Chapter 5.04
BUSINESS LICENSES

Sections:

5.04.010    Revenue license power.

5.04.020    Definitions.

5.04.030    Persons subject to fees.

5.04.040    Businesses located outside city.

5.04.050    Exemptions.

5.04.060    Requirements for issuance of license.

5.04.062    Investigations and background checks.

5.04.065    Nonconforming uses.

5.04.067    Inspections – Right of entry.

5.04.070    Payment of fees.

5.04.080    Over or underpayment of fees.

5.04.090    Failure to make application.

5.04.095    Grounds for disqualification of licenses.

5.04.097    Application for license – Approval or denial – Appeal.

5.04.100    Suspension or revocation – Appeal.

5.04.110    Authority of director.

5.04.120    Mailing of notices.

5.04.130    Disclaimer of city liability.

5.04.140    License fee additional to others.

5.04.150    Fee constitutes debt.

5.04.155    Assignment of licenses.

5.04.160    Penalties – Violations.

5.04.010 Revenue license power.

The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. (Ord. 2834 § 1, 2005; Ord. 1171 § 1, 1951).

5.04.020 Definitions.

In construing the provisions of this chapter, except when otherwise declared apparent or clearly from the context a different meaning is intended, the following definitions shall be applied:

“Business” shall mean and include all activities, occupations, trades, pursuits or professions located and/or engaged in, within the city, with the object of gain, benefit, profit or advantage to the person or business owner, or to another person or class, directly or indirectly, regardless of where their permanent location of business is located. Each business location shall be deemed a separate business.

“City clerk” means the Puyallup city clerk or his or her designee.

“Director” means the city manager, or any officer, agent, or employee of the city designated to act on the city manager’s behalf.

“Employee” means any person employed at any business enterprise that performs any part of their 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 in business” means commencing, conducting or continuing in any business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators hold themselves out to the public as conducting such business.

“Nonprofit” means any charitable organization that has been exempted from the payment of taxes to the federal government under Section 501(c)(3) of the Internal Revenue Code.

“Person” means any individual, firm, partnership, company, corporation, association, receiver, consignee, trustee in bankruptcy, trust, estate, joint venture, club, joint stock company, business trust, society, or any group of individuals acting as a unit.

“Person or business owner” includes any person who engages in business or who is required to have a business license hereunder, or who is liable for the collection of any license fee hereunder, or who performs any act for which a license fee is imposed by this chapter.

“Year” means January 1st to December 31st. (Ord. 2834 § 1, 2005; Ord. 1171 § 2, 1951).

5.04.030 Persons subject to fees.

There is hereby levied upon and shall be collected from every person engaging in business in the city an annual license fee for the privilege of engaging in business activities and to identify and register businesses that are active in the city, except those engaged in business activities on premises owned by the Western Washington Fair Association and authorized to conduct business by the Western Washington Fair Association. Such license fee shall be measured by using the number of employees as reported in the Washington State Unemployment Insurance Report for the quarter ended September 30th, payable as follows:

(1) Every sole proprietor and every person employing one to and including 24 employees: $75.00 per year;

(2) Every person employing 25 to and including 99 employees: $300.00 per year;

(3) For every person employing over 100 employees: $500.00 per year;

(4) The Western Washington Fair Association business license fee shall be negotiated annually with the city, such negotiations to be concluded by July 1st of each year, and shall reflect cost of the city for the Western Washington Fair Association doing business in the city together with all of those businesses that are conducted on premises owned by the Western Washington Fair Association and approved for operating such businesses by the Western Washington Fair Association.

If the application for a business license is made after July 1st, the fee shall be one-half the annual fee. Each business license holder shall file with the city copies of its Washington State Unemployment Insurance Report for the quarter ended September 30th, reporting its number of employees. A business that did not file a report can file an affidavit with the director showing the number of employees employed during the third quarter of the year before or the number of employees, if it is a new business, at the time a business license is sought. (Ord. 2834 § 1, 2005; Ord. 2291 § 1, 1991; Ord. 1878 § 1, 1981; Ord. 1536 § 1, 1969; Ord. 1171 § 3, 1951).

5.04.040 Businesses located outside city.

As to businesses located outside the city and furnishing or performing services within the city, the license fee herein shall be measured by the number of employees of such business to perform any part of their duties within the city. (Ord. 2834 § 1, 2005; Ord. 1171 § 4, 1951).

