Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.020 Business license required – Posting.
5.04.030 License denial, suspension or revocation.
5.04.040 Application and renewal.
5.04.050 License term or expiration.
5.04.070 Exception – Applicability of provisions and thresholds.
5.04.010 Definitions.
The following definitions shall apply in construing the provisions of this chapter, except where otherwise declared or clearly apparent from the context:
A. “Business,” “occupation” or “pursuit” means and includes all home occupations, wholesalers, retailers, service providers, towing operators, peddlers, canvassers, solicitors, for-hire vehicles, limousine services, pawnbrokers, secondhand dealers and junk dealers engaged in with the object of economic gain, benefit or advantage to the person, firm or corporation, or to another person or class, directly or indirectly, whether part-time or full-time, whether resident or nonresident except those businesses or activities for which licenses or franchises are required by any other chapter or section of the Tumwater Municipal Code as now or hereafter enacted or amended.
B. “Canvasser,” “peddler,” or “solicitor,” within the meaning of this chapter, is any person who, either as a principal or agent, goes from door to door, or from place to place, and enters upon any private property within the city and thereon engages in any of the following activities:
1. Sells, takes orders for, or offers to sell or take orders for, any goods, wares or merchandise whether or not collecting in advance for such goods, wares or merchandise; and/or
2. Sells, takes orders for, or offers to sell or take orders for services, whether or not collecting in advance for the performance of such services; and/or
3. Sells, takes orders for, or offers to sell or take orders for the making, manufacturing, or repairing of any article or thing whatsoever, whether or not collecting in advance for the performance of such services; and/or
4. Seeks contributions or donations.
C. “City” means the city of Tumwater.
D. Corporation. See “person.”
E. “Driver” and “operator” mean the person physically engaged in driving a for-hire vehicle, whether or not the person is the owner of or has any financial interest in the vehicle.
F. “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.
1. 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 “engage in business” in this subsection F. 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.
2. 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 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, 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.
q. Nonprofit businesses that have been granted an IRS 501(c)(3) status or are registered with Washington’s Office of Secretary of State as a nonprofit corporation.
3. 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 Constitution 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 contract or subsequent contracts.
G. Firm. See “person.”
H. “For-hire vehicle” includes all vehicles used for the transportation of passengers for compensation, except chartered and scheduled buses, vehicles not for hire by the general public (such as vans operated by hotels, employers, churches, schools and retirement facilities) and ride share vehicles. The term refers primarily to taxicabs and limousines.
I. “Limousine” means a chauffeur-driven, unmetered, unmarked luxury motor vehicle pre-arranged for transportation meeting the definition in RCW 46.04.274. Limousines differ from “taxis” in that they are for the exclusive use of the person(s) paying the pre-arranged fare, are unmetered, unmarked, and are not available for spontaneous hire.
J. Occupation. See “business.”
K. Operator. See “driver.”
L. Peddler. See “canvasser.”
M. “Person” means any natural person of any gender, firms, corporations, partnerships or associations either acting by themselves or by servant, agent or employee. The singular shall include the plural.
N. “Person,” “firm,” or “corporation,” used interchangeably in this chapter, means any individual, receiver, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, corporation, association, canvasser, peddler, solicitor, society, or any group of individuals acting as a unit, whether mutual cooperative, fraternal, nonprofit or otherwise, and includes the United States or any instrumentality thereof, for whom a valid business license may be required therefrom under the provisions of this chapter.
O. Pursuit. See “business.”
P. Solicitor. See “canvasser.”
Q. “Towing operator” is anyone engaged in the business of offering towing service by use of a vehicle wrecker or by a vehicle adapted to that purpose, whereby motor vehicles are towed or are otherwise removed from the place where they are disabled.
