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HomeMy WebLinkAboutReg 2025-08-18 Item 5A - Ordinance - Business Licenses & Regulations Amendment (TMC Chapter 5.04)COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 8/11/25 AJS 8/18/25 An ITEM INFORMATION ITEM NO. 5.A. STAFF SPONSOR: ADAM SCHIERENBECK ORIGINAL AGENDA DATE: 8/11/25 AGENDA ITEM TITLE Business Licensing - Amendments to Chapter 5.04 TMC CATEGORY Discussion Mtg Date 8/11/25 Motion Mtg Date 8/18/25 E Resolution Mtg Date Ordinance Mtg Date 8/18/25 n Bid Award Mtg Date I- Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ®.Finance ❑ Fire ❑ P&R ❑ Police ❑ PIr SPONSOR'S SUMMARY The Finance Department is seeking to amend Chapter 5.04 TMC pertaining to business licensing. The recommended amendments align the code with current practice, create administrative efficiencies, and strengthen enforcement of the City's business licensing requirements. The amendments also include a change to the minimum threshold under which the license fee is waived for nonresident businesses, as mandated by the Washington State Business License Model Ordinance effective January 1, 2026. REVIEWED BY ❑ Trans&infrastructure Svcs ❑ Community Svcs/Safety a Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: 7/ 28/ 25 ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: PAPYAN RECOMMENDATIONS: SPONSOR/ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to 8/11/25 Committee of the Whole Mtg COST IMPACT / FUND SOURCE EXPENDI'T'URE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 8/11/25 Consensus to Forward to the 8/18/25 Regular Council Meeting MTG. DATE ATTACHMENTS 8/11/25 Informational Memorandum dated 7/22/25 Draft Business License Ordinance - updated after 7/28 Finance & Governance Committee 2026 Business License Model Threshold Update (AWC Publication) Minutes from 07/28/25 Finance & Governance Committee Meeting 8/18/25 Final Ordinance 3 • Washington rdinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING VARIOUS ORDINANCES AS CODIFIED THROUGHOUT TUKWILA MUNICIPAL CODE (TMC) CHAPTER 5.04, "BUSINESS LICENSES & REGULATIONS,"; REPEALING TMC SECTIONS 5.04.050, 5.04.080, AND 5.04.105; ESTABLISHING TMC SECTIONS 5.04.140 AND 5.04.150; TO AMEND THE BUSINESS LICENSE FEES, MINIMUM THRESHOLD, AND ADMINISTRATIVE PROVISIONS RELATED TO BUSINESS LICENSING; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, in 2019, the City joined into a partnership with the Washington State Department of Revenue (DOR) for administering City business license applications and issuing City business license endorsements; and WHEREAS, RCW 35.90.080 requires the City to adopt the mandatory provisions of the model ordinance developed by Washington cities when imposing a general business license requirement, including a minimum threshold under which a nonresident business is relieved of the requirement to pay the business license fee, which will be amended effective January 1, 2026; and WHEREAS, additional amendments to the City's business licensing code will align the code with current practice, create administrative efficiencies, and strengthen enforcement of the City's business licensing requirements; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 5.04.010 Amended. Ordinance Nos. 2315 §1 (part), 2333 §1, 2356 §1, 2381 §1, 2496 §1, 2544 §2, and 2588 §2, as codified at TMC Section 5.04.010, "Definitions," are hereby amended to read as follows: 5.04.010 Definitions For the purpose of this chapter, the following definitions shall apply: 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 1 of 13 4 1. "Business," means all activities, occupations, trades, 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, whether or not an office or physical location for the business lies within the City limits. 2. "Department," means Finance Department. 3. "Director," means the Finance Director or his or her designee. 4. "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. a. This section sets forth examples of activities that constitute 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 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" as defined above. 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. b. 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, an office, 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. 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 2 of 13 5 (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, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (12) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (13)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. c. 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. 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 3 of 13 6 (7) Soliciting sales by phone from a location outside the City. d. 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 5.04.010(4)(c). e. The City 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. 5. "License or licensee" means any business that applies for or is granted a business license. The term shall also mean the person who submits a business license application for approval, the owner or operator of a business, and any corporation, partnership, nonprofit, or organization which owns or operates the business. 6. "Person," means any individual, receiver, agent, trustee in bankruptcy, trust, estate, firm, co -partnership, joint venture, company, joint stock company, business trust, corporation, society, or group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. 7. "Person engaged in business" means the owner or one primarily beneficially interested in lawful business for profit and not employees. 8. "Home occupation" means any business conducted in a residence within the corporate city limits of Tukwila, such business being subject to the requirements set forth in TMC Chapter 18.06, "Definitions," in the section entitled "Home Occupation." 