Ordinance 18-020 business license CITY OF SPOKANE VALLEY
SPOKANE COUNTY,WASHINGTON
ORDINANCE NO. 18-020
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON REPEALING EXISTING CHAPTER 5.05 OF THE SPOKANE VALLEY
MUNICIPAL CODE PERTAINING TO BUSINESS LICENSES, ADOPTING A NEW
CHAPTER 5.05 OF THE SPOKANE VALLEY MUNICIPAL CODE, AND OTHER
MATTERS RELATED THERETO.
WHEREAS, the City of Spokane Valley (City) is authorized pursuant to RCW 35A.82.020 and
RCW 35.22280 to 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, in 2017, the Washington State Legislature adopted chapter 35.90 RCW, which
requires the City to (1) adopt a model business license ordinance, (2) adopt a threshold option for certain
businesses located outside of the City, and (3) use either the Washington State Department of Revenue
Business Licensing (BLS) or other authorized licensing portal to administer its business licensing by
January 1,2019; and
WHEREAS,the City contracts with BLS for administering City business license registrations under
chapter 5.05 SVMC; and
WHEREAS, the City has determined that in addition to the changes required pursuant to chapter
35.90 RCW, chapter 5.05 SVMC requires other updates; and
WHEREAS, the City Council hereby determines that repealing existing chapter 5.05 SVMC and
replacing it with a new chapter 5.05 SVMC to adopt the required model business license ordinance and
other changes 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 ordains as follows:
Section 1. Purpose. The purpose of this Ordinance is to repeal existing chapter 5.05 SVMC and replace it
with a new chapter 5.05 SVMC relating to business license requirements.
Section 2. Repeal. Chapter 5.05 SVMC is hereby repealed in its entirety.
Section 3. Adoption. The City Council hereby adopts the following as chapter 5.05 SVMC:
5.05.010 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 City, and
establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in
de minimus business activities in the City without having to pay a business license registration fee. The
activities listed in this section are illustrative only and are not intended to narrow the definition of"engaging
Ordinance 1$-020,Business Licensing Update Page 1 of 6
in business" in SVMC 5.05.010(A). 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.
C. 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 registration.
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 City.
2. Owning, renting, leasing, using, or maintaining, an office, place of business, or other
establishment in the City.
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,consultants,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 City, 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.
Ordinance 18-020,Business Licensing Update Page 2 of 6
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 City except the following, it need not
register and obtain a business license registration.
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 City.
5. Attending, but not participating in a "trade show" or "multiple vendor events". Such activities
may be subject to other City regulations,
6. Conducting advertising through the mail.
7. Soliciting sales by phone from a location outside the City.
E. 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 registration, provided that it engages in no other
business activities in the City. Such activities do not include those in SVMC 5.05.010(D).
The City expressly intends that engaging in business includes any activity sufficient to establish nexus for
purposes of applying the license registration 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.
5.05.020 Business license registration required.
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.
Ordinance 18-020,Business Licensing Update Page 3 of 6
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 this chapter, 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 submit a business license registration to the City. The threshold does not apply to regulatory license
requirements or activities that require a specialized permit.
5.05.030 Exemptions.
The following services and activities shall be exempt from the provisions of chapter 5.05 SVMC:
A. Delivering newspapers and periodicals.
B. Soliciting orders from retail establishments via telephone, Internet or mail for the delivery and
sale of goods,wares, and merchandise unless the person's place of business is located within the City.
C. Minors engaged in babysitting.
D. The casual sale of items of personal property where the person conducting such sale is not
regularly engaged in the business of selling items of personal property (for example, garage sales, service
agency bake sales).
E. Sales by farmers or gardeners of their own farm products raised and grown exclusively upon
lands owned or occupied by them.
F. Providers of Internet or wireless phone services where the provider operates from premises
located outside the City and the only event occurring within the City is receipt of such goods and services.
G. Temporary craft booths and food booths lasting 10 days or less in any one location.
5.05.040 Application procedure.
A. Application for the business license registration or renewal shall be made in writing to the City upon a
form provided by the City, which may be electronic, and which may be through any agency the City has
contracted with for processing of license registration applications. Business license registrations shall
include a physical address for the business which shall not be a post office box or a mail delivery designation
for addresses associated with a commercial mail receiving agency. Complete applications shall include all
necessary information as set forth on the form, any additional information requested by the City such as
additional information about the nature of the business operations,and complete payment of any applicable
fees.
