Chapter 5.03
BUSINESS LICENSES*

Sections:

5.03.010    Definitions.

5.03.020    License required.

5.03.025    Subcontractor’s license required.

5.03.030    License application and renewal.

5.03.040    License application – Other requirements.

5.03.050    Fees – Business license.

5.03.060    Late penalty.

5.03.070    License expiration.

5.03.080    License – Suspension, denial or revocation.

5.03.090    Penalty for violation.

*Prior legislation: Ords. 931, 1038 and 1112.

5.03.010 Definitions.

The following terms shall have the following meanings:

(1) “Business” includes all activities engaged in with the object of gain, benefit, or advantage to the person engaging therein or to another person or class, directly or indirectly, including any activity conducted for the sale of goods or providing of services for a profit.

(2) “City” shall mean the city of Stanwood, Washington.

(3) “Clerk” shall mean the city clerk or such city employees or agents as the city administrator shall designate to administer this chapter.

(4) “Engage in business” means to commence, conduct, or continue in business or to exercise corporate or franchise powers as well as liquidate a business when the liquidators thereof hold themselves out to the public as conducting such business. For out-of-city businesses, “engage in business” shall refer to the point of sale, not the point of delivery.

(5) “License” shall include and be used interchangeably with the term “permit” and shall mean the official approval or authorization of the city of Stanwood to engage in business or to carry on or conduct a special event within the corporate limits of the city of Stanwood for which a license or permit is required pursuant to the provisions of this chapter.

(6) “Standard business” shall mean to engage in a business in the city of Stanwood for a continuous period of more than 15 days.

(7) “Person” shall include and be used interchangeably with the terms company, corporation, individual, owner, partnership, proprietorship and sole proprietorship and shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, joint venture, club, business trust, association, society, or group of individuals acting as a unit, whether mutual, cooperative, fraternal, religious, profit, nonprofit, or otherwise.

(8) “Temporary business” shall mean engaging in business for a period of 15 days or less, or vending from a mobile unit, or from a building, structure, or leasehold improvement which is not taxed as a part of the real property on which the business is located. (Ord. 1217 § 1, 2007).

5.03.020 License required.

It is unlawful for any person, firm, or corporation to engage in any business, occupation or pursuit, as defined in SMC 5.03.010, in the city without first having obtained a business license therefor as provided in this chapter. The business license provided for in this chapter shall be posted in a conspicuous location at the place of the business. Such business license is not transferable. (Ord. 1217 § 1, 2007).

5.03.025 Subcontractor’s license required.

Each subcontractor engaging in business in the city of Stanwood shall separately obtain a license for such business issued by the city. The license of any general contractor shall not be deemed to satisfy the licensing requirements for subcontractors. (Ord. 1217 § 1, 2007).

5.03.030 License application and renewal.

(1) Application for a business license shall be made by filling a master application through the State Department of Licensing’s Master License Service, in coordination with the city clerk, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter. Persons applying for a license must pay a fee as defined in SMC 3.30.080 and 5.03.050 and the State Master License Service’s handling fee.

(2) A business license must be approved by the city before a business commences operation within the city. If business is transacted by one person at two or more separate locations within the city, a separate application must be filed for each business location and a separate license shall be obtained and displayed in each location.

(3) The city clerk shall, when appropriate, refer applications to the planning department, the police department, or other governmental agencies for their review.

(4) If more than one business is conducted or operated on a single premises, a separate license shall be required for each business. Each business owner must make a separate application for license.

(5) The filing of an application for a license or the renewal thereof, or the payment of any application or renewal fee, shall not authorize a person to engage in or conduct a business until such license has been granted or renewed.

(6) A business license is not transferable. No licensee shall allow another person to operate a business under or display the license issued to their business, nor shall another person operate under or display the license issued to another business. A person who acquires an existing business must make application for a city business license before commencing business within the city with that business. A licensee must report a change of location of the business to the Master License Service, in coordination with the city clerk. A change of the location of a business requires approval by the city before business may commence at the new location, and may require submitting a new master application and payment of fees.

(7) The city’s decision to issue or the issuance of a business license shall not be construed as permission or acquiescence to conduct a prohibited activity or other violation; and the city shall not be held liable for the actions of any licensed business by virtue of having issued a license to conduct business.

