Title
Approval of an Ordinance Amending Section 5.02.040 of the Olympia Municipal Code with a Mandatory Update to the Threshold for the Business License Fee Exemption for Occasional Sale Businesses - FIRST AND FINAL READING
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve on first and final reading the Ordinance amending Olympia Municipal Code (OMC) 5.02.040 with a mandatory update to the threshold for the business license fee exemption for occasional sale businesses.
Report
Issue:
Whether to approve on first and final reading the Ordinance amending Olympia Municipal Code (OMC) 5.02.040 with a mandatory update to the threshold for the business license fee exemption for occasional sale businesses.
Staff Contact:
Mike Githens, Finance Director, 360.753.8465
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City is authorized through RCW 35.23.440 to have a business license program for those engaging in business in Olympia.
RCW 35.102 requires the cities, working through the Association of Washington Cities (AWC), to establish a Model Code. We adopted the first business license model code in 2012, through Ordinance 6819. RCW 35.102 also allows periodic updates to the code.
The legislature made one such update during 2018 requiring a new $2,000 minimum threshold (or occasional sale) exemption to the business license fee requirement. In particular, out-of-town or transient businesses with less than
$2,000 income within Olympia are exempted from the $30 license fee. The City incorporated this update in 2018 via Ordinance 7151.
In recent years, the AWC and member cities received input from the business community that they desired a higher out-of-city fee exemption threshold. During 2025 the AWC, business community, and member cities decided to raise the threshold from $2,000 to $4,000. As a member city, we are required to update OMC 5.02.040.B to conform with the u...
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