Chapter 5.02
BUSINESS LICENSES
Sections:
5.02.020 Definitions – General.
5.02.025 Engaging in business.
5.02.030 Business license required – Posting.
5.02.040 Exempt from the City fee.
5.02.050 Exempt from City business license.
5.02.060 Program application and renewal.
5.02.070 License term or expiration.
5.02.100 Grounds for denial or revocation of license.
5.02.101 Denial or revocation of license – Notice and opportunity to be heard.
5.02.102 Notice of license denial or revocation and scheduling of hearing.
5.02.104 Authority of Hearing Examiner – Order – Appeal.
5.02.105 Corrective action prior to hearing.
5.02.110 Violation – Enforcement.
5.02.010 Chapter and purpose.
The primary purpose of the City’s business license program is for regulatory purposes to ensure that businesses are authorized and permitted in the proper zoning district. Additionally, for public safety and emergency purposes, the City requires current contact and operating information about each entity operating within its jurisdictional boundaries. 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 license of such business activities. The business license program (“program”) is hereby established to protect the public and promote economic development and not intended to benefit any individual or class. (Ord. 587 § 2, 2014)
5.02.020 Definitions – General.
For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given in this section:
(1) “Business,” “occupation” or “pursuit” means and includes all activities, occupations, trades, pursuits, professions, and matters located or engaged in within the City with the object of gain, benefit, or advantage to the applicant for business license or other person, directly or indirectly, whether part-time or full-time, whether resident or nonresident.
(2) “Casual or isolated sale” means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis.
(3) “City” means the City of Woodinville, Washington.
(4) “Clerk” means such City employees or agents as the City Manager shall designate to administer this chapter, or any designee thereof.
(5) “Engaging in business” is defined in WMC 5.02.025.
(6) “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. (Ord. 662 § 1, 2018; Ord. 587 § 2, 2014)
5.02.025 Engaging in business.
(1) 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.
(2) 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” in subsection (1) of this section. 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.
(3) 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 or temporarily 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, 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.
(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 City 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 director 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 City.
(e) 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.
(f) Conducting advertising through the mail.
(g) Soliciting sales by phone from a location outside the City.
(5) 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 (4) of this section.
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. 662 § 2, 2018)
5.02.030 Business license required – Posting.
(1) Any person or entity that engages in any business, occupation, home occupation or pursuit, including nonprofit activities, in the City shall license that business with the City’s program. To license under the program a person must submit an application in accordance with the procedures established by the City and pay the applicable license fee.
(2) Exemption.
(a) Until January 1, 2026, 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 shall be exempt from the general business license requirements in this chapter.
(b) Beginning January 1, 2026, 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 $4,000 and who does not maintain a place of business within the City shall be exempt from the general business license requirements in this chapter. The threshold amount for such exemption shall be adjusted every 48 months on January 1st, starting on January 1, 2030, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30th as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (48 month) CPI increase using each 12-month period ending on June 30th of each prior year, and rounded to the nearest $100.00. However, if any of the annual CPI increases are more than five percent, a five percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the 48-month period, a zero percent increase will be used in computing the annual basis.
(c) The exemptions provided for in this subsection (2) do not apply to regulatory license requirements or activities that require a specialized permit.
(3) It is unlawful for any person, firm, corporation or association, unless specifically exempted herein, to maintain, conduct or operate any device, vehicle or thing for the purpose of engaging in or operating any business or occupation, or to engage in any business, calling, profession, trade, occupation or activity, without first having secured the license to do so, and paying all fees prescribed herein.
(4) A business license shall be posted in a conspicuous location at the place of the business. (Ord. 790 § 2, 2025; Ord. 662 § 3, 2018; Ord. 610 § 1, 2015; Ord. 587 § 2, 2014)
5.02.040 Exempt from the City fee.
Fees adopted by resolution, pursuant to WMC 5.02.080, do not apply to:
(1) The performance of governmental or proprietary functions by any instrumentality of the United States, the State of Washington, or any political subdivision thereof, including City of Woodinville sponsored civic events.
