HomeMy WebLinkAboutReg 2012-09-04 Item 6C - Ordinance - TMC Title 5 "Business Licenses and Regulations" AmendmentsCOUNCIL AGENDA SYNOPSIS
Initials ITEM NO.
Meetin,q Date I Prepared by I Mayors review I Council review
08/27/12 1 CW I I WW4-
09/04/12 I CW I Mc I f� I 6.C.
I" I J
ITEM INFORMATION
STAFF SPONSOR: PEGGY MCCARTHY I ORIGINAL_ AGENDA DATE: 08/27/12
AGENDA ITEM Trrr_E An Ordinance amending Title 5 Business Licenses and Regulations
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing ❑Other
Mtg Date 08127112 Mig Date Mtg Date Mt g Date 09/04/12 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PWI
SPONSOR'S Finance staff has performed a review of Title 5 Business License and Regulations and have
SUMMARY identified some code changes/ modifications including: definition of business,
standardization of regulations for temporary business licenses, revisions to the appeal
process and some general housekeeping issues.
REVIEWI3D BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 08/21/12 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONsoR /ADMIN. Finance Department
COMMITTEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG.DATEI RECORD OF COUNCIL ACTION
08/27/12 1 Forward to next Regular Meeting
I MTG. DATE I ATTACHMENTS
08/27/12 I Informational Memorandum dated 8/21/12
Ordinance in Draft Form
Business License Penalties /2012 Notices Issued
2011 Temporary Event Licenses Issued
9/4/12 I Ordinance in final form
I
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I.;
ELAM
City of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING VARIOUS ORDINANCES
AS CODIFIED IN TUKWILA MUNICIPAL CODE TITLE 5,
"BUSINESS LICENSES AND REGULATIONS," TO CLARIFY THE
DEFINITION OF "BUSINESS AMEND LANGUAGE RELATING
TO A TEMPORARY BUSINESS LICENSE, UPDATE LANGUAGE
DEFINING LATE ACQUISITION OF LICENSE AND PENALTY
FEES, AND REINSTATING THE FORMER APPEAL FEE OF
$250.00; PROVIDING FOR SEVERABILITY; AND ESTABLISHING
AN EFFECTIVE DATE.
WHEREAS, Title 5 of the Tukwila Municipal Code (TMC), "Business Licenses and
Regulations," was last updated November 2011 by Ordinance No. 2356; and
WHEREAS, a revision to the definition of "business" will help clarify when a City
business license is required; and
WHEREAS, the City Council desires to standardize regulations relating to a
temporary business license; and
WHEREAS, the City Council supports assessment of penalty fees for a business
operating without first obtaining a business license, and for businesses that fail to renew
their business license in the required timeframe; and
WHEREAS, revisions to the appeal procedures and appeal fees are needed for
consistency in filing of appeals relating to all sections of Title 5 and to help defray the
cost of Hearing Examiner fees;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Section 5.04.010, "Definitions," Amended. Ordinance Nos.
2356 §1, 2333 §1 and 2315 §1 (part), as codified at TMC Section 5.04.010,
"Definitions," under subparagraph 1 entitled, "Business," are hereby amended to read
as follows:
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1. "Business," means and includes all activities, occupations, trades, pursuits, or
professions located or engaged within the City that involves the manufacturing or
processing of materials of any type, the sale of goods, wares or merchandise, the
rendition of services or the repair of goods, wares or merchandise for any consideration
to the person engaging in the same or to any other person or class, directly or indirectly,
whether or not an office or physical location for the business lies within the City limits.
Section 2. TMC Section 5.04.015, "Business License Required," Amended.
Ordinance Nos. 2333 §2 and 2315 §1 (part), as codified at TMC Section 5.04.015,
"Business License Required," are hereby amended to read as follows:
No person or persons shall conduct, maintain, operate, or engage in any business
within the City without first applying for and obtaining a business license and paying the
fee(s) as prescribed herein unless the business is exempt. The exemption is only from
the need to pay a fee for issuance of the business license and shall not be construed as
relief from compliance with other requirements of the Tukwila Municipal Code. All
businesses operating or engaging in business within the City are required to submit a
business license application or renewal, as appropriate, regardless of whether a
business license fee is due to the City.
