Chapter 5.02
BUSINESS LICENSES
Sections:
5.02.010 Exercise of license authority.
5.02.030 Business license required.
5.02.040 Business license fees.
5.02.050 Payment of fees required before issuance of any permits by city’s building department.
5.02.060 Business license fee exemptions and waivers.
5.02.070 Business license application—Review and endorsement.
5.02.080 Separate license for branch establishments.
5.02.090 Business changes—Nontransferable.
5.02.100 Duration—License renewal.
5.02.110 Compliance with Ocean Shores tax code.
5.02.120 Revocation of a business license.
5.02.130 Reinstatement procedures and standard.
5.02.140 Solicitation—Peddlers—Restricted.
5.02.160 Illegal operation—Penalties—Judicial remedies.
5.02.010 Exercise of license authority.
This chapter is an exercise by the city of its authority to license business activities for the purpose of regulation and revenue pursuant to the provisions of RCW 35A.82.050 and 82.14A.010 et seq. The city may promulgate and enforce reasonable rules and regulations as necessary and convenient to the operation and enforcement of this chapter. (Ord. 1156 § 1, 2026)
5.02.020 Definitions.
Where used in this chapter, the following words and terms shall have the meanings as defined in this section, unless, from the context, a more limited or different meaning is clearly defined:
A. “Business” means 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, including home occupations.
B. “City” means the city of Ocean Shores, Washington.
C. “Commercial solicitation” means solicitation conducted for the sale of goods, services, or business opportunities.
D. “Employee” means any person who performs work, labor, or services for a business and is on the payroll of the business. For the purpose of this chapter, the term “employee” also includes self-employed persons, sole proprietors, owners, managers, partners, and all full-time, part-time and temporary employees or workers which are paid by, employed by, or are in any way compensated by the business, if those persons are not independent contractors.
E. 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 subsection sets forth examples of activities that constitute engaging in business in the city and establishes safe harbors for certain 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 (E)(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 establishments 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, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, and 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, 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’ members 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 in 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 (E)(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.
F. “Business license clerk” means the person or their designee appointed by the city administrator to act in such capacity.
G. “Person” includes the singular and the plural and also means and includes any natural person over the age of eighteen years, firm, corporation, association, club, partnership, society, or any group of individuals acting as a unit.
H. “Special sales” includes but is not limited to sidewalk sales and off-site vending.
I. “Nonprofit community festival” includes but is not limited to any festival or event sponsored by a not-for-profit entity, or a nonprofit corporation, which is open to the entire community.
J. “Business Licensing Service” and “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the city.
(Ord. 1156 § 1, 2026)
5.02.030 Business license required.
Unless otherwise exempted by this chapter, every person engaged in business within the corporate limits of Ocean Shores is required to have a city business license. No business activities may commence within the city prior to the issuance of an approved license, unless otherwise authorized, in writing, by the city administrator or designee.
Every person required to obtain a license under the provisions of this chapter must submit an application through the Washington State Department of Revenue’s Business Licensing Service (BLS) either online or upon a form provided by BLS.
The provisions of this chapter shall not apply to:
A. Any instrumentality of the United States, the state of Washington, or political subdivisions thereof with respect to exercise the governmental functions.
B. Any farmer or gardener selling or delivering their own produce or eggs pursuant to the provisions of RCW 36.71.090.
C. Garage sales and other casual or isolated sales.
D. Newspaper carriers and postal carriers.
(Ord. 1156 § 1, 2026)
5.02.040 Business license fees.
The application must be accompanied by the full amount of the fees chargeable for all licenses required, including the application handling fee required by RCW 19.02.075. The city’s business license fees are set by resolution of city council.
The business license clerk will ensure the collection of all license fees and perform the duties set forth in this chapter. (Ord. 1156 § 1, 2026)
5.02.050 Payment of fees required before issuance of any permits by city’s building department.
No building, demolition, or other permit shall be issued to any contractor or person subject to any provision of this title until said person has obtained a business license and paid all fees, taxes, penalties, or other amounts owed to the city. (Ord. 1156 § 1, 2026)
5.02.060 Business license fee exemptions and waivers.
A. Threshold Exemption. 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: (1) 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 four thousand dollars, and who does not maintain a place of business within the city, shall be exempt from the general business license requirements of this chapter. This exemption does not apply to regulatory license requirements or activities that require a specialized permit.
Beginning January 1, 2026, the threshold amount is four thousand dollars. The threshold amount will be adjusted every forty-eight months on January 1st, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each twelve-month period ending on June 30th as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each twelve-month period ending June 30th of each prior year and rounded to the nearest one hundred dollars. However, if any of the annual CPI increases more than five percent, a five percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero percent increase will be used in computing the annual basis.
B. Business License Fee Waivers. To the extent set forth in this section, the city waives license fees for the following persons:
1. Any nonprofit organization granted a federal tax exemption by the Internal Revenue Service (IRS) under 26 USC Section 501(c).
