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Home My WebLink About03/17/2026 09.C. Review of Business and Regulatory Licensing Fees 'V e+ i'i 0 i 1�• 1.,‘" r BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.C. For Meeting of: March 17, 2026 ITEM TITLE: Review of Business and Regulatory Licensing Fees SUBMITTED BY: Bill Preston, Community Development Director SUMMARY EXPLANATION: As part of the 2025 budget process, Community Development staff reviewed current business and regulatory licensing fees and determined changes were needed in order recover the costs associated with staffs time processing these licenses. The attached fees are being proposed. Additionally, some regulatory licenses are proposed to be eliminated. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Provide direction to staff on the proposed fees; direct staff to bring back a Resolution for adoption. ATTACHMENTS: License_Fee_Changes 103 A. ,, ..��1 _ _'-'a - of 1 llIs , ll I ~,r•., •• � +f 1k : L- • ,,,,,4# • 10 4 i'I',J __...iii m:•,41 e • • e i� �i� '�l�t{lila. # • • iliok lt-i . L --" - - r , , , _, . , _ , • .., .... • • * ,.. , , . ., 1 NW' EiL irapi. .low.„ _ _ '`t f It 1 11 C0 4.716 TilQ• 1� _ _ _ __ COMMUNITY DEVELOPMENTI License Fee DEPARTMENT Proposals 104 LICENSES Types of Licensing Covering 2 Types of License , - co , General Business License g ` Resident Business aEsTLURANT 6 Non-Resident Business P1,01re, Home Business . ,I, /.. Non-Profit ^� u Regulatory Licensei — .�� 02. Jukeboxes VIZI4 - • 4p, ,:1,11! .ar IIIMMMIIMIF Live entertainment w/ liquor ►, i9 Mobile Vendor Taxi driver ' : 1 1 1 �5� 40 _,.. „ ■ J . EMMIi?t7 105 CITY OF YAKIMA - BUSINESS LICENSE From the Municipal Services Research Council Business Licensing is subject to the following: • RCW 35.22.280 — First class cities may "grant licenses for any lawful purpose, to fix by ordinance the amount to be paid therefor, and to provide for revoking the same. . ." • Any city or town may require a general business license for any person or company "engaging in business" within city limits. This includes businesses that are physically located within the city, as well as businesses that are physically located elsewhere but engage in business within the city. • The fees charged should be fair and bear a reasonable relation to the costs. • Some cities raise revenue by charging business license fees on a sliding scale based on criteria such as number of employees or FTE's 3 106 CITY OF YAKIMA - BUSINESS LICENSE From the Municipal Services Research Council Model Ordinance • The required provisions of the model ordinance were drafted by a committee through the Association of Washington Cities (AWC) and released in June 2018. • Cities and towns may only impose licensing requirements upon individuals or companies "engaging in business within the city," as defined in the model ordinance. • For businesses that engage in business within the city but are not physically located within the city, the ordinance establishes a minimum dollar threshold (revenue) of $4,000. 4 107 CITY OF YAKIMA - BUSINESS LICENSE Current Business License Structure Businesses below $12,000 in annual revenue are exempt Resident Business Non Resident Business Non — Profit 1 to 2 Employees $42.90 1 1 to 2 Employees $42.90 $0.00 3 to 5 Employees $85.80 3 to 5 Employees $85.80 6 to 9 Employees I $150.00 6 to 9 Employees $150.00 Home Based Business 10 to 14 Employees $214.20 10 to 14 Employees $214.20 1 to 2 Employees $42.90 15 to 20 Employees $321 .15 15 to 20 Employees $321 .15 13 to 5 Employees $85.80 21 to 30 Employees $428.40 121 to 30 Employees $428.40 31 to 45 Employees $642.60 31 to 45 Employees $642.60 46 to 60 Employees $856.80 46 to 60 Employees $856.80 I 61 to 80 Employees $1 ,071 .00 61 to 80 Employees $1 ,071 .00 81 or more Employees $1 ,285.20 IT-31 or more Employees $1 ,285.20 I s 108 CITY OF YAKIMA - BUSINESS