9. "Employee" means any individual employed at any business who performs any part of their duties within the City of Tukwila or reports from a location within the City's corporate limits including all full-time, part-time, and temporary employees or workers. The term includes self-employed persons, sole proprietors, owners, officers, managers, and partners. An independent contractor is not an employee. 10. "Business Licensing Service" or "BLS" means the office within the Washington State Department of Revenue providing business licensing services to the City. 11. "Business license" means a license issued by the City authorizing a person to engage in business within the City. "Business license" also means the licensing document produced by the Business Licensing Service upon which the City -issued business license appears as an endorsement. 12. "City" means the City of Tukwila. 13. "Place of business" means a temporary or permanent physical location within City limits where business is conducted or is intended to be conducted. Section 2. TMC Section 5.04.012 Amended. Ordinance No. 2315 §1 (part), as codified at TMC Section 5.04.012, "Purpose," is hereby amended to read as follows: 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 4 of 13 7 5.04.012 Purpose The provisions of this chapter shall be deemed an exercise of the power of the City to license for regulation and for revenue. Section 3. TMC Section 5.04.020 Amended. Ordinance Nos. 2315 §1 (part), 2333 §3, 2356 §2, 2381 §3, 2496 §2, 2544 §3, and 2588 §4, as codified at TMC Section 5.04.020, "Applications and fees required," is hereby amended to read as follows: 5.04.020 Applications and fees required A. Application Required. Any person desiring to establish or conduct any business within the corporate limits of the City shall first file a business license application through the BLS. The application shall be upon a form furnished by the BLS on which the applicant shall state the company name and address; the nature of the business activity or activities in which he/she desires to engage; the place where the business will be conducted; the number of employees, whether full or part-time and other information pertaining to the business as required by the City or BLS. The applicant shall be required to provide all information requested on said form and failure to do so shall be grounds for refusing to issue the business license. If a person maintains more than one place of business within the City, a separate general business license registration is required for each business. Owners of residential rental property are not subject to the application requirements in this chapter but shall adhere to the rental business license and inspection program requirements in TMC Chapter 5.06. B. Fee — General. The application must be accompanied by the appropriate business license fee as adopted by separate resolution of the City Council, as well as the BLS handling fee required by RCW 19.02.075. For persons with a place of business in the City, the business license fee shall be determined based on the total number of employees.. If the number of employees is not known at the time of application or renewal of the license, the business shall estimate the maximum number of employees they anticipate working any time during the 12-month period subject to licensure and remit the associated business license fee. It will be the responsibility of the business to determine the total number of employees and, if required, demonstrate to the satisfaction of the Director that the information pertaining to the business license fee is accurate. C. Minimum Threshold. 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 the threshold amount provided in this subsection and who does not maintain a place of business within the City, shall submit a business license registration to the Director but is exempt from the business license fee requirement as provided in this chapter. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. 1. Prior to January 1, 2026, the threshold amount is $2,000 per calendar year. 2. Beginning January 1, 2026, the threshold amount is $4,000 per calendar year. The threshold amount will be adjusted every forty-eight months on January 1, 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 30 as published by the 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 5 of 13 8 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 -month) CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis, and if any of the annual CPI decreased during the forty -eight - month period, a zero (0) percent increase will be used in computing the annual basis. D. Over -reporting of Employees. In the event the licensee overreported the number of employees, resulting in an overpayment of the business license fee as a result, the licensee may request that the City refund the overpayment. The request must be made in writing to the Finance Department, and the City must receive the refund request and all supporting documentation no later than 60 days after the end of the calendar year in which the overpayment was made. If the City is satisfied the licensee paid an excess business license fee, the City will refund the excess amount. E. Under -reporting of Employees. If, at the time of license renewal, the City determines the business owner underreported the number of employees for the preceding license period or has otherwise underpaid the business license fee properly due, the business shall pay the balance of the corrected business license fee within 30 days of the date the written notice is mailed by the City. An additional penalty as adopted by separate resolution of the City Council shall be assessed if payment is not received by the notice due date or any extension thereof. Section 4. TMC Section 5.04.030 Amended. Ordinance Nos. 2315 §1 (part) and 2588 §5, as codified at TMC Section 5.04.030, "Issuance of a license and annual renewal," is hereby amended to read as follows: 