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ORDINANCE NO. 4287
I
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending various
sections of Chapter 5.01 of the Kent City Code,
entitled "General Business Licenses," to adopt
mandatory code provisions required by RCW
35.90.080, which the state Legislature adopted
during its 2017 session and required be in place by
January 1, 2019, by any city that imposes a
general business license requirement.
RECITALS
A. In 2017, the state passed legislation requiring cities with
business licenses to establish a workgroup through the Association of
Washington Cities (AWC) to create a model business license ordinance by
July 1, 2018. This legislation was codified in Chapter 35.90 of the Revised
Code of Washington (RCW). In addition, any city that imposes a general
business license requirement was required by RCW 35.90.080(2) to adopt,
by January 1, 2019, two mandatory provisions provided for in the model
business license ordinance—one that defines "engaging in business within
the city" and one that establishes a $2,000 minimum licensing threshold
under which a person would be relieved of the city's general business
licensing requirement. While the statute authorized cities to create a
higher threshold than that required by the model ordinance, they could
not deviate lower than the level required by the model ordinance.
1 Amend Chapter 5.01 KCC -
Re: Business License Threshold Exemption
B. The model ordinance was timely created and included
provisions that defined "engaging in business" and established a business
licensing threshold for out-of-town or transient businesses at $2,000 in
annual value of products, gross proceeds of sales, or gross business
income. These are the two mandatory provisions RCW 35.90.080(2)
requires the City adopt by January 1, 2019 in order to continue applying
and enforcing its general business license requirement.
C. In order to comply with RCW 35.90.080 and adopt the
mandatory provisions into the City's business licensing code, various
sections of Chapter 5.01 of the Kent City Code need to be revised. This
ordinance makes those revisions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE,
SECTION 1. - Amendment. Section 5.01.020 of the Kent City
Code, entitled "Definitions," is hereby amended as follows:
Section 5.01.020. Definitions. Unless the context clearly requires
otherwise, the definitions in this section apply throughout this chapter.
A. Business means all activities, occupations, pursuits, or professions
located and/or engaged in within the city, with the object of gain, benefit or
advantage to the person engaging in the same, or to any other person or
class, directly or indirectly, and includes nonprofit enterprises. The term
business shall also mean apartment and residential rental properties of two
or more units, as well as rental housing and rental property as those terms
are defined in Chapter 5.14 KCC, but shall not mean governmental agencies.
2 Amend Chapter 5.01 KCC -
Re: Business License Threshold Exemption
B. Business enterprise means each location at which business is
conducted within the city. A business may have more than one business
enterprise within the city.
C. Director means the finance director of the city or his or her
designee.
D. Department means the finance department of the city.
EEngaging. in business:.
1. The term "engaging in business" means commgncing,
conducting, or continuing in business, and also the exercise of corporate
or franchise powers, as welll as (liquidating a business when the liquidators
thereof hold themselves out to the public as conducting such business.
7 Thic cprtinn cote fnrth pvamnlpc of Artivitipc that rnnctifiitp
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
minimis business activities in the city without having to register and obtain
a business license or pay City business and occupation taxes. The activities
listed in this section are illustrative only and are not intended to narrow
the definition of "engaging in business" in subsection (1). If an activity is
not lictprl Whpthpr it rnnctifiitpc pnnaninn in hiicinpcc in the rity chall ha
rdptprminprl by rnncirdprinn all the farfc and rirriimcfanrac and Annlirandp
law.
'i Withniif hpinn all inrlimivp Anv nnp of the fnllnwinn Arfivitdpc
conducted within the city by a person, or its employee,
representative, independent contractor, broker or another actin on its
behalf constitutes engaging in business and requires a person to register
and obtain a business license.
a. Owning renting. leasinc_y_maintaining. or having the
right to use or using tangible_.personal property, intangible personal
p>o erty, or real property permanently or temporarily located In the city.
