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6.08 - 1 CHAPTER 6.08 BUSINESS ACTIVITIES SECTION: 6.08.010: Definitions 6.08.015: Class 6.08.020: License Required 6.08.030: Authority 6.08.110: Multiple Businesses 6.08.150: License Fee, Fees Nonrefundable, Public Record 6.08.155: Handling Fees 6.08.160: Administrative Fee Review 6.08.250: Trade Shows, Expositions and Fairs 6.08.290: Exemptions 6.08.295: Temporary Activities 6.08.350: Late Payment Fee – License Cancellation 6.08.360: Collection by Civil Action 6.08.010: Definitions: “Business” means all activities, occupations, trades, independent contractors, pursuits or professions located or engaged in, within the City, with the object of gain, benefit, or advantage, directly or indirectly. Each business location shall be deemed a separate business except separate locations for storage only. “Business License Service” or “BLS” means the office within the Washington State Department of Revenue that administers the application and renewal of Class I General City Business Licenses on behalf of the City. “City” means the City of Kennewick, Washington. “Employee” means any person who performs work, labor, or services for a business and is on the business payroll. The term “employee” also includes self-employed persons, sole proprietors, owners, managers, partners, and all full-time, part-time, and temporary employees on the business payroll. “Gross Revenue” means the value proceeding or accruing from the sale of tangible personal property or for services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes or any other expense whatsoever, paid or accrued, and without any deduction on account of losses, and the value proceeding or accruing by reason of the transaction of the business engaged in, and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever, paid or accrued, and without any deduction on account of losses. “Independent Contractor” means a person who contracts to do a piece of work according to his own methods and subject to the employer’s control only as to the end product of his or her work. An independent contractor performs work but is not considered an “employee.” ---PAGE BREAK--- 6.08 - 2 “Person” means any individual, independent contractors, partnership, joint venture, company, firm, corporation, association, receiver, assignee, trustee, trust, estate, club or any group of individuals; dentistry, law, accountancy, surveying, engineering, or any of the other learned professions separately licensed by the state, shall be considered a person who must obtain the license required by Section 6.08.020, whether a member of a partnership or not, but a partnership consisting of professional members only shall not be required to have a separate license. “Value Proceeding or Accruing” means the consideration, whether money, credits, rights, or other property, expressed in terms of money, actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. Nonprofit business” or “nonprofit” means an organization that has been certified exempt from federal income tax under IRS Code 501(c) or (Ord. 5591 Sec. 8, 2015: Ord. 5066 Sec. 1, 2004: Ord. 5008 Sec. 4, 2003: Ord. 2542 Sec. 2 (part), 1980) 6.08.015: Class: General Business Licenses are Class I Licenses. (Ord. 5591 Sec. 9, 2015: Ord. 2542 Sec. 2 (part), 1980) 6.08.020: License Required: It is unlawful for any person to engage in business within the City,whether conducted from real property located within the City, or as a nonresident business entering the City to conduct business without having first obtained a business license from the City. If more than one business is conducted on a single premise, a separate license is required for each separate business conducted, operated, engaged in or practiced. If a business is conducted from more than one premise in the City, a separate license shall be required for each premises within the City. Each application for licensure must be submitted with all required information and accompanied by all fees due. Applications submitted incomplete and remaining incomplete for 120 or more days will be considered abandoned and may be withdrawn by the license officer. (Ord. 5591 Sec. 10, 2015: Ord. 5008 Sec. 5, 2003: Ord. 2542 Sec. 2 (part), 1980: Ord. 1043 Sec. 6, 1960) 6.08.030: Authority: The provisions of this Chapter shall be deemed an exercise of the power of the City to license for revenue. (Ord. 2542 Sec. 2 (part), 1980: Ord. 1043 Sec. 7, 1960) 6.08.110: Multiple Businesses: Where more than one of any of the businesses for which a license is required is carried on by the same person in the same location, then such person shall pay the highest license fee in this Chapter required for any such businesses and no license fee shall be required for the other businesses there carried on. (Ord. 2542 Sec. 2 (part), 1980: Ord. 1043 Sec. 13, 1960) 6.08.150: License Fee, Fees Nonrefundable, Public Record: The annual fee for the business license issued hereunder is the sum of fifty-five dollars ($55.00) plus five dollars ($5.00) for each employee. The annual fee amount may be prorated to accommodate of a license expiration date with a date established by the Business License Service. The number of employees is determined by: Adding the total number of hours worked by all employees within the City limits of Kennewick during the twelve (12) month period immediately preceding the year for which the license fee is payable, divided by one ---PAGE BREAK--- 6.08 - 3 thousand nine hundred twenty (1,920), the annual, per person full time work hour figure used by the Washington State Department of Labor and Industries. The result must be rounded to the nearest whole number. Employers without 12 months employment history must estimate the number of employee hours that will be worked during the coming 12-month period and use the above calculation on that total. Business licenses issued under this Chapter are effective upon approval and must be renewed through the Business License Service annually on or before the expiration date of the license in order to continue business after the expiration date. Businesses required to obtain a license must do so prior to engaging in or conducting business within the City. Failure to obtain a business license prior to engaging in or conducting business requires an expedited review of the application. Businesses that require an expedited review of