CHAPTER 5
BUSINESS LICENSES

SECTION:

5-5-1:    Exercise Of Revenue License Power

5-5-2:    Definitions

5-5-3:    General Business License

5-5-4:    Special Endorsement And Special Occupation Licenses Required (Rep. by Ord. 4638)

5-5-5:    Requirements For Business License Applications Within An Aquifer Protection Area

5-5-6:    Confidentiality Of Information

5-5-1 EXERCISE OF REVENUE LICENSE POWER:

The provisions of this Chapter shall be deemed an exercise of the power of the City to license for revenue. The provisions of this Chapter prescribing license fees shall be strictly construed in favor of the applicability of the license fee.

5-5-2 DEFINITIONS:

Words are to be given their usual meaning. When not inconsistent with the context, words in the singular number shall include the plural, and the plural shall include the singular, and words in one gender shall include all other genders. The word “shall” is always mandatory and not merely directory. In construing the provisions of this Title, except when otherwise declared or clearly apparent from the context, the following definitions shall be applied:

BUSINESS: All activities, occupations, trades, pursuits, professions and matters located or engaged in within the City or anywhere else within the City’s jurisdiction with the object of gain, benefit, advantage or profit to the business enterprise or to another person, directly or indirectly.

BUSINESS ENTERPRISE: Each location at which a person engages in business within the City of Renton.

BUSINESS LOCATED OUTSIDE THE CITY: A business enterprise with a permanent location outside the City, but with no permanent location within the City.

CITY: The City of Renton.

EMPLOYEE: Any person employed at any business enterprise who performs any part of his duties within the City, except casual laborers not employed in the usual course of business. A sole proprietor is not an “employee”. All officers, agents, dealers, franchisees, etc., of a corporation or business trust, and all but one partner of a partnership (except limited partners), are “employees” within this definition.

ENGAGING or ENGAGE IN BUSINESS: Commencing, conducting or continuing in any business.

FULL-TIME EMPLOYEE: An employee working more than one thousand six hundred (1,600) hours per annum, including legal holidays and vacation time, during the twelve (12) month period upon which the license fee is computed.

PART-TIME EMPLOYEE: An employee working less than one thousand six hundred (1,600) hours per annum, including legal holidays and vacation time, during the twelve (12) month period upon which the license fee is computed.

PERSON: An individual natural person, a sole proprietor, partnership, corporation or a person acting in a fiduciary capacity.

PROFESSIONAL or SEMI-PROFESSIONAL: Those persons who are primarily engaged in the business of rendering any type of service including, but not limited to, the following: doctor of medicine; other healing art or science; dentist or dental technician; attorney at law; licensed or registered engineer; surveyor; certified or licensed public accountant; bookkeeper; tax or business consulting service; real estate broker or agency; insurance broker, agent or representative and other brokerage businesses; funeral director or mortuary; optometrist; architect or designer; optician; ophthalmologist; pharmacist; operator, manager or any other business enterprise conducting any state or national bank, building and loan association, savings and loan association, and any other financial institution rendering a special or multiple type of professional or semi-professional service to the general public; specialized private training schools in aviation, salesmanship and music when conducted in a separate place of business and having an average of twenty (20) or more students per week; or other specialized training schools teaching or instructing in special skills or trades; or any other similar activity conducted by, supervised or operated by a business enterprise which offers to members of the public the business of rendering any type of service.

QUARTERLY PERIOD: Each three (3) month period of the calendar year: January 1 through March 31, April 1 through June 30, July 1 through September 30 and October 1 through December 31 of each year.

REPORTING PERIOD: The full previous twelve (12) months, starting from the first day of the quarter within which the anniversary date of application for City of Renton business license falls. (Ord. 5166, 11-21-05)

TEMPORARY or PORTABLE SALES: A business enterprise with no permanent location either within or outside of the City, but which engages in business within the City.

5-5-3 GENERAL BUSINESS LICENSE:

A.    General Business License Required: Every business enterprise, including those with a temporary or portable sales location, shall first obtain, from the Fiscal Services Division, a general business license for the current calendar year or unexpired portion thereof. The license shall be nontransferable.

B.    Issuance of License:

1.    All general business licenses shall be issued by the Finance and Information Technology Administrator. The Finance and Information Technology Administrator shall keep a register thereof. Each license shall be numbered, and shall show the name, place and character of business and such other information as the Finance Administrator shall deem necessary. (Ord. 5547, 8-9-10)

2.    The license shall at all times be posted in the place of business for which it is issued, or in the case of a business enterprise with a temporary or portable sales location, be carried on the person of the holder thereof at all times during business hours or while such business is being carried on, and shall be displayed at the request of any interested person.

