Chapter 5.10
BUSINESS LICENSE ACQUISITION

Sections:

5.10.010    Purpose.

5.10.020    Definitions.

5.10.030    Business license required.

5.10.040    Exemptions – Special event licenses.

5.10.050    Issuance of licenses – Procedure and fees.

5.10.060    Posting of license.

5.10.070    Change of place of business.

5.10.080    Ownership change – License not transferable.

5.10.090    Fraudulent use of business license.

5.10.100    Revocation of business license.

5.10.110    License renewal.

5.10.120    Compliance with codes required.

5.10.130    Notice of noncompliance – Revocation – Final action.

5.10.140    Appeal to Hearing Examiner.

5.10.150    Enforcement.

5.10.010 Purpose.

The purpose of this chapter is to provide for a means for obtaining public information and compiling statistical information on existing and new businesses in the City, to regulate and ensure the legal conduct of business, and to assist in the effective administration of health, fire, building, zoning, and other codes of the City. (Ord. 14-07 § 2)

5.10.020 Definitions.

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given in this section:

(1) “Business” includes all activities, occupations, pursuits or professions located and/or engaged in within the City, with the object of gain, benefit or advantage to the person engaging in the same, or to any other person or class, directly or indirectly. It also includes general contractors, home occupations, and businesses temporarily conducted within the City including but not limited to traveling salespersons and fruit vendors. It does not include, however, persons conducting garage sales upon their residential real property and wholesale distributors selling products to businesses within the City unless said distributor has an office, warehouse or other business establishment located within the City.

(2) “City” means the City of Covington.

(3) “Engaged in business” means commencing, conducting or continuing in business or carrying on any form of activity for gain, profit, or advantage, whether direct or indirect, within the City.

(4) “License” or “licensee,” as used generally in this chapter, means and includes respectively the words “permit” or “permittee” or the holder for any use for a period of time of any similar privilege, whether relevant to any provision of this chapter or other law or ordinance.

(5) “Person” includes the singular and the plural and also means and includes any person, firm, corporation, association, club, partnership, limited liability company, individual receiver, assignee, trustee in bankruptcy, trust, estate, joint venture, company, society or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, and includes the United States or any instrumentality thereof.

(6) “Premises” means and includes all lands, structures and places, and also any personal property which is either affixed to, or is otherwise used in connection with, any such business conducted on such premises.

(7) “City Manager” means the Covington City Manager or his or her appointed designee. (Ord. 14-07 § 2)

5.10.030 Business license required.

Unless exempted in this chapter, no person shall engage in any business within the City without first having obtained from the City a valid and current business license to carry on that business. This license shall be in addition to any other licenses or permits required by any other section of this code or by State or Federal laws. Business licenses are nontransferable and a separate business license shall be obtained for each location at which a business operates. Licenses shall be displayed at each business location so as to be viewable by the public. (Ord. 14-07 § 2)

5.10.040 Exemptions – Special event licenses.

(1) The provisions of this chapter shall not apply to:

(a) Minors doing business or operating a business concern where no other person is employed by the minor;

(b) The United States or any instrumentality thereof and the State of Washington or any municipal subdivision thereof;

(c) Persons whose sole activity is the rental of real property.

(2) The license fee portion of this chapter shall not apply to:

(a) Fraternal benefit associations or societies as defined in RCW 48.36A.010;

(b) Nonprofit religious organizations;

(c) Nonprofit associations, clubs, or corporations maintained for the purpose of organized sports, charity, public school-related activities or municipal corporation-related activities, including police and fire department reserve organizations.

The organizers of a permitted special event may apply for a special event license which will eliminate the need for individual business licenses for all vendors operating at the special event under the authority of the special event license. Each vendor must fill out a business license application and receive and display a copy of the special event license. The administrative cost for a special event license shall be as set forth in the current fee resolution. Special event licenses shall be valid only on the days authorized for the special event and shall not be valid for a period in excess of three days; provided, however, no business subject to the City’s admissions tax pursuant to Chapter 3.50 CMC may use the special event license and shall obtain a City of Covington business license. (Ord. 20-07 § 1; Ord. 14-07 § 2)

5.10.050 Issuance of licenses – Procedure and fees.

(1) Every person required to procure a license under the provisions of this chapter shall make application for a business license prior to commencing business in the City. Application for a business license shall be accomplished by filing a master application through the Washington State Department of Licensing Master License Service in coordination with the City of Covington Community Development Department (“Permit Services”). The applicant shall be required to provide all information requested on said form and failure to do so shall be grounds for refusing to issue the business license. In addition, the City Manager or his/her designee, from time to time, may request from a person holding a business license that they supply to the City an update of the information that was given on the original license application. Failure to supply said update as requested shall be sufficient grounds for revocation of the business license.

