Chapter 5.01
GENERAL BUSINESS LICENSES* Revised 1/26
Sections:
5.01.020 Definitions. Revised 1/26
5.01.030 Administration and enforcement.
5.01.040 General business license required. Revised 1/26
5.01.045 Exemptions. Revised 1/26
5.01.050 Application and review procedure, license fee. Revised 1/26
5.01.060 License to be posted. Revised 1/26
5.01.070 Separate business license required. Revised 1/26
5.01.080 License not transferable. Revised 1/26
5.01.090 Effect of license issuance. Revised 1/26
5.01.100 Grounds for denial or revocation. Revised 1/26
5.01.110 Denial or revocation – Massage or reflexology businesses. Revised 1/26
5.01.120 Notice of denial or revocation. Revised 1/26
5.01.130 Appeal and hearing procedures. Revised 1/26
5.01.140 Authority of hearing examiner. Revised 1/26
5.01.150 Violations – Penalty. Revised 1/26
*Cross reference(s) – Police department, ch. 2.22; sales and use taxes, ch. 3.16; outdoor musical entertainment, rock festivals, ch. 4.05; recreational vehicle park licenses, § 12.06.210.
State law reference(s) – Authority to license, RCW 35A.82.020; alcoholic beverages share in proceeds, RCW 35A.66.020; license and tax on alcoholic beverages prohibited, RCW 66.08.120; authority to enforce state regulations on food, RCW 35A.69.010; food inspections, RCW 16.49A.010 et seq.; transient accommodations, RCW 70.62.200 et seq.
5.01.010 Title.
This chapter shall constitute the general business license code of the city and may be cited as such.
(Ord. No. 4001, § 2, 8-2-11)
5.01.020 Definitions. Revised 1/26
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
A. Business shall have the same meaning provided in Chapter 1.01 KCC and includes nonprofit organizations. The term business shall also include apartment and residential rental properties of two or more units, as well as rental housing and rental property as those terms are defined in Chapter 5.14 KCC, but shall not include governmental agencies.
B. Business premises means each location at which business is engaged in within the city. A business may have more than one business premises within the city.
C. Director means the finance director of the city or the director’s designee.
D. Department means the finance department of the city.
E. Engage or engaging in business.
1. The term engage or 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.
2. 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 register and obtain a business license or pay city business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of engaging in business. 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.
3. 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:
a. 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.
b. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.
c. Soliciting sales.
d. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
e. 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.
f. Installing, constructing, or supervising installation or construction of real or tangible personal property.
g. Soliciting, negotiating, or approving franchise, license, or other similar agreements.
h. Collecting current or delinquent accounts.
i. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
j. 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.
k. 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.
l. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
m. 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.
n. Investigating, resolving, or otherwise assisting in resolving customer complaints.
o. 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.
p. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
q. Accepting or executing a contract with the city, irrespective of whether goods or services are delivered within or without the city, or whether the person’s office or place of business is within or without the city.
4. The city expressly intends that engaging in business includes 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 licensee benefits from the activity that constituted the original nexus generating contact or subsequent contacts.
F. Licensee means any person or business that applies for or is granted a business license.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4069, § 1, 2-19-13; Ord. No. 4220, § 1, 11-15-16; Ord. No. 4287, § 1, 11-6-18; Ord. No. 4524, § 1, 11-18-25)
5.01.030 Administration and enforcement.
A. The director shall have general charge of, and supervision over, the administration and enforcement of this chapter.
B. The director may call upon other city departments to aid in the enforcement of this chapter.
C. The licensee shall, upon reasonable request, provide or allow the director to inspect relevant documentation for verification of the information provided by the licensee on the business license application.
