Chapter 8.01
Business Licenses

Sections:

8.01.010 Authority and Intent.

8.01.020 Definitions.

8.01.030 Business.

8.01.040 Employee.

8.01.050 Engaging in Business.

8.01.060 Taxpayer.

8.01.070 License Required.

8.01.090 Exemptions.

8.01.110 License – Class.

8.01.120 License – Application.

8.01.130 Term of License.

8.01.140 License – Mailing of Forms.

8.01.150 License – Transfer.

8.01.160 Multiple Businesses or Locations.

8.01.170 Tender.

8.01.180 Computation of Business License Fee.

8.01.190 Fee Reduction.

8.01.200 Businesses within City.

8.01.210 Businesses outside City.

8.01.220 Temporary Business License.

8.01.230 Name or Location Change.

8.01.240 Maintaining Records.

8.01.250 Rules and Rulings.

8.01.260 Refunds.

8.01.270 Failure to Make Application.

8.01.280 Delinquent Penalty.

8.01.290 Delinquent Interest.

8.01.300 License Denial.

8.01.310 Civil Suit Authorized.

8.01.010 Authority and Intent.

The provisions of this chapter are an exercise of the power of the City to license for revenue. It is the intent of the City that the provisions of this chapter prescribing license fees be liberally construed in favor of applicability of the license fees.

[Ord. C31458; Passed: 9/5/1995]

Cross Reference: SMC 8.02.0206.

8.01.020 Definitions.

Words are to be given their usual meaning. The following terms and their derivations have the meaning given when used in this chapter. When not inconsistent with the context, words used in the present tense include the future, words in the plural include the singular, and words in the singular include the plural. The word “shall” is always mandatory and not merely directory.

[Ord. C26861 § 8.01.020]

8.01.030 Business.

“Business” includes all activities, occupations, trades, pursuits, professions and matters located or engaged in within the city or anywhere else within the City’s jurisdiction with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly.

[Ord. C26861 § 8.01.040]

8.01.040 Employee.

“Employee” means any person employed by or at any business located within the city.

All officers, agents, factors, dealers, franchisees, etc., of a corporation or business trust, and all but one partner of a partnership (except limited partners), are employees within this definition. A sole proprietor is not an employee.

[Ord. C28935; Passed: 11/23/1987]

8.01.050 Engaging in Business.

“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.

[Ord. C28293; Passed: 2/10/1986]

8.01.060 Taxpayer.

“Taxpayer” includes any person who engages in business, who is required to have a business license, who is liable for any license fee or tax, or who performs any act for which a license fee or tax is imposed by this chapter.

[Ord. C26861 § 8.01.035]

8.01.070 License Required.

No person may engage in business in the city or with the City without first having obtained and being the holder of a valid business license as provided in this chapter or a peddler’s license as provided in SMC chapter 10.40, whichever is applicable.

[Ord. C28935; Passed: 11/23/1987]

8.01.090 Exemptions.

Unless otherwise provided, the provisions of this chapter do not apply to:

A.  any person, firm or corporation which the city is forbidden to tax by law;

B.  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; fraternal organizations and lodges, as to their fraternal and lodge activities only; civic and charitable organizations, including nonprofit hospitals and clinics, as to their civic and charitable activities only; but not as to any business activities by these entities, all business activities for profit being taxed under this chapter;

C.  transitory or temporary businesses licensed under SMC chapter 10.39 or 10.40; and

D.  trade show exhibitors. Trade show promoters or organizers are still required to obtain a regular business license unless otherwise exempt.

1.   For purposes of this subsection, a “trade show” is an organized exhibition, display, or show that lasts for not more than five consecutive days and involves ten or more exhibitors. A trade show includes events that may occur within a building, a connected set of buildings, at parks or on grounds, or buildings and grounds. It includes those events that partake the character of a unified display as well as those that are open to the public or limited to a prospective clientele.

2.   Trade Show Illustrated. The term “trade show” includes in addition to its common meaning any of the following:

a.   an antique show, boat show, sports show, arts and crafts or hobby show, agricultural show, street fair, festival, consumer show, horticultural show or industrial show;

b.   an art exhibit, coin, stamp or hobby show;

c.   a home show or recreational vehicle show;

d.   a commercial or business fair; or

e.   any other show or exhibition of a similar nature.

