Chapter 5.105
KENMORE BUSINESS REGISTRATION PROGRAM

Sections:

5.105.010    Chapter and purpose.

5.105.020    Definitions – General.

5.105.025    Engaging in business.

5.105.030    Business registration required – Posting.

5.105.040    Exceptions – Applicability of provisions.

5.105.050    Nonprofit businesses and organizations.

5.105.060    Program application and renewal.

5.105.070    Registration term or expiration.

5.105.080    Fee.

5.105.090    Late renewal.

5.105.100    Registration denial or revocation.

5.105.110    Violation – Civil infraction, enforcement.

5.105.120    Rules and rulings.

5.105.010 Chapter and purpose.

Maintenance of current information with respect to business, trade, service, commercial and professional activities carried on within the City allows the City to carry out the duties and authorities delegated to it by the Washington State Constitution and the laws of the State of Washington as a noncharter code city. Such information can best be accumulated and maintained on a current basis through the establishment of a program for the registration of such business activities. The business registration program (“program”) is hereby established to protect the public and promote economic development and not intended to benefit any individual or class. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.020 Definitions – General.

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given in this section:

A. “Business,” “occupation” or “pursuit” means and includes all activities, occupations, trades, pursuits, professions, and matters located or engaged in within the City with the object of gain, benefit, or advantage to the applicant for business registration or other person, directly or indirectly, whether part-time or full-time, whether resident or nonresident.

B. “City” means the City of Kenmore, Washington.

C. “Engaging in business” is defined in KMC 5.105.025.

D. “Person,” “firm,” or “corporation,” used interchangeably in this chapter, means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, corporation, association, canvasser, peddler, solicitor, society, or any group of individuals acting as a unit, whether mutual cooperative, fraternal, nonprofit or otherwise, and includes the United States or any instrumentality thereof. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.025 Engaging in business.

A. For purposes of this chapter, 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 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 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.

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 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.

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 section.

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. [Ord. 18-0468 § 1 (Exh. A).]

5.105.030 Business registration required – Posting.

A. Any person engaging in business, occupation, or home occupation (see Chapter 18.73 KMC), or pursuit in the City shall register that business with the City’s program. To register under the program, a person must submit an application to the State Department of Revenue and pay the applicable registration fee.

B. A business located within the City must be registered with the program.

C. A business registration shall be posted in a conspicuous location at the place of the business. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.040 Exceptions – Applicability of provisions.

This chapter does not apply to:

A. The performance of governmental or proprietary functions by any instrumentality of the United States, the State of Washington, or any political subdivision thereof, including City sponsored civic events.

B. The delivery of goods by vehicle to a customer or client by a business where the sale occurred on a business premises outside of the City and the only event occurring within the City is a delivery.

C. Accredited public or private schools, colleges, or universities, as to their education endeavors only; churches and other religious bodies, as to their religious activities only; political groups and organizations as to their political activities only.

D. Minors, a person under the age of 18, engaged in business or operating a business concern where no other person is employed by the minor.

E. A business located within the City with an annual gross income of $12,000 or less.

F. 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 $12,000 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 requirements or activities that require a specialized permit.

G. Notwithstanding subsection F of this section, a business that is not located within the City is exempt from this chapter regardless of the annual value of products, gross proceeds of sales, or gross income of the business in the City.

H. Farmers selling fruit, vegetables, berries, eggs, or any farm produce or edibles raised, gathered, produced or manufactured by such person; provided, that nothing herein authorizes any person to sell, deliver or peddle any dairy product, meat, poultry, eel, fish, mollusk or shellfish without a license as otherwise required by the State of Washington.

I. Where preempted by Federal or State constitutions or laws. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.050 Nonprofit businesses and organizations.

Organizations exempt from taxation under 26 USC 501(c)(3) and (4) must register under the business registration program, but shall be exempt from paying the registration fee. This shall not constitute an exemption from all other applicable taxes and fees. Such organization must be able to show satisfactory proof of such status to the City. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.060 Program application and renewal.

