Chapter 5.01
BUSINESS LICENSES

Sections:

5.01.005    Definitions.

5.01.006    Engaging in business.

5.01.010    License required.

5.01.015    Exemptions.

5.01.020    Applications.

5.01.025    Issuance of license.

5.01.030    Forms.

5.01.040    Signatures.

5.01.050    Investigations.

5.01.060    Termination and renewal.

5.01.070    Building and premises.

5.01.080    Inspections.

5.01.090    Suspension or revocation.

5.01.100    Posting license.

5.01.110    Clean-up requirements.

5.01.120    Business license fees.

5.01.130    Master license.

5.01.005 Definitions.

A. “Business” means all vocations, occupations, professions, and activities which are conducted for private profit, directly or indirectly, and, for the purpose of this chapter, the leasing or renting of any residential unit (apartment, house, or other dwelling) shall be considered to be a business.

B. “Business Licensing Service” or “BLS” both mean the program provided by the Washington State Department of Revenue through which the city’s general business licensing is administered. (Ord. 2019-01 § 1, 2019; Ord. 2004-5 § 1, 2004).

5.01.006 Engaging in business.

A. 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.

B. 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 A 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.

C. 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:

1. 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.

2. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.

3. Soliciting sales.

4. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.

5. 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.

6. Installing, constructing, or supervising installation or construction of real or tangible personal property.

7. Soliciting, negotiating, or approving franchise, license, or other similar agreements.

8. Collecting current or delinquent accounts.

9. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.

10. 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.

11. 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.

12. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.

13. 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.

14. Investigating, resolving, or otherwise assisting in resolving customer complaints.

15. 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.

16. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.

D. 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:

1. Meeting with suppliers of goods and services as a customer.

2. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.

3. 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 directors member or attendee engaging in business such as a member of a board of directors who attends a board meeting.

4. Renting tangible or intangible property as a customer when the property is not used in the city.

5. 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.

6. Conducting advertising through the mail.

7. Soliciting sales by the phone from a location outside the city.

E. 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 D 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. (Ord. 2018-04 § 1, 2018).

5.01.010 License required.

All businesses are required to be licensed. No person shall engage in business within the city without a license issued from or approved by the city clerk, or his/her designee. (Ord. 2019-01 § 2, 2019; Ord. 2018-04 § 2, 2018; Ord. 2004-5 § 1, 2004).

5.01.015 Exemptions.

For purposes of the license required by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 and who does not maintain a place of business within the city shall submit a business license registration to the director or designee but is exempt from the business license fee. The fee for such business license registrations shall be $0.00. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 2018-04 § 3, 2018).

5.01.020 Applications.

Applications for the general business license must be submitted to the Business Licensing Service on a business license application form, or via an online application. Application for all other licenses issued directly by the city clerk shall be submitted to the city clerk on the form provided. (Ord. 2019-01 § 3, 2019; Ord. 2004-5 § 1, 2004).

5.01.025 Issuance of license.

The city clerk shall issue or approve said licenses within 10 business days after the submittal of the application to the city clerk, or after receipt by the city clerk of the application information from the Business Licensing Service, or shall notify the applicant in writing why a license may not be issued. (Ord. 2019-01 § 4, 2019; Ord. 2004-5 § 1, 2004).

5.01.030 Forms.

Forms for all licenses issued directly by the city clerk, and not by the Business Licensing Service, and applications therefor shall be prepared and kept on file by the city clerk. (Ord. 2019-01 § 5, 2019; Ord. 2004-5 § 1, 2004).

5.01.040 Signatures.

Each license issued directly by the city clerk and not by the Business Licensing Service shall bear the signature of the city clerk. (Ord. 2019-01 § 6, 2019; Ord. 2004-5 § 1, 2004).

5.01.050 Investigations.

Within 48 hours of the time of the receipt of an application for a license where ordinances of the city necessitate an inspection or investigation before the issuance of such license, the city clerk shall refer such application to the proper city department(s) for making such investigation. The person charged with the duty of making the investigation shall make a report thereon, favorable or otherwise, within seven business days after receiving the application or a copy thereof. (Ord. 2004-5 § 1, 2004).

5.01.060 Termination and renewal.

A. All licenses issued through the Business Licensing Service (BLS) expire on the date established by BLS and must be renewed through BLS on or before that expiration date. Failure to renew by the expiration date will incur the late renewal fee authorized by RCW 19.02.085. Failure to renew the license within 120 days after expiration will result in the cancellation of the license and may require a new application for licensure as provided in this chapter in order to continue conducting business in the city.

B. Licenses issued directly through the city clerk shall terminate on the thirty-first day of December of each year and be renewed on the first day of January of each year, except that licenses for residential rental units shall be required commencing March 1st and shall terminate on the last day of February of each year and be renewed on the first day of March of each year.

The city clerk shall mail to licensees of the city holding a license issued directly by the city clerk a notice of expiration of such license held by the licensee at least 30 days prior to the date of such expiration; provided, that a failure to send out such notice, or the failure of the licensee to receive it, shall not excuse the licensee from a failure to obtain a new license, or a renewal thereof, nor shall it be a defense in an action for operation without a license. (Ord. 2019-01 § 7, 2019; Ord. 2004-5 § 1, 2004).

