Chapter 4.02
BUSINESS LICENSES GENERALLY
Sections:
4.02.025 Engaging in business.
4.02.030 Business license required.
4.02.035 Short-term rentals – Special provisions.
4.02.040 Businesses located outside city limits.
4.02.060 Application for exemption required.
4.02.070 Applicable regulations.
4.02.080 Duties of city manager.
4.02.090 Procedure for issuance of license.
4.02.095 Denial of business license – Appeal.
4.02.100 Determination of license fee.
4.02.110 License fee in addition to others.
4.02.120 Enforcement and penalties.
4.02.010 Purpose.
The purpose of this chapter is to regulate and ensure the legal conduct of businesses, assist in the effective administration of health, fire, building, zoning and other codes of the city, to impose fees for revenue purposes, and to provide a means for obtaining public information and compiling statistical information on existing and new businesses in the city. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.020 Definitions.
For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given in this section:
“Business” includes all activities, occupations, pursuits or professions located and/or engaged in within the city, with the object of gain, benefit or advantage to the person engaging in the same, or to any other person or class, directly or indirectly. It also includes a short-term rental, as defined in RCW 64.37.010(9) as now enacted or hereafter amended, and a long-term rental, as defined herein, general contractors, home occupations, garage sales and businesses temporarily conducted within the city including but not limited to transient merchants, peddlers and vendors. It does not include, however, wholesale distributors selling products to businesses within the city unless said distributor has an office, warehouse or other business establishment located within the city. Each business location shall be deemed a separate business.
“Business Licensing Service” or “BLS” means the office within the State Department of Revenue that provides business licensing services to the city of Normandy Park.
“Engaging in business” has the meaning as defined in NPMC 4.02.025.
“Long-term rental” means the rental or lease of a residential unit for a period of 30 or more consecutive nights. A long-term rental is not a bed and breakfast house, guest house or home occupation as defined in this code.
“Nonprofit organization” includes individual person(s), partnerships, joint ventures, societies, associations, churches, clubs, trustees, trusts or corporations; or any officers, agents, employees, factors or any kind of personal representatives of any thereof, in any capacity, acting either for himself or any other person under either personal appointment or pursuant to law who qualifies under definition of and certification by the Internal Revenue Service under 26 U.S.C. Section 501(c) as nonprofit.
“Peddler” or “solicitor” means any person, either as principal or agent, who carries goods, wares, services and merchandise, articles, things or personal property of whatever name, nature or description from house to house, place to place, or upon any street, highway or public place within the city, for sale, is defined to be a peddler within the meaning of this chapter; any person who goes from house to house, dwelling place to dwelling place or upon any street, highway or public place within the city, soliciting or taking orders for the purchase or sale of goods, wares, services or merchandise, articles, things or personal property of whatever name, nature or description to be delivered in the future is also defined to be a peddler within the meaning of this chapter.
“Person” includes the singular and the plural and also means and includes any person, firm, corporation, association, club, partnership, society or any group of individuals acting as a unit. (Ord. 1006 § 1, 2020; Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.025 Engaging in business.
(1) 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.
(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 (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 (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. (Ord. 985 § 1, 2018).
4.02.030 Business license required.
(1) No person shall transact, engage in or carry on any business, trade, profession, occupation or calling in the city of Normandy Park without first having been issued a business license unless such activity is exempt as provided in NPMC 4.02.050.
(2) All licenses issued pursuant to the provisions of this title shall be displayed in a prominent and conspicuous location at the premises. If the person is engaged in business within the city and does not conduct it upon premises, then he/she shall carry the license upon his/her person.
(3) For the business of short-term rentals, the city expressly adopts by reference the provisions of Chapter 64.37 RCW, as now enacted and as hereafter amended; further, a short-term rental is different from the following: (a) a bed and breakfast house, which requires a conditional use permit consistent with the land use chart in NPMC 18.10.060; (b) a guest house, which is regulated in the zoning code; and (c) a home occupation, which is regulated by Chapter 18.200 NPMC; and provided further, the guest of any short-term rental owner or operator complying with this chapter shall not be considered a transient as defined in the zoning code. (Ord. 1006 § 2, 2020; Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.035 Short-term rentals – Special provisions.
The following special provisions are applicable to short-term rentals:
(1) Short-term rentals are permitted for up to two rooms within a single-family residence; provided, that:
(a) An owner who operates a short-term rental shall continuously occupy his or her residence during the term of any and all short-term rental agreements;
(b) Only one short-term rental agreement may be in effect for a single-family residence at any one time;
(c) Not more than two rooms shall be rented in any residential dwelling of any kind, either short-term or long-term rentals; and
(d) Short-term rentals are prohibited in detached accessory structures, guest houses, recreational vehicles, and house trailers.
