Chapter 5.02
BUSINESS LICENSES
5.02.000 Chapter Contents
Sections:
5.02.001 Administrative provisions.
5.02.002 Definitions.
5.02.005 License required.
5.02.010 License term designated.
5.02.015 License fee.
5.02.020 Application and renewal.
5.02.030 Home occupations.
5.02.040 Exemptions.
5.02.050 License Denial, Suspension or Revocation.
5.02.055 Business License Process for massage or reflexology businesses – reasons for denial or revocation.
5.02.060 Appeal of License Denial, Suspension or Revocation.
5.02.070 Violations -- Civil Infraction.
(Ord. 7436 §4, 2025; Ord. 7424 §2, 2025; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012).
5.02.001 Administrative Provisions
The administrative provisions contained in OMC Chapter 5.05 shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein.
(Ord. 7424 §2, 2025).
5.02.002 Definitions
For the purpose of this Chapter, the following terms, phrases, words and their derivations will have the meaning given in this section:
A. “Business” includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly.
B. “Business enterprise” means any entity, person, partnership, association, corporation, limited liability company, trust, society, or club engaged in business within the City of Olympia.
C. “City” means the City of Olympia.
D. “Conduct business” See “Engage in business”
E. “Employee” means any person employed at any business enterprise who performs any part of their duties within the City. All officers, agents, dealers, franchisees, managing members, etc., of a corporation or business trust, limited liability company, and partners of a partnership, except limited partners, are employees within this definition.
F. “Engage 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) above. 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 architects, 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, 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.
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).
The City expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax 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.
G. “Home occupation” means a nonresidential use complying with OMC 18.04.060.L that is clearly incidental and secondary to the use of a dwelling for residential purposes and does not change the character of the dwelling.
H. “Home occupation business” means a business with its physical address in a residence, and the related business activities conducted within the residence.
I. “Licensee” means any business granted a business license.
J. “Nonprofit” means any business enterprise registered as a nonprofit corporation within the state of Washington or granted nonprofit status through the code of the Internal Revenue Service of the United States.
K. “Physical presence” means an address where the business is located.
L. “Place of business” means the physical location of the business.
M. “Business Licensing Service” and “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the City.
N. “Director”: “Director” means the Finance Director-Treasurer of the City or any officer, agent or employee of the City designated to act on the Director’s behalf.
(Ord. 7424 §2, 2025).
5.02.005 License required
A. No person may conduct business within the City without first obtaining an approved City business license. The license required by this chapter is in addition to any regulatory license that may be required by another chapter within Title 5 OMC. The approved City business license includes the Olympia endorsement addendum to the state business license.
B. The business license is not transferable. A business owner acquiring an existing business in the City must obtain a new, approved license for that business. Each separate physical location operated by a business inside the City must be licensed separately and be approved by the City before business may commence at that location. No fee will be charged for additional locations. A change of physical location of a business inside the City will require approval by the City before business may commence at the new location, and may require the filing of a new State of Washington Business License Application and/or a new City of Olympia Business License Endorsement Addendum Application. If two or more businesses operate at the same physical location, each business must obtain a license.
C. The issuance and renewal of business licenses shall be done by the State of Washington Department of Revenue Business License Service (BLS) in coordination with the City.
D. The business license document issued by the Business License Service must display the active Olympia Endorsement and be posted in a conspicuous place on the premises identified on the license.
E. Each and every person making available for rent or renting one or more rental units within the City limits, shall, in accordance with OMC 5.82.080, obtain and maintain a business license, unless exempt under that section. This obligation to obtain a business license applies to the rental of any rental unit, regardless of the term of the rental. One business license covers all of a person’s rental units within the City; however, a separate business license is required for any other business operated by such person, in accordance with this Chapter.
(Ord. 7424 §2, 2025; Ord. 7376 §2, 2023; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012; Ord. 6694 §2, 2010).
5.02.010 License term designated
The license required by this chapter shall have a term as established by the State of Washington Department of Revenue Business License Service, in cooperation with the City.