2. Religious organizations deemed to be tax exempt under 26 USC Section 501(c)(3).
(Ord. 1156 § 1, 2026)
5.02.070 Business license application—Review and endorsement.
A. The business license clerk shall submit the information from all applications to appropriate departments for their review of the applicant’s compliance with city regulations, including city zoning codes. The business license clerk may investigate and determine the eligibility of any applicant for a license as prescribed in this chapter.
B. All applicants with a physical location in the corporate limits of the city with customers visiting the premises will be required to have a full building and fire inspection. A license will not be granted until inspections are finalized and approved by the building official and fire marshal. A business may not open until all inspections are passed, unless formal, written notice is given by the building official or fire marshal of specific requirements and deadlines for compliance. Failure to complete the requirements outlined will result in the denial of the application.
C. Any applicant operating as a general or specialty contractor will be required to have an active contractor’s registration with the Washington State Department of Labor and Industries as required by Chapter 18.27 RCW, within thirty days of the posted application date. Failure to comply will result in the denial of an application.
D. An applicant that is approved for a business license will be notified by the status change to their pending application with BLS.
E. Business licenses shall be prominently displayed in the place of business for which it was issued.
F. An applicant that is denied a business license shall be notified by the business license clerk within fifteen business days of the rejection of an application. The business license clerk will state in writing the reasons for the denial. Notices shall be sent by regular mail and/or electronically to the electronic mailing address provided on the application.
(Ord. 1156 § 1, 2026)
5.02.080 Separate license for branch establishments.
A separate business license and fee shall be obtained for each branch establishment or location of the business. Each business license must include the property location of the establishment.
If two or more persons each conduct their own business at the same location, each person must obtain their own license for their respective business. (Ord. 1156 § 1, 2026)
5.02.090 Business changes—Nontransferable.
A. A business license issued under this chapter is personal and may not be transferred to another person. No one may allow another person to operate a business under their license, and no one may operate a business under another person’s license.
B. If a person wishes to change the location of their business within the city, they must notify BLS sufficiently prior to the intended change to allow the city to review and approve the change. Business may not commence at the new location until the city has granted approval and any required inspections have been completed.
C. An applicant or licensee shall amend their application with BLS whenever conditions change so that the information on the license remains current. All changes or updates to the application, except a change in ownership, may be made without further license fees. Changes include but are not limited to contact information, business name, or business activity.
(Ord. 1156 § 1, 2026)
5.02.100 Duration—License renewal.
Each business license shall be valid for a definite period not to exceed one year from issuance. The expiration date is established by BLS and must be renewed on or before that date to continue to engage in business in the city. Renewal of annual licenses is administered by BLS.
Failure to complete the renewal by the expiration date will incur penalties required by RCW 19.02.085, as may be amended, in addition to all other fees due. Renewal fees and penalties are collected and administered by BLS. Failure to complete the renewal within one hundred twenty days after expiration will result in the cancellation of the renewal and will require a new application for license as provided in this chapter. (Ord. 1156 § 1, 2026)
5.02.110 Compliance with Ocean Shores tax code.
In receiving a business license, the applicant acknowledges that the business operation must be conducted in accordance with the Ocean Shores tax code, Title 3. (Ord. 1156 § 1, 2026)
5.02.120 Revocation of a business license.
A. The city administrator, or designee, may revoke any license issued under this chapter after it has been issued if any one of more of the following grounds are found to exist:
1. The business has failed to comply with any provision of this title and the Ocean Shores tax code, Title 3;
2. Violations of local, state, or federal laws;
3. When reasonably necessary in the interest of protection of public health, safety, peace, or welfare;
4. When a business becomes an instrument of public disorder, crime, or other danger to public safety, peace, health, or welfare.
B. The revocation of a business license is effective upon the status change with Department of Revenue. Notices shall be sent via mail within five business days of the effective status change date. Upon revocation of any license, no portion of the license fee shall be returned to the licensee.
C. A business may file a written appeal of the revocation within thirty calendar days of the date of the notice. The appeal shall be reviewed by the city administrator or designee. A final decision regarding the license status shall be mailed within seven business days of receiving the appeal.
D. A business whose revocation is upheld or otherwise seeks to resume operations following revocation may seek reinstatement pursuant to Section 5.02.130.
E. Unless and until a revoked business license is reinstated pursuant to Section 5.02.130 or replaced by the city’s issuance of a new, validly approved city business license, it shall be unlawful for any person to engage in business after revocation of a license and such conduct shall be subject to penalties set forth under Section 5.02.160 or other remedies allowed by law.
(Ord. 1156 § 1, 2026)
5.02.130 Reinstatement procedures and standard.
A. At any time following the revocation of a business license, reinstatement of the license may be sought utilizing the following procedure:
1. The business shall send a written notice via mail or electronically from the business seeking reinstatement sent to the business license clerk.
2. The notice shall be reviewed by the business license clerk and reviewing departments, or any departments involved in the initial revocation of the license, with copies sent to the city administrator.
3. After completion of the review, the business license clerk will provide, in writing, the next steps for reinstatement, which will require submission of a new application through BLS. Any business with a physical location in the city limits with visiting customers will be subject to a full building and fire inspection at the expense of the business.
