HomeMy WebLinkAboutOrdinances - 2015-04 - Revising the way business licenses are regulated, amending Chapter 5.04 of the EWMC - 2/24/2015City of East Wenatchee, Washington
Ordinance No. 2015-04
An Ordinance of the City of East Wenatchee revising the way the City
regulates business licenses by amending Chapter 5.04 of the East
Wenatchee Municipal Code.
Una Ordenanza de la Ciudad de East Wenatchee revisar la forma en
que la Ciudad regula las licencias comerciales por el que se modifica el
Capitulo 5.04 del C6digo Municipal de East Wenatchee.
1. Alternate format.
1.1. Para leer este documento en otro formato (espaiiol, Braille,
leer en voz alta, etc.), p6ngase en contacto con el vendedor de la
ciudad al alternatformat@east-wenatchee.com, al (509) 884-9515
o al 711 (TTY).
1.2. To read this document in an alternate format (Spanish,
Braille, read aloud, etc.), please contact the City Clerk at
alternateformat@east-wenatchee.com, at (509) 884-9515, or at
711 (TTY).
2. Recitals. The City of East Wenatchee ("City") is a non -charter code City
duly incorporated and operating under the laws of the State of
Washington; and
3. Authority. RCW 35A.11.020 and RCW 35A.12.190 authorize the City
Council to adopt ordinances of all kinds to regulate its municipal affairs
and appropriate to the good government of the City.
THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO
ORDAIN AS FOLLOWS:
4. Purpose. The purpose of this ordinance is to update the City's
regulation of business licenses.
5. Amendment. The City Council amends Chapter 5.04 of the East
Wenatchee Municipal Code to read as set forth in Exhibit A.
6. Severability. If a court of competent jurisdiction declares any provision
in this Ordinance to be contrary to law, such declaration shall not affect
the validity of the other provisions of this Ordinance.
City of East Wenatchee
Ordinance 2015-04
Page 1 of3
7. Publication. The City Council directs the City Clerk to publish a
summary of this Ordinance. The summary shall consist of the title of
this Ordinance. The City Council directs the City Clerk to publish a
copy of this Ordinance on the City's website.
8. Effective Date. This Ordinance becomes effective five days after the
date its summary is published. .
Passed by the City Council of East Wenatchee, at a regular meeting
thereof on this :<1 ~ day of ·ieb~ , 2015.
The City of East Wenatchee,
Washington
By -<~~;;;::=~~~~:__~~
Ste
Authenticated:
Dana Barnard, City Clerk
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
City of East Wenatchee
Ordinance 2015-04
Page 2 of3
Summary of
City of East Wenatchee, Washington
Ordinance No. 2015-04
On the c{J~ day of MbrUJlf i, , 2015, the City
· Council of the City of East Wenatchee, Washington approved Ordinance
No. 2015-04, the main point of which may be summarized by its title as
follows:
An Ordinance of the City of East Wenatchee revising the way the City
regulates business licenses by amending Chapter 5.04 of the East
Wenatchee Municipal Code .
Una Ordenanza de la Ciudad de East Wenatchee revisar la forma en
que la Ciudad regula las licencias comerciales por el que se modifica el
Capitulo 5.04 del C6digo Municipal de East Wenatchee.
The full text of this Ordinance is available at www.east-wenatchee.com.
Dated this :;Lj!' day of __ ~~~1Ji'--'-~~·~~''f="F-----' 2015.
IVui11. ~
Dana Barnard, City Clerk
City of East Wenatchee
Ordinance 2015-04
Page 3 of3
Ordinance 2015-04 Exhibit A
Chapter 5.04
BUSINESS LICENSE FEES
Sections:
5.04.010 PurposeLicense Application Fee.
5.04.020 Definitions.
5.04.030 Liability for DamagesPe:rson subject to tax.
5.04.040 Persons subject to tax.Business located outside city limits.
5.04.050 Business located outside city limits.Exemptions.
5.04.060 AExemptions.pplicahility of othe:r o:rdinances.
5.04.070 Applicability of other ordinances.Basie license fee.
5.04.080 Basic license fee.Failu:re to pay Penalty.
5.04.090 TermReview of exempt o:rganization business.
5.04.100 Failure to pay -Penalty.Amusement de"li-Oes.
5.04.110 License constitutes debt to city.Deleted.
5.04.120 Review of exempt organization business.Peddle:rs and
solieito:rs.