(2) Persons applying for a license must pay an application fee as established by the City Council, as well as the Master License Service handling fee. The application fee for issuance of the business license shall be as set forth in the current fee resolution, which sum shall be submitted with the application referenced above, except that nonprofit corporations or associations shall be exempt from the payment of said fee. (Ord. 14-07 § 2)

5.10.060 Posting of license.

Each person required to obtain a business license under this chapter shall at all times post said business license in the place of business for which it is issued. (Ord. 14-07 § 2)

5.10.070 Change of place of business.

When the place of business of a person required to obtain a license under this chapter is changed, the person shall inform the Master License Service of the change, in coordination with Permit Services. A change of place of business may require the filing of a new master application with the Master License Service. Upon approval by the City of the new place of business, a new license shall be issued for the person’s new place of business. (Ord. 14-07 § 2)

5.10.080 Ownership change – License not transferable.

When a licensed business changes ownership, the license of the previous owner may not be transferred to the new owner. The new owner shall apply for a license for that place of business by filing a master application with the Master License Service, in coordination with Permit Services. (Ord. 14-07 § 2)

5.10.090 Fraudulent use of business license.

No person holding a City business license shall suffer or allow any other person for whom a separate license is required to operate under or display such person’s license, and no person may maintain a business license obtained through a false or fraudulent application or return of any false statement or representation in or in connection with any such application or return for such business license. (Ord. 14-07 § 2)

5.10.100 Revocation of business license.

Permit Services may revoke the license issued to any person required to obtain a business license who is in default in any payment of any license fee or who shall fail to comply with any of the provisions of this chapter. Notice of such revocation shall be mailed to the person by Permit Services, and on and after the date thereof any such person who continues to engage in business shall be deemed to be operating without a license and shall be subject to any or all penalties provided for in this chapter. (Ord. 14-07 § 2)

5.10.110 License renewal.

Persons continuing to engage in business within the City shall renew their business license(s) each year. Businesses must pay a renewal fee, as well as the Master License Service handling fee. The annual business license renewal fee shall be as set forth in the current fee resolution. The annual fee may be prorated in order to conform the license expiration date with the expiration date established by the Master License Service. Persons not renewing their business license by the expiration date may be subject to a late renewal penalty charged by the Master License Service. (Ord. 14-07 § 2)

5.10.120 Compliance with codes required.

Notwithstanding any contrary provision thereof, a business license issued under this chapter may not be issued to any person using or occupying any real property in violation of the provisions of the City zoning, building and fire codes and all amendments thereto. (Ord. 14-07 § 2)

5.10.130 Notice of noncompliance – Revocation – Final action.

A pending application for renewal under this chapter shall be deemed in compliance with this chapter unless the applicant is notified by Permit Services in writing that said application may not be granted because of noncompliance with the provisions of this chapter. In the event such notice is given, the applicant shall have 90 days from the date of such notice to comply with any section violated under this chapter prior to final action upon said application for renewal unless an extension for compliance is granted by the council. (Ord. 14-07 § 2)

5.10.140 Appeal to Hearing Examiner.

Any person aggrieved under the provisions of this chapter may appeal to the hearing examiner pursuant to the procedures outlined in Chapter 14.35 CMC. (Ord. 14-07 § 2)

5.10.150 Enforcement.

(1) It is unlawful for any person either directly or indirectly to conduct any business for which a license or permit is required by any regulation or ordinance of the City without a license or permit therefor being first procured and kept in effect at all times as required by this chapter or other regulation or ordinance of the City. Any violation of this chapter shall, in addition to other penalties provided herein, be a misdemeanor.

(2) The City may revoke the license issued to any licensee who shall fail to comply with any ordinance or regulation of the City. Notice of such revocation shall be mailed to the licensee by the City Manager and on and after the date thereof any such licensee 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.

(3) The City shall revoke the business and occupation license issued to any licensee who shall fail to comply with any of the provisions of the municipal code requiring such licensee to procure and maintain any other regulatory or revenue license, and to pay taxes to the City, whether sales tax, use tax, gambling tax or other tax imposed by the City or the State upon such licensee. (Ord. 14-07 § 2)