The City Council finds that in order for the City of Mountlake Terrace to responsibly carry out the duties and authorities delegated to it by the Washington State Constitution and the laws of the state of Washington as a non-charter code city, maintenance of current information with respect to business, trade, service, commercial and professional activities carried on within the City is necessary and essential for the maintenance of the public health, safety and welfare; and that such information can best be accumulated and maintained on a current basis through establishment of a license fee supported program for the licensing of such activities. The provisions of this chapter shall be deemed an exercise of power of the City to license for revenue.
(Ord. 2846 § 1, 2024)
In construing the provisions of this chapter, save when otherwise declared or clearly apparent from the context, the following definitions shall be applied:
A. 
"Business"
means commencing, conducting, or continuing in business and also the exercise of corporate or franchise powers, including nonprofit corporations, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business.
1. 
"Engaging in business"
means 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 benefits from the activity that constituted the original nexus generating contact or subsequent contacts. This section sets forth examples of activities that constitute engaging in business in the City and establishes safe harbors for certain 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 (A)(2) of this section.
If an activity is not listed, the City shall determine whether it constitutes engaging in business by considering all the facts and circumstances and applicable law.
2. 
Without being all inclusive, any one of the following activities conducted physically within the City constitutes engaging in business and requires a person to register and obtain a business license:
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.
i. 
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, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.
l. 
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.
m. 
Investigating, resolving, or otherwise assisting in resolving customer complaints.
n. 
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.
o. 
Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
3. 
If engaging 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 directors 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 "mutiple 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.
h. 
Sale of one's own residence.
i. 
Activities that are within the term and scope of a City-operated and City-managed parks event that would otherwise be exempt if it was conducted pursuant to a special event permit.
4. 
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 (A)(3) of this section.
B. 
"Business Licensing Service" or "BLS"
means the office within the Washington State Department of Revenue providing business licensing services to the City.
C. 
"City"
means the City of Mountlake Terrace.
D. 
"Person"
means any individual, receiver, assignee, trustee in bankruptcy, trust, company, firm, co-partnership, joint venture company, joint stock company, business trust, corporation, association, or any group of individuals acting as a unit. It shall not include any type of association of a religious nature, nor shall it include any public or private school or members of associations thereof.
E. 
"Retail business activity"
means and includes all activities, engaged in with the object of gain, benefit or advantage to the taxpayer or to another person or class, directly or indirectly, carried on for the purpose of selling goods or services to ultimate consumers. It shall not include those activities engaged in to make sales at wholesale, nor those activities carried on for the purpose of making sales to persons for the purpose of their making a resale in the regular course of business. The term includes those activities carried on by professional persons for the purpose of rendering benefits and services to ultimate consumers. Professional persons include, but are not limited to, the following: physicians, veterinarians, dentists, lawyers, engineers, architects, obstetricians and real estate brokers.
F. 
"Taxpayer"
means and includes any individual, group of individuals, corporations or associations required to have a business license hereunder, or liable for any license fee or tax, or for the collection of any license fee or tax hereunder, or who engages in any business, or who performs any act, service, or labor receiving wages, salary, commission or other compensation having monetary value.
(Ord. 2846 § 1, 2024)
It is unlawful for any person to engage in any business in the City that is conducted, operated, engaged in or practiced in whole or in part within the City without first having registered with and obtained a business license from the City. If more than one business owner conducts business on a single location, a separate registration and license shall be required for each separate business conducted, operated, engaged in or practiced. If a business is conducted from more than one location in the City, a separate license shall be required for each location with the City. Each location refers to a physical location and is not intended to apply to mobile businesses. A change of physical location of the business must be reported to the business licensing service and will require re-approval by the City prior to commencing business at the new location. A change of location may require submitting a new application and payment of fees as provided for in this chapter.
(Ord. 2846 § 1, 2024)
For purposes of the license required 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 $12,000, 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 other activities that require a specialized permit.