3.    When the place of business of a business enterprise is changed, the business enterprise shall return the license to the Finance and Information Technology Administrator and a new license shall be issued for the new place of business free of charge. No business enterprise holding a license shall allow any other business enterprise, for whom a separate license is required, to operate under or to display its license. (Ord. 3773, 12-19-83, eff. 1-1-84; Ord. 5547, 8-9-10)

C.    License Fee: The general business license fee shall be determined by the number of employees in the City of Renton during the reporting period as follows:

1.    New License Application Fees: The new license fee shall be calculated by estimating the number of hours to be worked during the upcoming year and then multiplying that figure by $0.029 per hour. For those businesses relocating to Renton and anticipating an equivalent number of employee hours in the upcoming year, the fee may be based on the prior year’s hours.

2.    There shall be a minimum fee for any annual license of fifty five dollars ($55.00).

3.    Renewal Fees: The annual license renewal fee shall be calculated by multiplying the number of hours worked during the reporting period and then multiplying that figure by $0.029 per hour. This figure will be approximately fifty five dollars ($55.00) per full time equivalent employee per calendar year when based upon one thousand nine hundred twenty (1,920) hours of employment per calendar year. The annual license renewal fee may also be calculated by multiplying the number of full-time equivalent employees reported by fifty five dollars ($55.00).

4.    At any time during the year that it appears that the number of employees has been under-reported, an additional license fee shall be due. Additional license fees are calculated using the method shown in subsection C1 of this section and based on the net difference between estimated fees paid at the time of new license application and the fees for hours actually worked. Such additional license fee shall be paid to the City at the time of annual renewal.

5.    If, at any time, it appears that the number of employees for the year has been under-reported by twenty percent (20%) or more, there shall be a penalty applied to any additional fee owed, equal to twenty percent (20%) per annum of the additional fee, plus any accounting, legal or administrative expense incurred by the City in determining the under-reporting, the amount of the under-reporting or in collecting the tax and any penalty.

6.    Each business license holder may be required, by the Finance and Information Technology Administrator or his/her designee, to file with the City of Renton, copies of its quarterly reports to the State Department of Labor and Industries reporting employee hours worked. The businesses that did not file the report may be required to file an affidavit with the City reporting hours worked or the equivalent number of employees. (Ord. 5547, 8-9-10)

7.    Due Dates: Business license fees are due one month following the last day of the reporting period. (Ord. 5402, 7-21-08)

8.    Reporting Periods: Business license fees are calculated for the reporting period. The Finance and Information Technology Administrator may set quarterly payment schedules and due dates for business license fees on an exceptional basis. (Ord. 5547, 8-9-10)

Reporting periods are as follows:

Reporting Period 1: Anniversary date of the business’s original application for a City business license falls within January 1st through March 31st.

Reporting Period 2: Anniversary date of the business’s original application for a City business license falls within April 1st through June 30th.

Reporting Period 3: Anniversary date of the business’s original application for a City business license falls within July 1st through September 30th.

Reporting Period 4: Anniversary date of the business’s original application for a City business license falls within October 1st through December 31st.

9.    Expiration: Unless otherwise established by the Finance and Information Technology Administrator, a business license shall expire on the last day of the month following its reporting period. (Ord. 5402, 7-21-08; Ord. 5547, 8-9-10)

10.    Location of Business and Employees:

a.    Presumption: For purposes of this section, any business operating within the City limits of the City of Renton shall be deemed to have all of its employees working within the City limits of the City of Renton.

b.    Working Outside City: For any employees whose nominal place of business is within the City limits of the City of Renton, all hours will be presumed to be worked within the City and subject to this fee. Any employee regularly reporting to work within the City limits shall have all of that employee’s time subject to this fee, even if portions of the employee’s time are spent outside the City of Renton (for example, a realtor or outside salesperson). For an employee normally employed within the City of Renton who, for extended periods of time, reports to work outside the City of Renton, for example, a contractor’s employees reporting directly to job sites, then the employer may by affidavit report the number of hours actually worked within the City or the percentage of time within the City based upon one thousand nine hundred twenty (1,920) hours annually and pay the annual license fee based upon those figures.

c.    Short Term Employment Within City: A temporary ninety (90) day license may be purchased for twenty five dollars ($25.00) per FTE. The expiration date of the license shall be ninety (90) days from date of issuance. The temporary business license may only be purchased by businesses with 50 or fewer FTE. The license may be renewed at the same fee of twenty five dollars ($25.00) per FTE for successive ninety (90) day periods. Renewal forms will not be sent to short term business licensees. Renewals must be at the request of licensee. All late fees and penalties apply.

