HomeMy WebLinkAboutOrdinance No. 2021-004 An Ordinance of the City Council of the City of Arlington, Washington, Amending Provisions of Title 5 of the Arlington Municipal Code Pertaining to Business Licenses ORDINANCE NO. 2021—004
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON, AMENDING
PROVISIONS OF TITLE 5 OF THE ARLINGTON MUNICIPAL CODE PERTAINING TO BUSINESS
LICENSES
WHEREAS, Washington State law, chapter 19.02 RCW, provides for a centralized,
"onestop" process for business licensing known as the Business Licensing Service, administered
by the Washington State Department of Revenue; and
WHEREAS, the Washington State Legislature, through enacted legislation, 2017 EHB
2005, codified as chapter 35.90 RCW, has set terms for municipalities to connect to the
Business Licensing Service in the administration of their business licensing activities; and
WHEREAS, for the City to contract with the Business Licensing Service for business
licensing services,the City's code must be revised; and
WHEREAS, the Arlington City Council has considered this matter during a regularly and
duly called public meeting of said Council, and believes adoption of this ordinance to be in the
best interests of the citizens of Arlington;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Arlington Municipal Code Section 5.04.070 shall be and hereby is
amended to read as follows:
5.04.070- License required.
It is unlawful for any person to engage in business as a peddler/solicitor in the city
without first obtaining a city of Arlington peddler/solicitor license for each person selling
on behalf of the business. Any peddler/solicitor as defined in this chapter shall apply for
and receive a city peddler/solicitor license prior to engaging in such activity, unless the
peddler/solicitor is exempt as indicated in AMC 5.04.080. The license required by this
chapter is separate from and in addition to the business license issued under Chapter
5.28 AMC, which may also be required when applicable.
SECTION 2. Arlington Municipal Code Section 5.12.020 shall be and hereby is
amended to read as follows:
5.12.020-Taxicab operation—Compliance with conditions—License required.
It is unlawful to operate any taxicab upon the streets of Arlington until any person
owning or operating said taxicab has first complied with the following conditions:
ORDINANCE 2021-004 1
(1) Comply with all the laws of the state relating to the operation of taxicabs,
and obtain a permit from the director of licenses of the state for the operation of
said taxicab;
(2) File the required bond or liability insurance with the director of licenses of
the state, as is now or may hereafter be required by law;
(3) Have on file with the city clerk of the city a receipt from the insurance
company showing payment of the premium upon such bond or liability insurance
required to be filed with the director of licenses of the state, together with a
copy of such bond;
(4) Have paid all license fees due to the state or city; providing this section
shall not apply to any taxicab entering the city for the purpose of discharging
passengers who have entered said taxicab at points outside the corporate limits
of the city;
(5) A person owning or operating any of the vehicles defined in Section
5.12.010 (a) and (c) shall first secure a license to do so from the city clerk,
obtained in the following manner:
(A) The applicant shall upon blanks provided for the purpose by the city
clerk, furnish full information concerning ownership; the number and
classification of vehicles to be operated;the name, fictitious or
otherwise, under which the applicant intends to operate; and such other
information as may be deemed necessary for proper supervision and the
public good;
(B) If it appears from the information obtained that the applicant has
met all of the requirements of this chapter, that the vehicles are
equipped with valid state licenses, and that they are properly bonded or
insured for the protection of the public as required by the motor vehicle
laws of the state, a license may be issued upon payment of the license
fee herein provided for in Section 5.12.030;
(C) All licenses shall expire one year from the date the same is granted.
(6) The person, firm or corporation owning or operating such taxicab shall file
with the city clerk a true, accurate, and detailed statement of its rates,fares or
charges in current use by such taxicab, and shall also post said rates in a
conspicuous place in said taxicab where the same can be readily observed and
read by a passenger for hire therein and it is unlawful to charge any higher or
greater fare than that set forth in said schedule of rates.