B. If the applicant is a partnership,the application shall be made by one of the partners; if a corporation,by
one of the officers thereof; if a foreign corporation, partnership or nonresident individual, by the resident
agent or local manager of the corporation, partnership or individual.
C. Home businesses. A business license registration application for a home business shall not be approved
until a home business permit is applied for and received from the City by the applicant.
Ordinance 18-020,Business Licensing Update Page 4 of 6
D. Review. The City shall review each application for completeness and may return any application that
is incomplete. The City may deny and reject any applications that are inconsistent with applicable land use
regulations, including zoning, home business, or other applicable land use regulations. The City shall
provide applicants with a statement as to the reasons for any denial and rejection of an application. In the
event any application is rejected,the City may, but is not required to refund any fees collected.
E. Effect of business license registration. Receipt of a business license registration shall not be deemed or
construed as approval of or right to any particular land use, approval of a particular structure, facility, or
improvement,or approval under any other Code provision. Persons with business license registrations shall
comply with all applicable Code provisions, including but not limited to land use, zoning, environmental,
and building regulations. The City may enforce such provisions regardless of any business license
registration that may have been received by an owner or operator.
5.05.050 Fee.
A. City business license registration shall occur on an annual basis and shall automatically expire one year
from the date of registration or renewal for which the City registration or previous renewal was issued.
B. An annual fee shall be charged for registering a business or businesses and renewing any license
registration. Business license registration fees shall be established by City Council through adoption of a
resolution. The City may impose an additional delinquency fee for any late renewal that is not paid by the
applicable annual renewal due date.
5.05.060 Transfer or sale of business—New registration required.
Upon the sale or transfer of any business, the license registration issued to the prior owner or transferer
shall automatically expire on the date of such sale or transfer and the new owner intending to continue such
business in the City shall apply for a new license registration pursuant to the procedures established by
chapter 5.05 SVMC.
5.05.070 Violation; Penalty.
A. Violation. Failure to comply with any provision herein shall be a violation of chapter 5.05 SVMC. The
City may seek any remedy available by law, including but not limited to suspension or revocation of a
business license registration and imposition of penalties pursuant to SVMC 5.05.070(C).
B. Suspension or revocation. In the event the City determines to suspend or revoke a City business license
registration, it shall issue a determination in writing to the business owner listed on the license registration
stating the basis for such determination, the business owner's rights to appeal, and the effect of the
determination. A business owner shall cease all business operations upon suspension or revocation of a
business license registration. A determination to suspend or revoke a license registration shall not in any
way limit the City's right to any other remedy, including but not limited to assessment of applicable
penalties.
C. Penalty. Any person, firm, or corporation who knowingly violates or fails to comply with any term or
provision of chapter 5.05 SVMC shall be deemed to have committed a civil infraction. A person, firm, or
corporation found to have committed a civil infraction shall be assessed a daily monetary penalty pursuant
to RCW 7.80.120,as adopted or subsequently amended,including any applicable statutory assessment. The
penalties shall be assessed as follows:
Ordinance 18-020,Business Licensing Update Page 5 of 6
I. First offense: Class 3 civil infraction.
2. Second offense arising out of the same facts as the first offense: Class 2 civil infraction.
3. Third offense and any other subsequent offenses arising out of the same facts as the first offense:
Class 1 civil infraction.
5.05.080 Appeal.
A. A person may appeal any(1) determination of a violation of chapter 5.05 SVMC other than violations
associated with the imposition of penalties, which shall be appealed pursuant to SVMC 5.05.080(B), (2)
denial, suspension, or revocation of a City business license registration, or(3) determination that a person
is engaged in business and the person disputes that determination to the City Manager within 14 days of
such determination. In order for an appeal to be considered,the business owner or applicant shall provide
a written statement that describes with particularity the reasons why the City's decision was in error and
the reasons the City Manager should reverse the denial, suspension, or revocation. An appeal shall be
accompanied by payment of any applicable appeal fees to be considered timely. The City Manager shall
review the appeal and issue a written decision to uphold, modify, or reverse the determination within 30
days of receipt of the appeal. The City Manager's decision is the final decision of the City and may be
appealed to the Spokane County Superior Court within 21 days of the date of the City Manager's decision.
