HomeMy WebLinkAbout04/21/2026 09.H. Ordinance amend YMC Title 5_business license fees 'V
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.H.
For Meeting of: April 21, 2026
ITEM TITLE: Ordinance amending Yakima Municipal Code Title 5 Licenses and
Business Regulations relating to business license fees
SUBMITTED BY: Bill Preston, Community Development Director
*Julia Rosales, Supervising Code Inspector
SUMMARY EXPLANATION:
Proposed changes to licensing fees were presented to Council on February 10, 2026 and March 17,
2026, and further discussed at the meeting on April 14, 2026.
The attached ordinance addresses minor changes to the business licensing chapter of the code, YMC
5.52:
• Removal of the curb number painting reference in the business license fee exemptions, as this
regulatory license type is proposed to be eliminated (see separate ordinance pertaining to
regulatory licensing); and
• Housekeeping amendment- alphabetizing definitions.
• The ordinance keeps the non-profit exemption as is.
Fee changes for business licensing are part of a separate resolution to amend the Master Fee
Schedule.
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Pass ordinance.
ATTACHMENTS:
ORDINANCE - YMC 5.52 Occupation Taxesa€"General.docx
Track Changes_YMC 5.52 Occupation Taxes - General.pdf
149
ORDINANCE NO. 2026-
AN ORDINANCE amending the City of Yakima Municipal Code Chapter 5.52 Occupation
Taxes—General
WHEREAS, the Community Development Department, after budget discussions in 2025,
did a review of its fees and its licensing processes; and
WHEREAS, staff presented proposed licensing fee changes to City Council on March 17,
2026, and April 14, 2026; and
WHEREAS, the regulatory licensing requirement for curb number painting is proposed to
be removed from the code through a separate ordinance addressing this activity (YMC 8.52.070)
and should therefore be removed from the language in the business license fee exemptions
section (YMC 5.52.050); and
WHEREAS, housekeeping amendments are also hereby proposed; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Section 5.52.020 of the Yakima Municipal Code is hereby amended to read
as follows:
5.52.020 Definitions.
In construing the provisions of this chapter, save when otherwise declared or clearly
apparent from the context, the following definitions shall be applied:
(a) "Business" includes all activities, occupations, trades, pursuits or professions located
and/or engaged in within the city of Yakima, with the object of gain, benefit or
advantage to the taxpayer, or to another person or class, directly or indirectly. Each
business location shall be deemed a separate business.
(b) "Business Licensing Service" or "BLS" mean the office within the Washington State
Department of Revenue providing business licensing services to the city of Yakima.
(c) Engaging in Business.
(1) The term "engaging in business" means commencing, conducting, or continuing
in any business, and also the exercise of corporate or franchise powers, as well
as liquidating a business when the liquidators hold themselves out to the public
as conducting such business.
(2) 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 minimis 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" in
subsection (d)(1) of this section. 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.
(3) Without being all-inclusive, any one of the following activities conducted within
the city by a person, or its employees, agent, representative, independent contractor,
150
broker or another acting on its behalf, constitutes engaging in business and requires
a person to register and obtain a business license:
(i) 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.
(ii) Owning, renting, leasing, using, or maintaining an office, place of business,
or other establishment in the city.
(iii) Soliciting sales.
(iv) Making repairs or providing maintenance or service to real or tangible
personal property, including warranty work and property maintenance.
(v) 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.
(vi) Installing, constructing, or supervising installation or construction of real or
tangible personal property.
(vii) Soliciting, negotiating, or approving franchise, license or other similar
agreements.
(viii) Collecting current or delinquent accounts.
(ix) Picking up and transporting tangible personal property, solid waste,
construction debris, or excavated materials.
(x) 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.
(xi) Rendering professional services such as those provided by accountants,
architects, attorneys, auctioneers, consultants, engineers, professional athletes,
barbers, baseball clubs and other sports organizations, chemists, psychologists,
court reporters, dentists, doctors, detectives, laboratory operators, teachers,
veterinarians.
(xii) Meeting with customers or potential customers, even when no sales or orders
are solicited at the meetings.
(xiii) Training or recruiting agents, representatives, independent contractors,
brokers or others, domiciled or operating on a job in the city, acting on behalf, or for
customers or potential customers.
(xiv) Investigating, resolving, or otherwise assisting in resolving customer
complaints.
(xv) 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.
(xvi) Delivering goods in vehicles owned, rented, leased, used, or maintained by
the person or another acting on its behalf.
(4) 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 for the following, it need not register and obtain a business license:
(i) Meeting with suppliers of goods and services as a customer.
(ii) Meeting with government representatives in their official capacity, other than
those performing contracting or purchasing functions.
(iii) 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.
151
(iv) Renting tangible or intangible property as a customer when the property is
not used in the city.
(v) 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, where applicable.
(vi) Conducting advertising through the mail.
(vii) Soliciting sales by phone from a location outside the city.
(5) 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 (d)(4) of this section. 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.
