Chapter 5.01
BUSINESS LICENSES – GENERALLY
Sections:
5.01.040 Business license required – Application.
5.01.060 Business license nontransferable.
5.01.100 Temporary businesses.
5.01.110 Nonresident businesses.
5.01.130 License additional to others – Exception.
5.01.140 Amounts unpaid constitute debt to city – Collection.
5.01.150 Refunds of erroneous payment of fees and funds due under judgment.
5.01.010 Purpose.
The provisions of this chapter shall be deemed an exercise of the power of the city as provided in Chapter 35A.11 RCW to license the privilege of engaging in business in the city. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.020 Violation – Penalty.
A. Any person violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the clerk-treasurer may be found guilty of a misdemeanor.
B. Any person who engages in a business activity in the city without first obtaining a license to do so is guilty of a violation of this chapter for each day during which the business is so conducted. A licensee who fails to pay the license fee on or before the date due may be deemed to be operating a business without having a license to do so. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.030 Definitions.
The following definitions apply to the use of the terms in this chapter, unless the context clearly provides otherwise:
A. “Business” includes all activities engaged in with the object of gain, benefit, or advantage to the business or to another person or class, directly or indirectly.
B. “Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the city.
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 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 (C)(1) of 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 director 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. “Licensee” includes any individual, group of individuals, corporation or association required to have a business license, or liable for any license fee, or who is engaged in any business, or who performs any act for which a license fee is imposed by this chapter.
E. “Person” or “company,” used interchangeably in this chapter, means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the state, corporation, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, and the United States or any instrumentality thereof.
F. “Successor” means any person who purchases or succeeds to the interest of a business of a person quitting, selling out, exchanging, or otherwise disposing of a business. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.040 Business license required – Application.
Every person who is subject to the provisions of this chapter must, before engaging in any business or performing any act for which a license is required, apply for and obtain from the city a business license. Application for a business license is made through the Business Licensing Service. The application must include all information required for all licenses requested, and all fees due for all licenses requested, as well as the handling fee required by RCW 19.02.075. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.050 Fee – Proration.
The city business license fee is an annual amount set by resolution of the city council; provided, that the license term and respective fee amount may be prorated as needed to synchronize the license expiration with the business license account expiration established by the Business Licensing Service. The city business license fee is in addition to all other license fees or taxes as required by any provisions of the Castle Rock Municipal Code. The total fee due must be paid before a license may be issued. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.060 Business license nontransferable.
The business license is personal and nontransferable, and is valid until the expiration date established by the Business Licensing Service, or until the licensee discontinues business in the city, whichever occurs first. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.070 Multiple locations.
In case business is transacted at two or more separate places by one licensee, a separate business license is required for each place where business is conducted, and for such additional business location a license fee is required. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.080 Renewal – Penalties.
The business license must be renewed by its expiration date in order to continue conducting business in the city. The renewal application must be submitted to the Business Licensing Service, and must include all information required to renew the licenses held, and the total fee due for all licenses, as well as the handling fee required by RCW 19.02.075. Failure to renew by the expiration date will incur the late renewal penalty required by RCW 19.02.085. Failure to renew within 120 days after expiration date will result in cancellation of the license and will require submitting a new application as provided in this chapter in order to continue conducting business in the city. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.090 Change of location.
Where the place of business of the licensee is intended to be changed, the licensee must notify the Business Licensing Service sufficiently before the intended date of change to allow review and approval of the new location by the city. A change of business location may require submitting a new business license application with payment of any fees due, and reapproval by the city, before commencing business at the new location. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.100 Temporary businesses.
Any person intending to conduct business in the city for a period of not more than 30 consecutive days at a time, and for not more than 60 days per any 12-month period, may apply directly to the city for a temporary business license. The temporary business license will be valid for not more than 30 consecutive days from date of issuance, provided it may be renewed for another period of 30 consecutive days thereafter only once per 12-month period. The fee for a temporary business license will be set by resolution of the city council. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.110 Nonresident businesses.
For purposes 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 in the city is equal to or less than $2,000 and who does not maintain a place of business within the city shall submit a business license application as provided for in this chapter, but be exempt from the city license fee. The threshold and fee exemption does not apply to regulatory license requirements or activities that require a specialized permit. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.120 Exemptions.
The following businesses are exempt from either the license or fee required by this chapter:
A. Religious, charitable, and educational organizations acting solely in their religious, charitable, or educational core functions are exempt from the licensing requirement of this chapter.
B. Nonprofit organizations granted a tax exemption by the Federal Internal Revenue Service under 26 U.S.C. Section 501(c) must obtain a business license, but are exempt from the city license fee required by this chapter.
C. Agencies of federal, state, and municipal governments are exempt from the license required by this chapter. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.130 License additional to others – Exception.
The city business license fee required by this chapter is in addition to any license fee or tax imposed or levied under any law or any other ordinance of the city unless expressly provided otherwise. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.140 Amounts unpaid constitute debt to city – Collection.
Any city license fee due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the city and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy is in addition to all other existing remedies. [Ord. 2019-01 § 2 (Exh. A), 2019].
5.01.150 Refunds of erroneous payment of fees and funds due under judgment.
A. Any money paid to the city through error and not in payment of any license fee due hereunder, upon the request of the person by whom such payment was made, shall be refunded to the payer.
B. Any judgment for which a recovery is granted by any court of competent jurisdiction, not appealed from, for city license fees, interest, and penalties, upon presentation to the city clerk-treasurer of a certified copy of the order of judgment of the court, shall be refunded to the payer. [Ord. 2019-01 § 2 (Exh. A), 2019].