Chapter 5.05
BUSINESS LICENSES
Sections:
5.05.020 Definitions – General.
5.05.025 Activities constituting engaging in business in the city.
5.05.030 Business license required – Posting.
5.05.040 Exception – Applicability of provisions.
5.05.050 Application and renewal.
5.05.060 License term or expiration.
5.05.080 Penalty for late renewal.
5.05.090 License – Suspension, denial or revocation.
5.05.110 Additional enforcement.
5.05.010 Chapter and purpose.
Maintenance of current information with respect to business, trade, service, commercial and professional activities carried on within the city allows the city to carry out the duties and authorities delegated to it by the Washington State Constitution and the laws of the state of Washington as a noncharter code city. Such information can best be accumulated and maintained on a current basis through the establishment of a program for the licensing and registration of such activities. The licensing and registration program is established to protect the public and promote economic development and not intended to benefit any individual or class. [Ord. 543 § 1, 2009]
5.05.020 Definitions – General.
For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given in this section:
A. “City” means the city of Shoreline, Washington.
B. “Clerk” means such city employees or agents as the city manager shall designate to administer this chapter, or any designee thereof.
C. “Engaging in business” or “engage 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.
D. “Person,” “firm,” or “corporation,” used interchangeably in this chapter, means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the state of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, social, nonprofit or otherwise, and includes the United States or any instrumentality thereof. [Ord. 831 § 1 (Exh. A(1)), 2018; Ord. 543 § 1, 2009]
5.05.025 Activities constituting engaging in business in the city.
A. 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” provided in this chapter. 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.
B. 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:
1. 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.
2. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.
3. Soliciting sales.
4. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
5. 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.
6. Installing, constructing or supervising installation or construction of real or tangible personal property.
7. Soliciting, negotiating, or approving franchise, license, or other similar agreements.
8. Collecting current or delinquent accounts.
9. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
10. 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.
11. 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, and veterinarians.
12. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
13. 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.
14. Investigating, resolving, or otherwise assisting in resolving customer complaints.
15. 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.
16. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
C. 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:
1. Meeting with suppliers of goods and services as a customer.
2. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.
3. 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.
4. Renting tangible or intangible property as a customer when the property is not used in the city.
5. 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.
6. Conducting advertising through the mail.
7. Soliciting sales by phone from a location outside the city.
D. 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 C of this section.
E. 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. 831 § 1 (Exh. A(2)), 2018]
5.05.030 Business license required – Posting.
Unless otherwise exempted by this chapter, it is unlawful for any person or business to engage in any business in the city without first having obtained a business license therefor as provided in this chapter. The business license provided for in this chapter shall be posted in a conspicuous location at the place of the business. Such business license is nontransferable. [Ord. 831 § 1 (Exh. A(1)), 2018; Ord. 543 § 1, 2009]
5.05.040 Exception – Applicability of provisions.
This chapter shall not be applicable to:
A. The performance of governmental or proprietary functions by any instrumentality of the United States, the state of Washington, or any political subdivision thereof.
B. Any person or business for which a regulatory business license or franchise is required by any other chapter or section of the Shoreline Municipal Code, as now or hereafter enacted or amended.
C. Any person or business who conducts limited retail sales as part of a city-sponsored event or a recognized 501(c)(3) nonprofit organization sponsored event no more than six days per year and who generates no more than $5,000 in gross receipts per calendar year within the city.
D. Any person or business who provides recreation instructional services or performance services as part of a city-sponsored event or a recognized 501(c)(3) nonprofit organization sponsored event and who generates no more than $5,000 in gross receipts per calendar year within the city.
E. 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, whether or not they maintain a place of business within the city, shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit. [Ord. 831 § 1 (Exh. A(1)), 2018; Ord. 692 § 1, 2015; Ord. 543 § 1, 2009]
5.05.050 Application and renewal.
A. Application for a business license shall be made by filing a master application through the clerk, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter. Persons applying for a license must pay a fee, as established by the city council by ordinance, and the handling fee.
