is required shall be presumed to be so engaged and shall pay such license fee as is required by this chapter. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.060 Exemptions.
The requirements contained in this chapter shall not apply to:
A. Garage sales;
B. An individual performing babysitting, nursery or child-care activities on a part-time basis;
C. An individual who is employed by a business which has obtained a license;
D. An individual hired or employed on an intermittent or casual basis by a household, business or other employer to supply only services;
E. A person whose primary activity consists of delivering goods inside the city for a business located outside the city;
F. Any conduct which is exempt from licensing by virtue of the constitution or laws of the United States or the state of Oregon;
G. A person who leases two or fewer units of residential real estate within the city;
H. Self-employed minors engaged in intermittent or casual economic activity;
I. Federally tax-exempt organizations and nonprofit religious organizations;
J. City-sponsored activities and businesses operating under a city franchise. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.062 License applications.
A. Applications for business licenses shall be submitted on forms to be provided by the city of Silverton. Every such application shall be signed by the owner or a duly authorized agent and shall contain the following information, as applicable:
1. Name of person or persons owning the business; if a corporation, the name of an authorized officer.
2. Assumed business name, business phone number, and alternative phone number.
3. Address of business premises, business mailing address, and owner mailing address.
4. Nature of the business.
5. Number of employees.
6. Emergency contact name and phone number.
B. A person shall apply for a license in the following manner:
1. Application for a license shall be made to the city of Silverton on or before January 1st of each year for which a license is required; or
2. If the business goes into operation after January 1st, application shall be made at least 10 days before conducting business in the city.
C. A license shall expire on the last day of the calendar year for which the license was issued; or in the case of a transient merchant, within 90 days of the date the license was issued.
D. Where the business includes activities classifiable in two or more categories, the primary or predominant activity should be designated.
E. For transient businesses, the applicant shall also include the following, as applicable:
1. Name of all persons conducting business within the city.
2. Photo identification of each person conducting business within the city.
3. Proof of the applicant’s possession of any permits, certificates, or registrations that are required by city, county, state or federal laws to conduct the type of business listed on the application.
4. For those transient businesses located at a fixed location, the following information shall also be provided:
a. Site plan of the area where the business and/or structure will be located. The site plan shall clearly show any parking spaces which may be impacted, any necessary driving lanes, utility pole locations, nearby buildings, and sidewalks.
b. Proof of compliance with all applicable building codes.
c. If food or beverages are to be sold, then the applicant shall provide a copy of proof of the applicable food handler’s license from Marion County.
d. If on private property, a signed letter of authorization from the property owner, or copy of lease agreement.
e. Manner in which public water will be provided.
f. Provisions or arrangements for bathroom facilities for employees. Approval of a transient business will be exempt from SMC 13.36.010.
g. Consistency with the underlying zone designation.
h. If the transient business has the potential to negatively impact publicly owned lands or facilities (e.g., street, sidewalk, park, water, sewer, drainage, etc.), as determined by the city manager, then a $5,000 bond or other financial security shall be required to ensure clean-up, restoration, and/or replacement of said public land or facility. The city manager may increase the amount of the required bond or financial security based on the application information.
5. For transient businesses that conduct door-to-door business, a signed authorization to conduct a criminal background check for each person conducting business within the city.
F. Payment of the appropriate fee as established by resolution of the council.
G. License fees shall be computed on the basis of information contained in the application. No license shall be issued unless the applicant pays a license fee to the city in the amount set by resolution of the council.
H. Any other information determined appropriate by the city manager as necessary to review the application and establish that person(s) is authorized to be engaged in the transaction of the business within the city.
I. It shall be unlawful for any person knowingly to sign or submit a business license application containing false information. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.065 Transient business regulations.
A. Transient merchants conducting business by going door-to-door may do so only between the hours of 9:00 a.m. to 8:00 p.m.
B. A person who enters private property with a posted and clearly visible “No Solicitation,” “No Trespassing,” or similar sign is subject to prosecution for criminal trespass, regardless of whether the purpose for entry was to engage in business or otherwise and regardless of the hour at which the solicitation took place.
C. The general penalty provisions of Chapter 1.08 SMC shall apply for any violations of this chapter.
D. All transient business employees shall display a copy of the city-issued business license with photo identification while conducting business within the city limits.
E. Transient business licenses shall not be valid for more than 90 consecutive days and will be eligible for renewal subject to the city manager’s discretion.
F. All transient business license holders shall provide proof of the applicant’s possession of any permits, certificates, or registrations that are required by city, county, state or federal laws to conduct the type of business listed on the application.
G. Transient business licenses shall be limited to the business and employees specified within the license application and valid only to permit the specified employees to undertake the activities for which the license was issued. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.068 License – Approval process.
A. The city manager shall refer each application to the appropriate departments for review. Review of the application shall be based on consideration of all available evidence as to whether the proposed business will meet the requirements of the City Charter and ordinances. The permit may not be granted if:
1. The activity to be permitted would not comply with city ordinances or state or federal laws.
2. The permitted activity would endanger property or the public’s health or safety. Sale of illegal items, firearms, or other concealed weapons is not regulated by this chapter.
3. The applicant’s violation of law or ordinance represents a reasonable doubt about the applicant’s ability to perform the permitted activity without endangering property or the public’s health or safety.
4. The applicant fails to supply the information required, or submits misleading or false information, or submitted misleading or false information on a previous application.
B. Upon a favorable recommendation from each department, the city manager shall approve, approve with conditions, or deny an application. Action on an application shall be based upon the consideration of all available information. If it is determined that the application is denied, the city manager shall notify the applicant of the denial and the reason for denial.