5.04.130 Peddlers and solicitors.Right to :refuse to issue license.
5.04.140 Right to refuse to issue license.Issuing official.
5.04.150 Issuing official.Violation Penalty.
5.04.160 Violation -Penalty.
5.04.010 Purposes.
By enacting this Chapter, the City is exercising its power to license for
regulation and for revenue.
5.04.020 Definitions.
In construing the provisions of this chapter, the following definitions
apply:
A. "Business" means all activities, occupations, trades, pursuits or
professions located and/or engaged in, within the city, with the
object of gain, benefit or advantage to the taxpayer, or to another
person or class of persons, directly or indirectly. Each business
location is a separate business.
B. "City" means the City of East Wenatchee, its officers, its
employees, and its agents.
Ordinance 2015-04 Exhibit A
C. "Engaging in business" means commencing, conducting or
continuing in any business, and also the exercise of corporate or
franchise powers, as well as liquidating a business when the
liquidators hold themselves out to the public as conducting such
business.
D. "Person" means any individual, firm, partnership, company,
corporation, association, receiver, assignee, trustee in bankruptcy,
trust, estate, joint venture, club, joint stock company, business
trust, society or any group of individuals acting as a unit
E. "Taxpayer" means any person who engages in business or who is
required to have a business license hereunder, or who performs
any act, for which a license fee or tax is imposed by this chapter.
5.04.030 Liability for damages.
The city recognizes that it cannot solve all problems relating to
businesses licensed under this chapter through legislation. Thus, this
chapter is an effort to make the best possible use of available resources.
This chapter is not an attempt to provide complete protection to all of
the city's inhabitants .
A. This chapter expressly provides for and promotes the health, safety
and welfare of the general public. It does not create or designate any
particular class of persons who will or should be especially protected by
its terms.
B. This chapter specifically intends to place the obligation of complying
with its terms on the licensee. No provision of this chapter imposes a
duty upon the city, for whom the implementation or enforcement of this
chapter is discretionary and not mandatory.
C. Nothing in this chapter creates the basis for any liability on the part
of the city for any injury or damage resulting from the failure of a
licensee to comply with the provisions of this chapter, or by reason or in
consequence of any act or omission in connection with the
implementation or enforcement of this chapter on the part of the city.
D. By issuing a business license to a licensee, the City does not create a
duty of the City to indemnify a business licensee for a wrongful act
against the public, to guarantee the quality of goods, services, or
expertise of a licensee, or to otherwise shift responsibility from the
licensee to the City for proper training or for proper conduct of a
licensee.
Ordinance 2015-04 Exhibit A
5.04.010 License Application Fee.
A. It shall be unlawful for any person, persons, company, corporation or
association to do, transact, exercise, engage in or carry on, either
meetly or indHeetly, within the city limits, any trade, business,
occupation or acti"lity for which a license is required or a license fee set,
without first procuring such license and paying such fee, as set by
EWMC 5.04.070, Basic license fee .... .i\11 such licenses shall be issued
annually and shall be effeetiTy>:e for one year or fraction thereof and shall
expire on June 30th of each year, unless otherwise pro:vided.
B. Any business commencing operation between July 1st of each year
and December 31st of each year shall, upon its commencement and
application for business license, pay their business license fee based
upon a full year's operation.
C. For any business commencing operation on January 1st of each year
and before June 30th of each year, the rate shall be one-half the annual
mte.
D. Payment of the license fee shall be a condition precedent to lawful
operation of a business within the city limits.