11.    Any payment not made before one month following the due date as defined herein shall be cause for the automatic revocation of the business license. (Ord. 5402, 7-21-08; Ord. 4335, 12-16-91; Ord. 4105, 12-21-87)

D.    Renewal Notice: The Finance and Information Technology Administrator is authorized, but not required, to mail to business enterprises forms for application for licenses, but failure of the business enterprise to receive any such form shall not excuse the business enterprise from making application for and securing the license required and payment of the license fee when and as due hereunder. (Ord. 5547, 8-9-10)

E.    Time Within Which to Claim Overpayment of License Fee: Whenever a business enterprise makes an overpayment, and, within two (2) years after date of such overpayment, makes application for a refund or credit of the overpayment, its claim shall be allowed and be repaid from the general fund or be applied as a credit to annual renewal fees as approved by the Finance and Information Technology Administrator. (Ord. 5547, 8-9-10)

F.    Penalties:

1.    There shall be a penalty of not less than twenty dollars ($20.00) to reinstate any license revoked through nonpayment.

2.    There shall further be a penalty of not less than fifty dollars ($50.00) for failure to obtain a business license, plus payment of all license fee amounts still owing for the last three (3) years, plus a penalty of twenty percent (20%) per annum for all amounts owing, plus any accounting, legal or administrative expenses incurred by the City in determining the nonreporting, or the unpaid portion over the last three (3) years or in collecting the tax and/or the penalty.

3.    Monetary Penalty: Failure to pay the license fee within one day after the day on which it is due and payable pursuant to subsection C7 of this section shall render the business enterprise subject to a penalty of five percent (5%) of the amount of the license fee for the first month of the delinquency and an additional penalty of five percent (5%) for each succeeding month of delinquency, but not exceeding a total penalty of twenty five percent (25%) of the amount of such license fee. (Ord. 5402, 7-21-08)

4.    Collection: Any license fee or tax due and unpaid and delinquent under this Chapter, and all penalties thereon may be collected by civil action, which remedy shall be in addition to any and all other existing remedies and penalties.

5.    Revocation of License: The Finance and Information Technology Administrator may revoke any license issued pursuant to this Chapter to any business enterprise or other person who is in default in any payment of any license fee hereunder, or who shall fail to comply with any of the provisions of this Chapter. Notice of such revocation shall be mailed to the license holder by the Finance and Information Technology Administrator, and on and after the date thereof any such business enterprise who continues to engage in business shall be deemed to be operating without a license and shall be subject to any and all penalties herein provided. (Ord. 3773, 12-19-83, eff. 1-1-84; Ord. 5547, 8-9-10)

6.    Infraction: It shall be illegal for any business enterprise to fail to obtain or maintain a business license and yet conduct business within the City limits of the City. Such failure to obtain or maintain a business license is hereby declared to be a public nuisance, and the business owner shall be guilty of a civil infraction, and subject to the penalties of RMC 1-3-2.

7.    Order to Close Business and Appeal: Any Renton police officer or any designee of the Finance and Information Technology Administrator may serve a notice ordering a business to close and discontinue operation of any business in the City which has failed to obtain or maintain a business license. That notice may be served in person or by certified mail, return receipt requested. The notice shall indicate that the business is ordered to close until it obtains a currently valid business license. The notice shall also state that the business owner or operator shall have the right to appeal the notice to the Finance and Information Technology Administrator or his/her designee by serving a written notice of appeal on the Finance and Information Technology Administrator or his/her designee within ten (10) calendar days of receipt of a served notice of closure, or within thirteen (13) days of mailing of a mailed notice of closure. The written notice of appeal shall state the reasons why the closed business need not obtain a business license or proof that the business has a business license. The Finance and Information Technology Administrator or the Administrator’s designee shall then determine whether or not the business is exempt from the City’s licensing requirement or has a currently valid business license. If the Finance and Information Technology Administrator or the Administrator’s designee cannot make these findings, then there shall be an order entered affirming the order to close the business. Any appeal decision shall be reduced to writing and a copy provided to the appellant either in person or by mail. Any further appeal of the appeal decision shall be by writ of certiorari to the King County Superior Court made within twenty (20) days of the appeal decision. (Ord. 5547, 8-9-10)

8.    Prior to issuing a license all back fees and penalties must be paid. (Ord. 4333, 11-25-91; Ord. 4351, 5-4-92; amd. Ord. 4723, 5-11-98)

G.    General Business License Application; Public Record:

1.    General business license applications made to the Finance and Information Technology Administrator pursuant to this Chapter shall be public information subject to inspection by all persons except to the extent those records may be deemed to be private or would result in unfair competitive disadvantage to the business enterprise if disclosed as more particularly defined in Chapter 42.17 RCW. (Ord. 5547, 8-9-10)

2.    It shall be unlawful and a misdemeanor punishable under RMC 1-3-1 for any business enterprise which is required to maintain a general business license to make any false or fraudulent application or false statement or representation in, or in connection with, any such application.