(Ord. 7424 §2, 2025; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012; Ord. 6694 §2, 2010; Ord. 4493 §1, 1984; Ord. 4419 §5, 1983; Ord. 4417 §5, 1983).
5.02.015 License fee
The initial fee for the City business license required by this chapter is $30.00. The renewal fee may be prorated to accommodate the license term established under OMC 5.02.010. The license fees listed in this section are in addition to any other license or handling fee collected by the BLS.
(Ord. 7424 §2, 2025; Ord. 7009 §1, 2016; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012; Ord. 6694 §2, 2010).
5.02.020 Application and renewal
A. Application for the business license shall be made by submitting a completed Master Business Application, and any appropriate addenda forms to the BLS, in cooperation with the City. Said application shall be accompanied by payment of all respective license fees due for that application and the BLS application handling fee authorized by RCW 19.02.075.
B. Renewals shall be handled by the Business License Service in coordination with the Finance Director-Treasurer. Renewal shall require payment of all license fees due for that renewal, and the BLS renewal handling fee authorized by RCW 19.02.075.
C. Failure to renew the license on or before the expiration date established by the Business License Service may result in the charge of a delinquent renewal penalty as authorized in RCW 19.02.085. The City shall consider failure to renew the City endorsement as a failure to renew the City license and may terminate the expired City endorsement and charge the delinquent renewal penalty in OMC 4.60.050.
D. Failure to renew the license on or before 120 days after the expiration date established by the Master License Service may result in the cancellation of the license and may require the filing of a new Master Business Application, payment of all appropriate fees, and reapproval by the City in order to continue conducting business in the City.
(Ord. 7424 §2, 2025; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012; Ord. 6694 §2, 2010).
5.02.030 Home occupations
The purpose of the home occupation provisions of OMC 18.04.060 is to allow for the use of a residential structure for a non-residential use. A business owner intending to conduct business from a residence located within the City shall indicate so during the business license process and provide additional information as requested by the City.
(Ord. 7424 §2, 2025; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012; Ord. 6694 §2, 2010).
5.02.040 Exemptions
A. Nonprofit organizations recognized by the State of Washington and Federal Government (e.g., 501(c)(3)) are exempted from any fees in this Chapter. However, they are not exempted from registering with the City of Olympia.
B. For the purposes of 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 $4,000 shall still obtain a business license according to OMC 5.02.005. The $4,000 threshold does not apply to regulatory license requirements or activities that require a specialized permit. Businesses who meet the criteria described above are exempt from any City of Olympia license fees described in this Chapter.
Beginning January 1, 2026, the threshold amount is $4,000. The threshold amount will be adjusted every forty-eight months on January 1, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 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 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) 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 (0) percent increase will be used in computing the annual basis.
(Ord. 7435 §1, 2025; Ord. 7424 §2, 2025; Ord. 7151 §1, 2018; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012; Ord. 6694 §2, 2010).
5.02.050 License Denial, Suspension or Revocation
A. A business license may be denied, suspended or revoked by the Director or designee. The Director, or designee, shall notify the license applicant or licensee in writing of the denial, suspension, or revocation of the license applicant’s or licensee’s registration and the grounds therefor. A business license may be denied, suspended or revoked for any one or more of the following reasons:
1. the license was procured by fraud or false representation of fact or contains misleading statements or suppression of material facts about the business;
2. the license applicant has applied for a business license for activities that are prohibited by law;
3. the licensee, owner, or operator of the business is currently operating a business in a manner that is prohibited by law;
4. the licensee is in violation of the terms and conditions under which the license was issued;
5. the licensee, owner, operator, or an employee has been convicted of a crime involving the business;
6. it is necessary to deny, suspend, or revoke the license for the protection of the public health, safety, peace, or welfare;
7. the business has become an instrument of or a cover for public disorder, crime, or other danger to public safety, morals, or health.
