Chapter 5.01
BUSINESS REGISTRATION
Sections:
5.01.020 Purpose and appeal process.
5.01.025 General definition of "engaging in business."
5.01.030 Registration required--Certificate.
5.01.060 Registration certificate--Fee--Renewal.
5.01.070 Registration certificate--Issuance, posting and validity.
5.01.072 Exemptions from licensing.
5.01.075 Exemptions--Tax-exempt or nonprofit.
5.01.077 Additional exemption.
5.01.020 Purpose and appeal process.
A. It is found to be in the public interest that the city shall be at all times informed as to the individuals, partnerships, corporations, or business entities of any form whatsoever which are engaging in business as defined in the provisions of this chapter within the corporate limits of the city. It is declared that it is the purpose and intent of this chapter to require all businesses, of whatsoever type, the activities of which within the city fall within the definition of "engaging in business" at all times they so operate, obtain from the clerk-treasurer or, as required by Chapter 35.90 RCW, as now existing or hereafter amended or succeeded, such general licensing entity as may be authorized by action of the council, and be in possession of the business license established by Section 5.01.030 unless exempted from such requirement pursuant to the provisions of this chapter.
B. Any individual, partnership, corporation, or business entity which is required to obtain a business license and believes that it should be exempt from such requirement may appeal the decision by filing a written appeal with the office of clerk—treasurer within thirty calendar days of the provision of the notice of requirement having been sent by the office of clerk—treasurer to the address provided to the office. Such appeal shall be processed pursuant to Section 5.02.050. (Ord. 1176 §1, 2020; Ord. 641 §1, 1977).
5.01.025 General definition of "engaging in business."
A. For purposes of this chapter, the term "engaging in business" shall 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. For purposes of interpretation, subsection B of this section shall be utilized as examples of such activities.
B. Subsection C of 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 subsection C of 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. (Ord. 1176 §2, 2020).
5.01.030 Registration required--Certificate.
Any business engaging in business activities within the corporate limits of the city shall register with the city clerk-treasurer and obtain the registration certificate established by this chapter. The certificate so obtained shall be issued in the form and manner, for the period, and upon the payment of the fee and under the terms and conditions established by this chapter.
A registration certificate required to do business within the corporate limits shall not be issued to any applicant nor for any activity that is known to violate local, state, or federal law. Issuance of a registration certificate to a business shall not relieve the applicant or licensee from the duty to comply with all applicable city, state or federal laws, rules, and regulations. (Ord. 1114 §1, 2012: Ord. 641 §2, 1977).
5.01.060 Registration certificate--Fee--Renewal.
The annual fee for the issuance of the registration certificate established by Section 5.01.030 and the annual renewal thereof shall be such amounts as may be established by written resolution adopted by the city council. The certificate shall be valid for the calendar year in which it is issued and shall be renewed for each calendar year. Renewal application shall be made in December of each calendar year; provided, that in the event a business will cease operation no later than January 5th of the following year, no such application for renewal need be made. The fee shall accompany the application, whether it is an initial application or an annual renewal application. (Ord. 1114 §2, 2012: Ord. 739 §1, 1981: Ord. 641 §6, 1977).
5.01.070 Registration certificate--Issuance, posting and validity.
Upon receipt and processing of an initial or renewal application, the clerk-treasurer shall issue a certificate of registration in such form as is deemed appropriate by the clerk-treasurer. The certificate of registration shall be posted in the place of business within the area of the business open to the public and in such a manner as to be readily visible to a customer thereof. The location of the posting shall be disclosed to any person asking to view the license. The certificate shall be valid for the calendar year designated thereon and shall be nontransferable. It shall be unlawful to operate any business, whether local or nonlocal, to conduct business activities within the corporate limits of the city, except while in compliance with this chapter and in possession of the certificate of registration. (Ord. 1062 §1, 2005: Ord. 641 §7, 1977).
5.01.072 Exemptions from licensing.
In addition to the exemptions set forth in Section 5.01.075, the following exemptions from licensing under this chapter shall apply:
A. 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 director 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.
B. 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 (A)(4) 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. 1176 §3, 2020).
5.01.075 Exemptions--Tax-exempt or nonprofit.
A. The provisions of this chapter shall not apply to any charitable, religious or nonprofit organization or corporation which either has received tax-exempt status under the Internal Revenue Code Section 501(c)(3), 26 U.S.C. 501(c)(3), as adopted or as hereafter amended; or is organized as a nonprofit corporation or association under the laws of the state and is properly so registered with the state.
B. Any person or organization claiming an exemption as stated by subsection A of this section shall file with the clerk-treasurer of the city a copy of either the tax exemption granted by the Internal Revenue Service under the provisions of Section 501(c)(3) or proof from the appropriate registering agent of its nonprofit status. The clerk-treasurer shall maintain a list of all organizations who have such an exemption and such list shall be kept available for public inspection.
C. In the event the clerk-treasurer finds the claim is improper, notice shall be given to the applicant, who shall have a right to appeal the denial to the city council in a manner established by Section 5.02.050. (Ord. 1176 §4, 2020; Ord. 1114 §3, 2012).
5.01.077 Additional exemption.
In addition to those exemptions to licensing requirement set forth in Sections 5.01.072 and 5.01.075, to the extent set forth in this section, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in 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 two thousand dollars (or higher threshold as determined by city) and who does not maintain a place of business within the city shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 1176 §5, 2020).
5.01.080 Violation--Penalty.
It is unlawful to operate any business within the corporate limits of the city except while in compliance with the requirements of this chapter. Upon conviction of a first violation of this chapter, the defendant shall be subject to a fine of up to five hundred dollars. Upon conviction of a second or subsequent violation of this chapter, the defendant shall be subject to a fine of up to five hundred dollars and/or imprisonment for a period up to six months. (Ord. 641 §8, 1977).