Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.050 Applicable regulations.
5.04.060 Application and fee renewal.
5.04.100 License fee for business.
5.04.125 Disclaimer of town liability – Indemnification.
5.04.010 Purpose.
The purpose of this chapter is to regulate and ensure the legal conduct of businesses, assist in the effective administration of health, fire, building, zoning, and other codes of the town, to impose fees for revenue purposes, and to provide a means for obtaining public information and compiling statistical information on existing and new businesses in the town. (Ord. 2007-26, 2007).
5.04.020 Definitions.
In construing provisions of this chapter, the following words and terms shall have the meanings defined in this section, unless from the context a more limited or different meaning is clearly defined or apparent:
A. “Business” includes all activities, occupations, farmers deriving 60 percent or more of their income from farming, pursuits, or professions located and/or engaged in within the town, with the object of gain, benefit or advantage to the licensee or to another person or class, directly or indirectly, and shall include nonprofit organizations. Each business location shall be deemed a separate business. This term shall not include peddlers and hawkers as defined in Chapter 5.08 EMC.
B. “Employee” means anyone employed full-time or permanent part-time by a person engaged in business within the town and includes the owner or owners of the business if they work on the premises.
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 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 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 any 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.
3. Without being all inclusive, any one of the following activities conducted within the town 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 town.
b. Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the town.
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, production 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 town, 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, or leased, used, or maintained by the person or another acting on its behalf.
4. If a person, or its employees, 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 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 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 mail.
g. Soliciting sales by phone from a location outside the town.
5. 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 (C)(4) of this section. The town 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 contact.
D. “Licensee” includes any person who is engaged in business or who is required to have a business license under this chapter or who performs any act for which a license fee is imposed by this chapter.
E. “License officer” means the employee of the town of Eatonville who is designated to administer this chapter.
F. “Year” means the calendar year. (Ord. 2018-08 § 1, 2018; Ord. 2013-16 § 2, 2013; Ord. 2013-10 § 1, 2013; Ord. 2007-26, 2007; Ord. 91-21 § 1, 1991. Formerly 5.04.010).
5.04.030 Required.
Unless listed as exempt under EMC 5.04.040, it is unlawful for any person, firm or corporation to engage in or carry on within the town any business, profession, trade or occupation designated in this chapter without first having obtained from the town a license to do so. All licenses issued pursuant to the provisions of this chapter shall be posted in a prominent location at the premises where the licensed business, profession, trade or occupation is carried on. (Ord. 2007-26, 2007; Ord. 91-21 § 2, 1991. Formerly 5.04.020).
5.04.040 Exemptions.
The following businesses and activities shall be exempt from the provisions of this chapter, provided dispensaries and collective gardens as defined under Chapter 69.51A RCW are not covered by these exemptions:
A. Businesses where the sale or contract for services occurs on business premises outside of the town and the only event occurring within the town is the mere delivery of the goods or services to the customer or client by common carrier.
B. Minors engaged in babysitting, delivery of newspapers, lawn mowing, car washing and other similar activities.
C. Any instrumentality of the United States, state of Washington, or any political subdivisions thereof, with respect to the exercise of governmental functions.
D. Nonprofit organizations, including but not limited to religious, civic, charitable, nonprofit, cultural, or youth organizations.
E. For purposes of the license by 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 $2,000 and who does not maintain a place of business within the town shall submit a business license registration to the license officer or designee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 2018-08 § 2, 2018; Ord. 2013-10 § 2, 2013; Ord. 2007-26, 2007).
5.04.050 Applicable regulations.
A. Agents Responsible for Obtaining License. The representatives of nonresidents who are doing business in the town shall be personally responsible for the compliance of their principals, and the business they represent, with this chapter.
B. Joint Operation. A person engaged in two or more businesses at the same location shall be required to obtain separate business licenses for conducting each of the businesses. (Ord. 2007-26, 2007).
5.04.060 Application and fee renewal.
Application for such license shall be made at the office of the clerk on a form to be furnished for that purpose, and shall be accompanied by the appropriate license fee. Each such application shall be signed by the person, firm or corporation to be licensed. Licenses may thereafter be renewed without further application, upon the payment to the town of the annual license fee on or before February 1st each year. (Ord. 2007-26, 2007; Ord. 91-21 § 3, 1991. Formerly 5.04.030).
5.04.070 Term.
Licenses issued pursuant to this chapter shall be due January 1st of each year and shall be valid for the calendar year, or balance thereof, in which application is received, and the fee license provided for in this chapter shall be payable annually. There shall be no reduction of any license fee because of the fact that an application is received late in the calendar year or for any other reason. (Ord. 2007-26, 2007; Ord. 91-21 § 4, 1991. Formerly 5.04.040).
5.04.080 Issuance of license.
A. No license shall be issued until the application has been fully completed and all applicable ordinances have been fully complied with. In addition, any business requiring a state or federal license shall obtain the licenses and provide the town with proof of their issuance prior to the issuance of a town license or any renewal thereof.
B. A business license will not be issued for any activity that is known to violate local, state, and/or federal law, except as otherwise specifically allowed pursuant to Chapter 69.50 RCW, Chapter 314-55 WAC, and Chapter 18.12 EMC, Recreational Marijuana.* (Ord. 2013-16 § 2, 2013; Ord. 2013-10 § 3, 2013; Ord. 2007-26, 2007; Ord. 91-21 § 5, 1991. Formerly 5.04.050).