B. Appeals of the imposition of penalties shall be made pursuant to chapter 7.80 RCW.
Section 4. Severability. If any section, sentence, clause or phrase of this Ordinance should 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 become effective five days after publication of the
Ordinance, or a summary thereof, in the official newspaper of the City.
Adopted this 25"'day of September, 2018
City S alley
L,R. Higgins, i or
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Christine Bainbridge, City Clerk '
•
Ap s roved . to Form: I
Offi i of the I Attorney 1
Date of Publication: 9 :7 c? a2eb CT
Effective Date: i() - -3 -p2eby
Ordinance MOM,Business Licensing Update Page 6 of 6
CITY OF SPOKANE VALLEY
INFORMATIONAL COVER SHEET FOR
DOCUMENTS REQUIRING CITY MANAGER SIGNATURE
(Upon Completion Submit to Legal Department)
Project name: Business license Code Update Date: 10/2/18
Contract number: N/A Budget account #: N/A
Amount seeking approval for: $ N/A
DEPARTMENT:
❑ Engineering ❑ Economic Dev. ®City Atty ❑Parks&Rec ❑Finance ❑HR ❑ ADMIN
❑ IT ❑ Building -Plek,,e, fAjoxt, A_, Ly,,,,( WU./
AGREEMENT TOPIC & BACKGROUND: 0 ,t�t6.
In 2017, the State Legislature adopted amendments requiring the City to adopt certain model ordinance
provisions and to partner with the State's Business Licensing System (BLS). The City was required to adopt
necessary provisions by January 1, 2019. Due to notice requirements by BLS, in practice, the City is required to
adopt and notify BLS of its changes by October 17, 2018. The City has adopted Ordinance No. 18-020 to adopt
the model ordinance provisions, as well as other changes to its business license code. BLS requires the City
submit the ordinance in conjunction with a "partner change request."
SELECTION PROCESS:
❑ Small Works Roster ❑ RFQ ❑Consultant Roster ❑Formal Bid ❑ Negotiation E] N/A or Other
BUDGET/FINANCIAL IMPACTS:
Revenues: N/A Expenditures: N/A
EXPIRATION DATE: N/A - NOTIFICATION DATE: N/A
❑ Council action needed for future renewal (Date Clerk notifies department contract is expiring)
RENEWAL EVAL. NOTIFICATION DATE: N/A
(Notify department contract renewal evaluation is coming due)
.7-:i.A.
Department Director Project M na i CIP Manager
❑ Federai debarment/suspension requirements met ® N/A
`) Date
approved: f)(2-(0? (� "� i' approved: �/ r
egal Finance °
`.....,Contract language ❑ Funding source approval
❑ Performance&payment bond approval
('6--e .l..
Date /U/3�/�.,
DOCUMENT DISTRIBUTION AFTER SIGNED: C 11
• One original to vendor approved:
• One original to City Clerk with copy of blue sheet R sk Manager
• Copy to submitting department ❑ Insurance coverage reviewed Expires:
• Copy to finance department ..,
"%` % Date
ATTACHMENTS: ././-1e --I.n._.___. approved: /L]^. /cam
Two copies of"change request" with attachments. D6puty City Manager
P:IGeneral Governance/Forms/Contract Forms&Authorization/Revised Blue Sheet.doc Form Updated 11-30-2017
Department of Revenue
rti°41 Business Licensing Service(BLS) BLS USE
Partnership Services
PO Box 47475 PCR# Date received
Olympia,WA 98504-7475
Dorblspartner@dor.wa.gov
360.705.6777
BLS Partner Change Request
Subject to review and acceptance by BLS
Name of Local Government or State Agency Licensing Program Submitting Request:
City of Spokane Valley
Contact Person Name: Title: Phone: Email:
Erik Lamb Deputy City Attorney (509) 720-5030 elamb@spokanevalley.org
This request is for(mark all that apply):
❑Change to existing license endorsement ❑Change to existing process ❑Modify existing data reporting
D Add new license endorsement DAdd new process ❑Create new data reporting
❑Other: Model Ordinance
Reason why change is required:
❑✓ Legislation change and effective date 1/1/2019 ❑Performance issue 0I m p rove m e nt opportunity
❑Policy change ❑Organization change
®Other:
Model Ordinance
Description of issue or request(provide additional documentation, screen captures, suggested formats, etc.;if appropriate):
OPTION 2: City of Spokane Valley requests a new No-Fee Under Threshold license type for out-of-city businesses
with a gross annual income of less than $2,000.