(7) The license required by this chapter is separate from and in addition to the
business license issued under Chapter 5.28 AMC, which may also be required
when applicable.
(8) The provisions of this chapter shall not apply to motor vehicles operated by
any municipal or privately owned nonprofit transit system.
ORDINANCE 2021-004 2
SECTION 3. Arlington Municipal Code Section 5.28.040 shall be and hereby is
amended to read as follows:
5.28.040 Definitions.
Except as otherwise expressly declared or clearly apparent from the context in which
used, the following definitions shall be applied in construing the provisions of this
chapter.
"Business" means all services, activities, occupations, pursuits or professions
located and/or performed within the city with the object of pecuniary gain,
benefit or advantage to the person, or to another person or class, directly or
indirectly, whether part-time or full-time. Each business location shall be
deemed a separate business. This definition includes, without limitation, home
occupations, peddlers, hawkers, and utility companies. It also includes the
activities of businesses that are located outside the city where sales or services
are solicited by the physical presence of business representatives inside the city.
Businesses that are exempt from this chapter are specified in Section 5.28.060.
"Business Licensing Service" or `BLS" means the office within the Washington
State Department of Revenue providing business licensing services to the city.
"City clerk" means the city clerk of the city of Arlington, or his/her designee.
"Engaging in Business" shall have the following meaning:
(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 definition 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 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 definition. 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.
ORDINANCE 2021-004 3
(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.
(1) 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.
(1) 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.
ORDINANCE 2021-004 4
(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
definition.
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
ORDINANCE 2021-004 5
benefits from the activity that constituted the original nexus generating
contact or subsequent contacts.
"Pecuniary" means of or pertaining to money.
"Person" means one or more persons, corporations, partnerships, associations
or other entities, but shall not include employees of persons licensed pursuant to
this chapter.
SECTION 4. Arlington Municipal Code Section 5.28.050 shall be and hereby is
amended to read as follows:
5.28.050 Business license required.
It is unlawful for any person to conduct, operate, engage in or practice any business
within the city, whether his or her office or place of business is located within and/or
outside city limits, without having first obtained a business license from the city. A
business license or annual renewal is required for a business to operate or to continue
to operate during each and every year pursuant to Section 5.28.130 of this chapter. If a
person conducts business at more than one location within the city each such location
must be licensed separately. If more than one distinct business activity is conducted on
single premises, a separate license is required for each separate business conducted,
operated, engaged in or practiced. If two or more persons each conduct business at the
same premises, each such person must obtain a separate license. All licenses issued
pursuant to the provisions of this chapter must be posted in a prominent location at the
premises for which it was issued.
SECTION S. Arlington Municipal Code Section 5.28.060 shall be and hereby is
amended to read as follows:
5.28.060— Exemptions.
To the extent set forth in this section,the following persons and businesses shall be
exempt from the registration, license and/or license fee requirements as outlined in this
chapter:
(a) 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. The exemption
does not apply to regulatory license requirements or activities that require a
specialized permit.
(b) Farmers or gardeners occasionally selling their own unprocessed farm
products raised, grown, and sold exclusively upon lands owned or occupied by
them;
(c) Garage sales conducted on residential premises in compliance with any
provisions of the city's land use code
ORDINANCE 2021-004 6
(d) Any business which is owned and operated by a person under the age of
eighteen years, and which is exempt from federal income tax reporting;
(e) Any business which operates only as a temporary booth during approved
community celebrations and which is approved by the entity which has been
authorized to run said celebration.
(f) Nonprofit activities carried on by religious, charitable, benevolent, fraternal
or social organizations, such as are described by 26 USC § 501(c)(3);
(g) Any instrumentality of the United States, state of Washington, or political
subdivision thereof with respect to the exercise of governmental functions.
SECTION 6. A new Arlington Municipal Code Section 5.28.065 shall be and hereby is
adopted to read as follows:
5.28.065 Nonprofit businesses.
Business engaged in within the city by nonprofit organizations, other than those
exempted under AMC 5.28.060 (f), must be license as required by this chapter.
