Chapter 5.04
BUSINESS LICENSES AND REGULATIONS
Sections:
5.04.010 Purpose and intent.
5.04.015 Definitions.
5.04.020 License required.
5.04.030 Exemptions.
5.04.040 Finance director as license officer.
5.04.050 License application.
5.04.060 Procedure for issuance of license.
5.04.070 License fees.
5.04.075 License fee exceptions.
5.04.080 Term and renewal of license.
5.04.090 Renewal license late penalty.
5.04.100 License posting and change of address.
5.04.110 License transferability—Sale of business.
5.04.120 Canvassers, peddlers and solicitors.
5.04.130 Temporary businesses.
5.04.140 Suspension or revocation of license.
5.04.150 Appeal and hearing.
5.04.160 Mailing of notices.
5.04.170 Violations.
5.04.010 Purpose and intent.
The provisions of this chapter are intended to be an exercise of the power of the city to license the businesses described herein for the purpose of revenue, in addition to the purpose of regulation. It is not the intent of this chapter to impose license fees solely for the purpose of supporting a regulatory program. It is also not the purpose or intent of this chapter to impose a property tax, income tax, or any other tax upon the act of owning property. The city bases the license fees established by this chapter upon the city’s power and authority to license all and every kind of business, commerce, occupation, trade and profession, and all other lawful activity, for both regulatory and revenue purposes. (Ord. 905 § 1, 1996: Ord. 863 § 2 (part), 1995)
5.04.015 Definitions.
For the purpose of this chapter and unless otherwise declared or clearly apparent from the context, the following definitions shall be applied:
A. “Business” shall include without limitation:
1. All activities, occupations, pursuits, sales, services or professions, engaged in or on premises located within the city with the object of gain, benefit, advantage or profit to the business enterprise or person or to another person or class, directly or indirectly, regardless where their permanent location of business is located;
2. The rental and/or leasing of commercial or industrial properties and the rental and/or leasing of residential dwelling units;
3. Business activities of nonresident businesses and specifically:
a. Sales or services that are solicited or performed by the physical presence of business representatives within the city;
b. General and specialty contractors who perform work in or on premises located within the city.
B. “Canvasser” means any person who goes from place to place or approaches individuals within the city seeking contributions or donations to private causes or tax exempt charities, or seeks opinions, preferences or other information for commercial purposes. “Canvassing” means to engage in such action.
C. “Finance director” means the finance director for the city or the director’s designee.
D. “Engage in” or “engaging in” means commencing, conducting or continuing in any business activity including soliciting business within the city or using either a business telephone number or business address within the city. It also includes 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.
E. “Home occupation” means any business activity conducted within a residential dwelling and carried on by the inhabitants thereof, which use is clearly incidental and secondary to the use of the dwelling purposes and does not change the character thereof.
F. “Nonresident business” means any business which is not occupying a fixed place of operation within the city.
G. “Peddler” means any person who goes from place to place or approaches individuals within the city carrying or transporting goods, wares or merchandise and offering or exposing the same for sale, or making sales and deliveries to purchasers. “Peddle” means to engage in such actions.
H. “Person” means any individual, partnership, corporation or other entity or group of persons however organized.
I. “Premises” is meant to include all lands, structures and places, and also any personal property which either is affixed to, or is used in connection with any such business conducted on such premises.
J. “Solicitor” means any person who goes from place to place or approaches individuals within the city attempting to take orders for any goods, wares or merchandise, including books, periodicals, magazines or personal property of any nature whatsoever for future deliveries. “Soliciting” means to engage in such actions.
K. “Special event” means an event such as the Mukilteo Festival or any other community event which is sponsored by or for the benefit of any bona fide charitable or nonprofit organization, including but not limited to religious, civic, benevolent, fraternal, social or youth organizations.
L. “Temporary business” means and includes the following businesses having a transitory nature or fixed duration and operating from a fixed location within the city for not more than sixty days within any calendar year:
1. Circuses, carnivals, rodeos, fairs or similarly transient amusement or recreational activities;
2. Christmas tree sales lots and flower stands;
3. Indoor or outdoor special sales, including swap meets, flea markets, parking lot sales, warehouse sales or similar activities;
4. Temporary stands for the sale of items such as food, toys, jewelry, goods, art, crafts and firewood.
M. “Employee” means any person who performs work, labor, or services for a business and is under that business’ control.
N. “Full-time employee” means any employee who works two thousand eighty hours per calendar year.
O. “Part-time employee” means any employee who works less than two thousand eighty hours per calendar year.
P. “Full-time equivalent (FTE)” means any full-time employee and/or any combination of part-time employees whose hours worked total the same number of hours worked by a full time employee, i.e., two thousand eighty hours per calendar year.