5.01.070 Building and premises.

The premises and building where the business is to be conducted must be in substantial compliance with the requirements of the city ordinances, including but not limited to the zoning ordinance, fire code, building code, plumbing code, electrical code, and other applicable ordinances or regulations. The city clerk may require an applicant to submit to an inspection of the premises before issuing or approving a license. (Ord. 2020-04 § 1, 2020; Ord. 2019-01 § 8, 2019; Ord. 2004-5 § 1, 2004).

5.01.080 Inspections.

Whenever inspections of the premises used for or in connection with the operation of a licensed business are provided for or required by ordinance, or are reasonably necessary to secure compliance with any ordinance provision or to detect violations thereof, it shall be the duty of the licensee, or the person in charge of the premises to be inspected, to admit thereto, for the purpose of making the inspection, any officer or employee of the city who is authorized or directed to make such inspection at any reasonable time that admission is requested. (Ord. 2004-5 § 1, 2004).

5.01.090 Suspension or revocation.

A. Suspension or Revocation. Any license may be suspended or revoked at any time during the term of such license for any violation by the licensee of any of the provisions of the Toppenish Municipal Code related to the license, the subject matter of the license, or to the premises occupied; such suspension or revocation may be in addition to any fine imposed. Reasons for suspension or revocation include, but are not limited to, any one or more of the following reasons, when determined to exist after investigation by city staff.

B. Reasons for Suspension. Any business license may be suspended when, after investigation by city staff, any one or more of the following reasons are determined to exist:

1. Failure to comply with any of the terms and conditions on which a license or permit is issued;

2. The licensee or any of its employees, officers or agents, while acting within the scope of their employment, violates or fails to comply with any federal, state, or local law or regulation, including but not limited to any provision of the Toppenish Municipal Code, and including but not limited to the commission or acquiescence or permitting of any unlawful activity on the business premises. Conviction or plea of guilty in the Toppenish municipal court or any court of record shall be deemed conclusive as to whether such a violation or failure to comply has occurred;

3. When reasonably necessary in the interest of protection of the public health, safety, peace or welfare, to include, but not be limited to, when a license holder is conducting business in a facility without public utilities such as water service, sewer service or refuse collection service;

4. When a business becomes an instrument of or a cover for public disorder, crime, or other danger to public safety, morals or health;

5. The licensee has caused or permitted a public nuisance to exist;

6. The licensee’s continued conduct of the business for which the license was issued has or will result in a danger to the public health, safety or welfare;

7. The place of business does not conform to city ordinance;

8. The license is being used for a purpose different from that for which it was issued.

C. Suspension Not to Exceed 60 Days. If a determination is made that licensee has violated any of the provisions of this title or any of the provisions of the Toppenish Municipal Code, such licensee shall be subject to a suspension not to exceed five days for the first offense, 30 days for the second offense, or 60 days for the third offense, as the case may be, as determined by the clerk.

D. Reasons for Revocation. Any business license shall be revoked when, after investigation by city staff, any one or more of the following reasons are determined to exist:

1. Illegal issuance of the permit;

2. Issuance of the permit without authority or power;

3. Issuance under an unauthorized ordinance or under an ordinance illegally adopted;

4. Issuance in violation of an ordinance;

5. When the business license was procured by fraud or false representation of facts;

6. When issued through mistake or inadvertence;

7. When a license application contains false or misleading statements, evasions or suppressions of material facts.

E. Reasons for Immediate Revocation. Any business license shall be revoked when, after investigation by city staff, any one of the following reasons is determined to exist:

1. A fourth violation of any reason for suspension stated in subsection B of this section, within five years of the first suspension of the license;

2. Loss of any insurance required by this title;

3. Anything which causes a threat to safety or persons or property.

F. Notice. The clerk shall mail written notice of such determination to the licensee at the address stated on the license application.

G. Appeal of Suspension or Revocation. The licensee may obtain an appeal of such suspension or revocation by appealing in writing to the hearing examiner within 10 days of the date of mailing of such notice. Such appeal must state the grounds upon which the licensee is appealing.

H. Hearing by Hearing Examiner. The hearing examiner shall hold a hearing to gather facts upon which to make a decision.

I. Notice of Hearing. The hearing examiner shall mail written notice of this decision to the licensee at the address stated on the license application.

J. Hearing Examiner Decision – Appeal. The decision of the hearing examiner shall be final, but appealable to the appropriate courts only upon grounds of being arbitrary or capricious. Such notice of appeal shall be given within 10 days of the date of the decision of the hearing examiner. (Ord. 2004-5 § 1, 2004).

5.01.100 Posting license.

It shall be the duty of any person conducting a licensed business in the city to keep the business license posted in a prominent place on the premises used for such business at all times, except that peddlers, hawkers and transients shall carry their license on their persons at all times when conducting their business and shall display it upon request. (Ord. 2019-01 § 9, 2019; Ord. 2004-5 § 1, 2004).

