Chapter 5.04
BUSINESS LICENSES*

Sections:

5.04.010    Short title.

5.04.020    Definitions.

5.04.030    Requirement generally.

5.04.040    Exemptions.

5.04.050    Business license – Fees.

5.04.060    License – Fee – Certain businesses outside corporate limits.

5.04.070    Posting.

5.04.080    Renewal.

5.04.090    Fee – Nonpayment action – Monetary penalty.

5.04.100    Responsibility for regulation compliance by nonresidents.

5.04.110    Separate licenses for branch establishments.

5.04.120    Dual businesses at the same location.

5.04.130    License officer duties.

5.04.140    Application – Required – Form.

5.04.150    Application – Fee accompanying.

5.04.160    Issuance delay – Fee payment receipt.

5.04.170    Duplicate license – Fee.

5.04.180    Application – Denial or revocation.

5.04.190    Application – Disapproval action.

5.04.200    License denial – Appeal.

5.04.210    License – Fees a civil debt.

5.04.220    Criminal penalty.

5.04.230    Severability.

*Prior legislation: Ords. 573, 780, 861, 1097, 1204, and 1333.

5.04.010 Short title.

The ordinance codified in this chapter shall be known and may be cited as the “general licensing ordinance of the city.” (Ord. 1434 § 1, 1999).

5.04.020 Definitions.

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

A. Engaging in Business.

1. “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 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)(1) 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.

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 another 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.

4. 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:

a. Meeting with suppliers of goods and services as a customer.

b. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.

c. 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.

d. Renting tangible or intangible property as a customer when the property is not used in the city.

e. 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.

f. Conducting advertising through the mail.

g. Soliciting sales by phone from a location outside the city.

5. 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 if it engages in no other business activities in the city. Such activities do not include those in subsection (A)(4) of this section.

B. “City license officer” is the city finance director or designee.

C. “Licensee,” as used generally in this chapter, includes any person, or persons, who engages in business, who provides professional services or who is required to have a business license under this chapter or who performs any act for which a license fee is imposed by this chapter.

D. “Peddler” means any person who sells, or attempts to sell, by going from place to place or from house to house, whether he or she carries with him/her for delivery such property or whether he/she merely solicits orders for future delivery or performance.

E. “Person” includes individual natural persons, partnerships, joint ventures, societies, associations, trustees, trusts or corporations, or any officer, agent, employee, factor or any kind of personal representative thereof, in any capacity, acting either for himself, or any other person, under either personal appointment or pursuant to law.

F. “Premises” include all lands, structures and places, and any personal property which is either affixed to or is otherwise used in connection with any such business conducted on such premises.

G. “Transient merchant” means any person, firm or corporation who engages in, does or transacts any temporary business at wholesale or retail for the sale of goods, wares, or merchandise, or services, and who for such purpose shall use or occupy any building, vehicle, booth or other structure, either temporary or permanent, for the exhibition and/or sale of such property or services.

H. “Contractor” means any firm or individual or persons providing construction, engineering, or professional services within the city’s jurisdiction, either temporarily or permanently.

I. “Year” means a 12 consecutive month period. (Ord. 2024 § 1, 2021; Ord. 1951 § 1, 2018; Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.030 Requirement generally.

A. Every business shall obtain from the State Department of Revenue, Business License Division a general business license for the current year or unexpired portion thereof before commencing business. The year is identified beginning when the business obtained their state business license, and will be renewable on that date hereafter. The license shall be nontransferable.

B. It shall be unlawful for any person to conduct any business, either directly or indirectly, for which a license is required by any law or ordinance of the city, without first procuring and keeping said license in effect at all times as required by this chapter or other law or ordinance of this city.

C. No license shall be issued pursuant to the provision of this chapter to the following persons:

1. Any person who is not 18 years of age at the time of the application, save and except those applicants who apply for a license solely to act as an employee of any other licensee hereunder, and who shall obtain the written consent of said applicant’s parent or guardian to make said application, together with a covenant on behalf of said parent or guardian that he or she will be responsible for and guarantee performance of the minor making application in accordance with the terms and conditions of said licensing provisions, except as may specifically otherwise be provided herein.

2. Any person who, if licensed, is likely to present a danger to the public health, safety, or welfare by reason of any of the following:

a. The applicant has been convicted of a crime, which relates directly to the specific occupation, trade, vocation, or business for which the license is sought, provided the time elapsed between the violation and the date of license application is less than three years for felony conviction, or less than one year for a misdemeanor conviction.

b. The applicant has had a similar license revoked or suspended pursuant to the provisions of this chapter.

c. The city license officer has reasonable grounds to believe applicant to be dishonest or to desire such license to enable applicant to practice some illegal act or some act injurious to the public health or safety.

3. Any person who is not qualified under any specific provision of this title for any particular license for which application is made. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.040 Exemptions.

A. The license requirements of this chapter shall not apply to religious, charitable, or benevolent societies or organizations. The city license officer may require proof of nonprofit status.