(Ord. No. 4001, § 2, 8-2-11)
5.01.040 General business license required. Revised 1/26
Except as provided in this chapter, it is unlawful to engage in business in the city without having first obtained a general business license for the current calendar year or unexpired portion thereof and paid the fees prescribed in this chapter. A business with business premises, primary places of business, or main offices outside the city limits must be licensed before conducting business within the city limits.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4287, § 2, 11-6-18; Ord. No. 4392, § 1, 2-16-21; Ord. No. 4524, § 2, 11-18-25)
5.01.045 Exemptions. Revised 1/26
To the extent set forth in this section, the following businesses shall be exempt from the registration, license, and/or license fee requirements as outlined in this chapter:
A. A business whose employees, agents, representatives, independent contractors, brokers, or other persons acting on the business’s behalf, engage in no other activities in or with the city but the following:
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 business does not provide training in connection with tangible personal property sold by the business 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.”
6. Conducting advertising through the mail.
7. Soliciting sales by phone from a location outside the city.
B. A seller who is located outside the city merely delivering goods into the city by means of common carrier; provided, that it engages in no other business activities in the city. Such activities do not include those in subsection (A) of this section.
C. A 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 $4,000 and who does not maintain a business premises within the city. Beginning January 1, 2030, and every four years thereafter, the threshold amount in this subsection shall be adjusted by an amount equal to the cumulative increase over the prior four years in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U), as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate the adjustment, the current rate shall be multiplied by one plus the cumulative four-year CPI increase using each 12-month period ending on June 30th of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five percent, a five percent increase shall be used in calculating the annual basis and if any of the annual CPI decreased during the prior four years, a zero percent increase shall be used in calculating the annual basis. The exemption does not apply to regulatory license requirements or activities that require a specialized permit.
D. A business whose sole business activity conducted within the city is accepting or executing a contract or grant agreement with the city as part of an event or program facilitated by, or for a service provided to, the recreation and cultural services division of the parks and community services department.
E. A nonprofit organization shall be required to be licensed but shall be exempt from paying a business license fee upon satisfactory proof to the director of their nonprofit status.
F. A business that moves to another location outside of the city shall be exempt from paying a new business license fee.
G. A business solely owned and operated by a person under the age of 18 years shall not be required to have a business license.
(Ord. No. 4287, § 3, 11-6-18; Ord. No. 4392, § 2, 2-16-21; Ord. No. 4524, § 3, 11-18-25)
5.01.050 Application and review procedure, license fee. Revised 1/26
A. Fees. The city council shall, by resolution, establish the fees to be assessed to implement and operate the regulations adopted in this chapter.
1. The director shall assess one-half the annual fee if an application for a new license is made July 1st through November 30th.
2. A business that engages in business without having obtained a license as provided in this chapter shall be liable for any unpaid fees within the last five calendar years prior to issuance of a license.
3. The director is authorized to refund or credit any overpayment in fees within two years of the overpayment, using standards and determined by the director.
4. In the event of any conflict or ambiguity regarding fees the director is authorized to interpret the fee schedule(s) to resolve the conflict or ambiguity.
B. Application. Pursuant to RCW 35.90.020, the city participates in the online local business licensing and tax filing portal “FileLocal.” Businesses subject to the city’s general business licensing requirements have the option to obtain a license through FileLocal or directly through the city at the customer service counter. Approved applications received during the month of December will be processed for the subsequent calendar year licensing period.
C. Completeness. A business license application shall be reviewed for completeness upon submittal to the department. If the application is deemed as incomplete, the department shall notify the licensee of information needed to complete the application.
D. Licensee response to requests for information. The licensee shall provide the requested information to the department within 30 calendar days of the date of the department’s request. Failure to provide all requested information may result in the application being canceled.
E. Review. The application will be reviewed by the director and appropriate city personnel to determine if it meets the requirements established through the Kent City Code and other appropriate regulatory requirements. If reviewing personnel determine that additional or revised information is necessary to achieve code compliance, the city shall notify the licensee in writing of the requested information or changes, and the licensee shall provide the requested information as set forth in subsection (D) of this section. This process may continue until complete or corrected information is obtained.
F. Issuance and denial. If the application is complete and the appropriate city personnel determine that it meets the requirements established throughout the Kent City Code, the director shall issue a license. If the director determines that the proposed business meets one or more of the grounds for denial as listed in this chapter, the director may deny the application.
