Business license bill passes Senate

EHB 2005 passed the Senate unanimously last week. It now moves back to the House for final approval. The Senate approved version includes the amendment changing the timeline to phase in cities to partner with the state’s business licensing system from 10 years to five years, if funding is appropriated.

The bill also includes provisions:

• Extending the exemption through 2020 to provide cities an option to choose FileLocal as an alternative for business licensing;
• Allowing the Department of Revenue to grant up to a three-year delay for a city based on a fiscal or technical hardship;
• Requiring cities to develop and implement a model licensing ordinance that includes a minimum threshold; and
• Creating a work group on apportionment of service income under RCW 35.102.130 staffed by the Department of Revenue.

ESSB 5777 was not acted on before the legislative cutoff on April 12. We expect that EHB 2005 will be the version of the bill to streamline the business licensing process that will pass before the Legislature adjourns on April 23.