HomeMy WebLinkAboutORD 6176CITY OF RENTON, WASHINGTON
ORDINANCE NO. 6176
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, IMPLEMENTING
STATUTORY CHANGES REFLECTED IN THE REVISED BUSINESS LICENSE MODEL
THRESHOLD ORDINANCE, AMENDING SUBSECTION 5-5-3.8 OF THE RENTON
MUNICIPAL CODE, ADJUSTING THE BUSINESS LICENSE THRESHOLD EXEMPTION,
AUTHORIZING CORRECTIONS, PROVIDING FOR SEVERABILITY, AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Renton imposes a general business license; and
WHEREAS, on May 5, 2017, the Washington state legislature, through Engrossed House
Bill 2005 ("EHB 2005"), established statewide general business licensing guidance for cities; and
WHEREAS, pursuant to RCW 35.90.080, and in response to EHB 2005, the Association of
Washington Cities adopted a 2018 model ordinance of general business license requirements;
and
WHEREAS, pursuant to RCW 35.90.080(2), Renton is required to adopt mandatory
provisions of the model ordinance; and
WHEREAS, pursuant to RCW 35.90.080(1)(c), the model ordinance on general business
license requirements may not be amended more frequently than once every four (4) years; and
WHEREAS, the 2018 model ordinance on general business license requirements has not
been amended since it was adopted on January 1, 2019; and
WHEREAS, the Association of Washington Cities updated the 2018 business license model
ordinance with a mandatory increase to the business license threshold for out -of -city businesses
and applying automatic periodic increases based on cumulative inflation;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN AS FOLLOWS:
ORDINANCE NO. 6176
SECTION I. All portions of the Renton Municipal Code ("RMC") in this ordinance not
shown in strikethrough and underline edits remain in effect and unchanged.
SECTION II. Subsection 5-5-3.13 of the RMC is amended as shown below.
B. General Business License Registration Fee:
1. General Business License Registration Fee Required: The general business license
registration fee of one hundred fifty dollars ($150.00) shall be due and payable when filing
a completed registration form as prescribed by the Administrator. The general business
license registration fee may be adjusted from time to time, as published in the current
City of Renton Fee Schedule. If a business enterprise's first date of engaging in business
in the City is after July 1, a prorated half year general business license registration fee will
be due in the amount of seventy-five dollars ($75).
2. Exemptions: The following are exempt from the general business license
registration fee, if demonstrated through means satisfactory to the Administrator:
a. Non -Profit Exemption: A person that can demonstrate that it is exempt from
federal income taxation pursuant to 26U.S. Code Subsections 501(c) or (d), as those
subsections may be amended or recodified.
b. Threshold Exemption: A person that can demonstrate that (1) its business has,
as applicable to the type of business, an annual value of products, gross proceeds of
sales, and gross income in the City equal to or less than two thousand dollars ($2,000),
aggregated, and (2) it does not maintain a place of business within the City. This
exemption does not apply to a person whose business requires or obtains a regulatory
license or specialized permit.
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ORDINANCE NO. 6176
i. Beginning January 1, 2026, the threshold amount will increase to $4 000.
ii. An amount equal to the increase in the Consumer Price Index (CPI) for "West
Urban, All Urban Consumers" (CPI-U) for each 12-month period ending on June 30
as published by the United States Department of Labor Bureau of Labor Statistics
or successor agency. To calculate this adjustment, the current rate will be
multiplied by one plus the cumulative four-year (forty-eight month) CPI increase
using each 12-month period ending on June 30 of each prior year, and rounded to
the nearest $100. However, if any of the annual CPI increases are more than five
(5) percent, a five (5) percent increase will be used in computing the annual basis
and if any of the annual CPI decreased during the forty-eight month period, a zero
(0) percent increase will be used in computing the annual basis.
3. Time within Which to Claim Overpayment of General Business License Registration
Fee: If a person makes an overpayment of a general business license registration fee, and,
within four (4) years after date of such overpayment, makes application for a refund or
credit of the overpayment, its claim shall be allowed and be repaid from the general fund
or be applied as a credit to annual renewal fess as approved by the Administrator.
SECTION III. Upon approval of the City Attorney, the City Clerk is authorized to direct
the codifier to make necessary corrections to this ordinance, including the corrections of
scriveners or clerical errors; references to other local, state, or federal laws, codes, rules, or
regulations; or ordinance numbering and section/subsection numbering and references.
SECTION IV. If any section, subsection, sentence, clause, phrase, or word of this
ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction,
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ORDINANCE NO. 6176
such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other
section, subsection, sentence, clause, phrase, or word of this ordinance.
SECTION V. This ordinance shall be in full force and effect thirty (30) days after
adoption. No later than five (5) days prior to such effective date, a summary of this ordinance
consisting of its title shall be published in the City's official newspaper.
PASSED BY THE CITY COUNCIL this 1st day of December, 2025.
APPROVED BY THE MAYOR this 1st day of Decembe
Approved as to form:
Shane Moloney, City Attorney
Date of Publication: 12/4/2025 (Summary)
ORD-FINANCE:250RD024:11/07/2025
Armondo Pavone, Mayor
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