their application must pay a fee of $100.00 in addition to the total license fee due. The expedited review fee must be paid directly to the City and is not part of the license application administered through the Business Licensing Fee. Expedited review is required for businesses that need review in less than the processing time under the provisions of KMC 6.01.070(1)(c). The fees paid under this section are nonrefundable. The business name and address of each licensed business are considered public records under Chapter 42.17 RCW, and subject to public record disclosure. (Ord. 5591 Sec 11, 2015: Ord. 5066 Sec. 2, 2004: Ord. 5008 Sec. 6, 2003: Ord. 2542 Sec. 2 (part), 1980: Ord. 2419 Sec. 1, 1979: Ord. 1287 Sec. 1, 1964: Ord. 1043 Sec. 17, 1960) 6.08.155: Handling Fees: All business license applications and renewals filed through the Business Licensing Service must include payment of the handling fees authorized by RCW 19.02.075 and WAC 458-02-200. (Ord. 5591 Sec. 16, 2015) 6.08.160: Administrative Fee Review: A licensee can seek administrative relief to the fee calculation if the licensee can demonstrate one of the following conditions: The license fee calculation is inconsistent with the intent of Title 6 licensing provisions. The license fee places an undue burden on a particular business compared to the fee calculations of other businesses of similar size and classification. The license fee causes undue hardship on a particular business that would preclude efficient and cost effective management of the business. The applicant must submit full fees otherwise due as well as the appropriate complete application or renewal filing before submitting a request for relief to the License Officer. Any dispute concerning the final determination of the fee calculation following an administrative review must be resolved in accordance with Chapter 4.04 KMC. A final determination, resulting in a fee relief, will be handled by a refund made by the City to the appellant. (Ord. 5591 Sec. 12, 2015: Ord. 5066 Sec. 14, 2004) 6.08.250: Trade Shows, Expositions and Fairs: Special business licensing and permitting of trade shows, expositions, fairs and other temporary activities, the purpose of which is to display wares, take orders or promote products and services collectively for a period not exceeding ten days, will be administered internally by the City, and is not handled through the ---PAGE BREAK--- 6.08 - 4 BLS process. Such activities will be taxed at the rate of $15.00 per exhibitor, except businesses already holding a Kennewick business license will be issued a supplemental license for the period of the activity. In no case will the total special business license for such a fair exceed $300.00. The promoter is responsible for the collection and payment of the fees imposed under this Section and otherwise in this code in accord with such rules and regulations as the License Officer may impose. (Ord. 5591 Sec. 13, 2015: Ord. 5008 Sec. 7, 2003: Ord. 3051 Sec. 2, 1987) 6.08.290: Exemptions: The provisions of 6.08.150 shall not apply to: Any person, firm or corporation which the City of Kennewick is forbidden to tax by law; Accredited public or private schools, colleges or universities, as to their education endeavors, churches and other religious bodies as to their religious activities, fraternal organizations and lodges as to their fraternal and lodge activities, civic and charitable organizations, including nonprofit hospitals and clinics, as to their civic and charitable activities, but not as to any business activities by these entities. All business activities for profit are taxed under this Chapter; Transitory businesses such as traveling shows, entertainers, circuses, etc.; and Utilities to the extent taxed by Chapter 3.70. Small Businesses: Persons who do not have gross revenues in excess of twelve thousand dollars ($12,000.00) per year from business activities of the previous license year, are exempt from seeking a city business license and paying a license fee, but in computing gross revenue, revenue from outside the City must be included. Proof of income shown by filed federal and/or state tax returns from the prior year must be maintained and presented upon demand to the City of Kennewick Finance Department. Persons commencing business who will not have annual gross income in excess of twelve thousand dollars ($12,000.00) and are not required to register with the Washington State Department of Revenue are exempt from seeking a city business license and paying a license fee, but in computing gross revenue, revenue from outside the City must be included. Proof of income shown by filed federal and/or state tax returns from the prior year must be maintained and presented upon demand to the City of Kennewick Finance Department. Contributions Authorized. Any entity exempt by law or ordinance is authorized to make a contribution to the General Fund as if the exemption were not provided. (Ord. 5661 Sec. 1, 2016: Ord. 5591 Sec. 14, 2015: Ord. 3322 Sec. 3, 1991: Ord. 2975 Sec. 1 (part), 1986: Ord. 2542 Sec. 2 (part), 1980) 6.08.295: Temporary Activities: Transitory businesses such as traveling shows, entertainers, circuses, etc., and other business activities of a temporary nature must apply directly with the City for a special temporary business license. Temporary licenses are handled by the Class I License Officer and are not included in the application process administered by the Business Licensing Service. (Ord. 5591 Sec. 17, 2015) 6.08.350: Late Payment Fee – License Cancellation: Businesses must renew their license on or before the expiration date. Any business which fails to renew by the expiration date ---PAGE BREAK--- 6.08 - 5 may be assessed the late penalty authorized in RCW 19.02.085. A license that remains delinquent for 120 or more days after the expiration date will be cancelled. Cancellation of a license requires reapplication for a business license in order to conduct business within the City. (Ord. 5591 Sec. 15, 2015: Ord. 5008 Sec. 9, 2003: Ord. 2542 Sec. 2 (part), 1980: Ord. 1197 Sec. 3, 1962: Ord. 1043 Sec. 42, 1960) 6.08.360: Collection by Civil Action: The City shall have the power to institute suit or action in any court of competent jurisdiction for the purpose of collecting any license fees and late payment fees that are due and payable. (Ord. 2542 Sec. 2 (part), 1980: Ord. 1043 Sec. 44, 1960)