E. This prorating of the license fee shall apply to not only the basic fee
but any special fee or license as set forth in this chapter.
F. The license fees to be paid shall be based upon the basic fee as set
forth in EWMC 5.04.070 unless another section of this chapter shall
provide a license fee based upon some other means of determination of
such license fee, in which case the basic fee as set forth in EWMC
5.04.070 shall not apply. (Ord. 99-12 § 1, 1999; Ord. 328 § 2, 1982; Ord.
305 § 1, 19800
Ordinance 2015-04 Exhibit A
5.04.020 Definitions.
In construing the provis ions of this chapter, except 1.vhen otherwise
declared, apparent or clearly appearing from the context of the passage
or section, the follw.ving definitions shall be applied·
A "E . " ll t ' 't' t ' t d . u:.umness means a ac iv1 10s , occupa 10ns,ra es , pursuits or
professions located and/or engaged in, within the city, with the
object of gain, benefit or advantage to the taxpayer, or to another
person or class of persons, directly or indirectly. Each business
location shall be deemed a separate business.
E. "Engaging in business" means commencing, conducting or continuing
in any business, and also the exercise of corporate or franchise powers,
as vwll as liquidating a business when the liquidators hold themselves
out to the public as conducting such business .
G "P " . d . . d 1 £' h. .erson means any in iv1 ua ,1rm, partners ip, company,
corporation, association, recehrer, assignee, trustee in bankruptcy,
trust, estate , joint venture, club , joint stock company, business trust,
society or any group of individuals acting as a unit.
I) "~ " h . b . h . .axpayer means any person \V o engages inumnes s or v.,r o w
required to have a business license hereunder, or who performs any act,
for which a license fee or tax is impos ed by this chapter.
E. "Year" means the fiscal year from July 1st to and including the
succeeding June 30th. (Ord. 99-12 § 1, 1999; Ord. 305 § 2, 1980)
5.04.0130 Person subject to tax.
On and after the passage of the ordinance codified in this chapter, and
its effective date, there is The City levies upon and will collect levied
upon and shall be collected from e ach very person engaging in business
Ordinance 2015-04 Exhibit A
or commerce in the city an annual license fee for the privilege of
engaging in business activities within the city limits. (Ord. 99-12 § 1,
1999; Ord. 305 § 3, 1980)
5.04.0§.4 0 Business located outside city limits.
Unless otherwise exempt, this chapter covers and applies to any
business located outside the city that engages in some business activity
inside the city limits. (Ord. 99-12 § 1, 1999; Ord. 305 § 1, 1980)
5.04.0§aO Exemptions.
The provisions of this chapter do not apply to the following persons,
sales, or servicesThe provisions of this chapter shall not apply to the
follov,ring, except as othenvise provided herein·
A 1-i:. -
A. A governmental entity including public and private elementary,
secondary, high schools, and universities;
B. A person who delivers newspapers or periodicals;
C. A person soliciting orders from retail establishments for the
delivery and sale of goods, wares and merchandise to retailers for
resale unless located within the City;
D. A person or organization conducting a nonprofit enterprise when
the enterprise is operated without priv ate profit, for a public,
charitable, educational, literary, fraternal or religious purpose;
E. A person under the age of 18 engaged in babysitting;
F . A person selling his or her own produce;
G. A person that the City is forbidden to tax by law; and
H. A person engaged in 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 and bake sales).
Ordinance 2015-04 Exhibit A
I. A landlord who owns five or fewer units.
l'.. •. l'...ny fraternal or social corporation or organization whose purpose is
charitable and nonprofit.
B. iA_..ny religious organization or church, or other religious assemblage.
C. Any person who is by the laws of the United States off ... merica or the
state of 'Nashington exempt from such tax.
D. Any municipality or political subdivision of the United States or of
the state of 'Plashington.
E. f ... ny charitable fundraising organization. (Ord. 99-12 § 1 , 1999; Ord.
305 § 5 , 1980)
5.04.0.'.ZG O Applicability of other ordinances.