Q. “Residential dwelling unit (RDU)” has the same meaning as “dwelling unit” in the zoning title of this code, provided, that for purposes of this licensing chapter, extended family dwelling units and any other unit which is not rented or leased for profit shall not be considered a residential dwelling unit. (Ord. 1239 § 1 (part), 2010; Ord. 978 § 1, 1998; Ord. 905 §§ 2, 3, 1996; Ord. 863 § 2 (part), 1995)
5.04.020 License required.
It is unlawful for any person to conduct, operate, engage in or practice any business within the city without first obtaining and maintaining a valid business license issued under the provisions of this chapter.
A. If a business actively operates from more than one location in the city, a separate license shall be required for each location, provided however, warehouses, distributing plants and/or storage yards used in connection with and incidental to a business licensed under the provisions of this title shall not be deemed to be a separate place of business. Location of such warehouses, distributing plants and/or storage yards shall be provided to the finance director, and must comply with the provisions of all city codes.
B. If more than one separate business is conducted on a single premises within the city, a separate license shall be required for each business.
C. Neither the filing of an application for a license or the renewal thereof, nor payment of any application or renewal fee shall authorize a person to engage in or conduct a business until such license has been granted or renewed. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.030 Exemptions.
A. The following shall be required to submit a completed license application to the finance director to determine if they are exempt from the licensing requirements, but shall not be required to pay a license fee:
1. Business activities including canvassing activities engaged in by any bona fide charitable or nonprofit organization, including but not limited to religious, civic, benevolent, fraternal, social or youth organizations;
2. National banks, state banks, trust companies, mutual savings banks, and building and loan associations, with respect to their banking business, trust business, or saving and loan business;
3. Any farmer, gardener or other person who sells, delivers or peddles any fruit, vegetables, berries, butter, eggs, fish, milk, poultry or meats or any farm produce or edibles raised, caught, produced or manufactured by such person;
4. All honorably discharged veterans exempt from paying license fees as provided in RCW 73.04.050 and 73.04.060, as the same exist or may hereinafter be amended; or
5. Any business or activity which is exempt from payment of such license fees as prescribed by this title by virtue of applicable provisions of the federal or state constitution or statutes.
B. The following shall be exempt from the licensing provisions of this chapter:
1. Public utility companies or any instrumentality of the United States, state of Washington, or political subdivision thereof with respect to the exercise of governmental functions;
2. “Special events” as defined in Section 5.04.015, including any temporary merchant or vendor operating only during and within the geographical boundaries of such special events;
3. Garage sales conducted on residential premises for the sale of used household personal items by the owner thereof, for no more than three consecutive days and no more than twice annually, and which are operated in compliance with city code regulations as the same now exist or may hereafter be amended;
4. Newspaper carriers under the age of eighteen years or any other business or activity owned and operated by a person under the age of eighteen years;
5. Any nonresident business where the only event occurring within the city is the mere delivery of goods or merchandise sold at business premises located outside of the city;
6. Any nonresident business where the only event occurring within the city is the mere rental of a postal box located at a United States Postal Service facility within the city. Provided, however, that any person claiming such an exemption shall provide the finance director with a copy of a valid and current business license issued by the jurisdiction in which the business has a fixed location to qualify for said exemption. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.040 Finance director as license officer.
The finance director shall collect all license fees and shall issue licenses in the name of the city to all persons qualified under the provisions of this chapter and shall:
A. Adopt all forms and prescribe the information to be provided;
B. Investigate and determine the eligibility of any applicant for a license as prescribed herein;
C. Notify any applicant of the acceptance or rejection of the application;
D. Ensure that each license is numbered, and shows the business name, location, the name of the licensee authorized to conduct or engage in business and the expiration date of the license. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.050 License application.
A. Every person required to procure a license under the provisions of this chapter shall submit an application for such license to the finance director prior to the commencement of operation of business in the city. The application shall be made on forms provided by the officer, and may include the following information:
1. The nature of the business, its proposed address and telephone number;
2. The names, addresses and telephone numbers of all owners or officers of the business (or their registered agent);
3. If the business consists of the rental and/or leasing of residential dwelling units, the number of units rented and/or leased or to be rented and/or leased by the business in the city; if the business consists of any other activity licensed under this chapter, the number of full time equivalents employed or to be employed by the business in the city; and
4. Any other information required by the finance director or any other city official as may be deemed reasonably necessary to determine compliance with this chapter.