G. Term. A business license shall expire at the end of the calendar year for which it is issued and a new business license shall be required annually.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4019, § 4, 12-13-11; Ord. No. 4064, § 2, 12-11-12; Ord. No. 4220, § 2, 11-15-16; Ord. No. 4422, § 1, 12-14-21; Ord. No. 4524, § 8, 11-18-25. Formerly 5.01.090)
5.01.060 License to be posted.1 Revised 1/26
All licenses issued pursuant to this chapter shall be posted in a conspicuous place at each business premises.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4524, § 6, 11-18-25. Formerly 5.01.070)
5.01.070 Separate business license required. Revised 1/26
A separate license shall be obtained for each business premises within the city and each license shall authorize the licensee to carry on, pursue, or conduct business only at that business premises. A separate license shall not be required for a facility at a premises other than the licensed business premises if the director determines that the facility is accessory to the licensed business.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4524, § 4, 11-18-25. Formerly 5.01.050)
5.01.080 License not transferable. Revised 1/26
No license issued under the provisions of this chapter shall be transferable or assignable to a new business or transferable to another business premises or location. In the event that ownership of a business changes, or that the business premises or location changes, the license shall be returned to the department and the business shall apply for a new license.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4524, § 5, 11-18-25. Formerly 5.01.060)
5.01.090 Effect of license issuance. Revised 1/26
Issuance of a license pursuant to this chapter does not create a duty by the city to indemnify the licensee for any wrongful acts against the public or any individual, or guarantee the quality of goods, services, or expertise of a licensee. An issued license is not evidence of the legality of a business or that such business is conducted in conformity with any laws or regulations and it shall be the exclusive responsibility of the licensee to ensure that the business complies with the requirements of all laws and regulations. Issuance of a license does not prevent the city from taking any action relating to the conduct of the business or the licensee, including but not limited to revocation or denial of any license, an action to cause the cessation of the business, or any other action provided by law.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4524, § 7, 11-18-25. Formerly 5.01.080)
5.01.100 Grounds for denial or revocation. Revised 1/26
In addition to other actions or penalties provided by law, the city may deny an application or revoke a license for any of the following reasons:
A. The application contains an omission or misrepresentation of material fact;
B. The license was procured by fraud;
C. The license is used, or is intended to be used, for a business materially different from that applied for;
D. The licensee or business fails to pay the licensing fee applicable to such license, including any unpaid fees for engaging in business without a license;
E. The licensee or business violates any of the requirements of this chapter;
F. The licensee or business engages in, or seeks to engage in, an unlawful business or activity;
G. The licensee or business operates in a manner that constitutes a nuisance pursuant to common law, the Kent City Code, or state law;
H. The licensee or business is delinquent in the payment of any fees, taxes, assessments, or fines owed to the city, including but not limited to license fees, permit fees, utility fees, gambling taxes, local improvement district assessments, and civil fines;
I. The licensee or business has had a similar application denied or license revoked and has not corrected the basis for the denial or revocation;
J. The licensee or business does not comply with or is in violation of the zoning code adopted in KCC Title 15;
K. The licensee or business does not comply with or is in violation of the building or fire codes adopted in Chapters 13.01 and 14.01 KCC;
L. The licensee or business does not comply with or is in violation of the rental housing registration and inspection program adopted in Chapter 10.02 KCC; or
M. The licensee or business operates in a manner or engages in conduct that constitutes a violation of any provision of the Kent City Code.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4422, § 2, 12-14-21; Ord. No. 4524, § 12, 11-18-25. Formerly 5.01.130)
5.01.110 Denial or revocation – Massage or reflexology businesses. Revised 1/26
A. No person who has violated a section of Chapter 9A.88 RCW or a similar law of another state, and no person who has violated a section of Chapter 9A.60 RCW or a similar law of another state when such violation of Chapter 9A.60 RCW or similar law of another state is related to the operation of a massage business or reflexology business, shall be authorized or entitled to obtain a city of Kent business license for a massage business or reflexology business. Prior to the issuance of a license for the operation of a massage business or reflexology business, the city of Kent department in charge of the issuance of the license may consult with the Kent police department to determine whether the applicant is eligible for such license.