5.01.110 Clean-up requirements.

Each business shall keep the exterior premises and public sidewalk adjacent to the business reasonably clean of all litter and trash. Such litter or trash shall be deposited in garbage containers as required by TMC Title 8. (Ord. 2004-5 § 1, 2004).

5.01.120 Business license fees.

A. All businesses shall pay an annual fee for the license required by this chapter. The application for licenses administered directly by the city shall be accompanied by the full amount of the fees for such license. License applications administered by the Business Licensing Service must also be accompanied by full fees for all other licenses requested on the application as well as the handling fee authorized by RCW 19.02.075. Toppenish city business license fees shall be established by resolution of the city council, as amended from time to time.

Regardless of the number of employees, the fee for the city business license as calculated by employee count shall not exceed $600.00. Where the fee is based on the number of employees, the term “employees” shall mean full-time employees, including the owner of the business, except that two part-time employees shall be deemed to be the equivalent of one full-time employee.

B. In addition to the fees based on a base rate plus an amount per the number of employees, additional fees shall be assessed and paid by such businesses that provide amusement machines, such as a video game or pinball, card table, pool table, horse trolley vehicle and any cabaret, i.e., tavern or restaurant which serves liquor and provides entertainment, such as dancing or a floor show.

C. Instead of the fees charged under subsection A of this section, the fee schedule for the following business activities shall be established by resolution of the city council, as amended from time to time: circus, flea market, home occupation, dance hall, public dance (note below*), residential rental unit, shows, exhibitions or fairs, transient merchant, hawker and peddler and carnival.

*The public dance business activity that shall be required to pay a daily license fee does not include such dances as are regularly scheduled at licensed dance halls, cabarets, taverns, or other places of business such as the Fraternal Order of Eagles. It is the intent that the daily fee shall only be assessed for public dances that are not conducted during the ordinary course of business.

D. 1. For licenses issued directly by the city clerk, license fees shall be for one year and shall be prorated to the next renewal date (see TMC 5.01.060); provided, however, that the prorated fee shall be not less than $25.00 for annual licenses costing $50.00 or more; and provided further, that annual licenses costing $25.00 or less shall not be prorated.

2. For licenses issued through the Business Licensing Service (BLS) the initial application fee charged will be for one year from date of application. Renewal fees may be prorated in order to synchronize the license expiration date with the BLS business license account established by BLS.

E. 1. For licenses issued directly by the city clerk, a late payment penalty shall be added to any annual license fee not paid within 30 days after the date the license fee is due. Late payment penalties shall be established by resolution of the city council, as amended from time to time. Failure to pay the license fee and penalty within an additional 30 days thereafter shall constitute a civil infraction, punishable as set forth in Chapter 2.90 TMC, Civil Infractions. Businesses that operate on a seasonal basis such as ice cream vendors and out-of-town vendors that wait to renew until they perform work within the city limits shall be exempt from the late penalty fee.

2. For licenses issued through the Business Licensing Service (BLS), if the license is not renewed by the expiration date established by BLS, a late penalty authorized by RCW 19.02.085 will be added to the total amount due. If the license is not renewed within 120 days after the expiration date, the license will be cancelled and may require a new application for licensure as provided under this chapter in order to continue business within the city. Businesses that continue within the city without a valid license may be subject to a civil infraction under Chapter 2.90 TMC. (Ord. 2019-06 § 1, 2019; Ord. 2019-01 § 10, 2019; Ord. 2017-01 § 1, 2017; Ord. 2008-4, 2008; Ord. 2006-23 §§ 1, 2, 2006; Ord. 2004-5 § 1, 2004).

5.01.130 Master license.

A. Where any of the business activities listed in TMC 5.01.120, except carnivals, take place as part of an event being held entirely within the confines of the Toppenish rodeo and livestock grounds, which event is sponsored by a promoter other than that operating the business activity, a master license may be issued by the city to the promoter sponsoring the event. The event master license fee shall be established by resolution of the city council, as amended from time to time; provided, however, that the owners of the Toppenish rodeo and livestock grounds shall have the option to pay an annual master license fee established by resolution of the city council, as amended from time to time, which shall cover all such activities on the grounds during the year.

B. Community Events on City Parks, Streets or Property. Nonprofit community organizations from the city, such as the Chamber of Commerce, the Rotary Club, the Lions Club, the Mural Society, the Yakima Valley Rail and Steam Museum Association, and other similar nonprofit community organizations from the city, may obtain a master business license. Business or fund-raising activities which are conducted at a community event sponsored by a nonprofit community organization shall not be required to obtain a business license if registered with and operating under the master license of the sponsoring nonprofit community organization. A community organization shall not be required to obtain a license if the event is conducted only by its members and other for-profit vendors are not included in the event. Businesses not registered with the sponsoring organization shall be licensed in accordance with TMC 5.01.120. For purposes of this section, a “community event” shall mean any event sponsored by a nonprofit community organization. Such master license shall be valid only for community events which are conducted on city property with the prior approval of the city manager. The fees for the event and the annual master license shall be established by resolution of the city council, as amended from time to time. (Ord. 2017-01 § 1, 2017; Ord. 2004-5 § 1, 2004).