B. The application shall be signed by the person who intends to conduct, operate or engage in the business for which the license is to be issued.
1. If the applicant is a partnership, the application must be made and signed by one of the partners;
2. If the applicant is a corporation, the application must be signed by one of the officers thereof;
3. If the applicant is a foreign corporation, partnership or individual, the application must be signed by the registered agent or local manager of the corporation, partnership or individual.
C. If the applicant or the business applying for a license is regulated, licensed or certified by any other governmental agency or professional association, the application must include written evidence of good standing with the regulatory authority. In such cases the continuing validity of the city business license shall be conditioned upon compliance with the requirements of the regulatory authority.
D. The application for a license shall be accompanied by the full amount of the base annual license fee established for the business pursuant to Section 5.04.070, plus any late penalties, if applicable. (Ord. 1239 § 1 (part), 2010; Ord. 905 §§ 4, 5, 1996; Ord. 863 § 2 (part), 1995)
5.04.060 Procedure for issuance of license.
A. After receiving a completed application for a business license, the finance director shall forward a copy of the application to the planning, building, fire, police and any other appropriate departments which have the duty of enforcing city regulations and ordinances.
B. The departments shall review the completed application and obtain additional information from the applicant as needed, inspect the premises proposed to be operated when deemed necessary, and for all taxicab operators and daycare operators perform fingerprinting and background checks, and shall make written verification to the finance director that such application and premises comply with the codes of the city. No license may be issued without such verification.
C. An application for a business license shall be denied if:
1. It contains a material omission of fact, misrepresentation or fraud;
2. The applicant has been convicted of a felony and if the time elapsed since the felony is less than ten years and the felony for which the applicant was convicted directly relates to the specific business for which the license is sought;
3. The premises on or in which the business will be operated violates a building, zoning, fire or any other applicable laws of the city;
4. The business for which the license is sought will result in a danger to the public health, safety or welfare, or the violation of any federal, state or local law, ordinance or regulation; or
5. The applicant has had a similar license revoked by the city within a period of one year prior to the date of making application for a license hereunder; provided, that any applicant denied a license under the provisions of this chapter may reapply if and when the reasons for denial no longer exist.
6. The applicant for a taxicab operator license or a daycare operator license fails to pass the necessary background check and it is determined that it is not in the public interest to grant such a license.
D. After review and approval of the completed application by all of the appropriate departments, the finance director shall issue the applicable license or licenses authorized by this chapter.
E. The decision of the city regarding issuance or denial of an applicant’s initial business license shall be rendered within forty-five days of the date of filing of the completed application, unless an extension is requested by the applicant or the city for good cause.
F. When the city determines that there is cause for denial of any business license application, the finance director shall notify the applicant by certified mail, return receipt requested, of the city’s decision. Notice mailed to the address on file shall be deemed received three days after mailing. The notice shall specify the grounds for the denial. The applicant affected thereby shall have the right to appeal such action by filing a notice of appeal with the finance director as provided in Section 5.04.150. (Ord. 1239 § 1 (part), 2010; Ord. 1023 § 2, 2000; Ord. 863 § 2 (part), 1995)
5.04.070 License fees.
A. Except as otherwise provided pursuant to Section 5.04.030, every person engaging in business within the city and subject to this chapter shall pay a license fee for the privilege of engaging in such business. All businesses, regardless of type, including home occupations, shall pay an annual license fee as provided in the city’s most current fees and charges schedule.
B. The full-time equivalent portion of the license fees may be paid in a lump sum at the time of business license issuance or renewal or may, at the licensee’s option, be paid on a quarterly basis. If the licensee elects to pay the fee in a lump sum, the number of full-time equivalents to be used for the purposes of calculating the fee shall be established as of the time of license issuance or renewal. If the licensee elects to pay the fee on a quarterly basis, the number of full-time equivalents to be used for the purposes of calculating the fee shall be established as of the time the quarterly payment is due. Quarterly payments shall become due and payable on the last day of January, April, July and October of each year.
C. Payment of the full-time equivalent portion of the license fee required by this section shall be accompanied by such documentation as may be reasonably required by the finance director in order to verify the accuracy of the information provided regarding the number of full-time equivalents used to calculate the fee. The documentation may include, without limitation, any and all reports provided by an employer to the Department of Labor and Industries regarding the number of employees and employee hours worked, for businesses for which the fee is based upon full-time equivalents.