5.04.050 Exemptions.

The requirement to pay license fees as set forth in this chapter shall not apply to the following, provided all other provisions of this chapter, including without limitation the requirement to obtain and maintain a current business license, shall apply to all businesses covered by this chapter:

(1) Nonprofit organizations, including but not limited to religious, civic, charitable, benevolent, nonprofit, cultural or youth organizations;

(2) The activities licensed under Chapters 5.32 and 5.34 PMC including contests, circuses, shows, carnivals, auctions, etc.;

(3) Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions;

(4) Any nonprofit organization as defined in PMC 5.04.020;

(5) Any farmer or gardener who sells, delivers or peddles any fruit, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm produce or edibles raised, caught, produced or manufactured by such person in any place in this state;

(6) All persons engaged in parking vehicles with a lot capacity of not more than 15 cars;

(7) Family day care homes for children and mini day care homes for children as the same are defined under PMC 20.15.005;

(8) Persons engaged in irregular, casual activities such as babysitting, delivery of newspapers, casual lawn mowing, casual car washing, and other similar activities;

(9) Persons engaged in commerce using an Internet website, hobbyists, and crafters who engage in sales that do not involve home visits; and

(10) Businesses meeting all of the following criteria:

(a) Having no employees performing work other than delivery within the city;

(b) Having no sales people soliciting sales within the city;

(c) Having no installers or contractors working within the city;

(d) Having no offices, warehouses or other physical location(s) within the city; and

(e) Having no inventory located within the city. (Ord. 2834 § 1, 2005; Ord. 1820 § 1, 1980; Ord. 1610 § 1, 1973; Ord. 1186 § 1, 1952; Ord. 1171 § 5, 1951).

5.04.060 Requirements for issuance of license.

No person shall engage in any business or activity in the city for which a license fee is imposed by this chapter without first having obtained and being the holder of a valid and subsisting license, to be known as a “business license,” issued under the provisions of this chapter, as hereinafter provided, and without paying the license fee imposed by this chapter, which license fee shall accompany the application for the license. Such license shall expire at the end of the year in which it is issued, and a new license shall be required for each year. The application for a license shall be made to the city clerk, on forms provided by said officer, which application shall set forth the name of the applicant, place of residence, place of business, the nature of the business and the amount of the license fee prescribed by this chapter, and shall be receipted by the city that the amount of the fee has been deposited with the city by the applicant. Every license granted under this chapter shall be posted in a conspicuous place in the place of business of the licensee. Any license issued under and by virtue of the provisions of this chapter shall be personal and nontransferable. In case business is transacted at two or more separate places by one person or business owner, a separate license for each place at which business is transacted with the public shall be required. Each license shall be numbered, and shall show the name, place and character of business of the licensee.

All license fees and penalties herein provided for shall be paid by bank draft, certified check, cashier’s check, personal check, or money order, or in cash. If payment is made by draft or check, the fee shall not be deemed paid unless the check or draft is honored in the usual course of business, nor shall acceptance of any such check or draft by the finance director be an acquittance or discharge of the fee unless and until said check or draft is honored.

The city is authorized but not required to mail forms for applications for licenses, but failure of the person or business owner to receive any such forms shall not excuse the person or business owner from making application for and securing the license required and payment of the license fee.

If any person or business owner required by the terms and provisions of this chapter to pay a license fee for any period fails or refuses to do so, that person shall not be granted a license for the current period until such delinquent license fee, together with penalties, has been paid in full. (Ord. 2834 § 1, 2005; Ord. 1171 § 6, 1951).

5.04.062 Investigations and background checks.

(1) Any application for licenses may be investigated by such departments or officers of the city as the director may determine.

(2) All applicants for a license may be subject to a criminal background check, and the results of such check may be sufficient grounds for denial of a license. (Ord. 2834 § 1, 2005).

5.04.065 Nonconforming uses.

There exists a need to identify and register businesses which are active in the city in order to protect the public health, safety and welfare of the community. The issuance of a business license by the city does not constitute either approval of a business or the use of any particular parcel in the city for a business purpose. By issuing a business license, the city shall not be precluded from taking enforcement action against any use which is not authorized in the zone in which it is occurring, and does not vest the licensee with any rights to continue a nonconforming use. (Ord. 2834 § 1, 2005).

5.04.067 Inspections – Right of entry.

The director or an authorized representative of the development services department, fire department or police department are authorized to make inspections of any licensed premises during normal hours of operation of said business and take action as may be required to enforce the provisions of the Puyallup Municipal Code. (Ord. 2834 § 1, 2005).

5.04.070 Payment of fees.

All business licenses shall be renewed on or before January 1st of the calendar year of issuance if the business is to be continued. Application for renewal shall be made on forms prescribed by the city. (Ord. 2834 § 1, 2005; Ord. 2761 § 1, 2003; Ord. 2019 § 1, 1984; Ord. 1186, 1952; Ord. 1171 § 7, 1951).

