Chapter 5.04
BUSINESS LICENSES*
Sections:
5.04.040 Procedure for obtaining license.
5.04.050 Examinations of business premises.
5.04.055 Fire inspection certificates.
5.04.080 License—Compliance—Revocation.
5.04.090 License—Needed for defense.
5.04.100 Home occupation business.
5.04.420 Duties of the city clerk.
* Prior ordinance history: 373, 376, 391, 403, 509, 595, 598, 605, 865, 880, 948, 949, 950, 960, 966, 972 and 978.
5.04.010 Definitions.
The following terms when used in this chapter shall have the meanings designated below:
A. “Person” means all individuals, partnerships, domestic and foreign corporations, associations, syndicates, joint ventures, and societies transacting and carrying on any business in the city of Sedro-Woolley, Washington.
B. 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 (B)(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, consultants, 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 (B)(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.
6. Engaging in business does not include:
a. Vendors in a temporary bazaar or community fair, including mobile vendors, for which a master license has been given to the sponsor thereof.
b. Rental or lease of real property by an owner; provided, that the owner of any structure on real property shall obtain a fire inspection certificate for each property from the Sedro-Woolley fire department if required by this chapter; and provided, that any business on the property shall, if otherwise required by Section 5.40.030, obtain a business license. Rentals with added services, including but not limited to hotels, motels, storage facilities, and bed and breakfasts, shall obtain a business license.
c. Minors engaged in babysitting, newspaper delivery, lemonade stands, lawn mowing, and similar activities.
d. Farmers selling their own produce.
C. “Mobile vending” or “mobile vendors” means sales of services and/or merchandise including food that occurs at or in a mobile vehicle, cart, trailer or similar vehicle that can be moved from location to location, but not including, however, the following:
1. Mobile vending that occurs during and as a part of community events, which include Founders’ Day, Blast from the Past, Loggerodeo, 4th of July, Thanksgiving, City of Lights Festival, and such other events as the city council may from time to time designate.
2. Mobile vending on private property when invited by the property owner for the limited purpose of serving the business and employees of the business on private property (for example, the mobile food vendor being invited to serve a manufacturing company’s employees).
3. Mobile vending on public streets provided the following conditions are met: (a) the vehicle must be legally parked and cannot use more than a single designated parking space; (b) the vehicle or cart may not obstruct any street or sidewalk for the passage of other vehicles or pedestrians or result in noncompliance with the Americans with Disabilities Act as Amended (ADAAA); (c) the vehicle must not operate in a single location for more than ten minutes at a time. For purposes of this section, one location is defined as one city block (for example, the ice cream truck selling ice cream and frozen novelties from block to block).
4. “Open air vending,” which means the sales of services and/or merchandise including food that occurs at a table or other temporary location that is an integral extension of an already existing permanently sheltered business. Open air vending does not include garage sales.
5. Mobile vending which occurs as part of a special event as defined in Chapter 12.44.
D. The agent or agents of a nonresident proprietor engaged in a business for which a license is required by this chapter shall be liable for the payment of the fee thereon as herein provided and for the penalties for failure to pay the same or to comply with the provisions of this chapter to the extent and with like effect as if such agent or agents were themselves proprietors.
E. “Extension vending” means sales of services and/or merchandise including food that occurs at or in a mobile vehicle, cart, trailer or similar vehicle that can be moved from location to location but is licensed to vend in a single, fixed location that provides access for employees and customers to plumbed restroom facilities and tables and chairs.
F. “Director” means the finance director of the city of Sedro-Woolley. (Ord. 1904-18 §§ 1, 2, 2018; Ord. 1882-17 § 1, 2017; Ord. 1726-11 § 1, 2011; Ord. 1721-11 § 1 (part), 2011: Ord. 1422-02 § 1, 2002: Ord. 1192 § 1 (part), 1993)
5.04.020 Purposes.
A. To provide revenue for municipal planning, policing, and regulatory purposes and to provide revenue to pay for the necessary expense required to issue the license for and to regulate the businesses licensed.
B. The license fees levied by this chapter shall be independent and separate from any permit fees now or hereafter required of any person to engage in any business by any ordinance of the city, regulating any business herein required to be licensed, and all such businesses shall remain subject to the regulatory provisions of any such ordinances or ordinances now or hereinafter in effect, and the persons engaged in all such businesses shall be liable for the payment of any license fees for which provision has been made herein.