Provided, however, such a nonprofit organization is exempt from the city business
license fee if it submits proof of a federal tax exemption issued by the Internal Revenue
Service under a provision of 26 USC § 501(c).
SECTION 7. Arlington Municipal Code Section 5.28.120 shall be and hereby is
amended to read as follows:
5.28.120 Application procedure.
Application for a city business license is made through the Business Licensing Service,
and must include all information required for each license requested, the total fees due
for all licenses, and the application handling fee required by RCW 19.02.075.
(a) The city clerk may request additional information as may be needed to
determine whether an application may be approved, including, but not limited to
if the business premises are to be located on property owned by another person,
written evidence of the property owner's consent.
(b) The city clerk shall forward copies of all applications to appropriate city
department and divisions. All departments and divisions shall conduct current
review of applications and report their approval or denial back to the city clerk
within twenty working days of the date the application was received and the city
clerk shall act on the license application within twenty-five working days of the
same being submitted.
(c) If the city clerk receives a recommendation of denial from any city official
because of noncompliance with city regulations or policy, the applicant shall be
notified and provided sufficient time (generally two weeks) to amend his/her
application so as to comply with the appropriate regulations.
ORDINANCE 2021-004 7
(d) If an application is denied, the reason for denial shall be stated in writing.
The applicant shall have a period of ten days after a license denial to appeal the
decision to the city's hearing examiner. Upon receiving such an appeal, the
hearing examiner shall review the application and any staff recommendations to
consider whether or not the license should be issued. The applicant has the right
to provide testimony to the hearing examiner prior to his decision. Such review
and testimony may be in the form of a meeting, a conference call, or through the
submission of written argument, the choice being the applicants. The applicant
shall be given not less than seven days advance notice of the review. The
decision of the hearing examiner shall be final, subject only to an appeal filed
with Snohomish County Superior Court within fourteen days following the date
of such decision.
(e) Neither the filing of an application for a license or the renewal thereof, nor
any payment of any application or renewal fee, shall authorize a person to
engage in or conduct a business until such license has been granted or renewed.
SECTION 8. Arlington Municipal Code Section 5.28.130 shall be and hereby is
amended to read as follows:
5.28.130 Term of license and renewals.
(a) A business license issued pursuant to the provisions of this chapter will
expire on the date established by the Business Licensing Service (BLS), and must
be renewed on or before that date to continue engaging in business in the city.
(b) Applications for renewal of business licenses is made through the BLS and
must include all information required to renew each license involved,the total
fees due for each license, and the renewal application handling fee required by
RCW 19.02.075.
(c) The license term and respective fee amount may be prorated as needed to
synchronize the license expiration with the expiration of the business account
maintained by the BLS.
(d) Failure to complete the license renewal by the expiration date will incur
the late renewal penalty fee required by RCW 19.02.085 in addition to all other
fees due.
(e) Failure to complete the license renewal within 120 days after the
expiration of the license will result in the cancellation of the license and will
require submitting an application for a new license to continue to engage in
business within the city. The city may require payment of all past due amounts
prior to approving the new license.
SECTION 9. Arlington Municipal Code Section 5.28.140 shall be and hereby is
amended to read as follows:
ORDINANCE 2021-004 8
5.28.140 Compliance with all other codes when a business changes.
Whenever a business changes in operation, use, number of employees, amount of
services (e.g., sewer, water, etc.) it uses, etc., and the changes adversely affect the
service or the site's ability to minimize off-site impacts, it is the owner's responsibility to
comply with all codes regulating those particular issues. For example, if employees are
added, but there is only enough on-site parking for the original number,then more
spaces need to be added. Similarly, if a manufacturing process changes such that
additional sewage is generated, then additional connection charges may be required.
The business owner must report such changes directly to the city as soon as possible.
However, the obligation to upgrade a site or service commences with the actual change
in the business.