(2) Accredited public or private schools, colleges, or universities, as to their education endeavors only; churches and other religious bodies, as to their religious activities only; political groups and organizations as to their political activities only.
(3) Organizations exempt from taxation under 26 USC 501(c)(3) and (4) must register under the business license program, but shall be exempt from paying the license fee. This shall not constitute an exemption from all other applicable taxes and fees, including administration and renewal fees established by the State of Washington, pursuant to RCW 19.02.075. Such organization must be able to show satisfactory proof of such status to the City. (Ord. 610 § 1, 2015; Ord. 587 § 2, 2014)
5.02.050 Exempt from City business license.
Licensing requirements and the fees adopted by resolution, pursuant to WMC 5.02.080, do not apply to:
(1) Minors, a person under the age of 18, engaged in business or operating a business concern where no other person is employed by the minor.
(2) Casual or isolated sales.
(3) Real Estate Agents. For the purposes of this chapter, “real estate agent” means a person who is licensed under Chapter 18.85 RCW and whose license is being retained by a broker licensed as a broker under Chapter 18.85 RCW (“designated broker”). Due to the unique legal controls placed upon the real estate agent/broker relationship, a real estate agent whose license is retained by a designated broker holding a currently valid City of Woodinville business license is not required to have his/her own separate business license if the real estate agent engages in no business in Woodinville other than the work with the designated broker and the designated broker includes the real estate agent in counting the number of employees. (Ord. 662 § 4, 2018; Ord. 610 § 1, 2015; Ord. 587 § 2, 2014)
5.02.060 Program application and renewal.
(1) A person shall register a business with the program by submitting an application in accordance with the procedures established by the City, in coordination with the Clerk, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter.
(2) If a business is located at two or more separate locations within the City, a separate business license shall be required for each business.
(3) If more than one business is conducted or operated on premises, a separate business license shall be required for each business that meets the requirements for business license. Each business owner must separately register a business with the program.
(4) A business license is transferable. A person engaged in business within the City shall notify the Clerk of a change of business location within 30 days of the location change or by the next license renewal date, whichever date occurs first.
(5) A person who has registered a business under the City’s program shall renew the license on an annual basis, in the same manner as the original application for license including payment of fees.
(6) A person engaged in business within the City must comply with all applicable City ordinances and code provisions, and State and Federal laws. (Ord. 587 § 2, 2014)
5.02.070 License term or expiration.
A business license shall be valid for a term of 12 months, unless otherwise established, and shall expire on the date determined by the City. (Ord. 587 § 2, 2014)
5.02.080 Fee.
The fee to register with the City’s program, or renew such license, shall be as set forth in a fee resolution adopted by the City Council. (Ord. 587 § 2, 2014)
5.02.090 Late renewal.
Each business license issued must be renewed annually on or before the expiration date, or expiration of any prorated period. Failure to renew a business license by the expiration date may result in an increase in the amount of the renewal fee by 50 percent. (Ord. 587 § 2, 2014)
5.02.095 Massage or reflexology businesses – Violations related to prostitution or fraud – Violation of Chapter 5.05 WMC – Denial or revocation of business license.
(1) No person who has violated a section of Chapter 9A.88 RCW or a similar law of another state, and no person who has violated a section of Chapter 9A.60 RCW or a similar law of another state when such violation of Chapter 9A.60 RCW or similar law of another state is related to the operation of a massage business or reflexology business, shall be authorized or entitled to obtain, or retain, a City of Woodinville business license for a massage business or reflexology business.
(a) Upon the filing of any application for a business license registration for a massage business or reflexology business, the applicant must provide verification of his or her State-issued massage license as provided for in RCW 18.108.030.
