Chapter 5.13
BUSINESS LICENSES

Sections:

5.13.005    Purpose and intent.

5.13.010    License required.

5.13.020    Definitions applicable to this chapter.

5.13.030    Issuance of business licenses.

5.13.050    Annual term and renewal.

5.13.060    Exemptions.

5.13.070    Business license fee – Payment.

5.13.080    Business license fee additional to others.

5.13.090    Enforcement.

5.13.100    General fund.

5.13.005 Purpose and intent.

It is in the public’s interest the city be informed at all times of persons who engage in business in the city. The Washington Legislature promulgated Chapters 19.02 and 35.90 RCW to provide a convenient, accessible, and timely one-stop system for businesses to obtain and maintain the necessary state and local licenses to conduct business through the Washington State Department of Revenue. This chapter’s purpose and intent is for the city to comply with its obligations under Chapters 19.02 and 35.90 RCW and requires all persons who engage in business in the city to obtain and maintain a business license. (Ord. 1551 § 1 (Exh. A) (part), 2018).

5.13.010 License required.

No person may engage in any business at a permanent or temporary location without first obtaining a business license under this chapter. It shall be a condition precedent to a business license that the business engaged in by the applicant is lawful under any applicable city, state or federal law. A specialty license or permit may be required in addition to, or in place of, a business license, as the case may be. (Ord. 1551 § 1 (Exh. A) (part), 2018: amended during January 2016 update; Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.020 Definitions applicable to this chapter.

In addition to the terms defined in Chapter 5.02, the following definitions shall apply in construing the provisions of this chapter:

“Administrator” means the planning and community development director or his/her designated representative.

“Business” includes all activities, occupations, trades, pursuits or professions located and/or engaged in within the city of Chelan, with the object of gain, benefit or advantage to the taxpayer, or to another person or class, directly or indirectly. Each business location shall be deemed a separate business.

“Business license” means the license the administrator issues through the Business Licensing Service to a specific person, authorizing it to engage in business in the city under this chapter.

“Business license fee” means the fee established by the city council in the city’s rate resolution for a business license.

“Business Licensing Service” and “BLS” mean the office within the Washington State Department of Revenue providing business licensing administration services to the city under a contract required by Chapter 39.90 RCW.

Engaging in Business.

A. The term “engaging in business” and/or similar derivative terms mean 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 definition. 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, subject to the exemptions in Section 5.13.060:

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, other than as provided for in Chapter 5.20.

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, private teachers or tutors, 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 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 definition.

F. 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.

“Person” means any individual, firm, partnership, company, corporation, association, receiver, assignee, trustee in bankruptcy, trust, estate, joint venture, club, joint stock company, business trust, society, or any group of individuals acting as a unit. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.030 Issuance of business licenses.

A. Issuance. Business licenses shall be issued by the administrator upon payment of the business license fee as provided in the city’s rate resolution and the administrator determining:

1. The type of business;

2. The legal form of the licensee;

3. A designated authorized agent of the licensee;

4. The location of the business;

5. Whether the location is owned or rented by the licensee; if not owned by the licensee, the name and address of the owner;

6. The location and premises where the business is conducted complies with building, fire and zoning codes of the city;

7. The licensee has established utility accounts with the city; and

8. The licensee has obtained a Uniform Business Identifier number with the state of Washington, and the registration numbers for agencies of the state of Washington.

B. Contents. All business licenses shall include the name of the licensee, the nature of the business, the location where the business is operated, a unique license number, the expiration date of the business license, and such other information as the administrator determines is convenient for the administration of this chapter.

C. Posting. Each licensee shall conspicuously post the business license for inspection at the location of the business and shall produce such license for inspection if requested by the administrator. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.050 Annual term and renewal.

Except for a new or relocating business, a business license shall be for one calendar year and shall be renewed each successive calendar year. The administrator shall adopt and implement a process of renewing a business license which allows the administrator the ability to determine the information for the issuance of a business license in Section 5.13.030. The process of renewing a business license shall be an application under this chapter. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.060 Exemptions.