A person exempted from obtaining a business licens e must comply with
The provisions of E'NMC 5.01.050, dealing with exemptions from the
provisions of this chapter, shall not allw.v any of the exempt
organizations from conducting business or activities v1hich vwuld
subject it to the requirements of any other ordinances of the city
relating to taxes, fees or licenses, particularly, although not so limited
thereto, gambling or any other tax or license fee required to be
purchased or paid for carrying on that particular activity. (Ord. 99-12 §
1, 1999; Ord. 305 § 6 , 1980)
5.04.0~-1 0 Basic license fee.
Ordinance 2015-04 Exhibit A
A. Unless it is otherwise provided by provision in a section providing for
the licensing of a special, named, enumerated or specific business or
activity, the annual basic license fee is shall be measured by the
number of employees of each business at the time it applies for a
license. , based upon the number of employed individuals on June 1st
preceding the license year in \vhich the basic license fee is payable. This
license fee is a basic fee for doing and conducting business within the
city limits. Any other section of this chapter or any ordinance of the city
requiring a license or tax for conducting a specific and named activity is
shall be in addition to this basic license fee. There is shall be no set~off
or credit given for this basic license fee unless such ordinance or section
of ordinance so allows. The basic license fee rates are as follows:
Number of
Em:Qloyees 2015 2016 2017
0-1 -2 $30 $40 $50
3-5 $35 $45 $60
6-12 $75 $90 $110
13-25 $135 $145 $155
26-50 $235 $245 $260
51 and over $350 $375 $400
} ... For every business employing one to hvo persons, $25.00 per annum
or any part thereof.
B. For every business employing three through five persons, $35.00 per
annum or any part thereof.
Ordinance 2015-04 Exhibit A
C. For every business employing six through 12 persons, $60.00 per
annum or any part thereof.
D. For every business employing 13 through 25 persons, $125.00 per
annum or any part thereof.
E. For every business employing 26 through 50 persons, $225.00 per
annum or any part thereof.
F. For every business employing over 51 persons, $325.00 per annum or
any part thereof. (Ord. 99-12 § 1, 1999; Ord. 305 § 7, 1980)B. Beginning
January l, 2018, on January 1 of each year, the City will increase the
basic license fee by 100% of the U .S Consumer price Index of Urban
Wage Earners and Clerical Workers (CPI-W) September to September
statistics for the West Urban Region for the proceeding twelve months,
rounded up to the nearest whole dollar.
C. An applicant must pay the fee for a business license in full at the
time the application is submitted, and annually thereafter on or before
its anniversary date.
5.04.090 -Term
Effective until December 31, 2016-:-_
A business license expires one year from the date it is issued by the
clerk and must be renewed annually.
Effective January l, 2017-:-_
A business license issued pursuant to the provisions of this chapter is
renewed annually and has an expiration date as determined by the
State of Washington Business Licensing Service ("BLS"). The license
term or expiration date will be coordinated with the terms or expiration
dates of all other licenses required by the State. Fees may be pro-rated
depending on the BLS expiration date. License renewals shall be issued
by the State Business Licensing Service in cooperation with the City
upon receipt from the business of a request for renewal of business
license in the form prescribed by the State Business Licensing Service,
Ordinance 2015-04 Exhibit A
providing that no change in ownership, character of business or location
is indicated. If such change is indicated, a new application shall be
submitted and fees paid.
5.04.10080 Failure to pay-Penalty.
A. The penalty for failing to pay the business license fee when due is
There is established a penalty to be added to each business license for
failure to pay such business license within 45 days after the due date.
The due date shall be prior to commencing business or any nevi
business beginning operation after July 1st and shall be July 1st for any
business having previously been in operation in the prior year. Such
penalty shall be 20 percent of the basic license fee.
B. The penalty for failing to pay the business license fee within 30 days
of its due date is 40 percent of the basic license fee.