(8) Every applicant or licensee shall permit reasonable inspections of the business premises by governmental authorities for the purpose of enforcing the provisions of this chapter.

(9) License renewals shall be processed by the State Master License Service in coordination with the city. Renewal of the city license requires payment of fees including handling fees. (Ord. 1217 § 1, 2007).

5.03.040 License application – Other requirements.

In addition to the business license, other permits or licenses may be required for certain businesses. (Ord. 1217 § 1, 2007).

5.03.050 Fees – Business license.

(1) The fee for the business license required by this chapter shall be established by ordinance of the city council. The fee may be pro-rated as necessary to conform to SMC 5.03.070. The license fee for commercial, home occupation, contractor, or festival (including Mayfest) business licenses shall be as listed in SMC 3.30.080. Fees for temporary merchant, peddler, solicitor, mobile vending unit or charitable solicitation business licenses shall be as listed in SMC 3.30.090.

(2) The license fee shall be in addition to any license fee or tax imposed or levied under any law or other ordinance of the city except as otherwise expressly provided.

(3) The following shall be exempt from payment of fee:

(a) Nonprofit and not-for-profit activities and fundraising sales carried on by corporations registered as nonprofit by the Secretary of State’s Office.

(b) Garage sales, lawn sales, attic sales, rummage sales, flea market sales, or any other similar casual sale of tangible personal property conducted on an infrequent basis not to exceed three times per each calendar year and not to exceed two consecutive days at one time and which is advertised by any means whereby the public at large is or can be made aware of said sale;

(c) Persons selling personal property or providing a service pursuant to an order or process of a court of competent jurisdiction;

(d) Persons acting in accordance with their powers and duties as public officials;

(e) Any person selling or advertising for sale an item or items of personal property which are specifically named or described in the advertisement in which separate items do not exceed five in number.

(f) Persons, sales, or services arising out of Mayfest or Farmer’s Market located within the city of Stanwood, Washington, or any other community event determined by the clerk treasurer to be exempt from the requirements of this chapter. (Ord. 1217 § 1, 2007).

5.03.060 Late penalty.

Licenses must be renewed annually on or before the expiration date, or expiration of any prorated period. Failure to renew a business license by the license expiration date may result in the assessment of a late renewal penalty, and may lead to the revocation of the city license. Notwithstanding SMC 5.03.080, revocation of a license due to nonrenewal may require reapplication for the city license, and approval by the city before the revoked business may continue operation within the city. (Ord. 1217 § 1, 2007).

5.03.070 License expiration.

Each city license issued shall have an expiration date as determined by the Master License Service in coordination with the city. The city license may be prorated to coordinate with the expiration date assigned by the State Master License Service. (Ord. 1217 § 1, 2007).

5.03.080 License – Suspension, denial or revocation.

(1) A business license may be denied, suspended or revoked by the clerk whenever the licensee or any of its officers, directors, agents, owners or employees fails or have failed:

(a) To maintain the licensed premises or business activity in compliance with applicable health, building, fire, or safety laws, ordinances, or regulations;

(b) To comply with the requirements of this chapter. Any suspension shall remain in effect until the conditions causing the suspension are cured and reasonable measures are taken to ensure that those conditions will not recur; or

(c) To renew a business license within 120 days after the expiration date of the license.

(2) The clerk shall, by certified mail, give written notice to the applicant of denial of a license or the suspension or revocation of a license. Said notice shall include a summary of the complaints, objections and information considered by the clerk and the reason(s) for the action. Notice mailed to the mailing address on the application or most recent renewal shall be deemed received three days after mailing. The clerk’s decision may be appealed to the city hearing examiner if written notice is given by the appellant within seven calendar days and upon payment of the appropriate fee. A copy of such written appeal shall also be submitted to the city clerk. (Ord. 1217 § 1, 2007).

5.03.090 Penalty for violation.

Any person violating or failing to comply with any of the provisions of this chapter, or any lawful rule or regulation adopted by the city clerk treasurer pursuant thereto, is guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine in any sum not to exceed $1,000, or by imprisonment for a term not to exceed 90 days, or by both such fine and imprisonment. (Ord. 1217 § 1, 2007).