B. If reinstatement is denied, the business license clerk shall provide written notice of the denial and the reason therefor. (Ord. 1156 § 1, 2026)
5.02.140 Solicitation—Peddlers—Restricted.
A. It is unlawful for any person to go in or about any private residence in the city of Ocean Shores in the furtherance of their business or commercial activity unless they have received a request or invitation from the owner or occupant of such residence to do so. Such business or commercial activity is declared to be a nuisance. This section does not apply to religious or noncommercial solicitation.
B. Any person making a solicitation of any kind shall clearly identify with any person being solicited, the name of the organization sponsoring their activity and the purpose of the solicitation.
C. Any person making a solicitation shall provide personal identification of themselves upon demand by any law enforcement officer or person being solicited.
D. It is unlawful to engage in commercial solicitation, peddling, or vending on public property between the hours of nine p.m. and eight a.m., except as otherwise authorized by this code or applicable law.
E. It is unlawful to conduct mobile solicitation, peddling, or vending in any area of the city, unless otherwise outlined in Chapter 17.56.
(Ord. 1156 § 1, 2026)
5.02.150 Temporary business license—Ocean Shores Convention Center events and nonprofit community festivals.
A. Every person engaging in business in conjunction with a nonprofit community festival or at the Ocean Shores Convention Center, herein referred to as OSCC, whether the event is hosted by the OSCC or by a third party at the OSCC, is required to have a business license.
B. Vendors or businesses operating at the Ocean Shores Convention Center shall have their temporary business license granted at the time of signing their agreement with the Ocean Shores Convention Center for the duration of the event. License fees will be included in the Ocean Shores Convention Center fees.
C. Temporary license applications for nonprofit community festivals may be submitted to the business license clerk a minimum of five business days prior to the event to allow time for review with a required application fee of fifteen dollars. Each applicant will be required to submit an application as prescribed by the business license clerk or designee.
D. Any person applying for a temporary license will be granted a license for the duration of no more than three consecutive days. A new application and fee will be required for each event a business plans to operate at.
E. A business operating on a temporary basis may not conduct business for more than twelve days in a calendar year. A person conducting business for more than twelve days in a calendar year will be obligated to apply for a city business license endorsement through BLS.
F. Any person granted a temporary license will be subject to taxations on revenue earned within the city as outlined in Title 3.
G. Failure to comply with the measures set forth in this section will result in the denial of temporary license applications and penalties under this chapter and applicable provisions of Title 3.
(Ord. 1156 § 1, 2026)
5.02.160 Illegal operation—Penalties—Judicial remedies.
A. Unlawful Conduct. It is unlawful for any person to engage in any business, as defined in Section 5.02.020, within the corporate limits of the city of Ocean Shores without first obtaining and maintaining a valid business license as required by this chapter. Any person engaging in business without a valid license is in violation of this chapter and subject to the enforcement provisions of this section.
Operating with an expired, suspended, or revoked business license constitutes operating without a license for purposes of this section.
B. Civil Violations and Penalties. Any person who violates any provision of this chapter shall be subject to the following penalties:
1. The first violation of this section shall constitute a civil violation subject to a civil penalty in the amount of five hundred dollars.
2. A second violation shall constitute a civil violation subject to a civil penalty of one thousand dollars.
3. Civil penalties imposed under this section are municipal civil penalties and are not civil infractions under Chapter 7.01 or Chapter 7.80 RCW.
4. Civil penalties under this section are in addition to any license fees, taxes, interest, or other amounts owed to the city.
C. Enforcement Authority. The business license clerk, finance director, code enforcement official, or other officials designated by the city administrator are authorized to issue notice of violation and civil penalty notices for violations of this section.
D. Criminal Enforcement. Any subsequent violation may be prosecuted as a misdemeanor punishable by a fine not to exceed one thousand five hundred dollars, imprisonment not exceeding ninety days, or both, consistent with the penalty limits established in Title 7.
E. Separate Violations. Each day a person engages in business without a valid license shall constitute a separate violation.
F. Notice and Appeal.
1. Civil penalties imposed under this section shall be issued in writing and shall describe the violation, the amount of the penalty imposed, and the date by which the penalty must be paid.
2. Any person receiving a civil penalty notice under this section may appeal the penalty by filing a written appeal to the city clerk within fourteen calendar days of the date of issuance.
3. Appeals shall be heard by the municipal court or hearing examiner, as designated by the city, and shall be conducted in accordance with the procedures established by the city.
4. Failure to timely appeal shall constitute a waiver of the right to contest the penalty.
5. Unpaid civil penalties shall constitute a debt owed to the city and may be collected by any means, including referral to a collection agency, civil action, or other remedies authorized by law.
G. Penalty Not Authorization. Payment of any civil penalty imposed under this section does not authorize the continuation of any violation of this chapter. Each day a violation continues shall constitute a separate violation subject to additional enforcement.
H. Judicial Remedies Preserved. In addition to the penalties provided in this chapter, whenever a business is being operated without a valid business license, the city may seek to restrain, correct, or abate such violation through any lawful process, including, but not limited to, injunctive measures through any court of competent jurisdiction. Nothing herein limits the city’s authority under Title 3.
(Ord. 1156 § 1, 2026)