Chapter 5.01
GENERAL BUSINESS LICENSE
Sections:
5.01.030 Engaging in business.
5.01.090 License renewal--Late penalties.
5.01.100 License not transferrable.
5.01.110 Application denial--Appeal.
5.01.120 License suspension or revocation--Appeal.
5.01.010 Purpose.
The purpose of this chapter is to provide for the exercise of the town’s authority to license for revenue and regulation of business within the town, as provided for by RCW 35.27.320(9). (Ord. 596 §1, 2021)
5.01.020 Definitions.
“Business” means and includes all persons, home occupations, wholesalers, retailers, or service providers, engaged in business 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.
“Business Licensing Service” and “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the town.
“Engaging in business” is defined in Section 5.01.030.
“Home occupation” is defined in Section 18.29.020.
“Person” means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise.
“Qualified nonprofit organization” means an organization or business that has been granted a federal tax exemption by the Internal Revenue Service under a provision of 26 U.S.C. Section 501(c).
“Town” means the town of Wilbur, Washington. (Ord. 596 §1, 2021)
5.01.025 Administration.
The town of Wilbur shall partner with the Washington State Department of Revenue Business Licensing Service so that the Business Licensing Service administers business licensing for the town of Wilbur. The mayor is authorized and directed to enter into such partnership on behalf of the town of Wilbur. (Ord. 597 §1, 2021)
5.01.030 Engaging in business.
A. 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.
B. 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 A 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.
C. 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.
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 town.
2. Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the town.
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, 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 town, 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.
D. 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.
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 town.
5. 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.
6. Conducting advertising through the mail.
7. Soliciting sales by phone from a location outside the town.
E. 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 D 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. (Ord. 596 §1, 2021)
5.01.040 License required.
No person may engage in business within the town without having first obtained from the town a license to do so, to be known as a general business license.
A. Persons having continuously engaged in business within the town prior to the effective date of the ordinance codified in this chapter may continue in business without interruption, provided such businesses must within sixty days after that ordinance’s effective date register with the town clerk to obtain the license required by this chapter. Such businesses will be granted an initial town general business license without payment of the town’s license application fee.
B. All persons intending to commence engaging in business within the town on or after the effective date of the ordinance codified in this chapter, as well as persons engaged in business within the town prior to that ordinance’s effective date but failing to register with the town clerk by the deadline stated in subsection A of this section, must comply with all requirements of this chapter to obtain a general business license. (Ord. 596 §1, 2021)
5.01.050 Exemptions.
The following persons and businesses are exempt from either or both the license requirement or the Town’s general business license fee, as otherwise required by this chapter, as indicated below:
A. Any instrumentality of the United States, the state of Washington, or any political subdivision thereof is exempt from this chapter.
B. Any farmer, gardener or other person who sells, delivers or peddles any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm produce or edibles raised, caught, produced or manufactured by such person within the state is exempt from this chapter.
C. Nonprofit organizations and businesses must obtain a general business license from the town prior to engaging in business activities within the town, as provided for in this chapter, provided:
1. Qualified nonprofit organizations as defined in this chapter, and which submit proof of a federal tax exemption status, are exempted from payment of the town’s general business license fee.
2. Religious organizations, such as are noted in 26 U.S.C. Section 501(c)(3), and which are normally assumed to be tax-exempt by the Internal Revenue Service without application being made for, or being provided proof of such tax-exempt status, are fully exempted from the licensing requirements of this chapter.
D. Nonresident Businesses. 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 two thousand dollars and who does not maintain a place of business within the city is 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. 596 §1, 2021)
5.01.060 License fee.
The town’s fee for the license required under this chapter is not refundable and is set by resolution of the town council. The fee amount may be adjusted from time to time as deemed appropriate by the town council. (Ord. 596 §1, 2021)
5.01.070 License application.
Application for the town’s general business license is made through the Business Licensing Service and must include all information required for all licenses requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075. (Ord. 596 §1, 2021)
5.01.080 License issuance.
A. The Business Licensing Service (BLS) will provide the town clerk with information from the application for the town’s general business license. The town clerk will review the application, including referring the application to appropriate town officials as needed for confirmation of compliance with all applicable town ordinances. If the application is found to be in compliance and is deemed appropriate, the town clerk will approve issuance of a business license to the applicant by the BLS.