B. The issuance of a business license for a massage business or reflexology business to a person who has previously committed a violation of an offense described in subsection (A) of this section shall be null and void.
C. In the event a person who has obtained a city of Kent business license for a massage business or reflexology business is thereafter found in violation of an offense described in subsection (A) of this section, such business license may be revoked in accordance with this chapter. Revocation may occur regardless of the jurisdiction or location in which the violation of the offense occurs. The bases for revocation of the business license pursuant to this section shall be in addition to the grounds for revocation as otherwise provided in this chapter.
D. A business license application for the operation of a massage business or reflexology business may be denied in accordance with this chapter to any licensee who previously violated any provision of Chapter 9.04 KCC. The bases for denial of the business license pursuant to this section shall be in addition to the grounds for denial as otherwise provided in this chapter. Prior to the issuance of a license for the operation of a massage business or reflexology business, the city of Kent department in charge of the issuance of the license may consult with the Kent police department to determine whether the applicant is eligible for such license.
E. A business license for the operation of a massage business or reflexology business may be revoked in accordance with this chapter to any licensee in violation of Chapter 9.04 KCC. The bases for revocation of the business license pursuant to this section shall be in addition to the grounds for revocation as otherwise provided in this chapter.
F. For the purposes of this section, the terms massage, massage business, reflexology, and reflexology business shall have the meanings set forth in RCW 18.108.010 as now enacted or hereafter amended or recodified.
G. For the purposes of this section, the term violation or violated shall mean a conviction after trial, a plea of guilty or a finding of guilt after an Alford plea, Newton plea, or plea of no contest or nolo contendere, or the entry of a deferred sentence, deferred prosecution, or stipulated order of continuance.
(Ord. No. 4156, § 2, 6-16-15; Ord. No. 4353, § 5, 1-21-20; Ord. No. 4524, § 13, 11-18-25. Formerly 5.01.135)
5.01.120 Notice of denial or revocation. Revised 1/26
Any action to deny an application or revoke a license shall be commenced by notice. A notice issued under this section shall substantially comply with the following:
A. The notice shall be delivered, by first class mail, email, or by personal service, to the licensee as set forth in the most recent business license application.
B. The notice shall describe the basis for the denial or revocation.
C. The notice shall state the effective date of the revocation.
D. The notice shall describe corrective action, if any, that may be taken to eliminate the basis for denial or revocation.
E. The notice shall specify that the licensee may appeal the denial or revocation by submitting an appeal electronically to the department within 14 calendar days of the mailing date, email date, or personal service date of the notice.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4422, § 3, 12-14-21; Ord. No. 4524, § 15, 11-18-25. Formerly 5.01.150)
5.01.130 Appeal and hearing procedures. Revised 1/26
A. Effect of appeal on revocation. The effective date of any revocation is stayed pending resolution of the appeal, and the business may continue to operate until the hearing examiner issues a final order regarding the revocation. Nothing in this subsection prohibits the city from seeking or obtaining a judicial order enjoining the operation of the business prior to a final order from a hearing examiner.
B. Scheduling of hearing. A hearing on the denial of an application or revocation of a license shall be held not less than 14 calendar days nor more than 60 calendar days after the appeal is received.
C. Notice of hearing. Notice of the hearing shall be delivered, by first class mail, email, or by personal service, to the licensee as set forth in the most recent business license application or the request for appeal. The notice shall specify that appeal hearings will follow the procedure outlined in this section and if the licensee fails to appear on the date of the hearing, the hearing examiner will enter a default order or judgment affirming the city’s denial.
D. Parties to hearing. The parties to a revocation or denial hearing are the city and the licensee. Either party may be represented by legal counsel properly licensed in the state of Washington.
E. Continuance of hearing. The hearing examiner may grant continuances and reschedule hearings in the interest of the parties and justice.
F. Cancellation of hearing. The hearing examiner may cancel an appeal hearing if the director withdraws the denial or revocation, the licensee withdraws the application, or the licensee voluntarily surrenders the license. Nothing in this subsection shall relieve the licensee of complying with the provisions of this chapter.