3.   “Trade show” excludes a farmer’s market, “flea” market, antique mart, bazaar or similar congregation of vendors and/or exhibitors which offers goods or services to the public at the same location on a recurrent basis more than four times per year or other events of similar character to those above if it is described by rules of the chief financial officer.

4.   For purposes of this subsection, an “exhibitor” is anyone who sells, barters or exchanges goods or services at a trade show or who exhibits goods or services at any fixed location, such as a stall, booth, stand, space, section or an identified area at a trade show, for the purpose of sale, trade, barter, exchange, advertisement or providing information about goods or services that may become available, or for the distribution of samples.

[Ord. C33463; Passed: 7/6/2004]

8.01.110 License – Class.

Business licenses are Class I licenses, as provided in SMC chapter 4.04.

[Ord. C26861 § 8.01.010]

8.01.120 License – Application.

The application for a license shall be made on forms which set forth the name of the applicant, the applicant’s residence, place of business, the nature of the business, the number of employees, and the amount of the license fee.

[Ord. C26861 § 8.01.110]

8.01.130 Term of License.

A business license is good for twelve months and must be renewed before expiration for the next twelve months. In order to convert to a staggered expiration system, the license officer shall renew licenses expiring on December 31, 1995, so that they will expire at various times, between July 1, 1996, and June 30, 1997, computing the fee for the number of days of the term of each license. Thereafter, all licenses will be issued for a term of twelve months.

[Ord. C31458; Passed: 9/5/1995]

8.01.140 License – Mailing of Forms.

The license officer is authorized, but not required, to mail forms for license application to all taxpayers, but failure of the taxpayer to receive a form does not excuse the taxpayer from making application and paying of the license fee.

[Ord. C26861 § 8.01.150]

8.01.150 License – Transfer.

All business licenses are personal. Whenever there is a change of ownership, the license issued to the withdrawing owner must be surrendered to the license officer for cancellation, and a new license issued.

[Ord. C26861 § 8.01.120]

8.01.160 Multiple Businesses or Locations.

A.  When a taxpayer operates two or more businesses, not related, a license is required for each business.

B.  If the business is operated in two or more locations and is the same business, one license only is required, but secondary location licenses shall be furnished in the number necessary to cover all locations, and each location shall have a license. Each license shall be numbered and shall show the name, place of business of the licensee, and any other information the license officer deems necessary.

C.  If a single business has at least one permanent location in the city and also conducts business on a temporary or seasonal basis from temporary or mobile locations, such as from portable stands or vehicles, the taxpayer must obtain a secondary location license for each such location or stand or vehicle. To the extent such temporary or mobile activities resemble peddling, the license officer may impose conditions upon the secondary location license as may be necessary to protect the public health, safety, or convenience. The chief of police may temporarily suspend or relocate a secondary location license allowing business activity on or adjacent to a public street or other public place within the boundaries of a permitted special event under SMC chapter 10.39 when such business activity may conflict with the special event.

[Ord. C30267; Passed: 12/2/1991]

8.01.170 Tender.

If payment of the license fee is made by draft or check, the fee shall not be deemed paid until the check or draft is honored in the usual course of business.

[Ord. C26861 § 8.01.140]

8.01.180 Computation of Business License Fee.

A.  As fixed in SMC 8.02.0206, in addition to the basic fee, the business license fee is measured by the number of employees of the business.

B.  All persons employed during the preceding license year are to be included in the number of employees counted for license fee purposes. As appropriate, such as in the case of a business with seasonal fluctuations in the work force, the number of employees by which the fee is measured is the number shown upon the business payroll for each of the payroll periods during that year, added together and divided by the number of payroll periods.

C.  Whenever a professional person licensed by the state or a retail seller has paid the license fee in an amount which includes associates and salesmen operating in their offices or door-to-door, as employees, these salesmen and associates shall not be required to obtain a business license.

D.  In the case of a new business, the fee for the initial business license is based upon the taxpayer’s estimated number of employees.

E.  If a taxpayer declares an intention to cease engaging in business during the next license year, the license fee for that next license year is based upon the current payroll for the current license year.

