Council adopts business-license cleanup; city raises de minimis threshold to $20,000

The City Council unanimously adopted an amendment to the city's business-license code on Aug. 26 that streamlines registration and raises the local revenue threshold for exemption from the license fee.

Staff described the change as an operational cleanup: rather than "holding" a business license until the planning or building departments complete inspections, the city will register businesses when they apply and notify the relevant departments so regulatory reviews proceed in parallel. The proposed change modifies Moses Lake Municipal Code (MLMC) section 5.04.04 and was introduced as Ordinance 3075.

State Department of Revenue rule changes will set a statewide de minimis threshold of $4,000 for 2026, staff said, but cities can elect a higher local threshold. The amendment adopted by council sets the city's exemption threshold at $20,000 (city staff recommended the $20,000 level after internal discussions), meaning businesses reporting gross sales of $20,000 or less would be exempt from the city business-license fee.

Council discussion covered enforcement and street vendors. Council member Lombardi and others asked how mobile vendors and temporary sellers would be regulated; staff clarified that vendors and mobile food operators still need separate permits and that other code sections govern vending and temporary uses. Several council members asked for a six-month follow-up report to confirm license counts after the change.

The ordinance passed on a motion from Council member Fansher with a second from Council member Martinez and a unanimous vote.

Practical effect: The change is intended to reduce administrative friction for legitimate small businesses, particularly home-based sellers, while preserving other permit requirements for mobile vendors and temporary activity.