(d) "Employee" means any person employed at any business location within the city
and/or any person furnishing or performing services within the city, and in addition includes all
persons who are self-employed.
(e) "Person" means any individual, firm, copartnership, company, corporation,
association, receiver, assignee, trustee in bankruptcy, trust, estate, joint venture, club, joint-
stock company, business trust, society, or any group of individuals acting as a unit.
(f) "Taxpayer" includes any person who engages in business or who is required to have
a business license hereunder, or who is liable for any license fee or tax hereunder, or who
performs any act, for which a license fee or tax is imposed by this chapter.
(g) "Year" means calendar year.
Section 2. Section 5.52.050 of the Yakima Municipal Code is hereby amended to read
as follows:
5.52.050 Exemptions.
In addition to the exemptions outlined in YMC 5.52.020(d)(4), the provisions of this chapter
shall not apply to:
(a) Any person providing a franchised utility service subject to the license, fee, or tax
imposed under YMC 5.50.050 or 5.50.055 or franchised passenger transportation companies,
unless stated otherwise in the franchise agreement;
(b) Fraternal benefit societies as defined by RCW 48.36.010; fraternal mutual property
insurers as defined by RCW 48.36.410; and nonprofit corporations organized under or existing
by virtue of Chapter 24.03 of the Revised Code of Washington if such nonprofit corporations
provide in their bylaws for the assessment of each member of a fixed sum to be held by the
corporation to be paid as death benefits on the death of a member for the purpose of assisting
widows, orphans or other persons dependent on a deceased member;
(c) Any religious society, association or corporation, through the operation of any
hospital, clinic, resort or other institution devoted exclusively to the care or healing of human
beings; provided, that no exemption is granted where the income therefrom inures to the benefit
of any physician, surgeon, stockholder or individual by virtue of ownership or control of such
hospital, clinic, resort or other institution;
(d) Any instrumentality of the United States, state of Washington, or political subdivision
thereof;
(e) Any farmer, gardener, or other person who sells, delivers or peddles any fruits,
vegetables, berries, butter, eggs, fish, milk, poultry, meats, or any farm product or edibles (but not
152
edibles that include cannabis) raised, caught, produced or manufactured by such person within
the state of Washington;
(f) Newsboys engaged in the sale or delivery of newspapers and magazines or
periodicals to the reading public;
(g) Any blind person engaged in business activities in the city;
(h) Any person, firm or corporation which the city is prohibited from taxing under the laws
of the United States or of the state of Washington;
(i) Any person meeting the following threshold exemption:
For purposes of the license by this chapter, any sole proprietorship without full- or part-time
employees whose annual value of products, gross proceeds of sales, or gross income of the
business in the city is equal to or less than twelve thousand dollars must submit a business license
registration to the director or designee but is not be required to pay the license fee. The threshold
does not apply to regulatory license requirements or activities that require a specialized permit.
Notwithstanding the provisions of subsections (b) and (c) of this section, businesses granted an
exemption from federal taxes under 26 U.S.C. Section 501(c), other than religious, educational,
or charitable organizations engaged solely in their respective religious, educational or charitable
activities, must obtain a city business license as provided for under this chapter, but are exempt
from paying the city business license fee therefor, provided the business includes proof of such
federal tax exemption along with the business license application.
Section 3. If any section, subsection, paragraph, sentence, clause or phrase of this
ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the
validity of the remaining portions of this ordinance.
Section 4. This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 21st day of April, 2026.
ATTEST: Matt Brown, Mayor
Rosalinda Ibarra, CMC, City Clerk
Publication Date:
Effective Date:
153
5.52.020 Definitions.
In construing the provisions of this chapter, save when otherwise declared or clearly apparent
from the context, the following definitions shall be applied:
(a) "Year" means calendar year.
receiver, assignee, trustee in bankruptcy, trust, estate,joint venture, club,joint stock company,
(aQ "Business" includes all activities, occupations, trades, pursuits or professions located
and/or engaged in within the city of Yakima, with the object of gain, benefit or advantage to the
taxpayer, or to another person or class, directly or indirectly. Each business location shall be
deemed a separate business.
(hg) "Business Licensing Service" or"BLS" mean the office within the Washington State
Department of Revenue providing business licensing services to the city of Yakima.
(c4) Engaging in Business.
(1) The term "engaging in business" means commencing, conducting, or continuing in
any business, and also the exercise of corporate or franchise powers, as well as
liquidating a business when the liquidators hold themselves out to the public as
conducting such business.
(2) 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 minimis 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" in subsection (d)(1) of
this section. 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.
(3) Without being all-inclusive, any one of the following activities conducted within the
city by a person, or its employees, 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:
154
(i) 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.
(ii) Owning, renting, leasing, using, or maintaining an office, place of business, or
other establishment in the city.
(iii) Soliciting sales.
(iv) Making repairs or providing maintenance or service to real or tangible personal
property, including warranty work and property maintenance.
(v) 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.
(vi) Installing, constructing, or supervising installation or construction of real or
tangible personal property.