5.04.030 Issuance of a license and annual renewal A. Upon review and approval of a business license application by the City, the BLS shall issue a business license to the applicant. The license shall grant to the applicant the privilege to conduct such business at a designated location in the City for the license period set forth in TMC Section 5.04.040. B. Persons continuing to engage in business within the City shall renew their business license(s) each year. Businesses must pay a renewal fee, as well as the BLS handling fee required by RCW 19.02.075. Persons who do not renew their business license by the expiration date may be subject to a late renewal penalty charged by the BLS as provided in RCW 19.02.085. C. Failure to renew a business license within one hundred twenty (120) days of expiration will result in the cancellation of the license and will require a new application for a business license to engage in business in the City. Section 5. TMC Section 5.04.040 Amended. Ordinance Nos. 2315 §1 (part), 2333 §4, and 2356 §3, as codified at TMC Section 5.04.040, "Prorating fee," is hereby amended to read as follows: 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 6 of 13 9 5.04.040 License period The license fee set forth in this chapter for new business license applications shall be for the period beginning the date the business license application is submitted by the licensee through the last day of the same month in the following year. The license fee for business license renewals shall be for one year following the date of the prior business license expiration date. License fees are not refundable and are not prorated, except as provided in TMC Section 5.04.100, regardless of whether the business operates for the entire license period, or whether the business license is denied, revoked, withdrawn or suspended with cause. Section 6. Repealer. Ordinance Nos. 2315 §1 (part), 2333 §5, 2356 §, 2381 §4, 2496 §3, and 2544 §4, as codified at TMC Section 5.04.050, "Late acquisition or renewal", are hereby repealed, thereby eliminating this section: Section 7. TMC Section 5.04.060 Amended. Ordinance No. 2315 §1 (part), as codified at TMC Section 5.04.060, "Transferability," is hereby amended to read as follows: 5.04.060 Transferability The license granted in pursuance hereof shall be personal to the licensee and it shall not be assignable or transferable to any other person. A change in the Unified Business Identifier issued by the Washington State Department of Revenue will require the submission of a new business license application and payment of the applicable business license fee as set forth in this chapter. Section 8. TMC Section 5.04.070 Amended. Ordinance Nos. 2315 §1 (part), 2333 §6, 2356 §5, 2381 §5, and 2496 §4, as codified at TMC Section 5.04.070, "Change in UBI #, ownership, physical location or nature of business," is hereby amended to read as follows: 5.04.070 Change in physical location or nature of business The license granted pursuant hereto shall be used to conduct the particular business or type of business at the designated address for which such license is issued. Any license holder with a change in the nature of the business or a change in the physical location of the business, shall immediately submit an application for licensure to the BLS documenting the relevant change(s). Section 9. Repealer. Ordinance No. 2315 §1 (part), as codified at TMC Section 5.04.080, "Required — Display," is hereby repealed, thereby eliminating this section: Section 10. TMC Section 5.04.090 Amended. Ordinance Nos.2315 §1 (part), 2333 §7, 2356 §6, 2544 §5, 2588 §6, and 2593 §2, as codified at TMC Section 5.04.090, "Exemption," is hereby amended to read as follows: 5.04.090 Exemptions A. The following persons are exempt from the business license fee, but if exempt under this subsection such persons shall still apply for and obtain a business license under this chapter: 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 7 of 13 10 1. Organizations exempt from federal income tax under 26 USC Section 501(c)(3). Such organization must be able to show satisfactory proof from the Internal Revenue Service (IRS) of its tax exempt status, except in the case of religious organizations which are assumed by the IRS of being exempt from taxes under 26 USC Section 501(c)(3) without application for or issuance of a determination letter by the IRS. 2. A governmental entity that engages solely in the exercise of governmental functions. Activities that are not exclusively governmental, such as some of the activities of a hospital or medical clinic, are not exempt under this chapter. 3. A civic group, service club, or social organization that is not engaged in any profession, trade, or occupation, but is organized to provide civic, service, or social activities in the City. a. Examples of such organizations include but are not limited to: Soroptimists, Kiwanis, Lions, Rotary, American Legion, children's and adults' athletic leagues and similar types of groups, clubs or organizations. 4. A court interpreter who provides an oral translation between speakers who speak different languages, and who is either a certified interpreter, qualified interpreter, or registered interpreter, and who makes less than $12,000 in gross annual revenue in Tukwila, Washington. Certified, qualified and registered interpreters are defined as follows: a. "Certified interpreter" means an interpreter who is certified by the administrative office of the courts. b. "Qualified interpreter" means a person who is readily able to interpret or translate spoken and written English for non -English-speaking persons and to interpret or translate oral or written statements of non -English-speaking persons into spoken English. c. "Registered interpreter" means an interpreter who is registered by the administrative office of the courts. 