LICENSE Comparison Communities Eastern Washington Cities of our size use a per-employee rate Business License Yakima Richland _ Pasco Spokane Union Gap Ellensburg Sunnyside 1 1 to 2 Employees $42.90 $42+$12 $80+$20 $131 +$var $50 $30 $92 3 to 5 Employees $85.80 $88 $160 $171 $50 $30 $92 1_6 to 9 Employees $150.00 $130 $230 $206 $50 $65 L69 10 to 14 Employees ' $214.20 $184 $320 $31 1 $50 $120 $169 15 to 20 Employees $321 .15 $250 $430 $394 $125 $120 $257 21 to 30 Employees $428.40 $340 $580 $631 $125 $150 r$257 31 to 45 Employees $642.60 $496 $840 $891 $125 $150 $257 46 to 60 Employees $856.80 $676 $1 140 $1 191 $200 $200 $486 61 to 80 Employees $1071 .00 $880 $1480 $1531 $250 $200 $486 81 or more Employees $1285.20 $1 120 $1880 $1931 $300 $200 $601 6 109 CITY OF YAKIMA - BUSINESS LICENSE Comparison CommunitiesI Business License Fee Comparison Business License Fee per FTE $2,500.00 Spokane $2,000.00 Pasco $1,500.00 Yakima - Current Richland V , $1,000.00 V Sunnyside $500.00 j - / — f Union Gap Ellensburg $ 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 10C Yakima Richland Pasco Spokane Union Gap Ellensburg Sunnyside 7 110 CITY OF YAKIMA - BUSINESS LICENSE Proposed Business License Structure Businesses below $12,000 in annual revenue are exempt Employee counts are based on full-time equivalents Resident Business rNon — Profit Baseline (1 -2 employees) $45.00 Less than 1 employee $0.00 Per Employee (3 and up) $15.00 Religious (see definition) $0.00 Non-Resident Business Baseline (1 -2 employees) $45.00 Baseline (1 -2 employees) $45.00 Per employee (3 and up) $15.00 Fer Employee (3 and up) $15.00 For purposes of this chapter, "religious organization" includes, but is not limited to, churches, mosques, synagogues, temples, nondenominational I Home Based Business ministries, interdenominational and ecumenical organizations, mission 1 to 2 Employees $45.00 organizations, faith-based social agencies, and other entities whose Per Employee (3 and up) $15.00 principal purpose is the study, practice, or advancement of religion. "Religious organization" as defined in this chapter must be interpreted liberally to include faith-based social service organizations 8 involved in social services directed at the larger community. 111 CITY OF YAKIMA - BUSINESS LICENSE Comparison Communities Business License Fee per FTE Business License Per FTE Spokane $2,000.0( Pasco $1,500.00 Yakima - Proposed y�� a Yakima - Current Richland $1,000.00 Sunnyside $500.00 Union Gap Ellensburg $- 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 Yakima Richland --Pasco . ,Spokane . ,Union Gap .Ellensburg . ,Sunnyside .Yakima Proposed 9 112 CITY OF YAKIMA - BUSINESS LICENSE Comparison Communities Business License Fee per FTE — Businesses 20 employees or less Comparison 20 or less employees Spokane Pasco Yakima - Current Yakima - Proposed Richland Sunnyside $200.00 Union Gap $100.00 Lllei isuurg 0 5 10 15 20 10 Yakima Richland Pasco Spokane Union Gap Ellensburg Sunnyside Yakima Proposed 113 CITY OF YAKIMA - BUSINESS LICENSE Impacts of Fee Proposal Business • Resident and non-resident businesses range from -5% to + 10% • Most home-based business will pay $2. 10 more Non-Profits • Non-profits would pay a license fee based on number of employees • Religious organizations would be exempt Revenue • Proposal may be revenue neutral to slightly positive • Additional revenue to be placed in economic development fund to support business growth initiatives 11 114 QUESTIONS ? CITY OF YAKIMA - REGULATORY LICENSE From the Municipal Services Research Council Regulatory Licensing is subject to the following: • RCW 35.90.010(6) defines a "regulatory business license" as "a license, other than a general business license, required for certain types of businesses that a city has determined warrants additional regulation. . ." • Examples of business types that some cities have chosen