Chapter 5.05
CONDUCT OF BUSINESS
Sections:
5.05.035 State marijuana license required for any marijuana business.
5.05.090 Conflict with other regulations.
5.05.100 Effect of noncompliance on application.
5.05.110 Revocation of business license.
5.05.130 Remedy for delinquent fee or tax.
5.05.140 Revocation – Return of license fee.
5.05.150 Unlawful to conduct business after revocation.
5.05.160 Violation – Penalties.
5.05.010 Purpose.
This chapter is declared to be enacted for the purpose of regulating and controlling the conduct of business in the City of Mountlake Terrace. (Ord. 2059 § 16, 1995).
5.05.020 Definitions.
A. This chapter incorporates by reference all definitions set forth in Chapter 82.04 RCW, hereafter amended, except where a conflicting definition is stated in this chapter.
B. “Director” means the Director of Finance and Administrative Services for the City.
C. “Business Licensing Service” or “BLS” is the office within the Washington State Department of Revenue providing business licensing services to the City.
D. “Engaging in business” or “conducting business” is defined as follows:
1. The term “engaging in business” or “conducting 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 (D)(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 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.
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 directors 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; provided, that it engages in no other business activities in the City. Such activities do not include those in subsection (D)(4) 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.
E. “Carnival” means the outdoor assemblage of such devices or institutions the purpose whereof is to provide entertainment, amusement, sport, pastime or merriment for the patrons thereof, and shall include any roller coaster, merry-go-round, swing, Ferris wheel, games of shooting, throwing, chance, pitching, phenomenal exhibitions and everything of like character for admission to which a fee is charged.
F. “Circus” means any institution whose general occupation is that of exhibiting wild or trained animals, feats of horsemanship, animal stunts and acrobatic or aquatic sports for admission to which a fee is charged.
G. “Home occupations” means a type of business or profession conducted within the residence of the applicant’s home and as permitted and defined by the Mountlake Terrace Zoning Code are required to have approval as required by the Mountlake Terrace Zoning Code for a home occupation and are subject to the fee contained in MTMC 5.05.040 appropriate to the type of business conducted.
H. “Licensee” means any person, business, company, firm or corporation required to obtain a City business license pursuant to the provisions of this chapter.
I. “Peddler and salesman” means any person, firm or corporation making personal contact with the citizenry of the City of Mountlake Terrace on a door-to-door basis for any reason, excluding those persons conducting over-the-counter sales within a fixed place of business and those making routine deliveries of fuel, dairy product, or dry cleaning, or other routine services to private residences.
J. “Special event” means “special event” as defined in MTMC 10.20.020. (Ord. 2741 § 1, 2018; Ord. 2571 § 3, 2011; Ord. 2059 § 1, 1995).
5.05.030 License required.
A. It shall be unlawful for any person, firm or corporation to conduct any business within the City of Mountlake Terrace, excluding the conduct of a carnival held entirely within the confines of a publicly owned building or grounds, without first having secured the license to do so as provided in this chapter, prior to commencing business in the City.
B. Each physical location of a business in the City, operated by the same business owner, must be licensed separately. If two separate businesses operate in the same physical location each business owner must have a separate license for their respective business.
C. Application for the City business license is accomplished by submitting an application through the Business Licensing Service. The application must include all information required for all the licenses requested on the application, as well as all fees due for all licenses and including the handling fee required by RCW 19.02.075. (Ord. 2764 § 1, 2019; Ord. 2685 § 3, 2016; Ord. 2617 § 2, 2013; Ord. 2571 § 4, 2011; Ord. 2059 § 2, 1995).
5.05.035 State marijuana license required for any marijuana business.
A. Businesses that are subject to the requirements of Chapter 69.50 RCW and Chapter 314-55 WAC for marijuana businesses shall first obtain a valid business license issued by the state of Washington under the aforesaid chapters before obtaining a City business license or conducting a marijuana business in the City.
B. Documentation that the marijuana business has obtained a state marijuana business license under Chapter 314-55 WAC is required prior to issuance of a City business license.
C. In addition to the standard business license fee, an application for a marijuana business license shall be accompanied by a one-hour fee, pursuant to the fees adopted under MTMC 3.150.090, to cover the City’s additional relevant costs, including but not limited to coordination with the state and research regarding required land use and distance separations. (Ord. 2764 § 2, 2019; Ord. 2634 § 1, 2013).
5.05.040 License fees.
The city’s business license fees are set by resolution of the City Council. For the purposes of the license required by 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 $12,000 and who does not maintain a place of business within the City is exempt from the City’s business license fee but must submit a business license registration application to the Director or designee, as provided for by this chapter. The threshold does not apply to the City’s regulatory license requirements or activities that require a specialized permit. (Ord. 2764 § 3, 2019; Ord. 2741 § 2, 2018; Ord. 2330 § 1, 2003; Ord. 2059 § 3, 1995).
5.05.050 Special events.
In addition to requirements of this chapter, carnivals and circuses shall be subject to Chapter 10.20 MTMC. (Ord. 2571 § 5, 2011; Ord. 2059 § 4, 1995).
5.05.060 Revised application.
When there is a change in floor area used in the business operations during the license year, or where the actual number of employees exceeds the anticipated number, the owner or applicant must immediately report the change to the City. The City may require the licensee to remit any additional fees due because of the change. The updated information must then also be reported on the next renewal filing due, and all fees relative to the updated information must be remitted with the renewal application. (Ord. 2764 § 4, 2019; Ord. 2059 § 5, 1995).