C. 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 to engage therein, in the event such business shall be unlawful, illegal, or prohibited by the ordinances of the city or the laws of the state or the United States. (Ord. 1721-11 § 1 (part), 2011: Ord. 1192 § 1 (part), 1993)
5.04.030 License fees.
A. No person shall engage in business in the city without first having applied for, paid for and obtained the license therefor for the current year, as provided herein, and without having first complied with any and all applicable provisions of this chapter.
B. Regulatory Business License. Each person engaged in the following businesses in the city shall pay an annual basic license fee as indicated below:
1. Businesses, clubs or societies selling or serving beer, wine and/or spirits, operating under license or authority of the Washington State Liquor and Cannabis Board, an annual license fee as listed in the master fee schedule adopted by resolution of the city council.
2. Pawnbrokers. An annual license fee as listed in the master fee schedule adopted by resolution of the city council and no person shall be issued a license to operate as a pawnbroker unless he or she possesses the following qualifications:
a. Is at least twenty-one years of age;
b. Is a resident of the state of Washington for at least six months prior to filing application;
c. Has not been convicted of any offense involving moral turpitude or intent to defraud or any property crime, within three years prior to the time of application.
i. When an application for a license to operate as a pawnbroker, duly signed and notarized, and accompanied by required information, has been received by the police chief, he shall investigate the statements contained therein and may obtain such other information concerning the applicant’s character, integrity, personal habits, past conduct and general suitability to maintain a pawnshop within the city.
ii. Each application for a pawnbroker’s license shall be accompanied by a complete set of fingerprints of the applicant, utilizing a fingerprint form provided by the city police department.
iii. All applications shall become null and void after sixty days from the date of filing if the application for any reason is denied or is not obtained by the applicant.
3. Mobile Vendors. An annual license fee as listed in the master fee schedule adopted by resolution of the city council and compliance with the following requirements:
a. Mobile vending is allowed on private property when invited by the property owner. If the mobile vendor serves food, it must not be located with one hundred feet of an existing restaurant without the restaurant owner’s consent; and
b. Mobile vending is allowed on public streets provided the following conditions are met: (i) the vehicle must be legally parked and cannot use more than a single designated parking space; (ii) the vehicle or cart may not obstruct any street or sidewalk for the passage of other vehicles or pedestrians or result in noncompliance with the Americans with Disabilities Act, as amended (ADA); (iii) the vehicle must not operate in a single location for more than ten minutes at a time. For purposes of this section, one location is defined as one city block; and
c. Nothing in this section shall relieve any person who is operating as a mobile vendor from compliance with all other requirements of the Sedro-Woolley Municipal Code, including, but not limited to, for example, zoning, sewer, and mandatory solid waste service requirements.
4. Taxicabs.
a. An annual license fee as listed in the master fee schedule adopted by resolution of the city council and no taxicab license or driver’s permit shall be issued to any person who:
i. Has been convicted of an offense of such a nature to indicate that he or she is unfit to hold a license or a permit;
ii. Is guilty of committing two or more offenses for which mandatory revocation of driver’s license is provided by law;
iii. Has been convicted of manslaughter resulting from the operation of a motor vehicle or convicted of negligent homicide;
iv. Is intemperate or addicted to the use of narcotics.
b. Any license or permit issued may be revoked if the holder is found guilty of the above-mentioned disabilities or physically or mentally unfit upon complaint of the police chief or a committee of the city council designated for that purpose by the council as a whole, at which hearing the holder or licensee may appear and be heard on his own behalf.
c. No person may be issued a taxicab license or driver’s permit within one year after his conviction in any local, state, or federal court or authority, of the violation of any ordinance or law pertaining to the sale or possession of alcoholic beverages, and any license or permit issued shall be revoked for one year upon the conviction of the holder of a violation of local, state, or federal ordinances, laws, or regulations pertaining to the sale or possession of alcoholic beverages.
d. The payment of such license fee shall permit the owner or operator to operate as many taxicabs under one license as he may desire.
e. Nothing herein contained shall prevent the operator of a taxicab licensed to operate in another city or town or within this or other county, from entering and leaving the city for picking up or depositing passengers in the usual course of business.
5. Extension Vendors. An annual license fee as listed in the master fee schedule adopted by resolution of the city council per location and compliance with the following requirements:
a. Extension vending is allowed only on private property when invited by the property owner; and
b. Nothing in this section shall relieve any person who is operating as an extension vendor from compliance with all other requirements of this code, including, but not limited to, for example, zoning, sewer, and mandatory solid waste service requirements.
6. Businesses growing, processing or selling marijuana operating under license or authority of the Washington State Liquor and Cannabis Board, an annual license fee as listed in the master fee schedule adopted by resolution of the city council.