The city is responsible to review applications for the No-Fee Under Threshold license--called "Registration
only" in the model ordinance--and to contact the applying businesses. The No-Fee Under Threshold license type
applies only to general business activities, not temporary or specialty permits.
The annual license fee is $13.00 (for businesses above the threshold required to pay a fee).
*Must be$2000 or greater per Model Ordinance posted at http://bls.dor.wa.gov/forms/modelordinancefinal.pdf
❑i, Mark Calhoun ", AtCa Afg..14, have verified and approve this request.
State Agency Program Manager� �or Local Government Managing Authority
City Manager 1P7572,0(n
'q f , ) Title Date
r'^ / ry1
Email , ( Telephone
For assistance or to request this document in an alternate format,please call 1-800-451-7985.Teletype{TTY}users may use the Washington Relay Services by calling 711.
BLS-700-375(07/131181
CITY OF SPOKANE VALLEY
SPOKANE COUNTY,WASHINGTON
ORDINANCE NO. 18-020
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON REPEALING EXISTING CHAPTER 5.05 OF THE SPOKANE VALLEY
MUNICIPAL CODE PERTAINING TO BUSINESS LICENSES, ADOPTING A NEW
CHAPTER 5.05 OF THE SPOKANE VALLEY MUNICIPAL CODE, AND OTHER
MATTERS RELATED THERETO.
WHEREAS, the City of Spokane Valley (City) is authorized pursuant to RCW 35A.82,020 and
RCW 35.22.280 to 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, in 2017, the Washington State Legislature adopted chapter 35.90 RCW, which
requires the City to (1) adopt a model business license ordinance, (2) adopt a threshold option for certain
businesses located outside of the City, and (3) use either the Washington State Department of Revenue
Business Licensing (BLS) or other authorized licensing portal to administer its business licensing by
January 1,2019; and
WHEREAS,the City contracts with BLS for administering City business license registrations under
chapter 5.05 SVMC; and
WHEREAS, the City has determined that in addition to the changes required pursuant to chapter
35.90 RCW,chapter 5.05 SVMC requires other updates; and
WHEREAS, the City Council hereby determines that repealing existing chapter 5.05 SVMC and
replacing it with a new chapter 5.05 SVMC to adopt the required model business license ordinance and
other changes 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 ordains as follows:
Section 1. Purpose. The purpose of this Ordinance is to repeal existing chapter 5.05 SVMC and replace it
with a new chapter 5.05 SVMC relating to business license requirements.
Section 2. Repeal. Chapter 5.05 SVMC is hereby repealed in its entirety.
Section 3. Adoption. The City Council hereby adopts the following as chapter 5.05 SVMC:
5.05.010 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 City, and
establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in
de minimus business activities in the City without having to pay a business license registration fee. The
activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging
Ordinance 18-020,Business Licensing Update Page 1 of6
in business" in SVMC 5.05.010(A). 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.
C. 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 registration.
1. Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal
properly, intangible personal property, or real property permanently or temporarily located in the City.
2. Owning, renting, leasing, using, or maintaining, an office, place of business, or other
establishment in the City.
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,consultants,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 City, acting on its behalf,or for customers or potential customers.
14. Investigating, resolving, or otherwise assisting in resolving customer complaints.
15. 1n-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.
Ordinance 18-020,Business Licensing Update Page 2 of 6
16. Delivering goods in vehicles owned, rented, [cased, 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 City except the following, it need not
register and obtain a business license registration.
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 City.
5. Attending, but not participating in a "trade show" or "multiple vendor events". Such activities
may be subject to other City regulations.
6. Conducting advertising through the mail.
7. Soliciting sales by phone from a location outside the City.
E. 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 registration, provided that it engages in no other
business activities in the City. Such activities do not include those in SVMC 5.05.010(D).
