PORT TOWNSEND — The Port Townsend City Council has amended current business licensing regulations to establish a threshold exemption for businesses located outside of the city limits.
The Port Townsend City Council voted 6-0 last Monday to amend the regulations. Council member Michelle Sandoval was absent from the meeting.
With the adoption of the new licensing regulation, Chapter 5.08 of the City’s Municipal Code was also amended.
The newly adopted ordinance takes effect on Jan. 1.
Finance Director Nora Mitchell said that the state has changed business license requirements for cities and the model language must be adopted no later than Oct 17 to be in compliance.
“There is an exemption for obtaining a general business license for businesses located outside of city limits,” she said.
“If they make less than $2,000 gross, they are not required to get a business license in the city of Port Townsend.”
Inside city limits
It requires, however, all businesses located in Port Townsend city limits to obtain a business license.
“What we are recommending is that we adopt the model language and that we continue to not necessarily license those businesses under the $2,000 threshold, but we register them,” Mitchell said.
“There would be no fee, but it allows us to know who those businesses are that are doing business in Port Townsend.”
A charity or nonprofit organization for which charitable contributions are deductible and are otherwise exempt from federal income taxes are exempt from the fee.
Organizations must provide a proof of tax exemption status and be required to register, providing all of the same information required of a business license applicant.
Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business made within city limits that is equal to or less than $2,000 and does not maintain a physical place of business located within city limits shall submit a business registration to the city finance director for no fee.
The income threshold exemption does not apply to regulatory license requirements or activities that require a specialized permit.
Home occupations continue to be required to be permitted and operate under specific criteria.
For more information on city business licensing, call 360-385-2700.
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Jefferson County Editor/Reporter Jeannie McMacken can be reached at 360-385-2335 or at jmcmacken@peninsuladailynews.com.