(vii) Soliciting, negotiating, or approving franchise, license or other similar
agreements.
(viii) Collecting current or delinquent accounts.
(ix) Picking up and transporting tangible personal property, solid waste,
construction debris, or excavated materials.
(x) 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.
(xi) Rendering professional services such as those provided by accountants,
architects, attorneys, auctioneers, consultants, engineers, professional athletes,
barbers, baseball clubs and other sports organizations, chemists, psychologists,
court reporters, dentists, doctors, detectives, laboratory operators, teachers,
veterinarians.
(xii) Meeting with customers or potential customers, even when no sales or orders
are solicited at the meetings.
(xiii) Training or recruiting agents, representatives, independent contractors,
brokers or others, domiciled or operating on a job in the city, acting on behalf, or for
customers or potential customers.
155
(xiv) Investigating, resolving, or otherwise assisting in resolving customer
complaints.
(xv) 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.
(xvi) Delivering goods in vehicles owned, rented, leased, used, or maintained by the
person or another acting on its behalf.
(4) 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
for the following, it need not register and obtain a business license:
(i) Meeting with suppliers of goods and services as a customer.
(ii) Meeting with government representatives in their official capacity, other than
those performing contracting or purchasing functions.
(iii) 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.
(iv) Renting tangible or intangible property as a customer when the property is not
used in the city.
(v) 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, where applicable.
(vi) Conducting advertising through the mail.
(vii) Soliciting sales by phone from a location outside the city.
(5) 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 (d)(4) of this section. 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.
156
(die) "Employee" means any person employed at any business location within the city and/or
any person furnishing or performing services within the city, and in addition includes all
persons who are self-employed.
( la) "Person" means any individual, firm, copartnership, company, corporation, association,
receiver, assignee, trustee in bankruptcy, trust, estate,joint venture, club,joint-stock company,
business trust, society, or any group of individuals acting as a unit.
(f) "Taxpayer" includes any person who engages in business or who is required to have a
business license hereunder, or who is liable for any license fee or tax hereunder, or who
performs any act, for which a license fee or tax is imposed by this chapter.
(g) "Business Licensing Service" or"BLS" mean the office within the Washington State
Department of Revenue providing business licensing services to the city of Yakima.
(g) "Year" means calendar year.
5.52.050 Exemptions.
In addition to the exemptions outlined in YMC 5.52.020(d)(4), the provisions of this chapter shall
not apply to:
(a) Any person providing a franchised utility service subject to the license, fee, or tax imposed
under YMC 5.50.050 or 5.50.055 or franchised passenger transportation companies, unless
stated otherwise in the franchise agreement;
(b) Fraternal benefit societies as defined by RCW 48.36.010; fraternal mutual property insurers
as defined by RCW 48.36.410; and nonprofit corporations organized under or existing by virtue
of Chapter 24.03 of the Revised Code of Washington if such nonprofit corporations provide in
their bylaws for the assessment of each member of a fixed sum to be held by the corporation
to be paid as death benefits on the death of a member for the purpose of assisting widows,
orphans or other persons dependent on a deceased member;
(c) Any religious society, association or corporation, through the operation of any hospital,
clinic, resort or other institution devoted exclusively to the care or healing of human beings;
provided, that no exemption is granted where the income therefrom inures to the benefit of
any physician, surgeon, stockholder or individual by virtue of ownership or control of such
hospital, clinic, resort or other institution;
(d) Any instrumentality of the United States, state of Washington, or political subdivision
thereof;
157
(e) Any farmer, gardener, or other person who sells, delivers or peddles any fruits,vegetables,
berries, butter, eggs, fish, milk, poultry, meats, or any farm product or edibles (but not edibles
that include cannabis) raised, caught, produced or manufactured by such person within the
state of Washington;
(f) Any person, who is the holder of a valid permit under YMC 8.52.070, engaged in the
business of curb number painting and who devotes no more than six hundred hours per year
to said business;
(fg) Newsboys engaged in the sale or delivery of newspapers and magazines or periodicals to
the reading public;
(g#) Any blind person engaged in business activities in the city;
(h+) Any person, firm or corporation which the city is prohibited from taxing under the laws of
the United States or of the state of Washington;
(i ) Any person meeting the following threshold exemption:
For purposes of the license by this chapter, any sole proprietorship without full- or part-time
employees whose annual value of products, gross proceeds of sales, or gross income of the
business in the city is equal to or less than twelve thousand dollars must submit a business
license registration to the director or designee but is not be required to pay the license fee. The
threshold does not apply to regulatory license requirements or activities that require a
specialized permit.
Notwithstanding the provisions of subsections (b) and (c) of this section, businesses granted an
exemption from federal taxes under U.S.C. Section (c), other than religious, educational,
or charitable organizations engaged solely in their respective religious, educational or
charitable activities, must obtain a city business license as provided for under this chapter, but
are exempt from paying the city business license fee therefor, provided the business includes
proof of such federal tax exemption along with the business license application.
158