The following are exempt from the provisions of this chapter:

A. All persons who engage in business within the city shall be required to obtain a business license. When the annual value of products sold, gross proceeds of sales, or gross business income derived from engaging in business within the city does not exceed two thousand dollars, the license shall be issued without payment of a license fee.

B. Any instrumentality of the United States, state of Washington, or political subdivision thereof.

C. Any religious society, association or corporation which operates any charitable hospital, clinic or institution devoted exclusively to the care or healing of human beings; provided, that no exemption is granted where the income thereof inures to the benefit of any physician, surgeon, stockholder, or individual by reason of interest or ownership in or control of such hospital, clinic or other institution. In no event shall any such exemption be allowed, unless the hospital, clinic or institution is entitled to exemption from taxation under property tax law of the state of Washington.

D. Fraternal benefit societies or fraternal fire insurance associations, as described in RCW Title 48; or beneficiary corporations or societies organized under and existing by virtue of RCW Title 24, if such beneficiary corporations or societies provide in their bylaws for the payment of death benefits.

E. Those businesses subject to license provisions of Chapter 5.08.

F. Any person in respect to insurance business upon which tax based on gross premiums is paid to the state of Washington; provided, however, that the provisions of this subsection shall not exempt any person engaging in the business representing any insurance company as an insurance broker.

G. The selling of fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured and sold by any farmer or gardener in any place in this state, subject to license provisions of Chapter 5.50.

H. Any person in respect to the business of conducting boxing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Commission.

I. Any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the State Horse Racing Commission.

J. Any person in respect to his/her employment in the capacity of any employee or servant as distinguished from that of an independent contractor.

K. Churches, schools, orphanages, nursing homes, humane societies and any other eleemosynary organization qualified for tax-exempt status under the laws of the state of Washington or the Internal Revenue Service.

L. Credit unions organized under the laws of the state or the United States.

M. Sheltered workshops operated by nonprofit organizations. The term “sheltered workshops” as used herein shall be deemed to have the same meaning as set forth in RCW 82.04.385, as the same now exists or may hereafter be amended.

N. Any tax-exempt nonprofit company, association, corporation, or copartnership of whatever kind as defined by the federal or state government which operates or conducts a community festival or event.

O. Anyone under the age of eighteen.

P. Any person delivering newspapers on a retail basis to the end consumer.

Q. Any person subject to the provisions of Chapter 5.20.

R. A seller located outside the city merely delivering goods into the city by means of delivery vehicles owned by the seller. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.070 Business license fee – Payment.

A. All licensees receiving a renewed business license shall pay the business license fee prior to February 1st of the year of the renewed business license.

B. In the event a licensee fails to pay the business license fee prior to March 1st, late charges shall be assessed under the city’s rate resolution.

C. In the event a licensee fails to pay the business license fee by May 1st of the year of the business license, the business license shall be revoked. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.080 Business license fee additional to others.

The business license fee shall be additional to any license fee or tax imposed or levied under the law or any other ordinance of the city of Chelan except as herein otherwise expressly provided. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.090 Enforcement.

A. Any violation of this chapter shall be enforced under the uniform code enforcement procedures in Chapter 2.80.

B. Notwithstanding the application of the uniform code enforcement procedures in Chapter 2.80, the business license fee and any assessed late charges 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.

C. Termination of Water Service. In addition to the methods of code enforcement in Chapter 2.80, the administrator may terminate the provision of water service to the applicant or licensee. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).

5.13.100 General fund.

All funds received by the city under the terms of this chapter shall be paid into the general fund of the city and budgeted annually for any municipal purposes as authorized by law. (Ord. 1551 § 1 (Exh. A) (part), 2018: Ord. 1501 § 6 (Exh. D) (part), 2015).