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Ordinance No. 2025-23 Relating to Business Licenses Amending Chapter 5.04 BIMC (Approved 081225)Page 1 of 2 ORDINANCE NO. 2025-23 AN ORDINANCE of the City of Bainbridge Island, Washington, relating to business licenses and amending Section 5.04.080 of the Bainbridge Island Municipal Code to remove the specific monetary reference to the gross income requirement threshold in the code. WHEREAS, the City of Bainbridge Island requires certain businesses to obtain business licenses; and WHEREAS, the City of Bainbridge Island administers its business licensing through the state’s business license system (“BLS”); and WHEREAS, the current gross income requirement stated in Section 5.04.080 of Bainbridge Island Municipal Code is currently set at $3,000; and WHEREAS, the state’s gross income requirement threshold to register with the Washington State Department of Revenue and obtain a business license is increasing to $4,000; and WHEREAS, the City of Bainbridge Island would like to amend Section 5.04.080 of the Bainbridge Island Municipal Code to remove references to monetary thresholds in order to avoid the need for future code amendments each time the City or the State adjusts the applicable threshold amounts. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Section 5.04.080 of the Bainbridge Island Municipal Code is hereby amended to read as follows: 5.04.080 Exempt activities. The following activities shall be exempt from the licensing provisions of this chapter: A. The exercise of governmental functions performed by any instrumentality of the United States, the state of Washington, or any political subdivision thereof; B. Farmers or gardeners selling their own farm products raised and grown exclusively upon lands owned or occupied by them; C. Garage sales conducted on residential premises in compliance with this code; D. The mere delivery of goods or services to the customer or client by businesses where the sale occurred on business premises outside of the city, and was the only event Page 2 of 2 occurring within the city except that the performance of contracting or subcontracting services is not an exempt activity; or E.Any business activity by any person or business whose annual value of products, gross proceeds of sales, or gross annual income of the business within the City is $3,000 or less does not exceed the minimum threshold established by state law or as otherwise set by the City. Section 2. Should any section, paragraph, sentence, clause, or phrase of this ordinance conflict with the terms of any prior ordinance or resolution, including terms related to fee or charge adjustments, the terms of this ordinance shall control. Section 3. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 4. This ordinance shall take effect and be in force five (5) days from its passage and publication as required by law. PASSED by the City Council this 12th day of August 2025. APPROVED by the Mayor this 12th day of August 2025. Ashley Mathews, Mayor ATTEST/AUTHENTICATE: Christine Brown, MMC, City Clerk PASSED BY THE CITY COUNCIL August 12, 2025 PUBLISHED: August 15, 2025 EFFECTIVE DATE: August 19, 2025