(2) An owner who operates a short-term rental is responsible for ensuring compliance with all applicable state requirements, including but not limited to the requirements of RCW 64.37.030, as now adopted or hereafter amended; all city zoning code requirements, including but not limited to those related to the number of unrelated people occupying the short-term rental unit; and all city parking provisions applicable to single-family residences set forth in the zoning code. Prior to issuance of a short-term rental business license, the applicant must demonstrate the existence of adequate off-street vehicle parking, which must be used by all household vehicles including any and all short- and long-term renters outside of the required setbacks within the applicable zone.
(3) Short-term rental agreements shall include provisions requiring owners to exercise best efforts to resolve conflicts with neighbors related to issues such as noise, littering, parking, and trespassing, and the owner of a short-term residential unit shall be responsible to the city for exercising best efforts to help ensure such conflicts are resolved as a condition of maintaining a business license under this chapter.
(4) Violation of Normandy Park code regulations regarding noise, littering, parking, and trespassing may result in the issuance of corrective action, the revocation of the short-term rental business license, and civil penalties as provided in this code.
(5) The city clerk or designee may impose such additional requirements as may be necessary, consistent with the police power authority of the city, to protect the public health, safety and welfare in the issuance of business licenses related to short-term rentals.
(6) It shall be the responsibility of the person owning a single-family residence used as a short-term rental to ensure the lodging excise tax provided for by Chapter 3.15 NPMC is timely paid. (Ord. 1006 § 3, 2020).
4.02.040 Businesses located outside city limits.
(1) Unless otherwise exempt in subsection (2) of this section or elsewhere in this chapter, this chapter covers and applies to any business located outside the city that engages in some business activity inside the city limits of the city of Normandy Park.
(2) To the extent set forth in this subsection, the following persons and businesses shall be exempt from the license requirements as outlined in this chapter:
(a) 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 chapter does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.050 Exemptions.
(1) The following shall be exempt from the provisions of this chapter:
(a) Casual or isolated sales made by persons who are not engaged in the ongoing business of selling the type of property involved.
(b) Businesses where the sale or contract for services occurs on business premises outside of the city and the only event occurring within the city is the mere delivery of the goods or services to the customer or client by common carrier.
(c) Minors engaged in babysitting, delivery of newspapers, lawn mowing, car washing, and similar activities.
(d) Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions.
(e) Special events sponsored by the city and nonprofit community festivals including participating commercial peddlers/vendors, provided:
(i) The business does not operate within the city more than five consecutive days;
(ii) The business does not operate within the city more than 12 days in a calendar year; and
(iii) The business is authorized to participate in the community festival by the sponsor of the festival.
(f) Nonprofit organizations, including religious, civic, charitable, benevolent, cultural or youth organizations when conducting their core religious, civic, or charitable activities only.
(g) Any farmer, gardener or other person who sells, delivers or peddles any fruit, vegetables, berries, butter, eggs, fish, milk, poultry or meats or any farm produce or edibles raised, gathered, caught, produced or manufactured by such person in any place in this state (RCW 36.71.090).
(h) Insurers and their agents, as those terms are defined in RCW 48.01.050 and 48.17.010 respectively, who represent insurance companies or sell insurance to the public and are properly licensed by the state. This exemption shall not apply to insurance brokers or solicitors, as those terms are defined in RCW 48.17.020 and 48.17.030 respectively.
(i) Any person, business, enterprise, firm, or corporation which the city is forbidden to license under state or federal law.
(2) Nonprofit organizations not otherwise exempted under this section and conducting a business activity in the city must register with the city to obtain a business license as provided for in this chapter but are exempt from the city business license fee. Such nonprofit organizations must provide proof of certification by the Internal Revenue Service under 26 U.S.C. Section 501(c) to qualify for the no-fee business license. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.060 Application for exemption required.
Except for those minors conducting exempt activities in accordance with NPMC 4.02.050(1)(c) and (g), any person claiming exemption from the requirements of this chapter shall file with the city manager the usual registration application and an affidavit setting forth the facts sufficient to show the application of this section and their right to such exemption. Nonprofit organizations claiming exemption for a community event and/or festival shall supply to the city a list of all temporary vendors that took part in the civic event, along with the vendor’s state tax identification number. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.070 Applicable regulations.