[Ord. C31458; Passed: 9/5/1995]

8.01.190 Fee Reduction.

Taxpayers whose gross business revenues do not exceed twelve thousand dollars per calendar year are “eligible persons” entitled to a reduced business license fee as specified in SMC 8.02.0206. Any applicant for a reduced fee license must present sufficient proof of gross revenues to the license officer. For computation of gross revenues, revenue from outside the city is included. “Gross revenues” means the revenues to the taxpaying entity and is not computed separately for each individual partner, principal, employee, or other constituent part of the taxpayer. If gross revenues exceed the estimate, an additional fee will be due to the City.

[Ord. C31458; Passed: 9/5/1995]

Cross Reference: SMC 8.02.0206(F).

8.01.200 Businesses within City.

Businesses with a permanent location within the city are subject to the business license fee. The measure of the fee is determined in part based upon the number of employees who perform any part of their duties within the city. Businesses with premises in the city, but having employees furnishing or performing services wholly outside the city are taxed by excluding those employees.

[Ord. C26861 § 8.01.070]

8.01.210 Businesses outside City.

Businesses with a permanent location outside the city but no permanent location within the city, and which engage in business within the city or with the City must obtain a business license.

[Ord. C28935; Passed: 11/23/1987]

8.01.220 Temporary Business License.

Businesses with no permanent location either within or without the city, but which engage in business within the city, must obtain the appropriate peddler’s license under SMC chapter 10.40.

[Ord. C28935; Passed: 11/23/1987]

8.01.230 Name or Location Change.

If a business changes names or locations during a license year, a new license must be obtained for the rest of that license year. The license officer issues a license which reflects the change of name or location.

[Ord. C31458; Passed: 9/5/1995]

8.01.240 Maintaining Records.

It is the duty of every person liable for a license fee to maintain for a period of five years suitable records for the determination of the fee. The records shall be available for examination by the license officer. In the case of a person who does not keep the necessary records within the city, it shall be sufficient if the taxpayer produces within the city such records as required by the license officer, or if the taxpayer bears the cost of examination at the place where the records are kept.

[Ord. C26861 § 8.01.210]

8.01.250 Rules and Rulings.

The auditor may, from time to time, adopt, publish and enforce rules and regulations not inconsistent with this chapter or with superior law. The purpose of such rules and regulations is to carry out the provisions of this chapter, and it shall be unlawful to fail to comply with any such rule or regulation. The auditor 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 taxpayer.

[Ord. C26861 § 8.01.250]

8.01.260 Refunds.

A.  If the license officer finds that the license fee paid is more than the amount required, the license officer shall return the amount overpaid. If the license officer finds that the fee paid is less than that required, the license officer shall mail a statement to the taxpayer showing the balance due, and the taxpayer shall have ten days to pay that amount.

B.  If a person acquires a license for a business but does not engage in business during any part of that license year, that person may receive a refund of the amount paid, if the license issued is first tendered to the license officer and the refund is requested in writing. In no case shall there ever be a pro rata refund given.

[Ord. C31458; Passed: 9/5/1995]

8.01.270 Failure to Make Application.

If any taxpayer fails to file an application and to pay the license fee, the license officer may determine the amount and notify the taxpayer of the amount due. The amount determined shall be the license fee and be immediately due and payable.

[Ord. C26861 § 8.01.230]

8.01.280 Delinquent Penalty.

In addition to the penalties provided for failure to obey a municipal ordinance, failure to pay the license fee when due subjects the taxpayer to a minimum penalty of ten dollars or five percent of the amount of the license fee for each month, or part thereof, of delinquency, whichever is greater.

[Ord. C31458; Passed: 9/5/1995]

Cross Reference: SMC 1.02.950.

8.01.290 Delinquent Interest.

Interest will accrue on the unpaid fee plus the penalty levied thereon at the rate of one percent of the amount of the unpaid fee plus penalty for each month, or part thereof, of delinquency.

[Ord. C28935; Passed: 11/23/1987]

8.01.300 License Denial.

If any person fails to pay a license fee when required, including penalty or interest, no license may be granted to that person until the delinquent fee, together with penalties and interest, have been paid in full.

[Ord. C26861 § 8.01.200]

8.01.310 Civil Suit Authorized.

In addition to whatever other penalties may be available to enforce this chapter, civil suit may be commenced in the name of the City to collect any fee, interest, or penalty due the City or to enjoin any taxpayer who is not in compliance with this chapter from doing any activity for which a license is required until such taxpayer shall have come into full compliance.

[Ord. C28935; Passed: 11/23/1987]