A city workgroup is developing the city business license model threshold, which is required to be completed by July 1, 2018 under EHB 2005. The workgroup completed a draft of the model threshold and definition of “engaging in business” that incorporates input from cities. In March, AWC sent an email to all mayors, city managers, and finance director asking for feedback on the proposed model ordinance language, and next steps include consulting with the business community.

As currently proposed, the draft model business license language would:

• Only apply to general business licenses, not regulatory licenses or local taxes;
• Allow cities the option to require registration with no fee for businesses under the threshold;
• Not apply to businesses with a location in the city; and
• Apply a minimum threshold of $1,000 per year in the city.

A workgroup of cities has been meeting since August 2017 to develop language for a model ordinance and set a minimum threshold that would work for the wide variety of business license requirements in cities. All cities with business licenses will be required to adopt it by January 1, 2019, and those cities that partner with the state business licensing service (BLS) will need to adopt it and provide notice of the business license change to the BLS program by October 17, 2018, 75 days prior to it taking effect.

MRSC recently published an article with additional information on the process. AWC is also planning training sessions on the final version of the model at the AWC and WFOA annual conferences in 2018.