Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.010 Exercise of revenue license power.
5.04.030 Business license required.
5.04.040 Exemptions from business license requirements under this chapter.
5.04.045 Prohibited businesses.
5.04.050 Application procedure.
5.04.060 Issuance of business license.
5.04.070 Business license term.
5.04.080 Denial or revocation of business license.
5.04.090 Appeal of denial or revocation of business license.
5.04.100 License not construed to permit prohibited uses or activities.
5.04.110 Violation—Penalties—Waiver.
5.04.130 Duties of the director of financial services/treasurer under this chapter.
5.04.010 Exercise of revenue license power.
The provisions of this chapter shall be deemed an exercise of the power of the city of Shelton to license for regulation and revenue. (Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.020 Definitions.
This chapter incorporates by reference the definitions set forth in Chapter 82.04 RCW, entitled “Business and Occupation Tax,” as now existing or as hereafter amended. (Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.030 Business license required.
A. Unless exempt by this chapter, every person engaging in business shall obtain a general business license from the city before commencing business. The license shall be nontransferable.
B. No person shall conduct any business within the city of Shelton, either directly or indirectly, for which a license is required by law, without first procuring a valid license to conduct such business, regardless whether the person’s business is physically located outside the city.
C. If more than one business owner operates a separate business on a single premises, a separate license and license fee shall be required for each business. If a business owner operates a business at more than one location in the city, a separate license and license fee shall be required for each location.
D. Every business shall post the license issued to the business on the premises of the business. Every transient merchant, peddler or street peddler shall have in his or her possession, at all times while conducting business, the license issued for such business pursuant to the applicable provision of the Shelton Municipal Code. (Ord. 1926-0818 § 1 (part), 2018: Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.040 Exemptions from business license requirements under this chapter.
The license requirements of this chapter shall not apply to the following:
A. Tax Exempt Organizations. Any organization holding a current IRS 501(c) exemption letter issued by the Internal Revenue Service or other applicable proof of tax exempt status shall, upon filing a true and correct copy of the same with the city, be exempt from the license fee requirements of this chapter only.
B. Religious Organizations. The nonbusiness activities of religious organizations are exempt from the provisions of this chapter; provided, that any religious organization which carries on any business activity for which it may be required by federal law to file a federal income tax return shall, to that extent only, be subject to the license and license fee requirements of this chapter.
C. Farmers and Gardeners Peddling Own Agricultural Product. Any farmer or gardener may sell any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured themselves, under an exempt status from the license and license fee requirements of this chapter, in compliance with RCW 36.71.090.
D. Threshold Exemption. For purposes of the license governed 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 two thousand dollars and who does not maintain a place of business within the city shall submit a business license registration to the director or designee. The fee for such business license registrations shall be zero dollars. This threshold exemption does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 1926-0818 § 1 (part), 2018: Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.045 Prohibited businesses.
A. Temporary Merchants. Temporary merchants may not obtain a city business license. “Temporary merchant” is defined as anyone who, with intent to engage temporarily, transiently, or itinerantly in any business in the city, selling goods, wares or merchandise for retail or who, for the purpose of carrying on such business, hires, leases or occupies any building, structure, tent, lot or premises for the exhibition and sale of such goods, wares or merchandise, except in the exceptions to this subsection as defined below:
1. Mobile Food Vending Unit. The city may license mobile food vending units, defined as a mobile unit parked on private property, or on public property with the required authorization, and traveling city streets for the purpose of selling edible merchandise. At all times, the mobile food vending unit must comply with all of the following provisions:
a. Mobile food vending unit may not sell on a city street or public right-of-way, except as part of a special event as authorized under Chapter 5.46.
b. Mobile food vending unit may not obstruct the passage along any sidewalk, street, alley or parking lot, except as part of a special event as authorized under Chapter 5.46.
c. Mobile food vending unit must comply with all city, county, state and federal health regulations regarding food handling.
d. Mobile food vending unit operators shall provide trash receptacles for customer use, and shall remove all refuse from the container at the close of each day.
e. Hours of operation shall be limited to between seven a.m. and eleven fifty-nine p.m.
2. Temporary Vendor as Part of a Special Event. Temporary vendors may participate in a special event defined in Chapter 5.46, provided the event organizer complies with reporting of all temporary vendor activity on the special event permit.
B. Unlicensed Marijuana Business, Facility or Operation. Any marijuana business, facility, or operation that does not have a state license pursuant to RCW Title 69 may not obtain a city business license. This prohibition includes, but is not limited to, any marijuana production, processing, retail, or research business, facility, or operation. (Ord. 1882-0116 § 1, 2016: Ord. 1873-0815 § 1, 2015: Ord. 1834-1113 § 1 (part), 2013: Ord. 1616-0404 § 1 (part), 2004)
5.04.050 Application procedure.
A. Applications for business licenses shall be made to the Business Licensing Service.
B. The business license application must include payment of all license fees due for all licenses requested, and include the handling fee authorized by RCW 19.02.075. (Ord. 1926-0818 § 1 (part), 2018: Ord. 1834-1113 § 1 (part), 2013: Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.060 Issuance of business license.
Upon receipt of the complete business license application information, the director or director’s designee shall review the application. The director will approve or deny the license application within sixty days of the date of filing of the application. If the director fails to issue or deny the license within sixty days of the date of filing of a complete application and fee, the applicant shall be permitted, subject to all other applicable laws, to operate the business for which the license was sought until notification by the director that the license has been denied; provided, that in no event may the director extend the application review time for more than an additional twenty days. (Ord. 1926-0818 § 1 (part), 2018: Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.070 Business license term.
