A.
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:
1. Engaging in Business.
a. "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.
b.
This section sets forth examples of activities that constitute engaging in business in the town, 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 town 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)(1)(a) of this section. If an activity is not listed, whether it constitutes engaging in business in the town 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 town by a person constitutes engaging in business and requires a person to register and obtain a business license:
i.
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 town.
ii.
Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the town.
iii.
Soliciting sales.
iv.
Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
v.
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.
vi.
Installing, constructing, or supervising installation or construction of real or tangible personal property.
vii.
Soliciting, negotiating, or approving franchise, license, or other similar agreements.
viii.
Collecting current or delinquent accounts.
ix.
Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
x.
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.
xi.
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.
xii.
Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
xiii.
Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the town, acting on its behalf, or for customers or potential customers.
xiv.
Investigating, resolving or otherwise assisting in resolving customer complaints.
xv.
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.
xvi.
Delivering goods in vehicles owned,· rented, leased, used or maintained by the person or another acting on its behalf.
2. "Home occupation"
means an occupation carried on by a resident of a dwelling as an accessory use within the same dwelling, including bed and breakfasts.
3. "Peddler"
means and includes the singular and the plural and shall also mean and include all persons, firms, associations, clubs, copartnerships or societies or any other organizations. The term "peddler" as used herein shall include all persons traveling by foot, automobile, vehicle or any other type of conveyance from place to place, from house to house or from street to street, carrying, conveying or transporting any goods or materials, appliances or personal property of any kind or nature and offering the same for sale or making sales and deliveries of such articles to purchasers or soliciting for orders or subscriptions thereof, or who without traveling from place to place shall sell or offer for sale from a vehicle or other conveyance or from the streets without having a fixed place of business, shall be deemed peddlers subject to the provisions of this chapter. Peddlers not moving from place to place will be confined to private property only with the owner's permission and shall meet requirements of all other ordinances including setback requirements; provided, however, this chapter shall not apply to any salesman, jobber or manufacturer's representative who solicits trade from wholesale or retail dealers in the town as long as the salesman, jobber or manufacturer's representative remains on the dealer's premises with permission and without interfering with the business of the dealer.
4. "Person"
means one or more natural persons of either sex, corporations, partnerships, limited liability companies, associations or other entities capable of having an action at law brought against such entity.
5. "Special event"
means those events or activities sponsored by the town.
6. "Business Licensing Service" and "BLS"
mean the office within the Washington State Department of Revenue providing business licensing services to the town.
B.
Exemptions. To the extent set forth in this subsection, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter: any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the town is equal to or less than two thousand dollars ($2,000.00) and who does not maintain a place of business within the town shall be exempt from the general business license requirement in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit or license.
Beginning January 1, 2026, the threshold amount is four thousand dollars ($4,000.00). The threshold amount will be adjusted every forty-eight (48) months on January 1st, by an amount equal to the increase in the Consumer Price Index ("CPI") for "West Urban, All Urban Consumers" (CPI-U) for each twelve (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 (forty-eight (48) month) CPI increase using each twelve (12) month period ending on June 30th of each prior year, and rounded to the nearest one hundred dollars ($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 forty-eight (48) month period, a zero percent increase will be used in computing the annual basis.
1.
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 town 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 town.
e.
Attending, but not participating in, a "trade show" or "multiple vendor events." Persons participating at a trade show shall review the town's trade show or multiple vendor event ordinances.
f.
Conducting advertising through the mail.
g.
Soliciting sales by phone from a location outside the town.
h.
Fundraising activities carried on by religious, charitable, benevolent, fraternal or social organizations.
i.
Garage and yard sales provided they are limited to a maximum of four days in length in any one instance and a limit of two per location per year.
j.
Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions.
k.
Any special event approved by the town.
2.
A seller located outside the town merely delivering goods into the town 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 town. Such activities do not include those in subsection (B)(1) of this section.
The town 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 benefits from the activity that constituted the original nexus-generating contact or subsequent contacts.
(Ord. 800 § 1, 2025; Ord. 770 § 1, 2023; Ord. 751 § 1(a), (b), 2021; Ord. 708 § 1(A), 2018; Ord. 422 § 1, 1993)