5. A public card room (also known as a social card room) with a house -banked license. B. Nothing in this chapter shall be construed to require a license for any farmer solely engaged in the business of selling, delivering or peddling any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any other agricultural product that is raised, caught, produced or manufactured by such person. "Agricultural product" does not include cannabis or cannabis products as defined in RCW 69.50.101. Section 11. TMC Section 5.04.100 Amended. Ordinance Nos. 2315 §1 (part) and 2588 §7, as codified at TMC Section 5.04.100, "Failure to Pay Fee," is hereby amended to read as follows: 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 8 of 13 11 5.04.100 Failure to Pay Fee A. If any person engaged in business fails or refuses to pay the required license fee for any period of time as herein provided, the Director shall assess all license fee amounts that should have been paid for the last four years, as determined by the Director, plus a penalty as adopted by separate resolution of the City Council. Such fees may be prorated as the City deems necessary if the assessment period is less than a 12-month license period. B. If a person fails or refuses a Department request to provide or make available records to determine the amount of the license fee due under this chapter, the Director is authorized to determine the amount of the license fee payable by obtaining facts and information upon which to base the estimate of the fees due. Such fee assessment shall be deemed prima facie correct and shall be the amount of the business license fee owing to the City by the person. C. The balance of the business license fee shall be due within 30 days of the date the written notice is mailed by the City. An additional penalty as adopted by separate resolution of the City Council shall be assessed if payment is not received by the notice due date or any extension thereof. Business license fees may be collected by the City by proper legal action brought for that purpose if any person engaged in business fails or refuses to pay the license fee. This remedy is cumulative and not exclusive. Section 12. Repealer. Ordinance Nos. 2315 §1 (part) and 2588 §8, as codified at TMC Section 5.04.105, "Additional Requirements for Issuance of Business License," is hereby repealed, thereby eliminating this section: Section 13. TMC Section 5.04.110 Amended. Ordinance Nos. 2315 §1 (part), 2333 §8, 2352 §2, 2496 §5, and 2588 §9, as codified at TMC Section 5.04.110, "Denial, Suspension, Revocation," is hereby amended to read as follows: 5.04.110 Denial, Suspension, Revocation A. The Finance Director may deny, suspend or revoke any business license under this chapter where one or more of the following conditions exist: 1. The licensee is in default of any fee, tax or amounts due and payable to the City of Tukwila, as outlined in the Tukwila Municipal Code or City policy. 2. The license was procured by fraud or by a false or misleading representation of fact in the application, or in any report or record required to be filed with the Finance Department. 3. The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of the Tukwila Municipal Code. 4. The license holder, his or her employee, agent, partner, director, officer or manager has knowingly violated any provisions of any chapter of the Tukwila Municipal Code, or has knowingly permitted, failed to prevent, or has otherwise allowed a violation 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 9 of 13 12 of any of the provisions of any chapter of the Tukwila Municipal Code to occur on his or her business premises. 5. The license holder, his or her employee, agent, partner, director, officer or manager has repeatedly violated any provision of City policies or the Tukwila Municipal Code after having received notice of such violation. 6. Conduct of the business would be in violation of any local, state or federal law, rule or regulation prohibiting the conduct of that type of business. 7. The property at which the business is located has been determined by a court to be a chronic nuisance property, a Violation Notice and Order for a chronic nuisance property has been issued and not timely remedied or appealed, or the Hearing Examiner has determined the property to be a chronic nuisance property, as provided in TMC Chapter 8.27. 8. The building or structure for which the licensee seeks a business license requires a building or land use permit under any provision of City policies or the Tukwila Municipal Code for which the permit process, including final inspections and/or issuance of occupancy permits, has not been completed. 9. The building or structure for which the licensee seeks a business license has not been inspected for compliance with life and safety codes, if such are required under any provision of City policies or the Tukwila Municipal Code, or if such inspection reveals outstanding code violations. B. Upon determination that grounds for denial, suspension or revocation of a license exist, the Finance Director shall send the licensee a Notice of Denial, Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall set forth the grounds for and terms of the denial, suspension or revocation, and a statement advising the applicant or license holder that he/she may appeal the Notice of Denial, Suspension or Revocation in accordance with the provisions of TMC Section 5.04.112. The filing of such appeal shall stay the action of the Finance Director pending decision on the appeal by the City Hearing Examiner or other hearing body pursuant to TMC Section 5.04.112. C. Receipt of the Notice of Denial, Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall be: (1) sent to the licensee by registered mail at the address provided on the license application; (2) hand delivered to the address provided on the license application; or (3) posted upon the premises where such licensee conducts the business that is the subject of the denied, suspended or revoked license. Notice shall be deemed received by the licensee upon posting, hand delivery, or 3 business days after mailing, whichever occurs first. D. Ten (10) calendar days after receipt of the notice of denial, suspension, or revocation, any business subject thereto that continues to engage in business shall be deemed to be operating without a license and shall be subject to penalties and enforcement as provided in TMC Section 5.04.115, unless an appeal has been filed pursuant to TMC Section 5.04.112 for which a written decision has not been issued. 