5.04.080 Over or underpayment of fees.

If, upon investigation of any application and/or receipts, the director finds that the fee paid on any license or license renewal is more than the amount required of the applicant, the director shall return the overpaid amount. If the director finds that the fee paid is less than required, the director shall mail a statement to the applicant showing the balance due, who shall within seven days pay the amount shown thereon. (Ord. 2834 § 1, 2005; Ord. 1171 § 8, 1951).

5.04.090 Failure to make application.

If any person or business owner fails, neglects, or refuses to file their application and to pay any fees due as and when required herein, the director is authorized to determine the amount of the fee(s) payable, and by mail to notify such person or business owner of the amount so determined. The amount so fixed shall thereupon become the fee owed and be immediately due and payable. (Ord. 2834 § 1, 2005; Ord. 1171 § 9, 1951).

5.04.095 Grounds for disqualification of licenses.

Pursuant to the provisions of this chapter, no license shall be issued to the following persons:

(1) Any minor under 18 years of age.

(2) Any person who, if licensed, is likely to present a danger to the public health, safety, or welfare by reason of any of the following:

(a) The applicant or his or her employees or agents have been convicted of a crime which relates directly to the specific occupation, trade, vocation, or business for which the license is sought; provided, the time elapsed between the violation and the date of license application is less than three years for a felony conviction, or less than one year for a misdemeanor conviction.

(b) The applicant has had a similar license revoked or suspended pursuant to the provisions of PMC 5.04.100.

(c) The director has reasonable grounds to believe the applicant to be dishonest or to desire such license to enable the applicant to practice some illegal act or some act injurious to the public health or safety.

(3) Any person who is not qualified under any specific provision of this chapter for any particular license for which application is made. (Ord. 2834 § 1, 2005).

5.04.097 Application for license – Approval or denial – Appeal.

The director shall approve or deny all applications for licenses required hereunder and any applicant denied a license, or any person objecting to the issuance of any such license, shall, within 10 days after the issuance or denial of such license, appeal said ruling by filing a written notice of appeal, clearly stating the grounds that the appeal is based on, with the city clerk. The hearing examiner shall set a date for the hearing of such appeal before the hearing examiner of the city, which appeal shall be governed by Chapter 2.54 PMC, and shall notify the applicant in the case of a denial, and the objector and applicant in the case of issuance, by mail, of the time and place of hearing. (Ord. 2834 § 1, 2005).

5.04.100 Suspension or revocation – Appeal.

(1) The director shall have the power and authority to suspend or revoke any registration or license issued under the provisions of this chapter. The director shall notify such licensee in writing by certified mail of the suspension or revocation of its license and the grounds therefor. Any license issued under this chapter may be suspended or revoked based on one or more of the following grounds:

(a) The registration was procured by fraud or false representation of fact.

(b) The licensee has failed to comply with any provisions of this chapter.

(c) The licensee has failed to comply with any provisions of the Puyallup Municipal Code.

(d) The licensee is in default in any payment of any license fee or tax under this title.

(e) The licensee or employee has been convicted of a crime involving the business.

(f) Licensee’s continued conduct of the business for which the license was issued will result in a danger to the public health, safety, or welfare by reason of any of the following:

(i) The licensee, licensee’s employees or agents have been convicted of a crime which bears a direct relationship to the conduct of the business under the license issued pursuant to this chapter.

(ii) The licensee, or licensee’s agents or employees, have, in the conduct of the business, violated any law or ordinance relating to public health or safety.

(iii) The conduct of the business for which the license was issued has resulted in the creation of a public nuisance as defined in the PMC or in state law.

(2) Any licensee may, within 10 calendar days from the date that the suspension or revocation notice was mailed to the licensee, appeal such suspension or revocation by filing a written notice of appeal (“petition”) setting forth the grounds therefor with the city clerk. A copy of the petition must be provided by the licensee to the director and the city attorney on or before the date the petition is filed with the city clerk. The hearing shall be conducted in accordance with the procedures for hearing contested cases set out in Chapter 2.54 PMC. The hearing examiner shall set a date for hearing said appeal and notify the licensee by mail of the time and place of the hearing. After the hearing thereon the hearing examiner shall, after appropriate findings of fact and conclusions of law, affirm, modify, or overrule the suspension or revocation and reinstate the license, and may impose any terms upon the continuance of the registration.

No suspension or revocation of a license issued shall take effect until 10 calendar days after the mailing of the notice thereof by the director and, if appeal is taken as herein prescribed, the suspension or revocation shall be stayed pending final action by the hearing examiner. All licenses which are suspended or revoked shall be surrendered to the city on the effective date of such suspension or revocation.