A. A person shall register a business with the program by submitting an application to the State Department of Revenue (with its Business Licensing Service), in coordination with the city manager, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter. Businesses that are not required to be registered because they do not exceed the annual gross income threshold may be voluntarily registered with the program, in the same manner set forth in KMC 5.105.030.

B. Only one registration is necessary if a business is located at two or more separate locations within the City, if the same business name and type of business is operated at the separate locations in the City.

C. If more than one business is conducted or operated on premises, a separate business registration shall be required for each business that meets the requirements for business registration. Each business owner must separately register a business with the program.

D. A business registration is nontransferable. A person engaged in business within the City shall notify the city manager and State Department of Revenue of a change of business location within 30 days of the location change or by the next registration renewal date, whichever date occurs first.

E. A person who has registered a business under the City’s program shall renew the registration on an annual basis, in the same manner as the original application for registration including payment of fees.

F. A person engaged in business within the City must comply with all applicable City ordinances and code provisions, and State and Federal laws. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.070 Registration term or expiration.

Business registration shall be valid for a term of 12 months, and shall expire on the date determined by the Department of Revenue, in coordination with the City. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.080 Fee.

A. The fee to register with the City’s program, or renew such registration, shall be as set forth in a fee resolution adopted by the city council.

B. From July 1, 2013, to December 31, 2013, program registration fees may be prorated to coincide with the Washington State Department of Revenue’s (its Business Licensing Service) registration term of 12 months. The prorated fee shall be as set forth in a fee resolution adopted by the city council. Thereafter, all registration fees shall be the full amount identified in subsection A of this section. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.090 Late renewal.

Each business registration issued must be renewed annually on or before the expiration date, or expiration of any prorated period. Failure to renew a business registration by the expiration date may result in an increase in the amount of the renewal fee by 50 percent. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.100 Registration denial or revocation.

A. An application for registration required under this chapter may be denied or revoked by the City based on any of the grounds provided below:

1. If the person who obtains the registration or any of the business officers, directors, agents, owners or employees of the business fail to comply with the requirements of this chapter.

2. If a person procures registration by fraud or misrepresentation of fact, or the person who obtains the registration or any of the business officers, directors, agents, owners or employees of the business obtain registration so as to practice some illegal act or some act injurious to the public health, safety and welfare.

3. Whenever a person fails or refuses to pay the registration or renewal fee.

B. The City shall not deny or revoke a business registration without cause. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.110 Violation – Civil infraction, enforcement.

A. A violation of this chapter shall constitute a civil infraction. A person who violates any provision of this chapter shall be subject to a civil fine in an amount not to exceed $100.00.

B. The city manager and officers authorized to provide police services to the City shall enforce this chapter and are authorized to issue civil infractions for violations of this chapter. The disposition of a civil infraction issued under this chapter shall follow the procedures adopted under the following statutes:

1. A notice of civil infraction issued under this chapter shall comply with the procedures of RCW 46.63.060(1), (2)(a) through (g) and (3), hereby adopted by reference as if set forth in full. A response to the notice of civil infraction and/or request for hearing shall comply with RCW 46.63.070(1) through (4) and (6), hereby adopted by reference as if set forth in full.

2. RCW 46.63.090 and 46.63.100, which regulate hearings on contested infractions and hearings to explain mitigating circumstances, are hereby adopted by reference as if set forth in full.

3. The phrase “traffic infraction” referenced in the above-cited statutes shall mean a “civil infraction” issued under this chapter.

C. A civil infraction issued under this chapter shall be filed with the King County district court, which shall have the exclusive jurisdiction to hear and determine the same. Rules of procedures for the conduct of hearings filed under this chapter may be established by rule of the court. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]

5.105.120 Rules and rulings.

The city manager may, from time to time, adopt, publish and enforce rules and regulations not inconsistent with this chapter or with State law. The purpose of such rules and regulations is to carry out the provisions of this chapter. The city manager may also issue letter rulings from time to time which are applicable only to specific businesses. Such administrative rulings shall be binding on the City and the applicable business. [Ord. 18-0468 § 1 (Exh. A); Ord. 15-0402 § 1 (Att. A); Ord. 13-0356 § 1 (Exh. 1).]