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HomeMy WebLinkAbout6692 ORDINANCE NO. 6692 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON RELATED TO BUSINESS LICENSES, AMENDING DEFINITIONS, AND AMENDING CHAPTER 5.10 OF THE AUBURN CITY CODE WHEREAS, the Washington State Legislature adopted Engrossed House Bill 2005 during the 2017 legislative session; and, WHEREAS, the Bill requires, among other things, that cities who license businesses use the same definition for "engaging in business" as provided for in the bill. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment to City Code. Section 5.10.020A of the Auburn City Code is amended as shown in Exhibit A. Section 2. Amendment to City Code. Section 5.10.040 of the Auburn City Code is amended as shown in Exhibit B. Section 3. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directions of this legislation. Section 3. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application of this ordinance to any person or circumstance will not affect the Ordinance No. 6692 October 15, 2018 Page 1 of 2 validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: NOV e5 2018 PASSED: NOV 0 5 2018 NOV 05 2018 APPROVED: 0.4104-3 if* Y B US, MAYOR ATTEST: Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: gt`F`!_ Steven . Gross, City Attorney Published c\c v e,r.,\ Ordinance No. 6692 October 15, 2018 Page 2 of 2 Ordinance 6692—Exhibit A 5.10.020 Definitions:- For efinitions:For the purpose of this chapter and Chapter 5.15 ACC,the following terms,phrases,words and their derivations shall will have the meaning given in this section. A. "Business"means all activities,occupations,trades,pursuits,professions,and matters located within the city or within the city's jurisdiction,with a physical presence in the city and operated on a permanent or ongoing basis whether operated with the object of gain,benefit,advantage or profit,or operated not for profit,to the business enterprise or to another person,directly or indirectly;provided that"business"shad-will not mean governmental agencies. B. "Business enterprise"means any entity,person,partnership,association,corporation,trust,society,or club engaged in a business within the city of Auburn. C. "Director"means the dDirector of Community dDevelopment or the city's Director's designee. D. "Department"means the city of Auburn 4Department of Community Development. E. "Employee"means any person employed at any business enterprise who performs any part of their duties within the city.All officers,agents,dealers,franchisees,etc.,of a corporation or business trust,and partners of a partnership,except limited partners,are employees within this definition. F. "Engage 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. G. "Licensee"means any business granted a business license. H. "Nonprofit"means any business enterprises registered as nonprofit corporations within the state of Washington or granted nonprofit status through the code of the Internal Revenue Service of the United States. I. "Physical presence"means an address where the business is located.A post office box with an Auburn address for a business is considered a physical presence. J. "Place of business"means the physical location of the business. K. "Business license year"means that period of time between July 1st of one year and June 30th of the following year. L. "Life and safety codes"mean building codes,fire codes,electrical codes and other codes of the city relating to health,safety and related requirements for use and occupancy of buildings. Ordinance 6692—Exhibit B 5.10.040 General business license required. A. Any person desiring to establish or conduct any business enterprise or undertaking as defined in ACC 5.10.020 within the corporate limits of the city shall first apply to the business license clerk,as designated by the mayor, for a license to conduct such business and obtain such license as approved by the city.The application shall be upon a form furnished by the business license clerk on which the applicant shall state the business name, address,and telephone number;the owner's date of birth and government-issued identification number(e.g., driver's license number);the nature of the business activity or activities in which the applicant desires to engage;the place where the business will be conducted;the number of employees,and the name of the contact person along with an address,date of birth,government-issued identification number,and telephone number, and the business identification number issued by the state of Washington;and the IRS letter testifying to nonprofit status or the copy of the application to the IRS. B. This section sets forth examples of activities that constitute engaging in business in the City,and establishes safe harbors for certain of those activitiesso that aperson 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 ACC 5.10.020.F.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. 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,anoffice,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,courtreporters,dentists,doctors,detectives,laboratory operators, teachers,veterinarians. 12. Meeting with customers or potential customers,even when no sales or orders are solicited at the Ordinance 6692—Exhibit B meetings. 1.3. 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. 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 but the following, it need not register and obtain a business license. 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".Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. 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,provided that it engages in no other business activities in the City. Such activities do not include those in subsection(C). The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the licensefee under the law and the constitutionsof the United Statesand 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. F. Threshold Exemption. For purposes of the license 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 Director or designee.The threshold does not apply to regulatory license requirements or activities that require a specialized permit. G. It is unlawful for any person to operate or physically conduct any business within the city without having first obtained a general business license for the current business year or portion thereof.The applicant for a business license required under this title shall be over the age of 18 years.If any person required to pay a license fee,by the terms and provisions of this chapter,for any period fails or refuses to do so,they shall not be granted a license for the current period until such delinquent license fee,together with penalties,has been paid in full. Ordinance 6692—Exhibit B H. Specific businesses identified in Chapters 3.80,3.84,3.88,5.20,5.30 and 5.84 ACC or elsewhere in this title or other titles of the Auburn City Code will be required to obtain an individual business license as otherwise indicated. I. Any business within the city jurisdiction on any project requiring a permit must have a business license.