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Council advances business-license update to second reading; threshold raised under state model ordinance
Summary
Assistant City Attorney Matt Hutchins presented mandatory updates to Des Moines' business-license code reflecting AWC model language; the council moved draft ordinance 25-124 to a second reading after staff said the out-of-city revenue threshold increased from $2,000 to $4,000 and that revenue impacts should be minimal.
The council took first-reading action on a required update to the city's business-license code.
Assistant City Attorney Matthew Hutchins explained that state law directed the Association of Washington Cities to create a uniform model ordinance for municipal business-license codes. The model establishes a minimum threshold for requiring licenses from out-of-city businesses; the threshold previously discussed at $2,000 has been updated by AWC to $4,000 and will be adjusted every four years by CPI.
Hutchins said the city had previously amended its code to adopt the model language and that the new AWC changes are mandatory for cities with business-license codes. Finance staff told Hutchins the change would likely affect only a handful of out-of-city businesses and the revenue impact should be small. Councilmember Simons moved to pass draft ordinance 25-124 to a second reading at the next available regular meeting; the motion was seconded and approved unanimously on the record.
Councilmembers asked whether the change would affect farmers-market vendors; staff said the market operates under an agreement and vendors are covered by the market’s license, so the update would not apply to those vendors.
