HomeMy WebLinkAboutOrdinance 25-014 Business ThresholdCITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO.25-014
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY
WASHINGTON, AMENDING SPOKANE VALLEY MUNICIPAL CODE 5.05.020 PERTAINING
TO THE BUSINESS LICENSE OUT -OF -CITY THRESHOLD, AND OTHER MATTERS
RELATED THERETO.
WHEREAS pursuant to RCW 35A.82.020 and RCW 35.22.280, the City of Spokane Valley (City) is
authorized to regulate and license businesses within its boundaries; and
WHEREAS, the City has adopted chapter 5.05 Spokane Valley Municipal Code (SVMC) regarding the
licensing of business within the City, and
WHEREAS, the City contracts with Business Licensing Services (BLS) for administering City business
license registrations under chapter 5.05 SVMC; and
WHEREAS, in 2017, the Washington State Legislature adopted chapter 35.90 RCW, which required
the City to adopt a model threshold option for businesses located outside of the City by January 1, 2019.
WHEREAS, on September 25, 2018, the City Council adopted Ordinance No. 18-020, which included
the threshold for Out -of -City Businesses.
WHEREAS, the model ordinance threshold for Out -of -City Businesses established in 2018
was reviewed by a work group of cities in 2024; and
WHEREAS, the work group updated the threshold to $4,000 and established a mechanism for
modifying the threshold in accordance with CPI every four years; and
WHEREAS, cities are required to update their thresholds accordingly by January 1, 2026; and
WHEREAS, on September 16, 2025, Council considered a first ordinance reading to approve the 2026
threshold increase and subsequent automatic increases based on cumulative inflation every four
years; and
WHEREAS, the City Council hereby determines that amending chapter 5.05 SVMC to adopt
the required business model update proposed by staff is in the best interest of the City and its
citizens.
NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows:
Section 1. Purpose. The purpose of this Ordinance is to amend Spokane Valley Municipal Code (SVMC)
5.05.020 related to the threshold for Out -of -City Businesses in accordance with the requirements of state
law and the model ordinance.
Section 2. Amend. SVMC 5.05.020 is hereby amended to read as follows:
5.05.020 Business license registration required.
Ordinance 25-014: Model Business Threshold Page 1 of 3
A. Every person engaging in business shall register such person's business with the City. License
registration shall include completion of a registration request, payment of any applicable license
registration fees, and receipt of endorsement or approval of the license registration application by the
City. If more than one business is located on a single premises, including residential home -based
businesses, separate license registrations shall be required for each separate business conducted.
Businesses with more than one City location shall register each location separately.
B. Valid License Registration. No person may engage in business in the City or with the City without first
having obtained and being the holder of a valid annual Washington State business license registration, and
a valid annual City license registration.
C. The city manager is hereby authorized to enter into an agreement with the State of Washington Master
License Service, its successor, or any other entity as allowed by law under which that agency shall accept
and process City business license registration applications.
D. Threshold for Out -of -City Businesses. For purposes of the license registration by Chapter 5.05 SVMC,
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 submit a business license registration to the City. The threshold does not apply to regulatory
license requirements or activities that require a specialized permit.
The threshold amount will be adjusted every forty-eight months with the first adjustment occurring 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 30 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 (forty-eight month)
CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest
$100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent
increase will be used in computing the annual basis and if any of the annual CPI decreased during the
forty -eight -month period, a zero (0) percent increase will be used in computing the annual basis.
Section 3. Other sections unchanged.All other provisions of chapter 5.05 not specifically referenced
hereto remain unchanged and in full force and effect.
Section 4. Severability. If any section, sentence, clause, or phrase of this Ordinance shall be held to be
invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall
not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance.
Section 5. Effective Date. This Ordinance shall be in full force and effect five days after publication of
this Ordinance or a summary thereof in the official newspaper of the City as provided by law.
Passed by City Council this 23`d day of September, 2025
ATTEST;
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Marci Pattson, City Clerk
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Pam Haley, Mayor
Ordinance 25-014: Model Business Threshold Page 2 of 3
Appro//;as to for
Office the City A orney
Date of Publication: 2(p 2
Effective Date: 1
Ordinance 25-014: Model Business Threshold Page 3 of 3