Chapter 5.06
RESIDENT, NONRESIDENT, HOME OCCUPATION

Sections:

5.06.010    Definitions.

5.06.020    License required.

5.06.025    License application.

5.06.030    Employees’ fees for resident businesses.

5.06.040    License fees.

5.06.042    Fee adjustments.

5.06.043    License renewal – Penalties.

5.06.050    Special fee assessed.

5.06.060    Payrolls subject to audit.

5.06.090    First-time resident and home occupation business license.

Prior legislation: Ord. 2698.

5.06.010 Definitions.

The following definitions shall apply in construing the provisions of this title, except where otherwise declared or clearly apparent from the context:

A. “Home occupation” means the operation from a dwelling of a business which is clearly incidental to the primary use of the dwelling as living quarters and which in no manner compromises the residential character of the neighborhood in which the dwelling is located.

B. “Nonresident business” means and includes any business conducted in the city from an office outside of the city, not occupying a fixed place of operation within the city of Lynnwood, but which business performs work or carries on business within the city of Lynnwood.

C. “Resident business” means and includes a business occupying a fixed place of operations within the city of Lynnwood and not specifically included in nonresident or home occupation classification.

D. “Employee” means and includes any individual person employed at any business enterprise who performs any part of his duties within the city, except casual laborers not employed in the usual course of business. A sole proprietor is not an “employee.” All officers, agents, dealers, franchisees, etc., of a corporation or business trust, and all but one partner of a partnership (except limited partners), are “employees” within this definition. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3323 § 2, 2018; Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 9, 2016; Ord. 2862 § 1, 2010; Ord. 2111 § 1, 1996; Ord. 1906 § 2, 1992; Ord. 1297 § 1, 1982; Ord. 1260 § 1, 1982; Ord. 1259 § 1, 1982; Ord. 1089 § 11(1), 1979; Ord. 1071 § 4, 1979; Ord. 818 § 1, 1975; Ord. 30 § 1, 1959)

5.06.020 License required.

Except as otherwise provided in this title, it is unlawful for any person, firm or corporation to conduct or operate any home occupation, resident or nonresident business in the city of Lynnwood without first obtaining a license pursuant to the provisions of this chapter. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3323 § 3, 2018; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010; Ord. 1089 § 11(2), 1979)

5.06.025 License application.

Application for the general license required by this chapter is made through the Business Licensing Service. The application must include all information required for each license requested on the application, and all fees due for all licenses under this code, as well as the application handling fee required by RCW 19.02.075. (Ord. 3343 § 1 (Exh. A), 2019)

5.06.030 Employees’ fees for resident businesses.

All resident businesses shall pay at the time of making application for licenses a fee based on the number of employees of the business, except that business and activity which are specially regulated and for which license fees are prescribed otherwise than as resident business shall not be required to pay a fee for each employee.

Any employee so employed by a business as of January 1st of each calendar year or upon the date of application or renewal for a business license must so be reported to the business license clerk or designee as appropriate, as part of the application for or renewal of the license. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010; Ord. 1089 § 11(1), 1979; Ord. 818 § 5, 1975)

5.06.040 License fees.

The city’s license fees for businesses shall be and the same are fixed as shown in Chapter 3.104 LMC. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010; Ord. 2656 §§ 1, 2, 2006; Ord. 2539 § 1, 2004; Ord. 2435 § 1, 2002; Ord. 2398 § 1, 2001; Ord. 2345 § 1, 2000; Ord. 2289 § 1, 1999; Ord. 1906 § 4, 1992; Ord. 1297 § 1, 1982; Ord. 1260 § 1, 1982; Ord. 1259 § 2, 1982; Ord. 1089 § 11(1), 1979; Ord. 1071 § 1, 1979; Ord. 1008 § 1, 1978; Ord. 818 § 6, 1975)

5.06.042 Fee adjustments.

For business license renewal applications the business license fee may be adjusted at the date of renewal to account for under- or over-reporting of the number of employees during the previous year.

A. If at any time during the previous year the number of employees exceeds the estimate submitted with the initial application, an additional license fee shall be collected by the city, in conjunction with approving the annual renewal. Such additional license fees shall be prorated by the actual number of days the additional employee(s) worked during the year.

B. At the time of renewal, if the city determines the number of employees at the end of the previous year was less than the number reported estimated for the previous year, the city may issue a refund of the excess fees collected. Such refund shall be prorated by the number of days that each of the previously reported employees who were not employed at the end of the year did not work during the calendar year. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010)

5.06.043 License renewal – Penalties.

A. Each license issued under this chapter must be renewed on or before the expiration date established by the Business Licensing Service in order to continue conducting business in the city.

B. Renewal of the license is done through the Business Licensing Service and must include all information required for each license being renewed, and all fees due for all licenses under this code, as well as the renewal handling fee required by RCW 19.02.075.

C. The license term and respective fee amount due may be prorated to allow synchronizing the license expiration date with the expiration assigned to the business license account established by the Business Licensing Service.

D. Any business owner who fails to renew the license by the expiration date shall incur the late renewal penalty required by RCW 19.02.085. Any business owner who submits a late license renewal application must include all information required for each license being renewed, and all fees due for all licenses under this code, as well as the renewal handling fee required by RCW 19.02.075.

E. Failure to renew the license within 120 days after the expiration date shall result in the cancellation of the license and shall require application for a license as provided in this chapter in order to continue to conduct business in the city. (Ord. 3343 § 1 (Exh. A), 2019)

5.06.050 Special fee assessed.

For each business where liquor is consumed on premises, the licensee shall pay to the city a special fee in addition to the regular resident business license fee collected through the Business Licensing Service, which is as shown in Chapter 3.104 LMC. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010; Ord. 2656 §§ 1, 2, 2006; Ord. 1071 § 5, 1979)

5.06.060 Payrolls subject to audit.

A. The payrolls of all resident businesses licensed within the city shall be subject to an audit by the city as to the number of employees employed by the resident business.

B. Each business license holder may be required, by the director or his/her designee, to file with the city copies of its quarterly reports to the State Department of Labor and Industries reporting employee hours worked. The businesses that did not file the report may be required to file an affidavit with the city reporting hours worked or the equivalent number of employees.

C. If, upon review of the reports as specified under subsection (B) of this section or the audits conducted under subsection (A) of this section, it is found that the year has been under-reported by 20 percent or more, there shall be a penalty applied to any additional fee owed, equal to 20 percent per annum of the additional fee, plus any accounting, legal or administrative expense incurred by the city in determining the under-reporting, the amount of the under-reporting or in collecting the tax and any penalty. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010; Ord. 1089 §§ 7, 11(1), 1979; Ord. 449 § 4, 1968)

5.06.090 First-time resident and home occupation business license.

A first-time resident and/or home occupation business license fee per license issued, in the amount established by Chapter 3.104 LMC, shall accompany an application for business license. This fee shall apply to all new businesses to the city of Lynnwood, whether that application is the result of sufficient change in an existing license so as to require its replacement. (Ord. 3343 § 1 (Exh. A), 2019; Ord. 3253 § 2 (Exh. B), 2017; Ord. 2862 § 1, 2010; Ord. 2699 § 10, 2007; Ord. 2345 § 1, 2000; Ord. 2289 § 3, 1999)