Section 3. TMC Section 5.04.020, "Application and Fees Required," Amended.
Ordinance Nos. 2356 §2, 2333 §3 and 2315 §1 (part), as codified at TMC Section
5.04.020, "Application and Fees Required," under subparagraph C entitled "Minimum
Fee," are hereby amended to read as follows:
C. Minimum Fee. There shall be a minimum fee for an annual license of $67.00,
consisting of a $12.00 business license fee and a $55.00 RGRL fee, except for an entity
defined in TMC Section 5.04.090.
1. A business with less than $12,000.00 of annual gross receipts shall pay the
minimum license fee. A residential rental property with less than $12,000.00 of annual
gross receipts shall be exempt from the RGRL fee, but shall be subject to the license
fee requirements set forth in TMC Section 5.06.040.
2. An entity engaging in some activities or functions that are exempt from the
combined business license fee and some that are not exempt shall pay a license fee
based on the number of full -time equivalent employees involved in the functions or
activities that are not exempt.
3. An individual person operating more than one business as sole
proprietorship or owning more than one residential rental property within the corporate
limits of the City shall pay only one RGRL fee, at an amount equal to the highest RGRL
fee for any one of the multiple businesses, if not otherwise exempt from paying the
license fee pursuant to this chapter. TMC Section 5.04.020.C.3 shall not apply if any
one of the businesses or properties owned by the sole proprietor has three or more full
time equivalent employees.
4. If a business has more than one location in Tukwila, the license fee
calculation shall include at least the minimum fee for each location.
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5. The license fee for a business required to be licensed under this chapter
and not located within the City's corporate limits shall be calculated by multiplying the
license fee by the number of FTE employees working within the City, but in no event
shall the license fee be less than the minimum license fee set forth in this chapter. If the
number of FTE employees is not known at the time of renewal, the business shall
estimate the maximum number of FTE employees they anticipate working in Tukwila for
the 12 -month period subject to licensure.
6. Businesses doing business in the City that have no employees physically
working within the City shall pay the minimum fee required under this chapter.
7. Businesses or organizations eligible for a temporary business license
pursuant to TMC Section 5.04.010 will be required to pay the minimum $67.00 business
license fee unless the applicant is participating at a City- sponsored event or as part of
an event held at the Tukwila Community Center. If an applicant is participating at a
City- sponsored event or as part of an event held at the Tukwila Community Center, they
will be required to complete all application requirements and approvals required by the
City's Parks and Recreation Department.
Section 4. TMC Section 5.04.050, "Fee for Late Acquisition or Renewal,"
Amended. Ordinance Nos. 2356 §4, 2333 §5 and 2315 §1 (part), as codified at TMC
Section 5.04.050, "Fee for Late Acquisition or Renewal," are hereby amended to read
as follows:
5.04.050 Late Acquisition or Renewal
A. Penalty. Failure to pay the license fee by the first day of commencing business
operations pursuant to TMC Section 5.04.020 will result in a late acquisition penalty
equal to 5% of the license fee for the first month of delinquency and an additional
penalty of 5% for each succeeding month of delinquency, not to exceed a total penalty
of 25% of the license fee. Failure to pay the annual business license renewal fee by
January 31st shall constitute delinquency and shall result in a penalty equal to 15% of
the business license fee for applications and payment receipted or postmarked
February 1 through February 28. If application and payment is receipted or postmarked
March 1 through March 31st, a penalty of 30% of the business license fee will be added.
If application and payment is receipted or postmarked April 1 or later, a penalty of 45%
of the business license fee will be added. No business license for the current period
shall be granted until all delinquent fees, together with penalties, have been paid in full.
The Finance Director or his /her designee is authorized, but not obligated, to waive all or
any portion of the penalties and interest provided herein in the event the Director or
his /her designee determines that the late payment was the result of excusable neglect
or extreme hardship.
