Every person, firm, association, or corporation engaging in business within the City of Bainbridge Island must have a valid City endorsement on their State of Washington business license.
Engaging in business means commencing, conducting, or continuing in business, and the exercise of corporate or franchise powers and liquidating a business (Ordinance No. 2018-35). For online and cloud-based businesses, engaging in business is defined as the physical address of the business as listed with the Washington State Department of Revenue. Without being all-inclusive, engaging in business includes:
- General Contractors and all Subcontractors
- Home-based Businesses (including online and cloud-based businesses)
- Mobile Retail Food Establishments (i.e., food trucks) and other mobile businesses
- Nonprofit Organizations (although they are exempt from the City fee)
- Real Estate Agents (including those working under a brokerage if the agent is an independent agent and not an employee)
- Rental property owners and property developers (no matter if the property rented or developed is not located on the island)
- Short-term, Long-term Housing or Vacation Rentals (including short-term platforms such as Airbnb or VRBO)
- Vendors at Special Events
A more comprehensive list is available in Chapter 5.05 of the Municipal Code as modified by City Ordinance No. 2018-35. The City definition meets the State of Washington model threshold definition as mandated by RCW 35.90.080.
For means of determining the standard for "within the City," the City has adopted the definition for physical nexus presence, meaning the nexus standard for determining presence within the City need only be demonstrably more than the slightest presence.
Physical presence nexus creating activities include, but are not limited to:
- having an employee working in the State and, subsequently, in the City
- having property in the State and, subsequently, in the City
- having a stock of goods in the State and, subsequently, in the City, including inventory held by a marketplace facilitator or another third party representative
- renting or leasing tangible personal property in the State and, subsequently, in the City
- having an agent or third-party representative engage in activities significantly associated with establishing or maintaining a market in the State and, subsequently, in the City
- soliciting sales in the State and, subsequently, in the City through employees or other representatives
- installing or assembling goods in the State and, subsequently, in the City, either by employees or other representatives
- constructing, installing, repairing, or maintaining real property or tangible personal property in the State and, subsequently, in the City, either by employees or other representatives
- providing services in the State and, subsequently, in the City, such as accepting returns or providing product training, either by employees or other representatives
- delivering goods into the State and, subsequently, in the City other than by mail or common carrier, including using the seller’s own vehicle
- having an exhibit at a trade show to maintain or establish a market for in the State and, subsequently in the City, except for as provided in our Special Notice titled Trade Convention Exception from Nexus for Retail Sales
- soliciting sales in the State and, subsequently, in the City through employees or other representatives
- installing or assembling goods in the State and, subsequently, in the City, either by employees or other representatives
- constructing, installing, repairing, or maintaining real property or tangible personal property in the State and, subsequently, in the City, either by employees or other representatives
- providing services in the State and, subsequently, in the City, such as accepting returns or providing product training, either by employees or other representatives
- delivering goods into the State and, subsequently, in the City, other than by mail or common carrier (USPS, FedEx, etc.), including using the seller's own vehicle
- having an exhibit at a trade show to maintain or establish a market for in the State and, subsequently in the City, except for as provided in our Special Notice titled Trade Convention Exception from Nexus for Retail Sales
| Important note: If a business has more than one location in the City, a separate endorsement is required for each location. |
Business Endorsement Exemptions
Fee-Exempt Business (license endorsement required BUT no fee due)
Is your business exempt from the endorsement requirement but you still need an endorsement? Or, are you operating a non-profit (endorsement required but fee-exempt)?
A Fee-Exempt Business Endorsement allows businesses to register with the City and obtain a City Business Endorsement without paying the fee. To apply for a Fee-Exempt Endorsement:
Business owners will be contacted by the City to ensure their application meets the qualifications for fee exemption. Fee-exempt applications are subject to the same zoning and code compliance review and approval as a general or home occupancy application. Be aware, the City will attempt to reach a business owner twice to discuss fee-exempt qualifications and acquire necessary information for zoning and code compliance review. If no response is received, the application will automatically be denied for failure to provide required information. Applications failing to provide valid contact information (i.e. phone number and /or email address) will also be automatically denied.
| Important note: Fee-exempt endorsements will be audited yearly to ensure a business continues to meet qualifications for exemption. Businesses not meeting qualifications will have their endorsement automatically changed to a fee-based endorsement. |
Full Exemption (no license endorsement required AND no fee due)
The following businesses do not require an endorsement and are also exempt from the fee (BIMC 5.04.080 and 5.40.030):
The exercise of governmental functions performed by any instrumentality of the United States, the state of Washington, or any political subdivision thereof.
- Farmers and gardeners selling their own farm products raised and grown exclusively upon lands owned or occupied by them.
- Garage sales conducted on residential premises.
- Coming onto the island for the mere delivery of goods and services where the sale occurred outside the City, and the delivery was the only event occurring within the City (the performance of contracting and subcontracting work is not exempt).
- Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $3000.
- Any business activity carried on a the same fixed location for not more than one (1) day per week and not more than four (4) consecutive weeks in one (1) calendar year or any business carried on at the same fixed location in the City for not more than four (4) consecutive days in one (1) calendar year.