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 10 of 13 13 E. There shall be assessed a penalty to reinstate any business license that has been revoked or suspended under this subsection, as adopted by separate resolution of the City Council. Section 14. TMC Section 5.04.115 Amended. Ordinance Nos. 2315 §1 (part) and 2549 §2, as codified at TMC Section 5.04.115, "Penalties," is hereby amended to read as follows: 5.04.115 Violations and enforcement Any violation of this chapter, or failure to comply with any of the requirements of this chapter, may be enforced as provided for in this section. Each separate date, or portion thereof, during which any violation occurs shall constitute a separate violation. A. Civil infraction. A business, licensee, or person who violates any provision of this chapter commits a Class 1 civil infraction as set forth in RCW 7.80.120(1)(a), as currently enacted or hereafter amended. An infraction issued pursuant to this section shall be issued by code enforcement officers, filed in the Tukwila Municipal Court and processed in the same manner as other infractions filed in the Tukwila Municipal Court. If a business, licensee, or person cited for failure to obtain a business license appears before the Tukwila Municipal Court and provides written evidence that he or she obtained a business license prior to adjudication of the infraction, the monetary penalty shall be reduced to $150. B. Civil code enforcement. A civil code enforcement action may be instituted pursuant to Chapter 8.45 TMC to effectuate the abatement or corrective action required as a result of a violation of this chapter. Failure to timely abate the violation or take corrective action, as required by an issued Notice of Violation, may result in the imposition of a fine in accordance with TMC 8.45.120(A)(2) and 8.45.080(C). C. Criminal violation. A person who knowingly violates a provision of this chapter, or commits a repeat violation of this chapter, is guilty of a misdemeanor, punishable by up to the maximum penalty established in RCW 9A.20.021(3), as now enacted or hereafter amended. For purposes of this section, repeat violation means either a prior committed finding by the Tukwila municipal court of an infraction issued under this chapter, or a committed finding by the hearing examiner of a notice of violation issued under Chapter 8.45 TMC, has occurred or has been committed by the same business, licensee, or person within a five-year period. To constitute a repeat violation, the violation need not be the same violation as the prior violation. D. Injunction. In addition to or as an alternative to any other enforcement or penalty provided for in this chapter, and because a violation constitutes an actual injury to the community, the City may seek injunctive or other equitable relief to prevent any activity in violation of this chapter. E. Any license fee or penalty due, unpaid, and delinquent under this chapter shall constitute a debt to the City. The City may, pursuant to Chapter 19.16 RCW, use a collection agency to collect unpaid license fees or penalties, or it may seek collection by court proceedings, which remedies shall be in addition to all other remedies. 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 11 of 13 14 Section 15. Regulations Established. A new TMC section 5.04.140 is hereby established to read as follows: 5.04.140 License does not indicate legality of business The issuance of a license pursuant to this chapter shall not be evidence of the legality of a business or that such business is conducted in conformity with any laws or regulations of the City of Tukwila, the State of Washington, or the United States. The issuance of a business license shall not prevent the City, the State of Washington, or the United States from taking any action relating to the conduct of the business or the licensee, including but not limited to an action to revoke the license or deny an application for a future license, an action to cause the cessation of the business, or any action set forth in this chapter. Section 16. Regulations Established. A new TMC section 5.04.150 is hereby established to read as follows: 5.04.150 Administration A. The Director shall have general charge of, and supervision over, the administration and enforcement of this chapter. B. The Director may call upon other City departments to aid in the enforcement of this chapter. C. The licensee shall, upon reasonable request, provide or allow the Director to inspect relevant documentation and/or to inspect places of business for verification of the requirements of this chapter. Section 17. Corrections by City Clerk or Code Reviser Authorized. 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; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/ subsection numbering. Section 18. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 19. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force within five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2025. [signature page to follow] 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Page 12 of 13 15 ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Thomas McLeod, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Office of the City Attorney 2025 Legislation: Business Licensing Fees Version: 8/4/25 Staff: A. Schierenbeck Ordinance Number: Page 13 of 13 16