B. Collection of Fees and Penalties. Any license fee due and unpaid under this
chapter, and all penalties thereon, shall constitute a debt to the City and may be
collected in court proceedings in the same manner as any other debt in like amount,
which remedy shall be in addition to any and all other existing remedies.
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C. Revocation of License. The Finance Director may revoke any business
license issued pursuant to this chapter to any business or other person who is in default
in any payment of any license fee hereunder, or who shall fail to comply with any of the
provisions of this chapter. Notice of such revocation shall be mailed to the license
holder by the Finance Director, and on and after the date thereof any such business that
continues to engage in business shall be deemed to be operating without a license and
shall be subject to any and all penalties herein provided.
D. There shall be a penalty of not less than $50.00 to reinstate any business
license revoked through nonpayment of the business license fee.
Section 5. TMC Section 5.04.070, "Change in Nature of Business," Amended.
Ordinance Nos. 2356 §5, 2333 §6 and 2315 §1 (part), as codified at TMC Section
5.04.070, "Change in Nature of Business," are hereby amended to read as follows:
The license granted in pursuance hereof shall be used to conduct the business or type
of business at the designated address for which such license is issued. Any change in
the nature of the business, a change in the Unified Business Identifier (UBI) issued by
the Washington State Department of Licensing, a change in the physical location of the
business, or a change in ownership of the business shall necessitate a renewed
application to the Finance Department. A change in the nature of business, change in
the Unified Business Identifier or a change in ownership will also require payment of the
applicable license fee.
Section 6. TMC Section 5.04.112, "Appeal of Notice of Denial, Suspension or
Revocation," Amended. Ordinance Nos. 2333 §9 and 2315 §1 (part), as codified at
TMC Section 5.04.112, "Appeal of Notice of Denial, Suspension or Revocation," are
hereby amended to read as follows:
A. Whenever the Finance Director, or his /her designee, determines there is cause
for suspending, denying or revoking any license issued or applied for pursuant to this
chapter, the Finance Director, or his /her designee, shall notify the person holding the
license, by registered mail or hand delivery, of his /her determination. Notice mailed to
the address on the license shall be deemed received three business days after mailing.
The notice shall specify the grounds for suspension, denial or revocation.
B. The licensee or applicant may appeal the decision of the Finance Director, or
his /her designee, to suspend, deny or revoke a business license by filing a written
appeal to the City Clerk within 10 calendar days of the decision. The appeal must state
the grounds for appeal and the basis for why the decision was incorrect. To be
accepted the appeal must be accompanied by an appeal fee of $250.00.
C. Upon receipt of the notice of appeal, the Finance Director shall set a date for
hearing the appeal before the City's Hearing Examiner. Notice of the hearing will be
mailed to the licensee or applicant.
D. The hearing shall be de novo. The Hearing Examiner may affirm, reverse or
modify the Finance Director's, or his /her designee's, decision.
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E. The decision of the Hearing Examiner shall be final. Any appeal from the
administrative hearing shall be to King County Superior Court within 14 calendar days of
the Hearing Examiner's decision.
Section 7. TMC Section 5.08.080, "Appeals and Hearing," Amended.
Ordinance Nos. 2355 §6, 1796 §3 (part) and 1586 §2 (part), as codified at TMC Section
5.08.080, "Appeals and Hearing," are hereby amended to read as follows:
A. Any person aggrieved by the action of the Finance Director in refusing to issue
or renew any license under this chapter or in suspending or revoking any license under
this chapter shall have the right to appeal such action to the City Hearing Examiner, or
to such other hearing body as may hereafter be established by the City Council for the
hearing of such appeals, by filing a notice of appeal with the City Clerk within 10 days of
receiving notice of the action from which appeal is taken. The appeal must state the
grounds for appeal and the basis for why the decision was incorrect and include an
appeal fee of $250.00.
B. The hearing body, upon receipt of a timely notice of appeal, shall set a date for
a hearing of such appeal within 20 days from the date of such receipt, except as
specified in TMC Section 5.08.080.C. The hearing shall be de novo. The hearing body
shall hear testimony, take evidence and may hear oral argument and receive written
briefs. The filing of such appeal shall stay the action of the Finance Director, pending
the decision of the hearing body.
