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Home My WebLink AboutO-3362 - Amending MMC 5.02.040 by Increasing the Business License Exemption ThresholdCITY OF MARYSVILLE Marysville,Washington 5'7^?ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON,AMENDING MMC 5.02.040 BY INCREASING THE BUSINESS LICENSE EXEMPTION THRESHOLD. WHEREAS,the Department of Revenue is requiring all cities to adopt higher exemption thresholds for business licenses by January 1,2026;and WHEREAS,the Department of Revenue is furthermore requiring cities to include inflation-based adjustments to their exemption thresholds for business licenses. NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON,DO ORDAIN AS FOLLOWS: SECTION 1.MMC 5.02.040 is amended as set forth in Exhibit A. SECTION 2.Severability.If any section,subsection,sentence,clause,phrase or word of this ordinance should be held to be 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.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;references 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 become effective five days after the date of its publication by summary. PASSED by the City Council and APPROVED by the Mayor this 20^5^.day of CITY OF MARYSVILLE By. NEHRING,MAYOR Attest:) CITY CLERK By. Approved as to forni;- By. JON WALKER,CITY ATTORNEY Date of publication:2-^/VO Z4 Effective Date (5 days after publication):lo 14' EXHIBIT A 5.02.040 Exempt businesses. To the extent set forth in this section,the following persons and businesses shall be exempt fromtheregistration,license,and/or license fee requirements as outlined in this chapter: (1)Any person or business whose annual value of products,gross proceeds of sales,or grossincomeofthebusinessinthecityisequaltoorlessthan$2,000.The exemption does not apply toregulatorylicenserequirementsoractivitiesthatrequireaspecializedpermit; (a)Beginning January 1,2026,the threshold amount is $4000.The threshold amount willbeadjustedeveryfor^-eight months on January 1,by an amount equal to the increase intheConsumerPriceIndex("CPI")for "West Urban,All Urban Consumers"(CPI-U)for each12-month period ending on June 30 as published by the United States Department of LaborBureauofLaborStatisticsorsuccessoragency.To calculate this adjustment,the current ratewillbemultipliedbyoneplusthecumulativefour-year (forty-eight month)CPI increaseusingeach12-month period ending on June 30 of each prior year,and rounded to thenearest$100.However,if any of the annual CPI increases are more than five (5)percent,afive(5)percent increase will be used in computing the annual basis and if any of the annualCPIdecreasedduringtheforty-eight-month period,a zero (0)percent increase will be usedincomputingtheannualbasis. (2)Nonprofit activities carried on by religious,charitable,benevolent,fraternal or social organizations; (3)Public utility companies; (4)Any instrumentality of the United States,state of Washington,or political subdivision thereofwithrespecttotheexerciseofgovernmentalfunctions; (5)National banks,state banks,trust companies,mutual savings banks,credit unions and buildingandloanassociations,with respect to their banking business,trust business,or savings and loanbusiness; (6)Farmers or gardeners selling their own unprocessed farm products raised or grown exclusively upon lands owned or occupied by them; (7)Garage sales conducted on residential premises in compliance with the city zoning code; (8)Any business which operates only during the annual Strawberry Festival,and which is authorizedbytheentitywhichholdstheStrawberryFestivalmasterpermit; (9)Any business which sublets or purchases space from a farmer's market where the sponsor leasespropertyownedbythecityofMarysville;provided,the sponsor/lessee shall not be exempt from thebusinesslicenserequirementsofthischapter; (10)Any person,or its employee,agent,representative,independent contractor,broker or another acting on the person's behalf,that engages in no other activities in or with the city but the following: (a)Meeting with suppliers of goods and services as a customer. (b)Meeting with government representatives in their official capacity,other than those performing contracting or purchasing functions, (c)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. (d)Renting tangible or intangible property as a customer when the property is not used in the city. (e)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. (f)Conducting advertising through the mail. (g)Soliciting sales by phone from a location outside the city. (11)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 (10)of this section.