The City expressly intends that engaging in business includes any activity sufficient to establish nexus for
purposes of applying the license registration 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.
5.05.020 Business license registration required.
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.
Ordinance 18-020,Business Licensing Update Page 3 of 6
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 Iicense registration by this chapter, 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 submit a business license registration to the City. The threshold does not apply to regulatory license
requirements or activities that require a specialized permit.
5.05.030 Exemptions.
The following services and activities shall be exempt from the provisions of chapter 5.05 SVMC:
A. Delivering newspapers and periodicals,
B. Soliciting orders from retail establishments via telephone, Internet or mail for the delivery and
sale of goods,wares, and merchandise unless the person's place of business is located within the City.
C. Minors engaged in babysitting.
D. The casual sale of items of personal property where the person conducting such sale is not
regularly engaged in the business of selling items of personal properly(for example, garage sales, service
agency bake sales),
B. Sales by farmers or gardeners of their own farm products raised and grown exclusively upon
lands owned or occupied by them.
F. Providers of Internet or wireless phone services where the provider operates from premises
located outside the City and the only event occurring within the City is receipt of such goods and services.
G, Temporary craft booths and food booths lasting 10 days or less in any one location,
5.05.040 Application procedure.
A. Application for the business license registration or renewal shall be made in writing to the City upon a
form provided by the City, which may be electronic, and which may be through any agency the City has
contracted with for processing of license registration applications. Business license registrations shall
include a physical address for the business which shall not be a post office box or a mail delivery designation
for addresses associated with a commercial mail receiving agency. Complete applications shall include all
necessary information as set forth on the form, any additional information requested by the City such as
additional information about the nature of the business operations,and complete payment of any applicable
fees.
B. If the applicant is a partnership,the application shall be made by one of the partners; if a corporation,by
one of the officers thereof; if a foreign corporation, partnership or nonresident individual, by the resident
agent or local manager of the corporation,partnership or individual.
C. Home businesses. A business license registration application for a home business shall not be approved
until a home business permit is applied for and received from the City by the applicant.
Ordinance 18-020,Business Licensing Update Page 4 of 6
D. Review. The City shall review each application for completeness and may return any application that
is incomplete. The City may deny and reject any applications that are inconsistent with applicable land use
regulations, including zoning, home business, or other applicable land use regulations. The City shall
provide applicants with a statement as to the reasons for any denial and rejection of an application. In the
event any application is rejected, the City may, but is not required to refund any fees collected.
E. Effect of business license registration. Receipt of a business license registration shall not be deemed or
construed as approval of or right to any particular land use, approval of a particular structure, facility, or
improvement,or approval under any other Code provision. Persons with business license registrations shall
comply with all applicable Code provisions, including but not limited to land use,zoning, environmental,
and building regulations. The City may enforce such provisions regardless of any business license
registration that may have been received by an owner or operator.
5.05.050 Fee.
A. City business license registration shall occur on an annual basis and shall automatically expire one year
from the date of registration or renewal for which the City registration or previous renewal was issued.
B. An annual fee shall be charged for registering a business or businesses and renewing any license
registration. Business license registration fees shall be established by City Council through adoption of a
resolution. The City may impose an additional delinquency fee for any late renewal that is not paid by the
applicable annual renewal due date.
5.05.060 Transfer or sale of business—New registration required.
Upon the sale or transfer of any business, the license registration issued to the prior owner or transferer
shall automatically expire on the date of such sale or transfer and the new owner intending to continue such
business in the City shall apply for a new license registration pursuant to the procedures established by
chapter 5.05 SVMC.
5.05.070 Violation;Penalty.
A. Violation. Failure to comply with any provision herein shall be a violation of chapter 5.05 SVMC. The
City may seek any remedy available by law, including but not limited to suspension or revocation of a
business license registration and imposition of penalties pursuant to SVMC 5.05.070(C).
B. Suspension or revocation. In the event the City determines to suspend or revoke a City business license
registration, it shall issue a determination in writing to the business owner listed on the license registration
stating the basis for such determination, the business owner's rights to appeal, and the effect of the
determination. A business owner shall cease all business operations upon suspension or revocation of a
business license registration. A determination to suspend or revoke a license registration shall not in any
way limit the City's right to any other remedy, including but not limited to assessment of applicable
penalties.