B. While the ordinance codified in this section remains in effect, the license requirements of this chapter shall not apply to the following types of businesses that do not have permanent offices located within the city of Milton:

1. Subcontractors who are licensed and bonded as required by state law for any public or private development or repair project.

2. Licensed professionals, such as doctors, lawyers, accountants, and professional engineers.

3. Consultants hired to provide their expertise or opinion to other businesses, including financial and management consultants and experts hired to provide information for permit applications to government agencies.

4. Vendors and entertainment providers who do not operate for more than three consecutive days per event for city sponsored events open to all citizens of the city of Milton, such as street festivals, parades, and carnivals.

C. 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 $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. 2024 § 2, 2021; Ord. 1951 § 2, 2018; Ord. 1904 § 1, 2016; Ord. 1848 § 1, 2014; Ord. 1587 § 1, 2003; Ord. 1434 § 1, 1999).

5.04.050 Business license – Fees.

A. Application for a business license shall be made with the State Department of Revenue, Business License Division online or on a form to be furnished for that purpose and shall be accompanied by the fee contained in the city’s fee schedule.

B. Each such application shall be signed by the person, firm, or corporation to be licensed. Licenses must thereafter be renewed on or before the date when their state business license is renewed each year.

C. Licenses issued pursuant to this chapter shall be valid for a 12-month year, or balance thereof, in which application is received. There shall be no reduction of any license fee because of the fact that an application is received late in the year. The first renewal shall be prorated based on the new renewal date as set by the State Department of Revenue, Business License Division. (Ord. 1978 § 1, 2019; Ord. 1921 § 1, 2017; Ord. 1907 § 1, 2016; Ord. 1904 § 1, 2016; Ord. 1632 § 1, 2004; Ord. 1434 § 1, 1999).

5.04.060 License – Fee – Certain businesses outside corporate limits.

Certain businesses located outside the city limits, but which conduct business in whole or part within the city, but the principal place of business of which is not located within the corporate limits of the city, shall hereafter pay to the city an annual fee prior to the thirty-first day of January of the year in which the license is due.

A. U.S. West: $240.00;

B. Puget Sound Energy: $240.00;

C. Comcast Cable Company: $240.00. (Ord. 1632 § 1, 2004; Ord. 1434 § 1, 1999).

5.04.070 Posting.

A. Every business shall keep and post the license issued it pursuant to this chapter on the premises of the business.

B. Every transient merchant or peddler shall have in his or her possession at all times, while conducting business as such, the license issued pursuant to this chapter. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.080 Renewal.

All licenses shall be renewable, and the annual license fee shall be due on the same date as the state business license each year. The State Department of Revenue, Business License Division is authorized, but not required, to mail business forms for application for license renewal. Failure of the business to receive any such form shall not excuse the business from applying for and securing the license, and paying of the license fee due. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.090 Fee – Nonpayment action – Monetary penalty.

Failure to obtain a license, or failure to pay the license fee within 30 days after the day on which it is due, shall render the business subject to a penalty of 50 percent of the amount of the license fee for the first month of delinquency and an additional penalty of 10 percent for each succeeding month of delinquency; provided, that the total penalty shall not exceed the license fee. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.100 Responsibility for regulation compliance by nonresidents.

The agents or other representatives of nonresidents who are doing business in the city shall be personally responsible for the compliance of their principals and the businesses they represent with this chapter. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.110 Separate licenses for branch establishments.

A. A license shall be obtained in the manner prescribed in this chapter for each branch establishment or location, as if each such branch establishment or location were a separate business; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter shall not be deemed to be separate places of business or branch establishments.

B. Each rental real property shall be deemed a branch establishment or separate place of business for the purpose of this chapter, when there is a representative of the owner or the owner’s agent on the premises who is authorized to transact business for such owner or owner’s agent or there is a regular employee of the owner or of the owner’s agent working on the premises. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.120 Dual businesses at the same location.

A person engaged in two or more businesses at the same location shall be required to purchase a business license for each business that is conducting business. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.130 License officer duties.

The city license officer shall provide for the collection of all license fees and issuance of licenses in the name of the city to all persons qualified under the provisions of this chapter and shall:

A. Adopt all forms and prescribe the information to be given therein as to character and other relevant matters for all necessary papers;

B. Submit all applications, in a proper case, to interested city officials for their endorsements thereon as to compliance by the applicant with all city regulations which they have the duty of enforcing;

C. Notify all applicants of the acceptance or rejection of his application and shall, upon his/her refusal of any license or permit, at the applicant’s request, state in writing the reasons therefor and deliver them to the applicant;

D. Provide for the adoption, publication and enforcement, from time to time, such rules and regulations for the proper administration of this chapter as shall be necessary. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.140 Application – Required – Form.

Every person required to procure a license under the provisions of any ordinance or law of the city shall submit an application for such license to the State Department of Revenue, Business License Division. The application shall be a written statement upon a form provided by the State Department of Revenue, Business License Division and which city license officer finds to be reasonably necessary to the fair administration of this chapter. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.150 Application – Fee accompanying.