C. An application may be denied on any of the following grounds:
1. Failure to provide requested information or any false, misleading or incomplete material statement made on the application form; however, if the statement is the result of excusable neglect, the applicant may resubmit an application with appropriate corrections;
2. The applicant, a principal or the business activity fails to meet the requirements of this code or is doing business in violation of this code or applicable state or federal law, including the building, health, mechanical, electrical, plumbing, and development codes of the city;
3. The applicant, a principal or the business activity would violate, or has violated, any ordinance or the charter of the city, any state or federal criminal statute, or any other law, unless the applicant proves that the violation has no bearing on the applicant’s fitness or the ability of the business to undertake the licensed activity without endangering persons or property or the public health, safety or welfare;
4. The business activity would endanger, or has endangered, persons or property, such that the business activity is a menace to the health, safety and general welfare of the city.
D. The city manager shall notify the applicant in writing of a decision to deny an application made under subsection A of this section. The written notice shall state the reason for the decision and explain that the decision is final unless either the applicant or council files a notice of appeal pursuant to SMC 5.12.130. The written notice shall also be provided to the council.
E. If the license is approved or approved with conditions, the city manager shall issue a license to the applicant.
F. Upon issuance of a business license, the license shall be valid only to permit the activities for which the license was issued. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.070 License – Renewal.
A. An application for renewal of a license shall be made and processed in the same manner as an initial application, pursuant to SMC 5.12.062 through 5.12.068.
B. All license renewal fees shall be deemed delinquent if not paid on or before 30 days after the due date. Whenever any license renewal fee is not paid within 30 days of the due date, a late fee shall be imposed and the license will be invalid until payment is made. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.080 License – Display.
At all times after the issuance of the business license, the licensee shall cause it to be posted in a conspicuous place upon the business premises, available for inspection by the public and by employees and prospective employees of the business. In the case of the transient business or if the licensee has no office, business premises or other established place of business within the city, copies of licenses and state or federal issued photo identification shall be clearly displayed on all representatives of the business present within the city at all times during which business is being conducted by an employee or representative within the city. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.090 License – Nontransferable.
A license issued pursuant to this chapter is a personal privilege and is not transferable. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.100 Two or more businesses on the same premises.
If two or more differently classified but related businesses are carried on in the same premises by the same owners, one license issued in the name of the business to which the premises are primarily appropriated, and based upon the total number of employees or other units on the whole premises, shall be sufficient for all such activities. Any business activity leased, under concession to, or owned wholly or in part by a different person or persons on the same premises must be separately licensed. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.110 Two or more business premises.
The conducting of a business or businesses at two or more separate locations shall, for the purposes hereof, be deemed to be separate businesses, and each shall be subject to the license tax herein provided for, except that rental properties, warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business, or branch establishments, or separate types of businesses. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.120 Grounds for revocation.
A. The city manager may revoke a license if he/she determines that a licensee is conducting or has conducted an activity which endangers the public health, safety, or welfare of the city.
B. The notice of revocation shall be sent to the licensee at least 30 days before the effective date of the revocation. The notice of revocation shall state the grounds for revocation and inform the licensee of the provisions for appeal. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.130 Appeal.
A. An applicant whose application has been conditioned or denied, or a licensee who has received a notice of revocation, may file a written notice of appeal with the city manager. The notice of appeal must be filed within 10 calendar days after the notice of denial, revocation, or approval with conditions is mailed or delivered, whichever is earlier. The notice of appeal shall include:
1. The name and address of the appellant, and the business owner if different than the appellant;
2. The nature of the determination from which an appeal is taken and a copy of the determination;
3. The reason or reasons why the determination is alleged to be incorrect;
4. What the correct determination should be; and
5. An appeal fee in the amount set by resolution of the council.
B. The council, on its own motion, may review a decision of denial, conditions, approval, or revocation by the city manager made pursuant to SMC 5.12.120. The council shall direct the filing of a notice of appeal by the city manager. The notice shall be filed with the city manager no later than 10 days after the city manager’s decision was mailed. The notice of appeal shall be sent in writing to the applicant, and shall state the time and place at which the council will review the city manager’s decision and the reason or reasons for review of the city manager’s decision.
C. The council shall designate a time to hear the appeal. The appellant shall be given written notice of the time, date and place of the hearing at least 20 days in advance of the hearing.
D. Failure of the applicant or licensee to file a notice of appeal with the city manager within the time allotted shall constitute a waiver of objections to the notice of suspension, revocation, denial or approval with conditions.
E. Filing a notice of appeal shall stay the effective date of revocation until a final determination is made on the appeal by the council. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.140 Appeal – Hearing.
A. A hearing on appeal to the council pursuant to SMC 5.12.130 shall afford the licensee or applicant, the city manager and other interested parties the opportunity to give oral and written testimony and written materials to the council. The licensee or applicant may exercise the right to cross-examine witnesses who present evidence adverse to that person.
B. The council may affirm, modify, remand or reverse the city manager’s decision. The council shall provide the licensee or applicant with a written notice of its decision. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.150 License – Reissuance.
When a license has been revoked and the licensee or principal of the licensee reapplies for a license, a bond in the penal sum deemed necessary under the circumstances, but not to exceed $10,000, shall be filed with the city recorder. This bond shall be required for the term of the license and shall be forfeited to the city if the licensee is convicted of any violation of federal, state or city laws or ordinances for which such license may be revoked. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
5.12.160 Violation – Penalty.
Any person violating any of the provisions of this chapter is subject to the general penalties provision of SMC 1.08.010. A separate offense shall be deemed committed for each day a violation occurs. (Ord. 09-10, 2009; Ord. 08-08 § 1, 2008)
Editor’s note: Ord. 08-08 included two sections numbered 5.12.040, 5.12.050 and 5.12.060, respectively. The second of each of these numbers has been editorially renumbered 5.12.062, 5.12.065 and 5.12.068, respectively, to avoid duplication.