H.    Rules And Rulings:

1.    The Finance and Information Technology Administrator shall have the power and it shall be his duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this Chapter or with the law for the purpose of carrying out the provisions hereof, and it shall be unlawful for any business enterprise to violate or fail to comply with any such rules or regulations. (Ord. 5547, 8-9-10)

2.    Any business enterprise aggrieved by the amount of the fee or tax found by the Finance and Information Technology Administrator to be required under the provisions of this Chapter may appeal to the City Council from such finding by filing a written notice of appeal with the Finance and Information Technology Administrator within five (5) days from the time such business enterprise was given notice of such amount and paying an appeal fee of $75.00. The City Council shall, as soon as practicable, fix a time and place for the hearing of such appeal. The Council shall cause a notice of the time and place thereof to be mailed to the appellant. At the hearing the business enterprise shall be entitled to be heard and to introduce evidence in its own behalf. The City Council shall thereupon ascertain the correct amount of the fee or tax. The Finance and Information Technology Administrator shall immediately notify the appellant thereof by mail, which amount must be paid within three (3) days after the notice is given. The Mayor, the President of the Council, or the chairman of any committee thereof before which the appeal is to be heard may, by subpoena, require the attendance of any person and may also require him or her to produce any pertinent books and records. Any person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the chairman in charge of the hearing on appeal as to any matter required of him pertinent to the appeal, and it shall be unlawful and a misdemeanor punishable under RMC 1-3-1, for him or her to fail or refuse so to do. (Ord. 5547, 8-9-10)

I.    Exemptions: The provisions of this Chapter shall not apply to:

1.    Any business enterprise, firm or corporation which the City is forbidden to tax by law;

2.    Translators, expert witnesses, and court reporters who have a business license in another jurisdiction and who have a business located outside the City when their services are used in an ongoing judicial proceeding; or

3.    Attorneys who have a business license in another jurisdiction and who have a business located outside the City:

a.    When they are representing a client who is doing business with or seeking a permit from the City;

b.    When their services are used by a defendant in Renton Municipal Court or by a party in an administrative hearing;

c.    When their services are used as a judge pro-tempore in Renton Municipal Court; or

d.    When their services involve representation of a client and their presence in the City is limited to participation in a meeting, negotiation, arbitration, deposition or witness interview that is related to an ongoing or anticipated legal matter. (Ord. 5021, 10-20-03; Ord. 5166, 11-21-05)

5-5-4 SPECIAL ENDORSEMENT AND SPECIAL OCCUPATION LICENSES REQUIRED:

(Rep. by Ord. 4638, 10-14-96)

5-5-5 REQUIREMENTS FOR BUSINESS LICENSE APPLICATIONS WITHIN AN AQUIFER PROTECTION AREA:

All applications for business licenses within a designated Aquifer Protection Area (Zones 1 and 2) shall include a hazardous materials inventory statement as defined in RMC 4-11-080, Definitions H, if hazardous materials, also defined in RMC 4-11-080, Definitions H, will be stored, handled, treated, used, or produced on site. The Water Utility shall review the hazardous materials inventory statement prior to issuance of the business license. An aquifer protection area operating permit shall be obtained by the applicant prior to issuance of the business license if more than the de minimus amount of hazardous materials as defined in RMC 4-3-050.C.6.a(ii)(1), Activities Exempt From Specified Aquifer Protection Area Requirements, will be present on site. A business that is required to obtain an operating permit and operates without one shall be in violation of RMC 4-3-050.C.1 and 2, Applicability and Permit Required. (Ord. 4367, 9-14-92; amd. Ord. 4740, 9-14-98; Ord. 4851, 8-7-00)

5-5-6 CONFIDENTIALITY OF INFORMATION:

The current provisions of RCW 82.32.330 and subsequent amendments are hereby adopted by reference as if fully set forth herein. (Ord. 4378, 11-16-92)