The threshold amount of $12,000 will be adjusted January 1, 2030, and every 48 months thereafter by an amount equal to the increase in the Consumer Price Index ("CPI") for "West Urban, All Urban Consumers" (CPI-U) for each 12-month period ending on June 30th as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (48-month) CPI increase using each 12-month period ending on June 30th of each prior year, and rounded to the nearest $100.00. However, if any of the annual CPI increases are more than five percent, a five percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the 48-month period, a zero percent increase will be used in computing the annual basis.
(Ord. 2846 § 1, 2024; Ord. 2892 § 1, 2025)
The provisions of this chapter shall not apply to any person engaging in any of the following enumerate business activities:
A. 
Electric power companies;
B. 
Telephone companies;
C. 
Bus franchises;
D. 
Franchised gas companies;
E. 
Handbill distributors;
F. 
Any and all businesses franchised by the City;
G. 
Vendors providing software as a service (SAAS); and
H. 
Any person identified in MTMC § 5.08.040 exempted from the peddler's license required by the City under Chapter 5.08 MTMC.
(Ord. 2846 § 1, 2024)
A. 
Application for business license shall be made by submitting a business license application to the business licensing service (BLS). The application must include all information required by BLS and include all fees due for all licenses being requested, including the handling fee required by RCW 19.02.075. The license will expire on the date established by BLS and must be renewed on or before that date to continue conducting business in the City. The renewal application must include all information and fees required for all the licenses being renewed, including the handling fee required by RCW 19.02.075. Failure to renew by the expiration date will incur the late renewal penalty required by RCW 19.02.085. Licenses exceeding 120 days of delinquency will be canceled and will require reapplication as provided for in this chapter to continue conducting business in the City.
B. 
The City Community and Economic Development Department, upon receipt of the information submitted on a completed application, shall conduct an investigation and review of the application. The business license shall be approved or denied within 30 days of the date of receipt of the completed application information.
C. 
If an application is refused, the reason for refusal shall be set forth in writing and mailed electronically to the applicant at the email address set forth in the application. The applicant may appeal such refusal to the Hearing Examiner by filing a notice of appeal within 14 days of mailing of the notice of refusal. Upon receipt of a notice of appeal, the Hearing Examiner shall provide for a hearing thereon.
1. 
The City Community and Economic Development Department may refuse to issue a license to a proposed business, or refuse to renew a license, or revoke a business license, for the following reasons:
a. 
Knowingly causes, aids, abets, or conspires with another to cause any person to violate any of the laws or regulations of this state or the City which may affect or relate to the licensed business;
b. 
Has obtained a license or permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;
c. 
Is convicted of, forfeits bond upon, or pleads guilty to any offenses related to the operation of the licensed business or had a license revoked or suspended by the City or another jurisdiction;
d. 
Makes a misrepresentation or fails to disclose a material fact to the City related to any of the obligations set forth in this chapter;
e. 
Violates any building, safety, fire or health regulation on the premises in which the business is located after receiving warning from the City to refrain from such violations; or
f. 
Is in violation of a zoning regulation or any other regulation of the City;
g. 
Is indebted or obligated to the City for past due fees or taxes, excluding special assessments such as LID assessments.
(Ord. 2846 § 1, 2024)
The license fees and tax herein levied shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the City except as herein otherwise expressly provided.
(Ord. 2846 § 1, 2024)
A. 
Any person violating or failing to comply with any of the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine in an amount not to exceed $1,000, or by imprisonment in jail for a term not exceeding 30 days, or by both such fine and imprisonment.
B. 
A business failing to obtain or maintain a currently valid license and yet conducting business within the City is hereby declared to be a public nuisance. Any person who obtains a City business license and thereafter ceases to engage in business shall so notify the City in writing. A business shall be presumed to continue in operation within the City until the City receives such notice of termination of business activities and enforcement proceedings may be conducted on the basis of this presumption. There shall be no pro rata refund of the basic license fee.
(Ord. 2846 § 1, 2024)