D. Payment made by draft or check shall not be deemed a payment of the fee unless and until the same has been honored in the usual course of business by the financial institution upon whom it is drawn, nor shall any acceptance of any such check or draft operate as an acquittance or discharge of the fee unless and until the check or draft is honored.
E. The finance director is authorized to promulgate, adopt and publicize any and all additional administrative regulations, forms and procedures which may be necessary in order to administer, enforce, and implement the provisions of this section with regard to collection of the license fee. (Ord. 1239 § 1 (part), 2010; Ord. 1236 § 1, 2009: Ord. 1012 § 1, 2000; Ord. 1004 § 1, 1999; Ord. 978 § 2, 1998; Ord. 905 § 6, 1996: Ord. 863 § 2 (part), 1995)
5.04.075 License fee exceptions.
Any business with annual gross income of five thousand dollars or less may qualify for a reduced fee as specified in the fee schedule. Such businesses shall provide the city with an affidavit at the beginning of each license year, confirming the income for the prior license year. A copy of the businesses’ Internal Revenue Service Schedule C, Profit or Loss from Business, or other applicable federal income tax forms shall be submitted as verification. If documentation is not available when business commences, the city will accept an affidavit and will require proper verification upon renewal of next business license. (Ord. 1239 § 2, 2010)
5.04.080 Term and renewal of license.
A. Initial business licenses issued pursuant to the provisions of this chapter shall be valid for a period of one year from the last day of the quarter in which the license is issued, unless provided otherwise herein. Quarters are specified as ending March 31st, June 30th, September 30th and December 31st.
B. In addition to the first full-year fee, the fee for an initial business license shall also include the prorated fee for the quarter, or portion thereof, during which the initial business license is issued.
C. Renewal licenses thereafter shall be for a period of one year and shall expire on the last day of the quarter in which the initial license was issued.
D. The finance director is authorized but not required to mail renewal application forms for licenses, but failure of the applicant to receive such forms shall not excuse the applicant from making application for and securing the license required by this chapter. (Ord. 1239 § 3, 2010: Ord. 863 § 2 (part), 1995)
5.04.090 Renewal license late penalty.
A. For any renewal license application received more than five business days after the expiration date as required in Section 5.04.080(C), a late penalty fee will be assessed in addition to the required license fee, as specified in the current fee schedule.
B. For any business license renewal outstanding greater than thirty days after the expiration date, an additional late penalty fee and warning will be issued in addition to the required license fee and accumulated late fees, as specified in the current fee schedule.
C. For any business license renewal outstanding greater than sixty days after the expiration date, a civil infraction may be issued as specified in Section 1.32.020(A) and in the current fee schedule. (Ord. 1239 § 4, 2010: Ord. 863 § 2 (part), 1995)
5.04.100 License posting and change of address.
A. Every license granted under this chapter shall be posted in a conspicuous location in the place of business of the licensee.
B. Licensee shall notify the finance director in writing of any change in location of a fixed place of business or mailing address within fifteen calendar days of such change. The finance director may require the licensee to complete a new business license application and submit same for review as outlined in Section 5.04.040.
C. Upon receipt of notification of address change and approval of a business license application, if required, a license for the new location will be issued free of charge. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.110 License transferability—Sale of business.
A. All licenses issued pursuant to this chapter are nontransferable.
B. Upon the sale or transfer of any business which is licensed pursuant to this chapter, the license issued to the prior owner shall automatically expire on the date of such sale or transfer and the new owner shall apply for and obtain a new business license prior to engaging in, conducting or operating the business. (Ord. 863 § 2 (part), 1995)
5.04.120 Canvassers, peddlers and solicitors.
A. No canvasser, peddler or solicitor shall engage in canvassing, peddling or solicitation activities between the hours of eight p.m. and nine a.m.
