HomeMy WebLinkAbout4785 Ordinance - Amending PMC 5.05.170 Exemptions Related to Business Licenses Regs
Ordinance – Amending PMC 5.05.170 Exemptions Related to Business Licenses and Regulation - 1
ORDINANCE NO. 4785
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING PASCO MUNICIPAL CODE SECTION 5.05.170 EXEMPTIONS
RELATED TO BUSINESS LICENSES AND REGULATION.
WHEREAS, the Washington State Legislature enacted RCW 35.90, requiring all cities
with general business license programs to adopt a model ordinance developed in partnership with
the Department of Revenue and the Association of Washington Cities; and
WHEREAS, under RCW 35.90.080, the Association of Washington Cities, in
coordination with a representative committee of cities and with input from business stakeholders,
was required to develop a model ordinance that includes a uniform minimum licensing threshold
for out-of-city businesses; and
WHEREAS, as part of the required periodic update to the model ordinance, the threshold
for requiring a general business license for out-of-city businesses has been increased from $2,000
to $4,000 in annual revenue, effective January 1, 2026, and must be adopted by all participating
cities; and
WHEREAS, the updated model ordinance also includes a mandatory inflation adjustment
mechanism that increases the threshold every four years based on cumulative inflation, as
measured by the Consumer Price Index for All Urban Consumers (CPI-U), Western Region,
rounded to the nearest $100; and
WHEREAS, the City of Pasco administers its general business license program through
the Washington State Business Licensing Service (BLS) and is, therefore, required by RCW
35.90.070 to provide at least 75 days’ notice of this change to the Department of Revenue prior to
implementation; and
WHEREAS, the City Council has determined that the monetary threshold exemption for
business license requirements should apply to all businesses, whether located within or outside
city limits, in order to reduce regulatory burden on businesses with minimal economi c activity;
and
WHEREAS, the City Council finds that adopting the updated model threshold and CPI
adjustment provisions is necessary to comply with State law and further supports extending the
monetary threshold exemption to businesses located within the City in order to ensure consistency,
reduce regulatory burden, and maintain participation in the Business Licensing Service (BLS)
program.
Ordinance – Amending PMC 5.05.170 Exemptions Related to Business Licenses and Regulation - 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. That Section 5.05.170 of the Pasco Municipal Code entitled “Exemptions”
is hereby amended and shall read as follows:
5.05.170 Exemptions.
To the extent set forth in this chapter, the following persons and businesses shall be
exempt from the registration, license and/or license fee requirements as outlined in
this chapter:
(1) Monetary Threshold. 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 $2,000 and who does not maintain a place of business at a commercial
location within the City shall be exempt from the general business license
requirements in this chapter. The exemption does not apply to regulatory license
requirements or activities that require a specialized permit.
Beginning January 1, 2026, the threshold amount is $4000. 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 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.
(2) Nonprofit Organizations. Nonprofit organizations operating without private
profit, either regularly or temporarily, for a public, charitable, educational, literary,
fraternal or religious purpose shall apply for a no fee business license at the City
and conduct activities only after the no fee business license has been issued. This
no fee provision shall apply only to the nonprofit organization but not persons
sponsored by nonprofit organizations if any private profit whatsoever is derived
from its operation. Any business conducted where only a part of the proceeds go to
a nonprofit organization is not exempt from a business license fee.
[Ord. 4441 § 5, 2019; Ord. 4397 § 2, 2018; Ord. 4380 § 1, 2018; Ord. 4372 § 17,
2017; Ord. 3394 § 1, 1999; Ord. 2619 § 1, 1986; Ord. 1907 § 4, 1977; Code 1970
§ 5.04.170; Code 1954 § 3-1.170 - 3-1.206.]
Ordinance – Amending PMC 5.05.170 Exemptions Related to Business Licenses and Regulation - 3
Section 2. Severability. If any section, subsection, sentence, clause, phrase or word
of this Ordinance should be held to the invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or
constitutionality of any other section, subsection, sentence, clause phrase or word of this
Ordinance.
Section 3. Corrections. Upon approval by the city attorney, the city clerk or the code
reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s errors
or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or
numbering or referencing of ordinances or their sections and subsections.
Section 4. Effective Date. This Ordinance shall take full force and effect five (5) days
after approval, passage and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, on this 2nd day of
September, 2025.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: _____________________________ Sunday, September 7, 2025