HomeMy WebLinkAbout3351 Related to Business License Exemption and Amending Port Townsend Municipal Code Chapter 5.08Ordinance 3351
Ordinance 3351
AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, RELATED
TO BUSINESS LICENSE EXEMPTION AND AMENDING PORT TOWNSEND
MUNICIPAL CODE CHAPTER 5.08
WHEREAS the Washington State legislature amended RCW 35.90.080, requiring cities
to make changes to business licensing, including a one-time increase to the base threshold, and
an automatic periodic increase every four years; and
WHEREAS, the mandated changes require amendments to Port Townsend Municipal
Code Section 5.08.045, with an effective date of January 1, 2026; and
WHEREAS, pursuant to the City's agreement with the Washington State Department of
Revenue to facilitate the City's business licensing process, the City must give the DOR 75-days
advance notice of any changes to the City's business license ordinance; and
WHEREAS, DOR is requesting that the City attempt to adopt the ordinance amendments
by August 26 or as soon as possible.
NOW, THEREFORE, the City Council of the City of Port Townsend ordains as
follows:
Sectionw1. Amendments. Section 5.08.045 of the Port Townsend Municipal Code is
amended as shown in Exhibit A and incorporated by this reference.
Section 3. Severability. If any provision of this ordinance or its application to any
person or circumstance is held invalid, the remainder of the ordinance, or the application of the
provision to other persons or circumstances, is not affected.
Section44. Publi11ation,. This Ordinance shall be published by an approved summary
consisting of the title.
Section 5. Effective Date. This Ordinance shall take effect and be in force five days
after the date of its blicat u...............in
p ion n the manner provided by law.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this 18th day of August 2025.'
k
.,a
d Vai) ►`
Mayor
Attest.
1I� wlrigues
City Clerk
EXHIBIT A
5.08.045 Exemption.
The following shall be exempt from compliance with the city business license fee portion of this
chapter:
A. A bona fide charitable or nonprofit organization. A "bona fide charitable or nonprofit
organization" means any organization for which contributions to such organizations qualify for
charitable contribution deduction purposes or which is otherwise exempt from payment of federal
income taxes pursuant to the Internal Revenue Code, including Section 501(c)(3). Organizations
shall present proof of tax exempt status to the city finance director and shall be required to register
with the city finance director and provide all of the information required of a business license
applicant.
B. Any person or business whose annual value of products, gross proceeds of sales, or gross
income of the business made within the city is equal to or less than $2,000 00 and does not
maintain a physical place of business located within city limits; such businesses shall submit a
business registration to the city finance director or designee for no fee. The income threshold
exemption does not apply to regulatory license requirements or activities that require a specialized
permit.
C. The thresholdµ amount will be adjusted every forty-ei ght rmonths on Janua? t, by an amount
m
gqualto the increase in the, Consumer Price Index ("CPI"ifor "West Urbai) A11 Urban Consumers"
f f'l lm for eael l m onth period nd�jl ITe� Y 3( a� ptxbl.i.shed y (heITt Jane° ta(cs I�pp i-!nerd
la tacar Bureau of Labor Statistics or srmccesso .l x cy_localculate tbis adustinetl.the cut -rent;
rate rvi11 be it II l lte ml)y 'aIle plums thet ¢ rulati fairer.:.' armµ fat % l ig r� t a iit m '1'l increase t�siri
each lmimonth period ending on June 30 ofineaah�prior year, and rounded.,to the nearest $100.
Flowever, it any of the annual CPI increases are more thanfiveCmm )..•percent, a five (Sj ►°cent
increase will be used in computing the annual basis andifany of the annual CPI decreased during
LIig__lggy .ei it -month p eriodm a zcra i?c� L tit increase will be used in wco�jiplrigjj basis.