(Ord. O2018-020, Amended, 09/18/2018; Ord. O2011-018, Amended, 12/20/2011; Ord. O2011-002, Amended, 03/01/2011; Ord. O2003-013, Amended, 04/01/2003; Ord. 841, Added, 12/09/1978)
5.04.020 Business license required – Posting.
A. It is unlawful for any person, firm or corporation to engage in any business, occupation or pursuit, as defined in TMC 5.04.010, 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.
B. Such business license is nontransferable.
1. A business owner acquiring an existing business in the city must obtain a new license for that business.
2. 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. 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. No fee will be charged for additional locations or physical location changes within the city.
3. If two or more businesses operate at the same physical location, each business must obtain a license.
(Ord. O2018-020, Amended, 09/18/2018; Ord. O2011-018, Amended, 12/20/2011; Ord. O2003-013, Amended, 04/01/2003; Ord. 841, Added, 12/09/1978)
5.04.030 License denial, suspension or revocation.
A. A business license may be denied, suspended or revoked by the city’s finance director. The director, or designee, shall notify the license applicant or licensee in writing of the denial, suspension, or revocation of his or her 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 as required by TMC.
Upon revocation of any license as provided in the chapter, no portion of the registration fee shall be returned to the applicant or licensee.
(Ord. O2018-020, Added, 09/18/2018)
5.04.040 Application and renewal.
A. Application for a business license shall be made by submitting a completed master business application, and any appropriate addenda forms to the State of Washington Business Licensing Service (BLS), in cooperation with the city, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter. Said application shall be accompanied by payment of all applicable 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 State of Washington Business Licensing Service in coordination with the city finance director or designee. 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 one hundred twenty days after the expiration date established by the Business Licensing Service may result in the cancellation of the license, and may require the filing of a new city business application, payment of all appropriate fees, and reapproval by the city in order to continue conducting business in the city.
(Ord. O2018-020, Amended, 09/18/2018; Ord. O2011-018, Amended, 12/20/2011; Ord. O2003-013, Added, 04/01/2003)
5.04.050 License term or expiration.
Each city license issued shall have a term as determined by the State of Washington Business Licensing Service in cooperation with the city. The city license term or expiration date will be coordinated with the terms or expiration dates of all other licenses or permits required by the state for each business.
(Ord. O2018-020, Amended, 09/18/2018; Ord. O2011-018, Amended, 12/20/2011; Ord. O2003-013, Added, 04/01/2003)
5.04.060 Fee.
The fee for the business license required by this chapter shall be as established by resolution of the city council. The fee may be prorated as necessary to conform to TMC 5.04.050. The license fees listed in this section are in addition to any other license or handling fee collected by the State of Washington Business Licensing Service.
(Ord. O2018-020, Amended, 09/18/2018; Ord. O2011-018, Amended, 12/20/2011; Ord. O2003-013, Added, 04/01/2003)
5.04.070 Exception – Applicability of provisions and thresholds.
This chapter shall not be applicable to:
A. Nonprofit organizations as recognized by the state of Washington and the federal government (i.e., 501(c)(3)). Such organizations are exempt from any fees in this chapter. However, they are not exempted from registering or obtaining a business license with the city of Tumwater.
B. Minors engaged in babysitting, newspaper delivery, lemonade stands, lawn mowing, and similar activities are not required to register and obtain a business license.
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 director 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 event.” 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 a 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. 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 are exempt from any fees in this chapter. However, they are not exempted from registering or obtaining a business license with the city of Tumwater. The threshold does not apply to regulatory license requirements or activities that require a special permit.
(Ord. O2018-020, Amended, 09/18/2018; Ord. O2011-018, Amended, 12/20/2011; Ord. O2003-013, Added, 04/01/2003)
5.04.080 Violation – Penalty.
Any person, firm or corporation violating or failing to comply with any provision of this chapter shall be deemed guilty of a misdemeanor, as prescribed in TMC Chapter 1.12.
(Ord. O2011-018, Amended, 12/20/2011; Ord. O2010-014, Amended, 06/15/2010; Ord. O2003-013, Added, 04/01/2003)