5.05.070 Term renewal.
A. All licenses hereunder granted shall expire on the date established by the Business Licensing Service, and must be renewed on or before that date to continue conducting business in the City. Failure to renew the license by the expiration date will incur the late renewal penalty required by RCW 19.02.085. If the license is not renewed within 120 days after the expiration date, the license will be cancelled, and will require submitting a new application for licensure as provided under this chapter.
B. If any license hereunder is cancelled under conditions described in subsection A of this section, and a new application is made, the City may assess an additional fee of 150 percent of the fee payable upon an original application hereunder. The additional fee is assessed solely by the City and is payable directly to the City. Nonresident businesses are exempt from this section except that those persons, firms, or corporations performing work without a valid business license as required by this chapter are deemed to be in violation of this chapter and shall be subject to the requirement of this subsection. (Ord. 2764 § 5, 2019; Ord. 2059 § 6, 1995).
5.05.080 Exemptions.
Nothing in this chapter shall be construed to apply to:
A. Any activities carried on by a religious, charitable, benevolent, fraternal or social organization except when required by other ordinances of the City of Mountlake Terrace.
B. Any person who holds a valid license under Chapter 5.55 MTMC (Garbage Collection License), Article II (Gas) of Chapter 3.145 MTMC and Article III (Telephone) of Chapter 3.145 MTMC.
C. Businesses exempted by state law from having a business license. (Ord. 2634 § 2, 2013; Ord. 2059 § 7, 1995).
5.05.090 Conflict with other regulations.
Notwithstanding any contrary provisions hereof, a license hereunder shall not be issued to any person, firm or corporation that uses or occupies any real property in violation of the provisions of the Mountlake Terrace Municipal Code, and all amendments thereto. (Ord. 2634 § 3, 2013; Ord. 2059 § 8, 1995).
5.05.100 Effect of noncompliance on application.
A pending application for renewal hereunder shall be deemed compliance herewith, unless the applicant is notified by the City Manager in writing that said application may not be granted because of noncompliance with the provisions of this chapter. In the event such notice is given, the applicant shall have 90 days from the date thereof to comply with said section, prior to final action upon said application for renewal. The term of any such license shall expire one year after the date on which the license was scheduled for renewal. (Ord. 2059 § 9, 1995).
5.05.110 Revocation of business license.
The City Manager of the City of Mountlake Terrace shall have the power and authority to revoke any license issued under the provisions of this chapter. The City Manager shall notify such licensee in writing by certified mail of the revocation of his/her/its license and the grounds therefor. Any license issued under this title may be revoked based on one or more of the following grounds:
A. The license was procured by fraud or false representation of fact.
B. The licensee has failed to comply with any of the provisions of this chapter.
C. The licensee is in default in any payment of any license fee or tax due to the municipality pursuant to Mountlake Terrace City Code and/or provided for under state law.
D. 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, or his/her/its employees or agents, has been convicted of a crime, which bears a direct relationship to the conduct of the business under the license issued pursuant to this chapter.
2. The licensee, or his/her/its agents or employees, has, in the conduct of the business, violated any law or ordinance relating to public health, welfare or safety.
3. The conduct of the business for which the license was issued has resulted in the creation of a public nuisance as defined by state law.
E. Licensee’s relevant license(s) from the state of Washington were revoked. (Ord. 2764 § 6, 2019; Ord. 2634 § 4, 2013; Ord. 2059 § 10, 1995).
5.05.120 Appeal.
Any licensee may, within 10 days after receipt of such notice of revocation, appeal to the Mountlake Terrace Hearing Examiner by filing a written notice of appeal setting forth the grounds therefor with the City Clerk, and the City Clerk shall set a date within 20 days from the hearing of such appeals before the Hearing Examiner, and the City Clerk shall notify the 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 overrule the revocation and reinstate the license, and may impose any terms upon the continuance of the license which to the Hearing Examiner may seem advisable. Such decision of the Hearing Examiner is appealable within 21 days, or after denial of a motion for reconsideration within seven days after said denial, to the Superior Court of Snohomish County. No revocation of a license issued pursuant to the provisions of MTMC Title 5 shall take effect until 10 days after receipt of the notice thereof by the licensee, and if appeal is taken as herein prescribed the revocation shall be stayed pending final action by the Superior Court. All licenses which are revoked shall be surrendered to the City on the effective date of such revocation. (Ord. 2481 § 3, 2008; Ord. 2059 § 11, 1995).
5.05.130 Remedy for delinquent fee or tax.
Any license fee or tax due to the municipality and unpaid and delinquent under the Mountlake Terrace Municipal Code or state law may be collected by civil action which remedy shall be in addition to any and all other existing remedies. (Ord. 2059 § 12, 1995).
5.05.140 Revocation – Return of license fee.
Upon revocation of any license as provided in this chapter, no portion of the license fee shall be returned to the licensee. (Ord. 2059 § 13, 1995).
5.05.150 Unlawful to conduct business after revocation.
It shall be unlawful for any person, corporation, business, firm or company to conduct or continue to conduct business after such license is revoked. Each day that a person, corporation, business, firm or company conducts business without a valid City business license constitutes a separate offense. (Ord. 2059 § 14, 1995).
5.05.160 Violation – Penalties.
Any person, corporation business, firm or company who violates this chapter upon conviction shall be punished for each conviction thereof by a fine not to exceed $1,000 or by incarceration for a period not to exceed 90 days, or by both such fine and incarceration. (Ord. 2059 § 15, 1995).