(b) If the applicant is not a licensed massage therapist or certified reflexologist, the applicant shall provide the following information to the City Manager or designee upon request:
(i) The identity, date of birth, and current residence of the person(s) who will be principally responsible for managing the business and each person having an ownership interest in the business; and
(ii) For each entity having an ownership interest in the business, the identity, date of birth, and current residence of each person possessing an ownership interest in such entity. The City of Woodinville department in charge of the issuance of the license shall promptly provide the applicant’s information to the Woodinville Chief of Police or designee.
All required information shall be confirmed by review of valid government issued identification, recorded and transmitted to the Woodinville Chief of Police or designee. Within 10 business days after receiving the same, the Woodinville Chief of Police or designee shall notify the City of Woodinville department in charge of the issuance of the license whether the applicant, the massage business or reflexology business manager, and (if the applicant be a corporation) the corporation’s officers and the principal shareholders, or any of the foregoing, have been convicted of violating federal, state or local laws relating to the possession, use or sale of narcotics or sexual offenses, including but not limited to Chapter 9A.88 RCW or a similar law of another state and Chapter 9A.60 RCW or a similar law of another state when such violation of Chapter 9A.60 RCW or similar law of another state is related to the operation of a massage business or reflexology business. If records available to the Woodinville Chief of Police or designee indicate that any such person has been so convicted, the City of Woodinville department in charge of the issuance of the license shall notify the applicant, by registered letter, that the application has been denied. An applicant’s failure to provide the requested information identified in this subsection to the City Manager or designee shall be a basis for denial of a business license.
(2) Any applicant whose application has been denied on information supplied by the Chief of Police may appeal such decision as provided in WMC 5.02.101.
(3) Within 120 days after the issuance of a business license registration for a massage business or reflexology business, any law enforcement officer or code enforcement officer designated by the City Manager or designee shall conduct an initial inspection pursuant to WMC 5.05.060.
(4) The issuance of a business license for a massage business or reflexology business to a person who has previously committed a violation of an offense described in subsection (1) of this section shall be null and void.
(5) In the event a person who has obtained a City of Woodinville business license for a massage business or reflexology business is thereafter found in violation of an offense described in subsection (1) of this section, such business license may be revoked in accordance with WMC 5.02.100. Revocation may occur regardless of the jurisdiction or location in which the violation of the offense occurs. The basis for revocation of the business license pursuant to this section shall be in addition to the grounds for revocation provided in WMC 5.02.100.
(6) A business license application for the operation of a massage business or reflexology business may be denied in accordance with this chapter to any licensee who previously violated any provision of Chapter 5.05 WMC. The basis for denial of the business license pursuant to this section shall be in addition to the grounds for denial provided in WMC 5.02.100.
(7) A business license for the operation of a massage business or reflexology business may be revoked in accordance with this chapter to any licensee in violation of Chapter 5.05 WMC. The basis for revocation of the business license pursuant to this section shall be in addition to the grounds for revocation provided in WMC 5.02.100.
(8) For the purposes of this section, the terms “massage,” “massage business,” “reflexology,” and “reflexology business” shall have the meanings set forth in RCW 18.108.010 as now enacted or hereafter amended or recodified.
(9) For the purposes of this section, the term “violation” or “violated” shall mean a conviction after trial, a plea of guilty or a finding of guilt after an Alford plea, Newton plea, or plea of no contest or nolo contendere, or the entry of a deferred sentence, deferred prosecution, or stipulated order of continuance. (Ord. 809 § 1, 2026; Ord. 791 § 1, 2025)