C. General Business License. All persons engaged in business in the city not included in regulatory or nonprofit business license sections shall pay an annual basic license fee as listed in the master fee schedule adopted by resolution of the city council.
D. Nonprofit Business License. Businesses and organizations which have IRS 501(c)(3) nonprofit tax status, for activities within the scope of their IRS 501(c)(3) purpose, are exempted from any fees in this chapter; however, they are not exempted from registering with the city of Sedro-Woolley; provided, that:
1. The organization shall provide proof of IRS 501(c)(3) status;
2. The activity shall not include the sale of food, beverages, cigarettes or gambling; and
3. The owner of property used for this exempt purpose shall obtain a fire inspection certificate if required by this chapter.
E. The license required by this chapter shall have a term as established by the state of Washington BLS, in cooperation with the city.
F. Each branch establishment or separate location of a business conducted by any person shall, for the purpose thereof, be a separate business and subject to the license therefor provided for herein.
G. If any person be engaged in operating or carrying on in the city more than one business, then such person shall pay the license herein prescribed for as many of said businesses as are carried on by such person.
H. A change of physical location of a business inside the city will require approval by the city before business may commence at the new location, and may require the filing of a new master business application. (Ord. 2023-22 § 1, 2022; Ord. 2013-22 § 10, 2022; Ord. 1904-18 § 4, 2018: Ord. 1882-17 § 2, 2017; Ord. 1721-11 § 1 (part), 2011: Ord. 1422-02 § 2, 2002: Ord. 1408-01 § 1, 2001: Ord. 1192 § 1 (part), 1993)
5.04.035 Fee exemption.
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 city is equal to or less than two thousand dollars and who does not maintain a place of business within the city, shall submit a business license registration to the director or designee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 1904-18 § 3, 2018)
5.04.040 Procedure for obtaining license.
A. All licenses shall be issued and renewed by the State of Washington Department of Revenue Business Licensing Service (BLS). Building and fire inspections and approvals must be issued before an initial business license is issued. All licenses and permits are subject to revocation at any time by the council for cause.
B. Application for the business license shall be made by submitting a completed master business application, and any appropriate addenda forms to the BLS, in cooperation with the city. Said application shall be accompanied by payment of all respective license fees due for that application and the BLS application handling fee.
C. No license issued to do business within the limits of the city shall be transferable. Only the individuals to whom the license is issued shall be eligible to operate on that license.
D. All persons operating on or doing business under license issued by the Business Licensing Service shall, at all times, keep such license either on their person or properly displayed while so operating within the city limits.
E. Issuance of a business license shall not relieve the applicant from the need to comply with all other applicable city ordinances. (Ord. 1721-11 § 1 (part), 2011: Ord. 1192 § 1 (part), 1993)
5.04.050 Examinations of business premises.
City officials shall have the authority to investigate and examine all places of business licensed or subject to license under this chapter at any reasonable time for the purpose of determining whether such place of business is complying with the provisions of this chapter. (Ord. 1721-11 § 1 (part), 2011: Ord. 1192 § 1 (part), 1993)
5.04.055 Fire inspection certificates.
A. The owner of nonresidential, commercial, industrial, or multifamily residential structures on real property shall obtain a fire inspection certificate for each property from the Sedro-Woolley fire department.
B. For purposes of this chapter, multifamily residential rental property shall be defined as a building containing three or more dwelling units or a single dwelling unit in a building used primarily for nonresidential purposes. Hotel, motel, and “bed and breakfast” facilities shall be considered commercial facilities.
C. The owner of the real property shall be primarily responsible for obtaining the fire inspection certificate; however, the tenant or lessee may obtain the fire inspection certificate for the owner, as the owner’s agent. (Ord. 1721-11 § 1 (part), 2011: Ord. 1422-02 § 3, 2002)
5.04.060 Penalties.
A. Failure to renew the license on or before the expiration date established by the Business Licensing Service may result in the charge of a delinquent renewal penalty or the cancellation of the license. If a license is cancelled, filing of a new master business application, payment of all appropriate fees and reapproval by the city may be required in order to continue conducting business in the city.
B. Nothing herein contained shall be taken or construed as vesting any right in any license as a contract obligation on the part of the city as to the amount of the fee hereunder. Other or additional taxes or fees and the fees herein provided for may be increased or decreased and additional or other fees provided for and levied in any and all instances at any time by the city.