C. The decision of the hearing body on an appeal from a decision of the Finance
Director shall be based upon a preponderance of the evidence. The burden of proof
shall be on the appellant.
D. The decision of the hearing body shall be final unless appealed to the Superior
Court within 20 days of the date the decision is entered.
Section 8. TMC Section 5.10.100, "Appeals," Amended. Ordinance No. 1778
§2 (part), as codified at TMC Section 5.10.100, "Appeals," is hereby amended to read
as follows:
A. Upon notice of non issuance, revocation or suspension of any license under
this chapter, or imposition of any penalty under TMC Section 5.10.110, the applicant or
license holder may appeal by filing a notice of appeal, specifying the particular
reason(s) upon which the appeal is based, with the City Clerk within 10 days of the date
of the notice of non issuance, revocation or suspension. To be accepted, the appeal
must be accompanied by an appeal fee of $250.00. A timely notice of appeal shall stay
the effect of the notice of non issuance, revocation, suspension or imposition of any
penalty under TMC Section 5.10.110. An untimely notice of appeal shall be rejected as
such by the City Clerk, and no appeal hearing shall be scheduled. A warning notice to a
manager, under TMC Section 5.10.110.A.1, shall not constitute the imposition of a
penalty.
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B. Upon timely filing of a notice of appeal, the Finance Director shall schedule a
hearing on the appeal before a Hearing Examiner. The hearing shall be conducted no
later than 45 days from the date of the notice of appeal, unless an extension is agreed
to by the appellant or otherwise ordered by the Examiner for good cause shown. The
Hearing Examiner shall have the authority to issue subpoenas for persons and
documents relevant to the appeal upon request of a party.
C. Within 20 days, excluding holidays recognized by the City of Tukwila, from the
date of the hearing on an appeal under this section, the Hearing Examiner shall issue a
written decision which shall set forth the reasons therefor.
D. A decision of the Hearing Examiner, or a decision of the City Clerk to reject an
appeal as untimely, shall be final, unless an application for a writ of review is filed with
the King County Superior Court and properly served upon the City of Tukwila within 14
calendar days of and including the date of the Hearing Examiner's decision.
Section 9. TMC Section 5.56.100, "Appeals," Amended. Ordinance Nos. 1747
§1 (part) and 1490 §2 (part), as codified at TMC Section 5.56.100, "Appeals," are
hereby amended to read as follows:
A. Upon notice of non issuance, revocation or suspension of any license under
this chapter, or imposition of any penalty under TMC Section 5.56.120, the applicant or
license holder may appeal by filing a notice of appeal, specifying the particular
reason(s) upon which the appeal is based, with the City Clerk within 10 days of the date
of the notice of non issuance, revocation or suspension. To be accepted, the appeal
must be accompanied by an appeal fee of $250.00. A timely notice of appeal shall stay
the effect of the notice of non issuance, revocation, suspension or imposition of any
penalty under TMC Section 5.56.120. An untimely notice of appeal shall be rejected as
such by the City Clerk, and no appeal hearing shall be scheduled. A warning notice to a
manager, under TMC Section 5.56.110.A.1, shall not constitute the imposition of a
penalty.
B. Upon timely filing of a notice of appeal, the Finance Director shall schedule a
hearing on the appeal before a Hearing Examiner. The hearing shall be conducted no
later than 45 days from the date of the notice of appeal, unless an extension is agreed
to by the appellant. The Hearing Examiner shall have the authority to issue subpoenas
for persons and documents relevant to the appeal, upon request of a party.
C. Within 20 days, excluding holidays recognized by the City of Tukwila, from the
date of the hearing on an appeal under this section, the Hearing Examiner shall issue a
written decision, which shall set forth the reasons therefor.
D. A decision of the Hearing Examiner, or a decision of the City Clerk to reject an
appeal as untimely, shall be final, unless an application for a writ of review is filed with
the King County Superior Court and properly served upon the City of Tukwila within 14
calendar days of and including the date of the Hearing Examiner's decision.
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Section 10. 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; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 11. 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 12. 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
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 1 2012.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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