Business license threshold workgroup

by <a href="mailto:victorial@awcnet.org">Victoria Lincoln</a>, <a href="mailto:sheilag@awcnet.org">Sheila Gall</a> | Feb 16, 2018
The city workgroup developing the city business license model threshold required to be completed by July 1, 2018 under <a href="http://app.leg.wa.gov/billsummary?BillNumber=2005&amp;Year=2017"><strong>EHB 2005</strong></a> has almost finished drafting the model.

The city workgroup developing the city business license model threshold required to be completed by July 1, 2018 under EHB 2005 has almost finished drafting the model. 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.

To help inform the committee’s work, AWC will be sending an email to city finance directors soon asking for feedback on the proposed model ordinance language. We appreciate your city’s assistance in providing input for this important project.

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

  • Only apply to general business licenses, not regulatory licenses or other local taxes;
  • Allow cities 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.

Once the draft is complete, AWC will plan trainings on the model ordinance through presentations to regional city groups and other annual conferences in 2018. 

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