3 Amend Chapter 5.01 KCC -
Re: Business License Threshold Exemption
b. Owning, rentina, leasing, using, or maintaining, an
nffirp nl;4rp of hiiczinPqq nr r)thi-r iqt;;hIi,,hi-nint in the ritv
C. Soliciting sales.
d. Making repairs or providing maintenance or service to
real or tangible per5onal 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 tong iblepersonal property sold by the person or on its behalf.
f. Installing, constructing, or supervising installation or
construction of, real or tangible personal property.
n qnlirifinn
negotiating, or ;4nnrr)%/inci fr;inChjSe, kense,
or other similar agreements.
h. Collecting current or delinquent accounts.
i Pirkinn i in Anri ti-Anvnni-tinn fAnnihIp nprqnnAl nrnnprtv
solid waste, construction debris, or excavated materials.
i Prnvirlinn rficzinfPrfinn qnri ni-cf ronfi-ni -,,-rx/irpq
employment and labor pool services, home nursing g1rig, Janitorial
services, appraising, landscape architectural servige5, security system
services, surveying, and real estate services including the listing of homes
and' managing real property.
1. Renderingprofessional services such as those provided
bv accountants.-architects,, attorneys, guctioneer5, consultants, engineers,
professional athletes, barbers, baseball club 5 and other sports
nrnRni7Rfinnq rhpmiqf, rnni ilt,;;ntr nrvrhc)lnnitq rmirt rpnnrtpr,-
---- -- -------------
dentists, doctors, detectives, laboratory
I. Meeting with customers or notential customers even
when no sa1pr gr ni-ripm ;4rp qn1irit-PrI ;;t the mpi-flnncz
M. Training or recruiting agents, representatives„
independent contractors, brokers or others domidled or operating on a
4 Amend Chapter 5.01 KCC-
Re: Business License Threshold Exemption
job in the city, acting, on its behalf, or for customers or potential
customers.
n. InvestN atin resolvin or otherwise assistin in
resolving customer complaints.
o. I:n-store 5tpckjng per manipulating g roducts or goods,
sold to and owned by a customer, regardless of where sale and delivery of
the goods took place.
P. Delivering oods in vehicles owned rented leased
i icpri nr maintainpri by the nprcnn nr annthpr artinn nn itc hphalf
9. Acce tin r executing a contract with the city.
irrespective of whether goods or services are delivered within or without
the city, or whether the erson`s office_or_ lace of business is within or
without the city.
4. Tf a nersnn. or its emolovee. 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 rpnictpr anri nhtain a hi iciness licence anri nay tay
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.
r Attpnriinn mpptinnc ciirh ac hnarri mpptinnc ratrpatc
seminars, and conferences, or other meetings wherein the person does
not provide training in connection with tangible persgnal property sgld by
the pgrsgn 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
A.then the nrnnprty is not i icpri in the rity
5 Amend Chapter 5.01 KCC-
Re: Business License Threshold Exemption
e. Attending, but not participating in a "trade show" or
"multiple vendor events". Persons oarticiDatina at a trade show shall
review the city"s trade show or multiple vendor event ordinances.
f Conducting arivarticinn thrnilnh tha mail
n Snliritinn calac by nhnna frnm a Inratinn nntciria tha rity
S A collar Inratari niitcirla tha rity maraly rialiyarinn nnnric intn
the city by means of common carrier is not re uired to re ister 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 M.
6. The city expressly intends that engaging in business includes
any activity sufficient to establish nexus for purposes of annlyinn tho
license fee under the law and the constitutions of the United States and
the .C.tote of vui ini t ii. ,v cxuca is resumed to xrnnntiniin nc Innnn ac the
licensee benefits from the activity that constituted the original nexus
generating contact or subsequent contacts.
EF. Licensee means any business or business enterprise that applies for
or is granted a business license. The term licensee shall also mean the
person who submits a business license for approval, the owner or operator
of a business or business enterprise, and any corporation, partnership,
nonprofit, or organization which owns or operates the business or business
enterprise.