B. The business license issued under this chapter must be posted in a conspicuous place at the business location for which it was issued. For a business with no fixed location within the town, the business owner carrying the license on their person meets the requirements of this subsection. (Ord. 596 §1, 2021)
5.01.090 License renewal--Late penalties.
The business license issued under this chapter will expire on the date established by the Business Licensing Service (BLS), and must be renewed on or before that date to continue to engage in business within the town.
A. Application for renewal of the license is made through the BLS, and must include all information required to renew all licenses involved, the total fees due for all licenses, and the renewal application handling fee required by RCW 19.02.075.
1. The BLS will provide the town clerk with information from the renewal application. The town clerk will review the renewal application, including referring the application to appropriate town officials as needed for confirmation of compliance with all applicable town ordinances.
2. If the renewal application is found to be in compliance and is deemed appropriate, the town clerk will approve issuance of a business license to the applicant by the BLS.
B. The license expiration date and the respective fee amount may be prorated as needed to synchronize the license expiration with that of the business account maintained by the BLS.
C. Failure to complete the license renewal by the expiration date will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due.
D. Failure to complete the license renewal within one hundred twenty days after the expiration date will result in the cancellation of the license and requires obtaining a new license as provided for in this chapter to engage in business within the town. The town may require payment of all past due amounts prior to approving the new license. (Ord. 596 §1, 2021)
5.01.100 License not transferrable.
A. The general business license issued under this chapter is personal and may not be transferred to another person or business. No one may allow another to use their license to engage in business within the town, and no one may use the license of another to engage in business within the town.
B. In the event of a change in ownership of a business, the new owner must obtain a license as provided for in this chapter prior to engaging in business within the town under the acquired business.
C. Should a licensee wish to change the physical location of a business within the town they must notify the Business Licensing Service sufficiently prior to the intended move to allow the town clerk to review the proposed new location whether the move is allowable under all ordinances of the town. Business may not commence at the new location prior to approval by the town clerk. Such a change may require submitting a new application for license as provided for in this chapter. (Ord. 596 §1, 2021)
5.01.110 Application denial--Appeal.
A. Within fourteen business days after receiving information of a completed business license application, and a determination to deny the application has been made, the town clerk will notify the applicant in writing by certified mail of the denial of the application and the grounds therefor. Within ten calendar days after receipt of the town’s notification of application denial, the applicant may request an appeal and hearing before the town council by filing a written notice of appeal and paying any hearing filing fee required. The town clerk will notify the applicant by mail of the time and place of the hearing.
B. If an application for a business license is denied and the applicant has filed a timely appeal of such denial, the applicant may not conduct any business for which a business license was denied, during the pendency of the appeal. (Ord. 596 §1, 2021)
5.01.120 License suspension or revocation--Appeal.
A. A business license issued under the provisions of this chapter may be revoked or suspended, should any of the following conditions exist:
1. The license was procured by fraud, false representation, or material omission of fact.
2. The licensee or any of its employees, officers, agents or servants, while acting within the scope of their employment, violates or fails to comply with any of the provisions of this chapter.
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 town.
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 stated in the license.
5. The place of business does not conform to the town’s ordinances.
B. If the town has reasonable cause to believe that any of the conditions listed above have occurred or exist, the town will send a notice to the licensee of a hearing to be held before the town council for the purpose of determining whether these conditions have occurred, and whether a revocation or suspension is warranted under the circumstances. Such notice will state the conditions that the town has reason to believe exist or have occurred, and will also contain the date and time of the town council hearing at which the issue will be considered. Notices to the licensee of the hearing will be given by certified mail at least fourteen days prior to the date of the hearing. At the hearing, the licensee will have an opportunity to present evidence and testify in opposition to any evidence or information submitted or presented by the town.
C. The town council’s decision on such business license represents the final action by the town, unless an appeal is made to the superior court of Grant County within ten business days of such decision.
D. It is unlawful for any person whose license has been revoked or suspended to continue operation of the business enterprise, or to keep the license issued to him/her in his/her possession and control. When revoked, the town license will be canceled, and when suspended, the town clerk will retain it during the period of suspension. (Ord. 596 §1, 2021)
5.01.130 Severability.
If any section, subsection, paragraph, sentence, clause, or phrase of this chapter is declared unconstitutional or invalid for any reason, such invalidity will not affect the validity or effectiveness of the remaining portions of this chapter. (Ord. 596 §1, 2021)