*Code reviser’s note: Ordinance 2013-15 adds Chapter 18.12 EMC as an uncodified interim regulation in effect until June 9, 2014.
5.04.090 Assignability.
Licenses issued pursuant to the terms of this chapter shall be personal to the applicant or the business for which they were obtained and shall not be assignable in the event of sale or transfer of such business to other ownership except upon application to the town for such transfer and the payment of a transfer fee of $20.00. (Ord. 2007-26, 2007; Ord. 91-21 § 6, 1991. Formerly 5.04.060).
5.04.100 License fee for business.
A. Every non-exempt person, firm or corporation engaged in any business, profession, trade, or occupation within the town shall pay an initial $50.00 business license fee for the privilege of engaging in business in the town.
B. Business licenses shall be renewed annually prior to February 1st of any year. The renewal fee shall be $50.00. A penalty of $25.00 plus $5.00 per month starting on March 1st shall be assessed on any delinquent license renewal which has not been paid on or before February 1st of any year.
C. Business license fees shall be waived for temporary vendors selling wares at the farmers market or arts festival for no longer than three consecutive days; provided, that the farmers market or arts festival locations are approved by the mayor or town council. (Ord. 2007-26, 2007; Ord. 2002-07 § 1, 2002; Ord. 91-21 § 7, 1991. Formerly 5.04.070).
5.04.110 Revocation.
A. If any person, firm or corporation licensed under this chapter violates any provision of this chapter or the hereinafter set forth restrictions or violates any other town ordinance or provisions thereof, in addition to the criminal penalty provided for in such provisions, the license of the person, firm or corporation shall be revoked or suspended:
1. Not to permit any gambling or immoral conduct on such premises, not to keep, sell, give away or otherwise dispose of any controlled substance or intoxicating liquor on such premises nor permit the same to be kept, sold, given away or otherwise disposed of thereon by any person.
a. The prohibitions contained in this subsection concerning intoxicating liquor shall have no application to establishments from which persons under the age of 21 are excluded either by law or as a matter of business policy nor to a business licensed by the state to sell intoxicating liquor; and
b. The prohibitions contained in this subsection concerning controlled substances shall have no application to recreational marijuana uses licensed by the state and operated in full compliance with Chapter 69.50 RCW, Chapter 314-55 WAC, and Chapter 18.12 EMC, Recreational Marijuana;*
2. Not to have a financial interest in any business within one year from the date of revocation of the business license;
3. Not to permit any intoxicating liquors kept for unlawful use, sale or distribution or allow any act done or any omission to perform a duty, which act or omission shall:
a. Annoy, injure or endanger the safety, health, comfort or repose of any considerable number of persons, or
b. Offend public decency, or
c. Unlawfully interfere with, befoul, obstruct or tend to obstruct or render dangerous for passage a public park, square, street, alley or highway, or stream, or
d. In any way render a considerable number of persons insecure in life or the use of property.
Provided, that the person, firm or corporation may request a hearing before the town council by giving written notice of appeal to the town clerk. (Ord. 2013-16 § 3, 2013; Ord. 2007-26, 2007; Ord. 91-21 § 8, 1991. Formerly 5.04.080).
*Code reviser’s note: Ordinance 2013-15 adds Chapter 18.12 EMC as an uncodified interim regulation in effect until June 9, 2014.
5.04.120 Exercise of power.
This chapter shall be deemed an exercise of the power of the town to license for revenue and regulation, and nothing in this chapter shall be construed to repeal or affect any other ordinance of the town which purports to regulate some business or activity pursuant to the general police power of the town, notwithstanding the fact that such ordinance may or might contain provisions relating to the licensing of such activity. (Ord. 2007-26, 2007; Ord. 91-21 § 9, 1991. Formerly 5.04.090).
5.04.125 Disclaimer of town liability – Indemnification.
A. Issuance of a license pursuant to this chapter does not constitute the creation of a duty by the town to indemnify the licensee for any wrongful acts against the public, or to guarantee the quality of goods, services or expertise of a licensee. The issuance of a license does not shift responsibility from the licensee to the town for proper training, conduct or equipment of the licensee or his agents, employees or representatives, even if specific regulations require standards of training, conduct or inspection. Issuance of the license does not exempt the licensee from other required permits or licenses.
B. For all town business licenses issued to businesses operating under Chapter 69.50 RCW, Chapter 314-55 WAC, and Chapter 18.12 EMC, Recreational Marijuana:*
1. All licensees waive and release the town, its officers, elected officials, employees, volunteers and agents from any liability for injuries, damages, or liabilities of any kind that result from any arrest or prosecution of business owners, operators, employees, clients or customers for a violation of federal, state or local laws and regulations; and
2. All licensees, jointly and severally, if more than one, agree to indemnify, defend and hold harmless the town, its officers, elected officials, employees, volunteers and agents, insurers and self-insurance pool against all liability, claims and demands on account of any injury, loss or damage, including, without limitation, claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever arising out of or in any manner connected with the operation of the recreational marijuana business that is the subject of the license. (Ord. 2013-16 § 4, 2013).
*Code reviser’s note: Ordinance 2013-15 adds Chapter 18.12 EMC as an uncodified interim regulation in effect until June 9, 2014.
5.04.130 Violation – Penalty.
Any person, firm or corporation who violates any of the provisions of this chapter or fails to comply with any of the requirements thereof shall be guilty of a misdemeanor. (Ord. 2007-26, 2007; Ord. 91-21 § 10, 1991. Formerly 5.04.100).