C. Penalty. Any person, firm, or corporation who knowingly violates or fails to comply with any term or
provision of chapter 5.05 SVMC shall be deemed to have committed a civil infraction. A person, firm, or
corporation found to have committed a civil infraction shall be assessed a daily monetary penalty pursuant
to RCW 7.80.120,as adopted or subsequently amended,including any applicable statutory assessment. The
penalties shall be assessed as follows:
Ordinance 18-020,Business Licensing Update Page 5 of 6
1. First offense: Class 3 civil infraction.
2, Second offense arising out of the same facts as the first offense: Class 2 civil infraction.
3. Third offense and any other subsequent offenses arising out of the same facts as the first offense:
Class 1 civil infraction.
5.05.080 Appeal.
A. A person may appeal any(1)determination of a violation of chapter 5.05 SVMC other than violations
associated with the imposition of penalties, which shall be appealed pursuant to SVMC 5.05.080(B), (2)
denial, suspension,or revocation of a City business license registration,or(3) determination that a person
is engaged in business and the person disputes that determination to the City Manager within 14 days of
such determination, In order for an appeal to be considered,the business owner or applicant shall provide
a written statement that describes with particularity the reasons why the City's decision was in error and
the reasons the City Manager should reverse the denial, suspension, or revocation. An appeal shall be
accompanied by payment of any applicable appeal fees to be considered timely. The City Manager shall
review the appeal and issue a written decision to uphold, modify, or reverse the determination within 30
days of receipt of the appeal. The City Manager's decision is the final decision of the City and may be
appealed to the Spokane County Superior Court within 21 days of the date of the City Manager's decision.
B. Appeals of the imposition of penalties shall be made pursuant to chapter 7,80 RCW,
Section 4. Severability. If any section,sentence,clause or phrase of this Ordinance should 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$, Effective Date. This Ordinance shall become effective five days after publication of the
Ordinance,or a summary thereof, in the official newspaper of the City.
Adopted this 25'r'day of September,2018
City S lc r ,' a l Icy
�l/
L.R.Higgins, or
ATT' fir,
Christine Bainbridge, City Cleric
Ap'roved - to Form:
11
OfI of the`�i,, Attorney
fi
Date of Publication: 9' 7,07G9 '02eh 8
Effective Date: rU - 3 - r8
Ordinance 18-020,Business Licensing Update Page 6 of
Chris Bainbridge
From: Erik Lamb
Sent: Tuesday, October 9, 2018 9:22 AM
To: Chris Bainbridge
Subject: FW: Model Ordinance - Spokane Valley
Erik Lamb I Deputy City Attorney
10210 E. Sprague Avenue I Spokane Valley,WA 99206
(509)720-5030 I elamb@spokanevallev.org
Stiokane
This email and any attachments may be subject to disclosure pursuant to Washington State's Public Record Act,chapter 42.56 RCW.
Confidentiality Notice: The information contained in this email and any accompanying attachment(s)is intended only for the use of the
intended recipient and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized
use, disclosure or copying is strictly prohibited,and may be unlawful. If you have received this communication in error, please immediately
notify the sender by return email,and delete the original message and all copies from your system. Thank you.
From: Van Horn, Kaloa (DOR) [mailto:KaloaV@DOR.WA.GOV]
Sent: Tuesday, October 9, 2018 8:38 AM
To: Erik Lamb <elamb@spokanevalley.org>
Subject: RE: Model Ordinance -Spokane Valley
Thank you Erik, this is all we need. Please keep the hard copy for your records.
KaIoa Van Horn
Management Analyst I Business Licensing Service
Washington State Department of Revenue
360/705-6641 I F 360/705-6655 I business.wa.gov/bls I KaloaVC@dor.wa.gov
Working together to fund Washington's future
From: Erik Lamb <elambl spokanevalley.org>
Sent:Tuesday, October 09, 2018 8:35 AM.
To:Van Horn, Kaloa (DOR) <KaloaV@DOR.WA.GOV>
Subject: RE: Model Ordinance-Spokane Valley
Kaloa,
Please find the completed form and signed and adopted ordinance. Do you need me to mail a hardcopy as well? Finally,
I just want to confirm this is all you need for notice of our adoption of the model ordinance provisions.
Thanks,
1