5.02.100 Grounds for denial or revocation of license.
(1) In addition to other actions or penalties provided by law, the City may deny or revoke any license applied for or issued pursuant to this chapter for any of the following reasons:
(a) The license application contains an omission or misrepresentation of material fact;
(b) The license was procured by fraud;
(c) The license is used, or is intended to be used, for a business materially different from that applied for;
(d) The licensee or business fails to pay the licensing fee applicable to such license;
(e) The licensee or business violates any of the requirements of this chapter;
(f) The business engages in, or the licensee seeks to license to engage in, an unlawful business or activity;
(g) The business operates in a manner that constitutes a nuisance pursuant to common law or the ordinances, codes, and statutes of the City of Woodinville or the State of Washington;
(h) The applicant is not 18 years of age or older at the time the license is applied for;
(i) The applicant or the business is delinquent in the payment of any fees, taxes, assessments, or fines owed to the City, including but not limited to permit fees, utility fees, gambling taxes, local improvement district assessments, and civil fines;
(j) The licensee or business has had a similar license denied or revoked and has not corrected the basis for the denial or revocation;
(k) The business is not allowed in the zoning district of the proposed business location;
(l) The business location does not comply with the building or fire codes adopted in Chapter 21.62 WMC;
(m) The business or licensee operates in a manner or engages in conduct that constitutes a violation of any provision of the Woodinville Municipal Code.
(2) The issuance of a license that could have been denied pursuant to subsection (1) of this section shall not prohibit the City from taking action to revoke the license at a later date, and it shall at all times remain the exclusive responsibility of the licensee to ensure that the business complies with the requirements of this chapter and that the business is operated in compliance with all other relevant provisions of the Woodinville Municipal Code. (Ord. 790 § 1, 2025)
5.02.101 Denial or revocation of license – Notice and opportunity to be heard.
In accordance with WMC 5.02.102 through 5.02.105, a licensee shall have the right to notice and an opportunity to be heard subsequent to the denial of a business license, or prior to the revocation of an existing license. As an alternative to the process set forth in WMC 5.02.102 through 5.02.105, the City may seek an injunction or other legal remedy in court. (Ord. 790 § 1, 2025)
5.02.102 Notice of license denial or revocation and scheduling of hearing.
(1) Denial of License. Any action to deny a license applied for or issued shall be commenced by notice of the denial. A notice issued under this subsection shall substantially comply with the following:
(a) The notice shall be delivered, by first class mail, email, or by personal service, to the licensee as set forth in the most recent business license application.
(b) The notice shall describe the basis for the denial.
(c) The notice shall describe corrective action, if any, that may be taken to eliminate the basis for denial.
(d) The notice shall specify that the licensee may appeal the denial by submitting an appeal electronically to the City’s permit center within 14 calendar days of the date of the denial notice.
(e) Appeal hearings held pursuant to subsection (1)(d) of this section shall follow the procedures outlined in WMC 5.02.103 and shall occur not less than 14 but not more than 60 calendar days after the date the appeal is received.
(f) If the licensee fails to appear on the date of the hearing, the Hearing Examiner shall enter a default order or judgment affirming the City’s denial of the licensee’s application for a business license.
(2) Revocation of License. Any action to revoke a license issued shall be commenced by a notice of the revocation. A notice issued under this subsection shall substantially comply with the following:
(a) The notice shall be delivered, by first class mail, email, or by personal service, to the licensee as set forth in the most recent business license application or business license issued.
(b) The notice shall describe the basis for the revocation.
(c) The notice shall describe corrective action, if any, that may be taken to eliminate the basis for revocation.
(d) The notice shall include the date on which the revocation is to be effective.
(e) The notice shall specify that the licensee may appeal the revocation by submitting an appeal electronically to the City’s permit center within 14 calendar days of the date of the revocation notice. The effective date of the revocation shall be stayed pending resolution of the appeal.
(f) Any hearing requested pursuant to subsection (2)(e) of this section shall follow the procedures outlined in WMC 5.02.103 and shall occur not less than 14 but not more than 60 calendar days after the date the appeal is received.
(g) The notice shall provide that if the licensee fails to appear on the date of the hearing, the Hearing Examiner shall enter a default order or judgment affirming the City’s revocation of the licensee’s business license.
(h) The business may continue to operate until such time as the Hearing Examiner issues an order regarding the revocation unless the City obtains an order enjoining the operation of the business pending the Hearing Examiner’s order. (Ord. 790 § 1, 2025)
5.02.103 Appeal hearing.
(1) Parties to Hearing. The parties to a hearing provided pursuant to this chapter shall be the City and the licensee. Either party may be represented by legal counsel properly licensed in the State of Washington.