8. the business has failed to file and pay B&O taxes required by OMC 5.04.060 or other taxes imposed by Title 5 OMC.
B. Upon revocation of any license as provided in this Chapter, no portion of the registration fee shall be returned to the applicant or licensee.
(Ord. 7424 §2, 2025; Ord. 7187 §3, 2019; Ord. 7003 §1, 2016; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012).
5.02.055 Business License Process for massage or reflexology businesses – reasons for denial or revocation
A. Upon the filing of any application for a business license registration for a massage business or reflexology business, the applicant must provide verification of his or her state issued massage license as provided for in RCW 18.108.030.
If the applicant is not a licensed massage therapist or certified reflexologist, the applicant shall provide the following information to the Director or designee upon request: (1) the identity, date of birth, and current residence of the person(s) who will be principally responsible for managing the business and each person having an ownership interest in the business, and (2) for each entity having an ownership interest in the business, the identity, date of birth, and current residence of each person possessing an ownership interest in such entity. The Director or designee shall promptly provide the applicant’s information to the City of Olympia chief of police or designee. Within ten business days after receiving the same, the City of Olympia police chief or police or designee shall notify the Director or designee whether the applicant, the massage business or reflexology business manager, and (if the applicant be a corporation) the corporation’s officers and the principal shareholders, or any of the foregoing, have been convicted of violating federal, state or local laws relating to the possession, use or sale of narcotics or sexual offenses, including but not limited to Chapter 9A.88 RCW or a similar law of another state and Chapter 9A.60 RCW or a similar law of another state when such violation of Chapter 9A.60 RCW or similar law of another state is related to the operation of a massage business or reflexology business. If records available to the City of Olympia chief of police or designee indicate that any such person has been so convicted, the Director or designee shall notify the applicant, by registered letter, that the application has been denied. An applicant’s failure to provide the requested information identified in this subsection to the Director or designee shall be a basis for denial of a business license.
B. Any applicant whose application has been denied on information supplied by the chief of police may appeal such decision as provided in OMC 5.02.060.
C. Within 120 days after the issuance of a business license for a massage business or reflexology business, the City of Olympia chief of police or designee shall conduct an initial inspection pursuant to OMC 5.26.040.
D. In the event a person who has obtained a City business license registration for a massage business or reflexology business is thereafter found in violation of an offense described in subsection (A) of this section, such business license may be revoked in accordance with OMC 5.02.050. Revocation may occur regardless of the jurisdiction or location in which the violation of the offense occurs. The basis for revocation of the business license pursuant to this section is in addition to any grounds for revocation listed in OMC 5.02.050.
(Ord. 7436 §4, 2025).
5.02.060 Appeal of License Denial, Suspension or Revocation
If a business license is denied, suspended, or revoked pursuant to any provision of OMC 5.02.050(1-7), a business owner or license applicant may appeal such decision to the City Manager within thirty (30) days of such denial, suspension, or revocation. In order for an appeal to be considered, the business owner or applicant must state with particularity the reasons why the City’s decision was in error and the reasons the City Manager should reverse the denial, suspension, or revocation. The City Manager or designee will review the appeal and issue a written decision to uphold, modify, or reverse the denial, suspension, or revocation within thirty (30) days of receipt of the appeal. The City Manager’s or designee’s decision is the final decision of the City and may be appealed to the Thurston County Superior Court within thirty (30) days of the date the City Manager or designee issues the decision.
(Ord. 7424 §2, 2025; Ord. 7187 §3, 2019; Ord. 6819 §1, 2012; Ord. 6798 §1, 2012).
5.02.070 Violations -- Civil Infraction
A. It shall be a civil infraction for a person, firm, limited liability company or corporation to violate or fail to comply with any term or provision of this chapter. Each day shall be a separate infraction. A person, firm, limited liability company or corporation found to have committed a civil infraction shall be assessed a monetary penalty as provided in OMC Chapter 4.44, Uniform Civil Enforcement.
(Ord. 7424 §2, 2025; Ord. 6819 §1, 2012).