C. The penalty for failing to pay the business license fee within 90 days
of its due date is 60 percent of the basic license fee.
D. The penalty for failing to the business license fee within 120 days of
its due date is 100 percent of the basic license fee _,_
E. The penalty for failing to pay the business license fee within 150
days of its due date is revocation of the business license.
F. The City may also impose the penalties set forth in Failure to pay
such fee and penalty by September 15th will result in the imposition of
an additional 1.5 percent of the total due per month until paid. Fees
and assessed penalties not paid in full by December 31st of licensing
year, will be grounds for denial of the application and/or imposition of
penalties a s provided in EWMC 5.04.1.Qa O. (Ord. 99-12 § 1, 1999; Ord.
305 § 8, 1980)
5.04.110 License constitutes debt to city.
A license fee due or unpaid under this chapter, and all penalties
thereon, constitutes a debt to the city, and may be collected by court
proceeding in the same manner as any other debt in like amount. This
remedy is in addition to all other existing remedies.
5.04.120()9() Review of exempt organization business.
Ordinance 2015-04 Exhibit A
A _ll-persons whe-claiming an -exemption from the basic license fee as
specified in E\VMC 5 .04 .070 are must required to apply to the city clerk
for an application to carry on a _ey-business activity within the city
limits. This requirement is specifically made to include all charitable
and fundraising organizations and activities. Any fee for carrying on
such activity by an exempt organization is shall also_--Be--exempt except
as specified in other ordinances or sections of ordinances of the city or
as required by the state or any of its political subdivisions.
A. Prior to commencing a ny business activity, including fundraising
activities, such organization or person shall make application for a
business license to the city through the city clerk. Such application shall
be on a similar form or the same form as for all other business
organizations specifying the same information as required thereon. A
non-profit organization shall include a copy of its last filed Annual
Report with Washington's Secretary of State.
B. If the city clerk deems it in the best interest and welfare of the city to
have such licenses reviewed by the city council, he or she shall not issue
such license without referring it to the city council for review. Such
matter shall be brought on at the next regularly scheduled city council
meeting for review and either accepted or denied by the city council.
Such review by the city council shall be binding upon all parties, subject
to the right of appeal to the superior court of Douglas County for the
state, having jurisdiction over these matters. (Ord. 99-12 § 1, 1999; Ord.
305 § 9 , 1980)
5.04.100 Amusement devices.
1A,.. In addition to the annual licens e fee required under E\VMC 5.04.070,
the operator of any amusement device or machine shall pay an annual
tax on each machine or amusement device as specified in subsection G
of this section.
B. The term "amusement device " s hall mean any machine or device
designed to be operated or used for playing of a game of skill including,
Ordinance 2015-04 Exhibit A
but not limited to, pinball machines, upon payment by insertion or
otherwise of cash or other valuable consideration, including machines
vending food or articles of merchandise and including automatic movie
machines .
C . Each and every person, firm or corporation who operates or has in
his control or possession v,rithin the city limits amusement devices with
the intent that the same shall be operated or used, shall apply for and
secure an amusement game license for the amusement devices so ovlned
or operated. The cost of the license is to be the sum as set forth in
subsection G of this section. License fees paid shall be nonrefundable in
the event the licensee discontinues the use of the licenses during the
time that they are valid. License fees shall not be prorated. 2A_..pplication
for payment of amusement game licenses for amusement devices shall
be made to the city clerk on or before January 1st of each year, or, in
the case of ne'N machines, at the time the machines are placed in
operation during the calendar year. i\11 applications shall state the
name of the amusement device, the name and address of mvner or
operator, and the current location of the amusement device. The
number of game devices for the premises shall not exceed the number of
devices allowed on the posted amusement device license. The
amusement device license shall be posted in a place on the premises
visible to the public.
D. It shall be prima facie O"vidence that such amusement device is being
owned by or operated by the premises upon v,rhich such machine is
located, and the owner or lessee thereof shall be responsible for
payment of the license fee .