Business licenses required by this chapter and issued through the Business Licensing Service are issued on an annual basis, and will expire on the date established by the Business Licensing Service. The term of the license and respective fee amount due may be prorated as necessary to synchronize the expiration date of the license with the date established by Business Licensing Service for a licensing account. (Ord. 1926-0818 § 1 (part), 2018: Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.080 Denial or revocation of business license.
A. The director may deny an application for a business license or renewal of a business license, or revoke a business license previously issued, upon the following grounds:
1. The license was procured by fraud, false representation, or omission of a material fact; or
2. The licensee or any of its employees, officers, agents or volunteers, while acting within the scope of their employment, violates or fails to comply with any of the provisions of this chapter; or
3. The licensee’s continued conduct of the business for which the license was issued has or will result in a danger to the public health, safety or welfare, or the violation of any federal or state law or any ordinance or regulation of the city; or
4. The licensee, or any of its employees, officers, agents or servants has been convicted in any court of violating any federal, state or city criminal statute or ordinance upon the business premises that is listed on the license; or
5. The licensee has been convicted in any court of violating a law which conviction prohibits the licensee from operating the type of business for which they have been licensed or are applying for a license to operate; or
6. The licensee continues to employ a person or allows a person to volunteer who has been convicted of any law that prohibits such person from employment at the type of business the licensee operates; or
7. The place of business does not conform to city ordinance; or
8. The license is being used for a purpose different from that for which it was issued.
B. If an application is denied or license revoked by the director, the director shall set forth in writing the reasons for the denial, and shall mail the written denial or revocation via certified mail return receipt requested to the applicant at the mailing address set forth in the application. The written denial or revocation shall state that the director’s decision shall be final, unless the applicant or license holder files a written appeal with the city manager within fifteen days of the date of the written denial or revocation.
C. Upon denial, no application fee shall be refunded to the applicant. Upon revocation, no license fees shall be refunded to the licensee.
D. Upon the denial or revocation of a business license, the applicant shall not engage in the business for which the license was denied or revoked unless and until the director re-issues the license pursuant to a decision or judgment authorizing the re-issuance. (Ord. 1921-0518 (part), 2018; Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.090 Appeal of denial or revocation of business license.
A. Initial Appeal. Within ten days after receiving a timely submitted written request to appeal a business license denial or revocation, the city manager shall fix a time and place for the appeal and shall provide the applicant or business holder at least ten days’ written notice of the hearing date, time and place. Notice of the hearing shall be personally delivered or mailed via certified mail, return receipt requested. The city manager shall hear all appeals made pursuant to this section within sixty days of the filing of the written request for appeal.
B. Final Appeal. Within ten days after receipt of a timely submitted written request to appeal a decision confirming denial or revocation by the city manager, the city council shall fix a time and place for a final appeal before the city council and shall provide the applicant or business holder at least ten days’ written notice of the final appeal hearing date, time and place. Notice of the hearing shall be personally delivered or mailed via certified mail, return receipt requested. The city council shall hear all final appeals made pursuant to this section within sixty days of the filing of the written request for final appeal. (Ord. 1921-0518 (part), 2018; Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.100 License not construed to permit prohibited uses or activities.
Notwithstanding any provisions in this section to the contrary, a business license shall not be issued to any person who uses or occupies, or proposes to use or occupy, any real property or who conducts, or proposes to conduct, any business in violation of the provisions of any federal, state or local law. The granting of a business license shall in no way be construed as permission or acquiescence in a prohibited activity or other violation of the law. (Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.110 Violation—Penalties—Waiver.
A. Failure to Obtain a License—Late Penalty. Failure to obtain a license within ten days of receipt of notification of noncompliance from the city by certified letter shall subject the business owner to a penalty of two hundred fifty dollars payable directly to the city, and which is in addition to the license application fees required by this chapter.
B. Failure to Renew a License—Late Penalty. Failure to renew a license and pay the renewal fee prior to the expiration date will result in the assessment of a penalty of two hundred fifty dollars payable to the city in addition to the late renewal penalty authorized by RCW 19.02.085.
C. The city may issue a stop work order on any business doing business within the city limits not in compliance with this chapter and properly licensed by the city.
D. Violation of the Business Licenses Ordinance—Conviction. Any person violating a provision of this chapter shall be guilty of a misdemeanor and shall be punished by a fine not to exceed one thousand dollars, or by imprisonment in jail for a period not to exceed ninety days, or by both such fine and imprisonment. Each day’s violation constitutes a separate offense.
E. Late Penalty Waiver. The director may discount or waive altogether the amount of the penalty to be assessed in subsection A of this section, upon consideration of the appropriateness of the penalty to the size of the business; the gravity of the violation; the number of past and present violations committed and the good faith of the violator in attempting to achieve compliance after notification of the violation. (Ord. 1926-0818 § 1 (part), 2018: Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.120 Additional relief.
The director may seek legal or equitable relief to enjoin any acts or practices and abate any condition which constitutes or will constitute a violation of this chapter when civil penalties are inadequate to effect compliance. (Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)
5.04.130 Duties of the director of financial services/treasurer under this chapter.
A. The director shall keep full and accurate records of all funds received under the provisions of this chapter. Upon receipt of any license fee and/or penalties collected pursuant to this chapter, the director shall deposit the same to the credit of the general fund.
B. The director shall require all parties engaging in any business activity applicable to this chapter to pay the license fees required and the director shall enforce collection thereof in any manner consistent with this chapter.
C. The director shall withhold final payment due on any public works or other city contract to any business or contractor until such time as the business or contractor has paid to the city all license fees and penalties due the city.
D. The director shall have the power to adopt, publish and enforce policies and procedures not inconsistent with this chapter or other law for the purpose of carrying out the provisions of this chapter. (Ord. 1616-0404 § 1 (part), 2004: Ord. 1587-0403 § 1 (part), 2003)