The decision of the hearing examiner shall be final. The licensee and/or the director may seek review of the decision by the superior court of Washington in and for Pierce County within 21 days from the date of the decision. If review is sought as herein prescribed, the suspension or revocation shall be stayed pending final action by the superior court.

Upon revocation of any license as provided in this section, no portion of the license fee shall be returned to the licensee. (Ord. 2834 § 1, 2005; Ord. 1171 § 10, 1951).

5.04.110 Authority of director.

The director shall have the power, and it shall be the director’s 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 is unlawful to violate or fail to comply with any such rules or regulations. (Ord. 2834 § 1, 2005; Ord. 2232 § 1, 1990; Ord. 1171 § 11, 1951).

5.04.120 Mailing of notices.

Any notice required by this chapter to be mailed to any person or business owner shall be sent by ordinary mail, addressed to the address of the person or business owner as shown in the records of the director, or if no such address is shown, to such address as the director is able to ascertain by reasonable effort. Failure of the person or business owner to receive any such mailed notice shall not release the person or business owner from any fees or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 2834 § 1, 2005; Ord. 1171 § 12, 1951).

5.04.130 Disclaimer of city liability.

The city of Puyallup expressly finds and requires that responsibility for compliance with the provisions of this chapter rests with license applicants and their agents and that no action, inaction, or omission of the city or any of its agents or employees shall serve to assume or shift responsibility for compliance with the provisions of this chapter to any other party, including the city. Furthermore, issuance of a license pursuant to this chapter does not constitute the creation of a duty by the city to indemnify the licensee for any wrongful acts against the public, or to guarantee the quality of goods, services or expertise of a licensee. The issuance of a license does not shift responsibility from the licensee to the city for proper training, conduct or equipment of the licensee or their agents, employees or representatives, even if specific regulations require standards of training, conduct or inspection. (Ord. 2834 § 1, 2005; Ord. 1171 § 13, 1951).

5.04.140 License fee additional to others.

The license fee herein levied shall be additional to any license fee imposed or levied under the law of any other chapter of the city except as herein otherwise expressly provided. (Ord. 2834 § 1, 2005; Ord. 1171 § 14, 1951).

5.04.150 Fee constitutes debt.

Any license fee due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. 2834 § 1, 2005; Ord. 1171 § 15, 1951).

5.04.155 Assignment of licenses.

No license may be assigned or transferred, except where a licensee shall consist of a partnership and there occurs a change in the membership thereof, where a sole proprietor incorporates, or where a corporation dissolves and former shareholders succeed to its interest, then a transfer shall be authorized if the beneficial owners originally procuring the license shall retain not less than a 50 percent interest in said successor entity and appropriate application is made for the transfer of said license. A request for transfer shall be made and shall contain all information required in the original application for license, and the prospective transferee shall pay a transfer fee of $50.00. The transfer shall be subject to all terms, conditions, and requirements of the original application, except that the only fee required therefor shall be as above set forth. If a license is issued upon the request for transfer, the term of such license shall be only for the unexpired term of the original license, and thereafter a new or renewal application shall be made. (Ord. 2834 § 1, 2005).

5.04.160 Penalties – Violations.

(1) Violations. It shall be unlawful for any person to violate any of the provisions of this chapter and such person shall be subject to the penalties detailed below. Additionally, the license of the business in which a violation occurs may be revoked for such violation, whether the owner knew of or encouraged the violation.

(2) Monetary Penalties.

(a) Penalties. Every person who operates a business without a license issued pursuant to this chapter, or any person who fails to pay the required license fee pursuant to PMC 5.04.030 within 30 days of when the license fee is due shall be assessed by the director a monetary penalty in the amount of $250.00. This penalty shall be in addition to the required license fee. Failure to pay the license fee by more than 60 days after such fee is due shall subject the licensee to a monetary penalty in the amount of $500.00 in addition to the required license fee.

(b) Collection. Any license fee due and unpaid and delinquent under this chapter shall constitute a debt of the city. The city may, pursuant to Chapter 19.16 RCW, use a collection agency to collect unpaid fees or taxes owed or assessed, or it may seek collection by court proceedings, which remedies shall be in addition to all other remedies.

(3) Criminal Penalties for Repeat Violations. A second or repeat violation of any provision of this chapter shall constitute a misdemeanor punishable by a fine of a sum not exceeding $1,000 or by imprisonment not exceeding 90 days or by both such fine and imprisonment. Each separate day or portion thereof during which any violation of any provision of this chapter continues shall constitute a separate violation and upon conviction thereof shall be punished as provided in this section. (Ord. 2834 § 1, 2005; Ord. 1171 § 16, 1951).