E. In addition to any other penalties called for in this chapter, the city
council shall have the pov:er to revoke and cancel any license issued to
any person vlho has been found to have violated any provision of this
section.
F. It shall be the duty of the police department to inspect the premises
upon \vhich amusement devices are located from time to time to
Ordinance 2015-04 Exhibit A
determine \vhether or not the licensee is in compliance \vith this section,
and this chapter as a whole.
G. The license fee, per device, per year, for amusement devices shall be
as follmvs·
1. Pool tables, $40.00;
2. Electronic games and coin-activated movies, $30.00;
3. Vending machines (food, merchandise), $10.00;
4. Jukeboxes, $15.00;
5. Crane type machines, $10.00. (Ord. 99-12 § 1, 1999; Ord. 426 § 1,
1987; Ord. 310 §§ 2 5, 1981; Ord. 305 § 11, 1980)
5.04.110 Distributor's license.·
Deleted by Ord. 99-12. (Ord. 305 § 12, 1980)
5.04.1 320 Peddlers and solicitors.
A. A ny person selling or soliciting orders for any commodity or
merchandise from house to house or from address to address must shall
pay an annual license fee of $25.00 per annum, or the sum of $5.00 per
day
B. A; and any person selling any commodity or merchandise from a ny
vehicle, trailer, stand or temporary structure or place must shall also
pay an annual license fee of $25.00 per annum, or the sum of $5.00 per
day:.
Ordinance 2015-04 Exhibit A
C. The City will not issue a ; provided, that no license shall be issued to
any person desiring to sell his wares from a permanent position or
location unless the police chief and the community development director
approve, in writing, the position or location.:. shall have been first
approved in writing by the city police chief and the community
development director. (Ord. 99-12 § 1, 1999; 305 § 13, 1980)
5.04.1 480 Right to refuse to issue license.
A. The City Clerk may refuse to issue a business license to a person if
he or she The issuing official may, if he deems it best for the welfare of
the citizens and inhabitants of the city. If the City Clerk ,-refuse§. to
issue a license to £..any-person, that person may not and the person so
refused shall not engage in any business within city limits.for v:hich a
license as herein required has been refused.
B. If the City Clerk refuses to issue a license, the aggrieved person may
Upon refusal to grant a license, the aggrieved party shall have the right
te-appeal the decision of the city clerk to the city council. The aggrieved
person must file the appeal, in writing, with the City Clerk within ten
days of receiving notice of the decision not to issue a Such appeal shall
be received, in written form, by the city clerk \vithin 10 days of the date
of refusal to license. Thelicense. The city council must then review the
appeal within 30 days of filing.application and the reasons for the
refusal to license 'Nithin 30 days from the date of the receipt of the
notice of appeal.
C. Upon a hearing of the facts, the city council has shall then have the
right to either uphold the refusal or accept the application for license
upon payment of the basic license fee and any other tax or license
imposed upon such business. The council must make its decision within
30 days of the date of their review at a city council meeting.
D. The parties are shall be bound by the decision of the council, subject
to the right of appeal to the superior court of the state of Washington,
Douglas County. (Ord. 99-12 § 1, 1999; Ord. 305 § 11, 1980)
Ordinance 2015-04 Exhibit A
5.04.11!4 0 Issuing official.
The city council charges~ the city clerk shall be the official of the city
charged with the duty of issuing g_the-business licenses herein
required.!.; and shall act from time to time as instructed, to carry out the
terms and conditions of this chapter. (Ord. 99-12 § 1, 1999; Ord. 305 §
15, 1980)
5.04.1 650 Violation-Penalty.
A _ey-person who violates ffig-a ey provision of this chapter is shall be
guilty of a misdemeanor punishable as set forth in EWMC 1.20.010.!..,.--a-B
the same exists now or may be hereafter amended. (Ord. 99-12 § 1,
1999; Ord. 305 § 16, 1980)