SECTION 10. Arlington Municipal Code Section 5.28.150 shall be and hereby is
amended to read as follows:
5.28.150 Fees and penalties.
(a) The annual city fee for each business license required by this chapter, and
each renewal thereof, will be set by resolution of the city council.
(b) The annual city license fee must accompany the application.
(c) If pursuant to the provisions of this chapter,the applicant's request for a
license is denied, either upon original application or renewal,twenty-five
percent of the city fee tendered will be retained by the city as a processing fee
and seventy-five percent of the city fee tendered will be refunded to the
applicant by the city no later than ninety days following such denial.
(d) In addition to other penalties specified in this chapter, the city may assess
an additional late payment penalty, as set by resolution of the city council, for
late payment of the city license fee. This additional penalty will be assessed by,
and is payable directly to the city.
(e) A fee for an appeal of a decision to issue a license, as set by resolution,
must be paid by the applicant. Such fee will cover the cost of engaging a hearing
examiner and any staff time or other costs incurred by the city in processing said
appeal.
SECTION 11. Arlington Municipal Code Section 5.36.040 shall be and hereby is
amended to read as follows:
5.36.040 License for business required—Fee.
(a) No public place of amusement, including but not limited to places which
offer sexually-oriented adult entertainment, shall be operated or maintained in
the city unless the owner or lessee thereof has obtained a license from the city
clerk. For places offering sexually-oriented adult entertainment, the required
license shall be the adult entertainment premises license as set forth in Section
5.36.070(a). It is unlawful for any entertainer, employee or operator to
ORDINANCE 2021-004 9
knowingly work in or about, or to knowingly perform any service directly related
to, the operation of an unlicensed public place of amusement/entertainment.
(b) The annual fee for such a license shall be five hundred dollars.
(c) This license expires annually on December 31 and must be renewed by
January 1.
(d) There will be no prorating of the fee.
(e) The applicant must be eighteen years of age or older.
(f) The License required by this section is separate from and in addition to the
business license issued under Chapter 5.28 AMC, which may also be required
when applicable.
SECTION 12. Arlington Municipal Code Section 5.36.050 shall be and hereby is
amended to read as follows:
5.36.050 License for managers and entertainers required—Fee.
(a) No person shall work as a manager or entertainer at a public place of
amusement offering sexually-oriented adult entertainment without having first
obtained a manager's or entertainer's license from the city clerk pursuant to
Section 5.36.070.
(b) The annual fee for such a license shall be one hundred dollars.
(c) This license expires annually on December 31 and must be renewed by
January 1.
(d) There will be no prorating of the fee.
(e) The applicant must be eighteen years of age or older.
(f) The licenses required by this section are separate from the business license
issued under Chapter 5.28 AMC, which may also be required when applicable.
SECTION 13. Arlington Municipal Code Section 5.40.020 shall be and hereby is
amended to read as follows:
5.40.020 License-Required—Application.
It is unlawful for any person, firm or corporation engaged in the business of motor
vehicle wrecker or towing operator as defined in Section 5.40.010 to tow or otherwise
remove motor vehicles from the scene of an accident, disability or impounding, without
first obtaining a license pursuant to the provisions of this chapter, by making written
application to the city clerk or his/her designee for such license. The license required by
this chapter is separate from and in addition to the business license issued under
Chapter 5.28 AMC, which may also be required when applicable.
ORDINANCE 2021-004 10
SECTION 14. Arlington Municipal Code Section 5.44.020 shall be and hereby is
amended to read as follows:
5.44.020 Permit required.
A special event permit or authorization from the city is required for any event in a park,
public place or on private property where it will significantly impact public sidewalks or
roadways. Such special event permit shall be in addition to any street or park use, or
other regular permits as may be required by ordinance. The permit required by this
chapter is separate from and in addition to the business license issued under Chapter
5.28 AMC, which may also be required when applicable.
When such an event will be an exercise of rights protected by the First and Fourteenth
Amendments to the United States Constitution, the application shall be processed
promptly, without charging a fee for political or religious activities or imposing terms or
conditions that infringe constitutional freedoms, and in a manner that respects the
liberty of applicants and the public.
