Chapter 5.06
BUSINESS LICENSES
Sections:
5.06.040 Procedure for obtaining license.
5.06.050 Examination of business premises.
5.06.010 Definitions.
The following terms, when used in this chapter, shall have the meanings designated below:
A. “Person” means all individuals, partnerships, domestic and foreign corporations, associations, syndicates, joint ventures and societies transacting and carrying on any business in the town of Waterville, Washington.
B. Engaging in Business.
1. The term “engage in business” or “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 town 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 town 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 (B)(1) of this section. If an activity is not listed, whether it constitutes engaging in business in the town 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 town 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 town.
b. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the town.
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, 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 town, 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 town 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 directors 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 town.
e. Attending, but not participating in, a trade show or multiple vendor events. Persons participating at a trade show shall review the town’s trade show or multiple vendor event ordinances.
f. Conducting advertising through the mail.
g. Soliciting sales by phone from a location outside the town.
5. A seller located outside the town merely delivering goods into the town 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 town. Such activities do not include those in subsection (B)(4) of this section.
The town 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.
C. The agent or agents of a nonresident proprietor engaged in any business for which a license is required by this chapter shall be liable for the payment of the fee thereon as herein provided and for the penalties for failure to pay the same or to comply with the provisions of this chapter to the extent and with like effect as if such agent or agents were themselves proprietors. (Ord. 794 § 1, 2018; Ord. 574 § 1, 1997).
5.06.020 Purposes.
A. To provide a registry of information pertaining to the businesses operating within the town of Waterville for purposes of regulating business within the town, to ensure compliance with town codes, and to promote the best interests of the businesses operating within the town.
B. To provide revenue for municipal planning purposes, to pay for the expenses of issuing licenses and regulating the licensed businesses. (Ord. 794 § 1, 2018; Ord. 574 § 1, 1997).
5.06.030 License fees.
A. No person shall engage in business in the town without first having applied for, paid for and obtained the license therefor for the current year, as provided herein, and without having first complied with any and all applicable provisions.
B. Each person engaged in business in the town shall pay an annual basic license fee of $5.00.
C. The license fee herein required shall be due and payable by the end of the first quarter (March 31st) of each year for businesses in existence at the start of the year, or by the end of the quarter in which a new business first commences doing business within the town.
D. Each branch establishment or separate location of a business conducted by any person shall, for the purpose thereof, be a separate business and subject to the license therefor provided for herein.
E. If any person be engaged in operating or carrying on in the town more than one business, then such person shall pay the license herein prescribed for as many of said businesses as are carried on by such person.
F. The license year shall commence on January 1st of each year, and shall terminate at midnight on December 31st of the year. (Ord. 794 § 1, 2018; Ord. 624 §§ 1, 2, 2002; Ord. 574 § 1, 1997).
5.06.035 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:
A. Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the town is equal to or less than $2,000 (or higher threshold as determined by the town) and who does not maintain a place of business within the town 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. 794 § 1, 2018).
5.06.040 Procedure for obtaining license.
A. All licenses shall be issued by the town clerk/treasurer. Normally, such license shall be issued within seven days of the date application is made; provided, however, when, in the opinion of the town clerk/treasurer, there exists sufficient question regarding the appropriateness of approving an application, said application shall be considered by the town council at its next regularly scheduled meeting. All licenses and permits are subject to revocation at any time by the council for cause.
B. The application for such license shall contain the following information:
1. The name of the applicant, with a statement of all persons having an interest in said business, either as proprietors or owners of said business;
2. The location of the place where the business is conducted;
3. A description of the trade, shop, business, profession, occupation, or calling to be carried on within said town;
4. The amount of money tendered with the application;
5. The date of the application;
6. The signature of the applicant.
C. No license issued to do business within the limits of the town shall be transferable. Only the individuals to whom the license is issued shall be eligible to operate on that license.
D. The town clerk/treasurer shall issue a license only after payment of the full fee. All persons operating or doing business under license of the town shall, at all times, keep such license either on their person or displayed in a prominent place easily observable to the public and town personnel while so operating within the town limits.
E. Issuance of a business license shall not relieve the applicant from the need to comply with other applicable town ordinances.
F. It shall be a condition precedent to the issuance of a business license hereunder that the business engaged in by the applicant be lawful under any applicable local, state and federal law. (Ord. 794 § 1, 2018; Ord. 756, 2014; Ord. 574 § 1, 1997).
5.06.050 Examination of business premises.
Town officials shall have the authority to investigate and examine all places of business licensed or subject to license under this chapter at any reasonable time for the purpose of determining whether such place of business is complying with the provisions of this chapter. (Ord. 794 § 1, 2018; Ord. 574 § 1, 1997).
5.06.060 Penalties.
A. It is unlawful for any person to willfully make any false or misleading statement to the town clerk/treasurer for the purpose of determining the amount of any license fee herein provided to be paid by any such person, or to fail or refuse to comply with any of the provisions of this chapter to be complied with, or to fail or refuse to pay before the same shall be delinquent any license fee or penalty hereby required to be paid by any such person.
B. In the event any person hereby required to obtain a license shall fail or neglect to obtain a license, or shall fail to pay for the license before it shall become delinquent, a penalty of $25.00 shall be imposed in addition to the fee to obtain a license, and the penalty shall be collected before the license is issued.
C. Nothing herein contained shall be taken or construed as vesting any right in any license as a contract obligation on the part of the town as to the amount of the fee hereunder. Other or additional taxes or fees and the fees herein provided for may be increased or decreased and additional or other fees provided for and levied in any and all instances at any time by the town.
D. The conviction of any person for violation of any of the provisions of this chapter shall not operate to relieve such person from paying any fee or penalty thereupon for which such person shall be liable, nor shall the payment of any such fee be a bar to or prevent prosecution in the district court of any complaint for the violation of any of the provisions of this chapter.
E. Any person violating any of the provisions hereof shall, upon the conviction thereof, be punished by a fine not to exceed $100.00. Each day any person shall conduct any business within the town for which a license is hereby required without having paid the license fee shall constitute a separate offense.
F. All persons, firms and corporations who perform labor, services and construction within the town (as provided in Rule II, WAC 458-20-145) shall report the town “Location Code Number 0905” on their excise tax returns to the State of Washington, Department of Revenue. On any violation hereof, the amount of local sales and use taxes due the town shall be paid to the town by the violator, together with a penalty of 100 percent, in addition to all other penalties, fines and remedies provided in this chapter. (Ord. 794 § 1, 2018; Ord. 624 § 3, 2002; Ord. 574 § 1, 1997).
5.06.070 Additional remedies.
A. In addition to the penalties provided in this chapter and as separate and distinct remedies, the town may sue in any court of competent jurisdiction to obtain a judgment and enforce collection thereof by execution for any license fee due under this chapter.
B. The town may seek an injunction prohibiting a person from engaging in any unlicensed business.
C. In any action or suit authorized by this section, the town, if it prevails, shall recover a reasonable attorney’s fee to be set by the court, in addition to its costs and disbursements. (Ord. 794 § 1, 2018; Ord. 574 § 1, 1997).