HomeMy WebLinkAbout4788 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. 4788
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 City Council recently adopted Ordinance No. 4785 to comply with RCW
35.90 by updating the exemption threshold for out-of-city businesses and incorporating a CPI-
based inflation adjustment, as required by the model ordinance developed by the Washington State
Department of Revenue and the Association of Washington Cities; and
WHEREAS, to promote consistency and reduce regulatory burden, the City Council now
seeks to extend the monetary threshold exemption to all businesses, whether located within or
outside city limits, when their gross revenue within the City falls below the established threshold;
and
WHEREAS, the City Council is also adopting additional language to ensure continued
attention to life safety through routine fire inspections for certain exempt businesses based on
occupancy risk; and
WHEREAS, this ordinance supports the City Council’s goals of promoting economic
vitality, enhancing financial sustainability, and improving quality of life by reducing
administrative barriers for small businesses and encouraging local economic activity through fair
and streamlined regulations.
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.
Ordinance – Amending PMC 5.05.170 Exemptions Related to Business Licenses and Regulation - 2
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.
(3) Businesses physically located in the City of Pasco are exempt from obtaining a
general city business license under PMC 5.05.170 (1-2), such as those meeting the
monetary threshold, remain subject to routine fire inspections if classified as a
moderate to high hazard occupancy or if specific conditions in a low hazard
occupancy warrant routine inspection. Occupancy risk categories related to the
building structure type and the nature of occupancy are defined in Chapters 3 and
16 of the International Building Code.
[Ord. 4785, 2025; 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.]
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.
Ordinance – Amending PMC 5.05.170 Exemptions Related to Business Licenses and Regulation - 3
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 15th day of
September, 2025.
_____________________________
David Milne
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, MMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: September 21, 2025