(1) Agents Responsible for Obtaining License. The 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.
(2) Separate License for Branch Establishments. A license shall be obtained in the manner prescribed in this chapter for each branch establishment or location of the business engaged in, as if each 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. Such warehouses and distributing plants must comply with the provisions of all city codes.
(3) Joint Operation. A person engaged in two or more businesses at the same location shall be required to obtain separate licenses for conducting each of the businesses. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.080 Duties of city manager.
The city manager shall collect all license fees and shall issue licenses in the name of the city to all persons qualified under the provisions of this chapter and shall:
(1) Adopt all forms and prescribe the information to be given therein as to character and other relevant matter for all necessary papers;
(2) Submit all applications, in a proper case, to interested city officials for their endorsements thereon as to compliance by the applicant with all city ordinances and regulations which they have the duty of enforcing;
(3) Notify all applicants that they shall utilize the city sales tax number (1721) when filing their sales tax reports with the state for all items sold within the city. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.090 Procedure for issuance of license.
(1) Every person required to procure a license under the provisions of any ordinance or regulation of the city shall submit an application for such license to the Business Licensing Service. The applicant shall be required to provide all information required, and failure to do so shall be grounds for refusing to issue the business license. In addition, the city manager, from time to time, may request from a person holding a business license that they supply to the city manager an update of the information that was given on the original license application. Failure to supply said update as requested shall be sufficient grounds for revocation of the business license.
(2) The application for license shall be accompanied by the full amount of fees chargeable for all licenses requested on the application, including the handling fee authorized by RCW 19.02.075, and the city business license portion of said fees shall be nonrefundable. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.095 Denial of business license – Appeal.
(1) An application for a business license shall be denied upon a written finding by the city manager or his or her designee that:
(a) The granting would be detrimental to public peace, health or welfare; or
(b) That such application for a business license is not in compliance with any applicable city regulation, the general laws of the state of Washington, or any applicable provision of federal law; or
(c) If the license was procured by false or misleading representation of fact in the application or any report required to be filed with the city clerk.
(2) In the event that the city manager or his or her designee denies a business license as provided in subsection (1) of this section, the applicant shall be notified in writing of the denial and the reasons for the same. Any applicant who is denied a business license shall be entitled to appeal the denial to the city’s hearing examiner. Any such appeal must be filed with the city clerk within 10 calendar days from the date the notice of denial is mailed. The appeal must contain a statement of the specific reasons for the appeal and the relief requested, and must be accompanied by the filing fee established by city council resolution. The hearing examiner shall hold an open record hearing and shall enter findings, conclusions, and a decision on the appeal in an expeditious manner. The hearing examiner shall uphold the decision of the city manager or his or her designee unless the hearing examiner finds that the decision is not supported by substantial evidence or is clearly erroneous. The decision of the hearing examiner shall constitute the final administrative decision by the city and may be appealed to the King County superior court within 10 calendar days from the date the decision is mailed to the applicant and the city. (Ord. 985 § 1, 2018; Ord. 914 § 1, 2015; Ord. 872 § 1, 2011).
4.02.100 Determination of license fee.
License fees shall be in the amounts established in the most current fee schedule, and as further determined under this section.
(1) License Fee. The fee for the city business license shall be established in the city fee schedule. All businesses other than those based outside the city must have a permanent street address and business location within the city.
(2) Renewals. A business license expires on the date established by the Business Licensing Service, and must be renewed on or before that date to continue in business in the city. Failure to renew by the expiration date incurs the late renewal penalty authorized by RCW 19.02.085 in addition to all license fees due. Failure to renew by 120 days after expiration will result in cancellation of the city license and requires reapplication for the city license as provided in this chapter. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.110 License fee in addition to others.
The license fee levied in this chapter shall be in addition to any other fees provided for in any other ordinance or chapter of this code, except as otherwise expressly provided in this chapter. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).
4.02.120 Enforcement and penalties.
(1) It is unlawful for any person, either directly or indirectly, to conduct any business for which a license or permit is required by any regulation or ordinance of the city without a license or permit therefor being first procured and kept in effect at all such times as required by this chapter or other regulation or ordinance of the city.
(2) Any license fee due, unpaid and delinquent under this chapter, and all penalties thereon, may be collected by civil action, which remedy shall be in addition to any and all other existing remedies and penalties provided by other sections of this code. (Ord. 985 § 1, 2018; Ord. 826 § 1, 2008).