B. A business license must be approved by the city before a business commences operation within the city. If business is transacted by one person at two or more separate locations within the city, a separate application must be filed for each business location and a separate license shall be obtained and displayed in each location.
C. The clerk may refer applications to the planning and development services department, the police department, or other governmental agencies for their review. Compliance with building, zoning and other laws is the business owner’s responsibility and issuance of a business license is not a guarantee of compliance or a waiver of future enforcement by the city or other agency with jurisdiction.
D. If more than one business is conducted or operated on premises, a separate license shall be required for each business. Each business owner must make a separate application for license.
E. The filing of an application for a license, or the renewal thereof, or the payment of any application or renewal fee, shall not authorize a person to engage in or conduct a business until such license has been granted or renewed.
F. A business license is nontransferable. No licensee shall allow another person to operate a business under, or display the license issued to their business, nor shall another person operate under or display the license issued to another business. A person who acquires an existing business must make application for a city business license before commencing business within the city with that business. A licensee must report a change of location of the business to the clerk. A change of the location of a business requires approval by the city before business may commence at the new location, and may require submitting a new business license application and payment of fees.
G. License renewals are handled by the city. Renewal of the city license requires payment of fees, including handling fees. [Ord. 831 § 1 (Exh. A(1)), 2018; Ord. 543 § 1, 2009]
5.05.060 License term or expiration.
Each city license issued shall expire on December 31st of each year. The city license fee may be prorated to coordinate with the expiration date assigned by the city in accordance with Chapter 3.01 SMC. [Ord. 831 § 1 (Exh. A(1)), 2018; Ord. 543 § 1, 2009]
5.05.070 Fee.
A. The fee for the business license required by this chapter shall be established by ordinance of the city council. The fee may be pro-rated as necessary to conform to SMC 5.05.060.
B. The license fee shall be in addition to any license fee or tax imposed or levied under any law or other ordinance of the city except as otherwise expressly provided.
C. If conducting business within the city, businesses registered with the Washington Secretary of State as a nonprofit corporation must obtain a city business license, but are exempt from paying the city’s business license fee. [Ord. 543 § 1, 2009]
5.05.080 Penalty for late renewal.
Licenses must be renewed annually on or before the expiration date, or expiration of any prorated period. Failure to renew a business license by the license expiration date may result in the assessment of a late renewal penalty in accordance with Chapter 3.01 SMC. Nonrenewal may require reapplication for the city license, and approval by the city. [Ord. 831 § 1 (Exh. A(1)), 2018; Ord. 543 § 1, 2009]
5.05.090 License – Suspension, denial or revocation.
A. A business license may be denied, suspended or revoked by the clerk whenever the licensee or any of its officers, directors, agents, owners or employees fail:
1. To maintain the licensed premises or business activity in compliance with applicable health, building, fire and safety laws, ordinances or regulations;
2. To comply with the requirements of this chapter.
B. The clerk shall, by certified mail, give written notice to the applicant of denial of a license or to the licensee of suspension or revocation of a license, including a summary of the complaints, objections and information considered by the clerk and the reason(s) for the action. Notice mailed to the mailing address on the application or most recent renewal shall be deemed received three days after mailing. The clerk’s decision may be appealed to the city hearing examiner upon payment of the appropriate appeal fee.
C. Any suspension or revocation shall remain in effect until the conditions causing the suspension or revocation are cured and reasonable measures are taken to ensure that those conditions will not recur.
D. Appeals of any license suspension, revocation or denial shall be heard by the Shoreline hearing examiner. An appeal statement must be filed with the city clerk within 14 days of the decision being appealed. [Ord. 543 § 1, 2009]
5.05.100 Violation – Penalty.
Any violation of this chapter shall constitute a misdemeanor and the punishment shall be as provided by the laws of the state of Washington. [Ord. 543 § 1, 2009]
5.05.110 Additional enforcement.
Notwithstanding the existence or use of any other remedy, the city attorney may seek legal or equitable relief to enjoin any acts or practices which constitute or will constitute a violation of any business license ordinance or other regulations herein adopted. [Ord. 543 § 1, 2009]