B. Business licenses or a certified copy thereof shall be carried at all times by each licensee and/or all of the licensee’s employees, agents or representatives for whom issued when peddling, soliciting or canvassing within the city and shall be displayed along with photo identification upon request by any prospective customer or law enforcement officer. (Ord. 863 § 2 (part), 1995)
5.04.130 Temporary businesses.
A. Any person who engages in temporary business activities within the city shall submit an application to the finance director for a business license at least ten business days prior to engaging in such activities. The application shall be made on forms provided by said officer, and may include the following:
1. The nature of the temporary business including the type of goods and/or services to be sold and the proposed location;
2. The applicant’s full name, birthdate, phone number and permanent residence or business address;
3. The names, addresses and telephone numbers of all owners or officers of the business (or their registered agent);
4. The anticipated dates and time of day in which the temporary business will be conducted;
5. A written rental or lease agreement with the legal owner of the premises upon which the business shall be located, if applicable;
6. Drawings and/or a detailed narrative description of any structures to be placed upon the premises in connection with the business; and
7. Any other information required by the finance director or any other city official as may be deemed reasonably necessary to determine compliance with this chapter.
B. Temporary business licenses issued pursuant to the provisions of this section shall be valid for thirty consecutive days at a fixed location and may be renewed by paying the applicable license fee and submitting a written request for the renewal to the finance director; provided, however, in no event shall a temporary business operate within the city for more than sixty days, whether consecutive or nonconsecutive, within any calendar year.
C. Any person granted a license under this section shall exhibit their license at the request of any prospective customer or law enforcement official. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.140 Suspension or revocation of license.
A. The finance director may suspend or revoke any business license when the licensee, licensee’s officers, employees or agents, do any of the following:
1. Knowingly causes, aids, abets or conspires with another to cause any person to violate any of the laws of this state, or the city which may affect the licensee’s business; or
2. Has obtained a license or permit by fraud, misrepresentation, concealment or through inadvertence or mistake; or
3. Has been convicted of a felony and if the time elapsed since the felony is less than ten years and the felony for which the licensee was convicted directly relates to the specific business for which the license was sought; or
4. Conducts business operations in an unlawful manner or in such a manner as to constitute a breach of the peace, or menace to the health, safety or general welfare of the public; or
5. Fails to pay any license fee established by this chapter when the same is due.
B. When the city determines that there is cause for suspending or revoking any license issued pursuant to this chapter, the finance director shall notify the person holding such license by certified mail, return receipt requested, of the city’s decision. Notice mailed to the address on file shall be deemed received three days after mailing. The notice shall specify the grounds for the suspension or revocation. The suspension or revocation shall become effective ten days from the date the notice is delivered or deemed received unless the person affected thereby files a written request with the director within such ten-day period for a hearing before the city council or to such other hearing body as may hereafter be established by the city council. (Ord. 1239 § 1 (part), 2010; Ord. 905 § 7, 1996; Ord. 863 § 2 (part), 1995)
5.04.150 Appeal and hearing.
A. Any person aggrieved by the action of the city in denying, refusing to renew, suspending or revoking any license under this chapter shall have the right to appeal such action to the city council or to such other hearing body as may hereafter be established by the city council for the hearing of such appeals, by filing a notice of appeal with the finance director within ten calendar days after receiving notice of the action from which the appeal is taken.
B. If the decision of the city is appealed, the action of the finance director shall be stayed unless continued operation of the business would cause imminent risk of harm to public health, safety or welfare.
C. Upon receipt of a notice of appeal, the finance director shall schedule a date for a public hearing of such appeal within thirty calendar days.
D. The city council shall hear testimony, take evidence, and may hear oral argument and receive written briefs.
E. The decision of the city council or other hearing body shall be final unless appealed, by the filing of an appropriate action to the Snohomish County superior court within ten calendar days of the date the decision is entered. Appellant shall pay the cost of reproduction of the record transcript.
F. In the event the applicant or licensee does not follow the procedures within the time periods set forth above, the license of the person shall be denied, suspended or revoked and that action shall be final. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.160 Mailing of notices.
Unless as herein otherwise provided, notices required by this chapter to be mailed to any person shall be sent by ordinary mail, addressed to the address of the applicant as shown by the records of the finance director, or if no such address is shown, to such address the finance director is able to ascertain by reasonable effort. Failure of the person to receive such mail notice shall not release the person from any fees or penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 1239 § 1 (part), 2010; Ord. 863 § 2 (part), 1995)
5.04.170 Violations.
A. Any person violating or failing to comply with any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof shall be punished as provided in Section 1.32.010 of the Mukilteo Municipal Code.
B. Nothing in this chapter limits the right of the city to pursue other lawful, criminal, civil or equitable remedies to abate, discontinue, correct or discourage unlawful acts under or in violation of this chapter. (Ord. 1250 § 1, 2010: Ord. 863 § 2 (part), 1995)