G. Prehearing conferences. The hearing examiner may hold a prehearing conference to schedule additional hearings, order discovery, and to make other appropriate prehearing determinations.
H. Hearing process. The parties to the hearing may call witnesses and present evidence subject to the following:
1. Where the city has commenced an action to revoke a business license, the city shall have the burden of proving, by a preponderance of the evidence, that there are sufficient grounds for the revocation of the license pursuant to this chapter. In cases involving the denial of an application, the licensee shall have the burden of proving, by a preponderance of evidence, that the grounds cited in the denial are invalid and the licensee is qualified in accordance with this chapter.
2. The parties shall be responsible for securing the appearance of any witnesses they may call. Neither the city nor the hearing examiner shall have the burden of securing any witnesses on behalf of the licensee.
3. Formal rules of evidence do not apply. The hearing examiner may allow hearsay evidence and may permit the admission of evidence without proof of the chain of custody or satisfaction of other formal rules of evidence. The hearing examiner shall determine the proper weight to be assigned to any evidence admitted.
I. Default order or judgment – Costs. If the licensee fails to appear at any hearing, the hearing examiner shall issue a default order or judgment affirming the city’s denial or revocation. If requested by the city, the hearing examiner shall include costs in the default order that are incurred by the city and paid to the hearing examiner for preparation and appearance at the hearing, and the department shall assess the same against the licensee.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4422, § 4, 12-14-21; Ord. No. 4524, § 16, 11-18-25. Formerly 5.01.160)
5.01.140 Authority of hearing examiner. Revised 1/26
A. Authority of hearing examiner. The hearing examiner shall have the authority to determine whether there are sufficient grounds for the denial or revocation pursuant to this chapter.
B. Order of hearing examiner. The hearing examiner shall issue a written order that sets forth a procedural summary of the hearing, findings of fact and conclusions of law, and a determination on the city’s denial or revocation. In the event of a default judgment, the written order shall set forth whether notice was properly issued, the facts regarding the failure of the licensee to appear, and a determination of default if notice was proper. The written order shall be delivered to the parties by first class mail, email, or by personal service no more than 10 calendar days following the conclusion of the hearing. If delivered only by first class mail, the order is effective on the third day following placement in the mail.
C. Appeal of final order. An appeal of the hearing examiner’s order must be filed with the King County superior court within 21 calendar days of the order’s effective date.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4524, § 17, 11-18-25. Formerly 5.01.170)
5.01.150 Violations – Penalty. Revised 1/26
A. Civil code enforcement action. Any violation of any provision of this chapter constitutes a civil violation under Chapter 1.04 KCC for which a monetary penalty may be assessed.
B. Criminal offense. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of the Kent City Code may be charged criminally, pursuant to KCC 1.04.030(B).
C. Civil infraction. In addition to or as an alternative to any other penalty provided in this chapter or by law, any person who violates any provision of this chapter may be issued a class 1 civil infraction pursuant to RCW 7.80.120, as currently enacted or hereafter amended, and KCC 1.04.225. If a business cited for failure to obtain a business license appears before the Kent municipal court and provides written evidence that he or she obtained a business license prior to adjudication of the infraction, the monetary penalty shall be reduced to $100 and the court may assess court administrative costs of $25. The court administrative costs shall be in lieu of the statutory assessments referenced in RCW 7.80.120.
D. Collections. Any license fee or penalty due, unpaid, and delinquent under this chapter shall constitute a debt to the city. Pursuant to Chapter 19.16 RCW, the city may use a collection agency to collect unpaid license fees or penalties, or it may seek collection by court proceedings, which remedies shall be in addition to all other remedies.
E. Other remedies not waived. The city may use any means available at law or equity to enforce any provision of this chapter, and may, in addition to any other available remedy, seek injunctive relief, declaratory relief, execution of any judgment, or abatement.
(Ord. No. 4001, § 2, 8-2-11; Ord. No. 4220, § 5, 11-15-16; Ord. No. 4524, § 19, 11-18-25. Formerly 5.01.190)
Code reviser’s note: Ord. 4524 renumbered this section as Section 5.01.090. It has been editorially renumbered to avoid duplication of numbering.