to impose regulatory business license requirements upon include, but are not limited to: Adult entertainment Marijuana-related businesses Amusement device operators Massage parlors Debt collectors Mobile food vendors Door-to-door salespersons Private ambulance services Fireworks stands Short-term rentals Heavy manufacturing Taxicab and other for-hire vehicle operators Home-based businesses Towing companies Live entertainment Trade show operators 13 116 CITY OF YAKIMA — REGULATORY LICENSES Why we are here - Changes • COUNCIL HAS GIVEN DIRECTION TO COVER COST OF SERVICES RENDERED • COUNCIL HAS EXPRESSED INTEREST IN REDUCING REQUIREMENTS WHERE POSSIBLE • STAFF HAS IDENTIFIED SEVERAL LICENSING REGULATIONS REQUIRING UPDATES • STREAMLINING AND MODERNIZING REGULATIONS IS IN EVERYONE'S INTEREST T;: iy a � 14 1 _ 117 CITY OF YAKIMA Why we are here - Changes GENERAL BUSINESS LICENSES § Removing change of ownership fee § Clarifying the fire inspection fee REGULATORY BUSINESS LICENSE CHANGES TO COME Regulatory License Types Taxi, Dance Establishment, Sidewalk Café, Street Beautification Related Licenses REGULATORY BUSINESS LICENSE CURRENT PROPOSALS • Regulatory License Fee Updates Regulatory Code Updates ■ Regulatory License Eliminations • 1s • 118 PROPOSALS GENERAL BUSINESS LICENSE UPDATES CHANGE OF OWNERSHIP FEE Due to an oversight during the business licensing transition to DOR, the change of ownership fee of $ 10 was not removed from the Master Fee Schedule as intended FIRE INSPECTION FEE Clarifying the fire inspection fee for new businesses, previously subsidized utilizing same model as Fire Dept. 16 119 PROPOSALS REGULATORY LICENSE FEE ADJUSTMENTS WITH CODE CHANGES TO COME License Type Current Rate Proposed Rate Proposal Public Dance $21.88 1 night $45.00* $114.25 3 months $384.10 1 yar Various consolidations, reductions, Dancehall $55.00 $45.00* and modernizations of regulations may be proposed. Dancehall Three Month $21.88 $45.00* However, more time is needed to work on these changes. Cabaret License $55.00 $45.00* Cabaret Permit $200 - $1000 depending on square $45.00* Fee adjustments are being footage of dancefloor proposed now, as that change is - - necessary regardless of code Liquor Live Entertainment $307.51-$768.20 depending on sq ft $45.00* regulation changes. of dance floor Taxi For Hire $55.00 $45.00* The proposed rates are for new ai application, reapplication, and Taxi Driver's License $1 1.00 $45.00* renewals. Taxi Temporary Driver's License $0 $45.00* *After full evaluation,the Sightseeing Vehicle $0 $45.00 proposed rate may be adjusted to reflect actual cost of Street Beautification $0 $45.00* processing. 17 Sidewalk Cafe $50.00 $45.00* 120 PROPOSALS REGULATORY LICENSE FEE UPDATES LICENSE TYPE CURRENT RATE PROPOSED RATE STREET VENDOR $0 $45.00* MOBILE VENDOR $0 $45.00* CHARITABLE SOLICITOR $0 $45.00* PEDDLER $25 $45.00* NOISE PERMIT $0 $45.00* GARBAGE COLLECTOR $10 $45.00* CLOSING SALE $0 $45.00* *New rate proposal is the cost per license application, re-application, and renewal. 18 121 PROPOSALS REGULATORY LICENSE CODE UPDATES License Type Proposed Update Second-Hand Dealer Precious Metals Dealer Remove regulatory license requirement. Junk Dealer Allow regulating code language to remain. Pawn Broker 19 122 PROPOSALS TOTAL LICENSE AND CODE ELIMINATION License Type Proposal Transportation Network Company Amusement Devices Sign Company Update code to eliminate the requirement for a license/regulatory license and regulating text. Curb Number Painting Side Sewer Installer 20 123 CODE ADMINISTRATION DIVISION WRAP UP PLAN OF ACTION ALL FEE ADJUSTMENT PROPOSALS WILL INCLUDE AN ANNUAL ADJUSTMENT TO REFLECT THE ACTUAL COST OF SERVICE. FINAL RESOLUTION PROPOSALS FORTHCOMING ADDITIONAL PROPOSALS IN THE FUTURE Regulatory License Types Taxi, Dance Establishment, Sidewalk Café, Street Beautification Related Licenses 21 124 QUESTIONS ?