The application for license shall be accompanied by the full amount of the fee chargeable for such license. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.160 Issuance delay – Fee payment receipt.

Whenever a license cannot be issued at the time the application for the same is made, the State Department of Revenue, Business License Division shall issue a receipt to the applicant for the money paid in advance, subject to the following conditions: Such receipt shall not be construed as the approval of the city license officer for the issuance of a license, nor shall it entitle or authorize the applicant to open or maintain any business contrary to the provisions of this chapter. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.170 Duplicate license – Fee.

A duplicate license or a special permit shall be issued by the State Department of Revenue, Business License Division to replace any license previously issued which has been lost, stolen, defaced or destroyed without any willful conduct on the part of the licensee, upon the filing by the licensee of an affidavit attesting to such facts. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.180 Application – Denial or revocation.

The city license officer may deny an application for a business license, or revoke a business license previously issued, upon the following grounds:

A. The making of a false statement of material fact in the application for a business license or in any data or information required to be submitted with such application; or

B. The licensee has failed to comply with any of the provisions of this title; or

C. The licensee’s continued conduct of the business for which the license was issued will result in a danger to the public health, safety, or welfare by reason of any of the following:

1. The licensee, his/her employees or agents have been convicted of a crime which bears a direct relationship to the conduct of the business under the license issued pursuant to this title; or

2. The licensee, or his/her agents or employees, have in the conduct of the business violated any law or ordinance relating to public health or safety; or

3. The conduct of the business for which the license was issued has resulted in the creation of a public nuisance as defined in the Milton Municipal Code, or in state law; or

D. The application for business license is not in full compliance with city regulations and state law; or

E. The applicant has not provided proof of a valid state license, which is required for this business; or

F. When additional information is required by the city to process a business license application and the applicant fails to respond to at least three attempts by the city to contact the applicant. The city may only deny said application if the applicant fails to respond within 30 days of the initial attempt.

If an application is denied, or an applicant withdraws their application, the license fee will be refunded the applicant less a processing fee, outlined in the fee schedule. (Ord. 2026 § 1, 2021; Ord. 1904 § 1, 2016; Ord. 1820 § 1, 2013; Ord. 1776 § 1, 2012; Ord. 1434 § 1, 1999).

5.04.190 Application – Disapproval action.

Upon denial of a business license or revocation of an existing license the city license officer shall notify the applicant or business owner in writing, by certified mail, of the denial or revocation and the grounds therefor.

When the issuance of a license is denied the applicant shall not engage in the business for which the license was denied, nor shall any business be conducted during any appeal process by the applicant/business. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.200 License denial – Appeal.

A. Any applicant or licensee may, within 10 days after receipt of such notice of denial, suspension or revocation, appeal to the hearing examiner by filing a written notice of appeal setting forth the grounds therefor with the hearing examiner. The city license officer shall set a date for the hearing of such appeal before the hearing examiner. The hearing examiner shall notify the applicant or licensee by mail of the time and place of the hearing. After the hearing thereon the hearing examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or in the case of a denial, order granting of the license, or in the case of a suspension or revocation may overrule the suspension or revocation and reinstate the license, and may impose any terms upon the continuance of the license which to the hearing examiner may seem advisable.

B. No suspension or revocation of a license issued pursuant to the provisions of such chapters shall take effect until 10 days after receipt of the notice thereof by the licensee, and if appeal is taken as herein prescribed, the suspension or revocation shall be stayed pending final action by the hearing examiner. All licenses which are suspended or revoked shall be surrendered to the city license officer on the effective date of such suspension or revocation.

C. Upon revocation of any license as provided in this chapter, no portion of the license fee shall be returned to the licensee.

D. Appeals brought under this section shall be required to substantially comply with the provisions of this chapter.

E. An appeal may be had by a decision of the examiner to superior court by filing an appeal within 30 days after official decision of the examiner. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.210 License – Fees a civil debt.

A. Any license fee due and unpaid and delinquent under this chapter, and all penalties thereon, may be collected by civil action, which remedy shall be in addition to any other existing remedies and penalties.

B. In the event the city is successful in proceeding under this section, then the city is entitled to recover from the responsible person such additional amounts as are necessary to reimburse the city for identifiable costs of collection, including attorney’s fees. (Ord. 1904 § 1, 2016; Ord. 1632 § 2, 2004; Ord. 1434 § 1, 1999).

5.04.220 Criminal penalty.

Violation of any of the terms of this chapter is a misdemeanor. Any business enterprise violating or failing to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the council pursuant to this chapter, upon conviction thereof, shall be punished by a fine not to exceed $500.00, or by imprisonment in jail for a term not to exceed 90 days, or by both such fine and imprisonment. Any business enterprise which engages in any business required to be licensed hereunder without having a business license shall be guilty of a separate violation of this chapter for each day during which the business is so engaged. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).

5.04.230 Severability.

If any action, subsection, paragraph, sentence, clause or phrase of this chapter is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portion of this chapter. (Ord. 1904 § 1, 2016; Ord. 1434 § 1, 1999).