SECTION 2. - Amendment. Section 5.01.040 of the Kent City
Code, entitled "General business license required," is hereby amended as
follows:
Sec. 5.01.040. General business license required. Except as
provided in KCC 5,01,045, i1t is unlawful for any business to operate in the
city without having first obtained a general business license for the current
calendar year or unexpired portion thereof and paid the fees prescribed in
this chapter; provided, that a business solely owned and operated by a
6 Amend Chapter 5.01 KCC -
Re: Business License Threshold Exemption
person under the age of eighteen (18) years shall not be required to have
a business license. A business with premises, primary places of business,
or main offices outside the city limits must be licensed before conducting
business within the city limits.
SECTION 3. - Amendment. Chapter 5.01 KCC is amended by adding
a new Section 5.01.045, entitled "Threshold exemption," as follows:
Sec. 5.01.045. Threshold exemption. 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.
SECTION 4. - Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
SECTION S. - Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering; or
references to other local, state, or federal laws, codes, rules, or regulations.
7 Amend Chapter 5.01 KCC -
Re: Business License Threshold Exemption
SECTION 6. - Effective Date. This ordinance shall take effect and
be in force thirty days from and after its passage, as provided by law.
r
November 6 2018,
DANA RALPH, MAYOR Date Approved
ATTEST:
November 6 2018
KIMBERLEY A 'OTO, CITY RK Date Adopted
November 9. 2018
Date Published
APPROVED AS TO FORK ,
ARTHUR PAT I` GPA RICK, 61TY ATTORNEY
8 Amend Chapter 5.01 KCC-
Re: Business License Threshold Exemption
STATE OF WASHINGTON, COUNTY OF KING }
AFFIDAVIT OF PUBLICATION
PUBLIC NOTICE
Polly Shepherd, being first duly sworn on oath that she is the
Publisher of the
Kent Reporter
a weekly newspaper, which newspaper is a legal newspaper of general
circulation and is now and has been for more than six months prior to the date
of publication hereinafter referred to, published in the English language
continuously as a weekly newspaper in King County, Washington. The
Kent Reporter has been approved as a Legal Newspaper by order of
the Superior Court of the State of Washington for King County.
The notice in the exact form annexed was published in regular issues of
the Kent Reporter(and not in supplement form) which was regularly
distributed to its subscribers during the below stated period. The annexed
notice, a:
Public Notice
was published on November 9, 2018 .
The full amount of the fee charged for said foregoing publication is the
sum of$108.00 .
Polly Shepherd
Publisher, Kent Reporter
Subscribed and sworn to me this 9' day of November, 2018 .
YJe fez Tribbett;"1Wotary Public for the State of Washington, Residing in
Orting, Washington
'X i C➢ F:;
In
C
t
CITY OF KENT
NOTICE OF ORDINANCE AND RESOLUTION
PASSED BY THE CITY COUNCIL
The following are summaries of the ordinance and resolution passed by the Kent City
Council on November 6, 2018:
ORDINANCE NO. 4287- AN ORDINANCE of the City Council of the City of Kent,
Washington, amending various sections of Chapter 5.01 of the Kent City Code,
entitled "General Business Licenses," to adopt mandatory code provisions required
by RCW 35.90.080, which the state Legislature adopted during its 2017 session and
required be in place by January 1, 2019, by any city that imposes a general business
license requirement.
This ordinance shall take effect and be in force thirty days from and after its
passage, as provided by law.
RESOLUTION NO. 1977 - A RESOLUTION of the City Council of the City of Kent,
Washington, approving the Federal Way Link Extension Project Development
Agreement between the City of Kent and Sound Transit.
This resolution shall take effect and be in force immediately upon its passage.
A copy of the complete text of any ordinance or resolution will be mailed upon
request of the City Clerk.
Kimberley A. Komoto, City Clerk
16 Fridr'.. Noveinik 9,2018 Kent Reporter
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