(2) Continuance of Hearing. The Hearing Examiner shall have discretion to grant continuances and reschedule hearings in the interest of the parties and justice.
(3) Prehearing Conferences. The Hearing Examiner may, at his or her discretion, or at the request of either of the parties, hold a prehearing conference to schedule additional hearings, order discovery, and to make other appropriate pretrial determinations. A prehearing conference may be held by telephone.
(4) Hearing Process. The parties to the hearing, or legal counsel for the parties, may call witnesses and present evidence and rebuttal evidence subject to the following:
(a) Where the City has commenced an action to revoke a business license, the City shall have the burden of proving, by a preponderance of the evidence, that there are sufficient grounds for the revocation of the license pursuant to this chapter. In cases involving the denial of a business license, the burden of proof shall be on the licensee.
(b) The parties shall be responsible for securing the appearance of any witnesses they may call. Neither the City nor the Hearing Examiner shall have the burden of securing any witnesses on behalf of the licensee.
(c) Formal rules of evidence shall not apply. The Hearing Examiner may allow hearsay evidence and may permit the admission of evidence without proof of the chain of custody of evidence. Notes, reports, summaries, notices, photographs, or other materials prepared by the parties may be admitted into evidence if requested without satisfaction of formal rules of evidence. Notwithstanding the admission of evidence, the Hearing Examiner shall determine the proper weight to be assigned to any evidence admitted.
(5) Default Order or Judgment – Costs Incurred by City. If the licensee fails to appear on the hearing date, or at any other hearing set by the Hearing Examiner, the Hearing Examiner shall issue a default order or judgment affirming the City’s denial of the licensee’s business license application, or the City’s revocation of the licensee’s previously issued business license. The costs incurred by the City for the Hearing Examiner to prepare and appear for the hearing may be requested by the City to be included within the default order and assessed against the licensee. If requested by the City, the Hearing Examiner shall include such costs in the default order. (Ord. 790 § 1, 2025)
5.02.104 Authority of Hearing Examiner – Order – Appeal.
(1) Authority of Hearing Examiner. The Hearing Examiner shall have the authority to determine whether or not there are sufficient grounds for the denial or revocation of the business license pursuant to this chapter.
(2) Order of Hearing Examiner. The Hearing Examiner shall issue a written order that sets forth a procedural summary of the hearing, his or her findings of fact and conclusions of law, and his or her determination. In the event of a default judgment, the written order shall set forth whether notice was properly issued, the facts regarding the failure of the licensee to appear, and a determination of default in the event notice was proper. The written order shall be delivered to the parties by first class mail, deposited in the mail no more than 21 days following the conclusion of the hearing. The order of the Hearing Examiner shall become effective on the third day following placement of the order in the mail.
(3) Appeal. An appeal of the order of the Hearing Examiner must be filed with the King County Superior Court within 21 calendar days of the effective date of the order. (Ord. 790 § 1, 2025)
5.02.105 Corrective action prior to hearing.
In the event a licensee takes corrective action and the grounds for the denial or revocation are abated, and such corrective action and abatement occurs prior to the date set for hearing, the hearing shall be canceled, and the license shall be issued or reissued. (Ord. 790 § 1, 2025)
5.02.110 Violation – Enforcement.
A violation of this chapter shall constitute a violation of this code subject to the provisions of Chapter 1.03 WMC, General Penalty. (Ord. 685 § 7, 2019; Ord. 587 § 2, 2014)
5.02.120 Rules and rulings.
The City Manager may, from time to time, adopt, publish and enforce rules and regulations not inconsistent with this chapter or with State law. The purpose of such rules and regulations is to carry out the provisions of this chapter. The City Manager may also issue letter rulings from time to time which are applicable only to specific businesses. Such administrative rulings shall be binding on the City and the applicable business. (Ord. 587 § 2, 2014)