Chapter 5.05
BUSINESS LICENSES
Sections:
5.05.020 Established – Based on number of employees.
5.05.040 Farmer(s) or orchardist(s) – Conditional exemption.
5.05.050 Payment schedule – Delinquency – Late charge.
5.05.064 License not transferable – Change of owner or location.
5.05.066 License renewal – Penalties.
5.05.010 Definitions.
(1) “Business” is a commercial or industrial establishment, store, factory, etc., the buying and selling of commodities and service, commerce, trade conducted within the city by any person, group, association, or organization of any kind, unless expressly exempted under provisions of EMC 5.05.030, 5.05.040, or 5.05.060.
(2) Engaging in Business.
(a) The term “engaging in business” means 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 minimal 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 (2)(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:
(i) 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.
(ii) Owning, renting, leasing, using, or maintaining an office, place of business, or another establishment in the city.
(iii) Soliciting sales.
(iv) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
(v) 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.
(vi) Installing, constructing, or supervising installation or construction of real or tangible personal property.
(vii) Soliciting, negotiating, or approving franchise, license, or other similar agreements.
(viii) Collecting current or delinquent accounts.
(ix) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
(x) 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.
(xi) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.
(xii) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
(xiii) 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.
(xiv) Investigating, resolving, or otherwise assisting in resolving customer complaints.
(xv) 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.
(xvi) 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:
(i) Meeting with suppliers of goods and services as a customer.
(ii) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.
(iii) 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.
(iv) Renting tangible or intangible property as a customer when the property is not used in the city.
(v) 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.
(vi) Conducting advertising through the mail.
(vii) 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 (2)(d) 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.
(3) “Business Licensing Service” and “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the city. (Ord. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 636, 2005; Ord. 616 § 1, 2004)
5.05.020 Established – Based on number of employees.
Each and every business located within the city limits of the city of Entiat, and each and every business located outside the city of Entiat that engages in some business activity within the city limits of the city of Entiat, shall pay an annual license fee which shall be based upon the number of employees, including the owner(s) of the business, which constitutes the average number of full-time employees for said business. The annual business license rates thus established shall be set by an annual fee resolution.
Every business license applicant must meet all applicable provisions of the Entiat Municipal Code, as well as state and federal regulations. (Ord. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 636, 2005; Ord. 616 § 2, 2004)
5.05.030 Threshold exemption.
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:
(1) 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 $2,000, 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. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 636, 2005; Ord. 616 § 3, 2004)
5.05.040 Farmer(s) or orchardist(s) – Conditional exemption.
Farmer(s) or orchardist(s) selling fruit from the property where it is grown, without a fruit stand and/or without advertising, shall be exempt from obtaining a business license. (Ord. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 636, 2005; Ord. 616 § 4, 2004)
5.05.050 Payment schedule – Delinquency – Late charge.
Each and every business for which a business license is required must obtain the required annual business license(s) prior to the commencement of business. If the business license fee has not been paid by a new business within 30 days of business commencement, the business license fee shall be deemed delinquent and a late charge, set by an annual fee resolution, shall be assessed by, and be payable directly to, the city, in addition to the annual business license fee that must accompany the business license application submitted to the Business Licensing Service. (Ord. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 636, 2005; Ord. 616 §§ 5, 6, 2004)
5.05.060 Exemptions.
The provisions of this chapter shall not apply to the following:
(1) Any fraternal or social corporation or organization whose purpose is charitable and nonprofit.
(2) Any religious organization or church, or other religious assemblage.
(3) Any charitable fundraising organizations.
(4) Distributors, delivery persons and repair persons whose principal place of business is located outside the city limits of the city of Entiat.
(5) Persons providing child care with a gross annual income of less than $2,000.
(6) Other enterprises with a gross annual income of less than $2,000.
(7) Professional service providers/consultants providing services to municipal corporations within the city limits. Professional service providers/consultants by way of example include, but are not limited to, accountants, architects, attorneys, building inspectors, engineers, information/computer technology specialists, planners, and surveyors. (Ord. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 681 § 1, 2008; Ord. 636, 2005; Ord. 616 § 7, 2004)
5.05.063 Multiple businesses.
Each separate location in the city must have its own business license issued therefor.
(1) In the event a single business owner conducts business at more than one location or branch in the city, a separate business license must be obtained for each such location, as provided for in this chapter; provided, that no owner must obtain more than one license for a single location even though they may conduct more than one business activity type at such location.
(2) In the event two separate business owners each conduct their own business at the same physical location in the city, each owner must obtain a separate business license for their respective business.
(3) A business located outside the city limits and required to be licensed to conduct business inside the city need only obtain one business license which will be considered to allow the same business to be conducted at multiple locations inside the city. (Ord. 816 § 1, 2020)
5.05.064 License not transferable – Change of owner or location.
(1) The license issued under the provisions of this chapter is personal and issued only to the business owner and location indicated in the original application. In the event of a change in ownership of the business, the new owner must obtain a business license, as provided for under this chapter, for the acquired business prior to commencing business in the city under the acquired business.
(2) If a business owner wishes to move the business to a new location in the city, the owner must notify the Business Licensing Service sufficiently prior to the change to allow the city to review and approve the change, and not commence business at the new location until such approval is granted. (Ord. 816 § 1, 2020)
5.05.065 License application.
Application for the city business license is made through the Business Licensing Service and must include all information required for all licenses requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075. Commencing business in the city prior to having obtained a license to do so is subject to the late filing penalty of EMC 5.05.050. (Ord. 816 § 1, 2020)
5.05.066 License renewal – Penalties.
The city business license must be renewed on or before the license expiration established by the Business Licensing Service (BLS), and must include all information required to renew each license involved, the total fees due for all licenses, and the renewal application handling fee required by RCW 19.02.075.
(1) The license term and respective fee amount may be prorated as necessary to synchronize the license expiration with the expiration of the business account maintained by BLS.
(2) Failure to complete the renewal by the expiration date will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due.
(3) Failure to complete the renewal within 120 days after expiration will result in the cancellation of the license, and a new application must be submitted, as provided for in this chapter, to continue to engage in business in the city. (Ord. 816 § 1, 2020)
5.05.070 Violation – Penalty.
Any person, corporation or other business who shall violate any of the provisions of this chapter shall be guilty of an infraction and subject to a penalty up to $500.00, noting first offense – $150.00, second offense – $300.00, and third offense – $500.00. (Ord. 816 § 1, 2020; Ord. 790 § 1 (Exh. A), 2018; Ord. 636, 2005; Ord. 616 § 8, 2004)