C. The conviction of any person for violation of any of the provisions of this chapter shall not operate to relieve such person from paying any fee or penalty thereupon for which such person shall be liable, nor shall the payment of any such fee be a bar to or prevent prosecution in the city court of any complaint for the violation of any of the provisions of this chapter.
D. All persons, firms and corporations who perform labor, services and construction within the city (as provided in Rule II, WAC 458-20-145), shall report the city “Location Code Number 2908” on their sales/excise tax returns to the state of Washington Department of Revenue. On any violation hereof, the amount of local sales and use taxes due the city shall be paid to the city by the violator, together with a penalty of one hundred percent in addition to all other penalties, fines and remedies provided in this chapter. (Ord. 1721-11 § 1 (part), 2011: Ord. 1670-10 § 2, 2010; Ord. 1192 § 1 (part), 1993)
5.04.070 Additional remedies.
A. In addition to the penalties provided in this chapter and as separate and distinct remedies, the city may sue in any court of competent jurisdiction to obtain a judgment and enforce collection thereof by execution for any license fee or tax due under this chapter.
B. The city may seek an injunction prohibiting a person from engaging in any unlicensed business.
C. In any action or suit authorized by this section, the city, if it prevails, shall recover a reasonable attorney’s fee to be set by the court, in addition to its costs and disbursements. (Ord. 1721-11 § 1 (part), 2011: Ord. 1192 § 1 (part), 1993)
5.04.080 License—Compliance—Revocation.
Every license shall be taken and held subject to all of the ordinances and police regulations of the city existing at the time of the issuance thereof, and also subject to revocation by the city council at their discretion at any time upon refunding the price paid, proportionately for the unexpired term of such license; and upon conviction of any license for the violation of any ordinance regulating the licensed business, the city council shall have power to revoke the license without notice and without repayment of the unearned portion of the license fee, whereupon the license shall be forfeited. The conditions contained in this section shall constitute a part of each license issued by the city. (Ord. 1721-11 § 1 (part), 2011: Ord. 1192 § 1 (part), 1993)
5.04.090 License—Needed for defense.
Upon the trial of any action brought for the violation of any license ordinance of the city, the defendant shall be deemed not to have procured or have in force the required license unless he produces such license in court and proves that the same has been properly issued and the fee therefor paid, and in any such action the fact that the defendant has represented himself as engaging in any business or calling for which a license is required shall be conclusive evidence of the liability of the defendant to pay for such license and procure the issuance thereof. (Ord. 1721-11 § 1 (part), 2011: Ord. 1192 § 1 (part), 1993)
5.04.100 Home occupation business.
A business owner intending to conduct business from a residence located within the city must provide proof of residency within the city and obtain approval per Chapter 17.68. The proof of residency and home occupation permit application must be filed directly with the city separate from the master business application submitted to the Business Licensing Service, and must be received and approved by the city before the business license application can be approved. (Ord. 1721-11 § 1 (part), 2011)
5.04.320 Public utilities.
Repealed by Ord. 1721-11. (Ord. 1192 § 1 (part), 1993)
5.04.330 Unpaid license fee.
Any license fee or tax which shall become due and owing to the city, whether imposed by this chapter or any other license ordinance, shall constitute and remain an indebtedness due and owing to the city until paid and the same may be collected in any civil action. (Ord. 1192 § 1 (part), 1993)
5.04.360 Exemptions.
Any person paying a business and occupation tax to the city under the terms of Ordinance No. 382, or under the terms of future ordinances of the city shall be exempt from the payment of any license or tax under this chapter during the year or years covered by such other ordinances. (Ord. 1192 § 1 (part), 1993)
5.04.380 Publishers.
Publishers of newspapers, periodicals or any other publications, may, in lieu of procuring any license provided for in this chapter, pay to the city a sum of money equal in amount of the appropriate license fee set forth in Section 5.04.030, and upon payment thereof, shall be exempt from the requirements of this chapter, such exemption to apply for one calendar year, and to be renewable from year to year upon additional payment of the sum. (Ord. 1367-00 § 1, 2000: Ord. 1192 § 1 (part), 1993)
5.04.420 Duties of the city clerk.
The city clerk shall keep full and accurate records of all funds received under the provisions of this chapter. Upon receipt of any license fee or penalties collected under the provisions of this chapter, he shall deposit the same with the city treasurer to the credit of the current expense fund.
It shall be the duty of the city clerk to require all parties engaging in any business activity to procure such license, and should there be any license fee not paid by any person, it shall be the duty of the city clerk to enforce collection thereof in the manner provided in this chapter. (Ord. 1192 § 1 (part), 1993)