A special event permit is not required for the following:
(1) Parades, athletic events or other special events that occur exclusively on
city property and are sponsored or conducted in full by the city of Arlington;
(2) Funeral and wedding processions;
(3) Groups required by law to be so assembled;
(4) Gatherings of thirty or fewer people in a city park, unless merchandise or
services arc offered for sale or trade;
(5) Temporary sales conducted by businesses, such as holiday sales, grand
opening sales, or anniversary sales;
(6) Garage sales and rummage sales;
(7) The exhibition of films or motion pictures;
(8) Other similar events and activities which do not directly affect or use city
services of property.
Any person desiring to sponsor a parade, athletic event or special event shall be
encouraged to apply for a special event permit by filing an application with the city at
least sixty days prior to the date on which the event is to occur.
Waiver of Application Deadline. Upon a showing of good cause or at the discretion of
the city, the city may consider an application that is filed after the filing deadline if there
is sufficient time to process and investigate the application and obtain police and other
city services for the event. Good cause can be demonstrated by the applicant showing
that the circumstance that gave rise to the permit application did not reasonably allow
the participants to file within the time prescribed, and the event is for the purpose of
exercising rights under the First and/or Fourteenth Amendments of the United States
Constitution.
ORDINANCE 2021-004 11
SECTION 15. Arlington Municipal Code Section 5.48.030 shall be and hereby is
amended to read as follows:
5.48.030 License required—Application.
(a) It shall be unlawful for any person, firm or corporation to operate or cause
to be operated (as described in section 5.48.020(a) within the city limits an
ambulance or ambulance service without first being issued a license therefore by
the city. It shall also be unlawful for any person, firm or corporation to violate
any of the provisions of this chapter. The license required by this chapter is
separate from and in addition to the business license issued under Chapter 5.28
AMC, which may also be required when applicable.
(b) It shall be unlawful for any person, firm or corporation (other than the city
fire department or other fire districts working on a mutual aid basis or from an E-
911 response) to operate or cause to be operated (as described in section
5.48.020(a) emergency ambulance service within the city limits, except as
provided in section 5.48.100.
(c) Such license may be obtained by applying therefore at the office of the city
finance director on forms provided.
(d) To the extent not inconsistent with other provisions of this chapter,the
provisions of chapter 5.28 dealing with general issuance of city licenses, shall be
applicable to this chapter and are hereby incorporated herein by this reference.
SECTION 16. Severability. If any one or more sections, subsections, or sentences of
this Ordinance are held to be unconstitutional or invalid such decision shall not affect the
validity of the remaining portions of this Ordinance and the same shall remain in full force and
effect.
SECTION 17. Effective Date. This ordinance shall take effect and be in force five (5)
days from and after its passage, approval and publication as provided by law.
PASSED by the City Council and approved by the Mayor this 16th day of February, 2021.
CITY OF ARLINGTON
Talhib
Barbara Tolbert, Mayor
ATT ST:
Wendy Van fier Meersche, City Clerk
APPROVED AS TO FORM:
St venj Wffi �' City Attorney
ORDINANCE 2021-004 12
CERTIFICATION OF ORDINANCE
I, Wendy Van Der Meersche, being the duly appointed City Clerk of the City of Arlington,
Washington, a municipal corporation, do hereby certify that the following Ordinance
No. 2021-004 was approved at the February 16, 2021 City Council meeting.
ORDINANCE NO. 2021-004
"AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARLINGTON,
WASHINGTON,AMENDING PROVISIONS OF TITLE 5 OF THE ARLINGTON
MUNICIPAL CODE PERTAINING TO BUSINESS LICENSES"
A true and correct copy of the original ordinance is attached.
Dated this 16th day of February, 2021.
Wendy Van Der Meersche
City Clerk for the City of Arlington