First, the ordinance completely strikes out Chapter 2.01.100 Residential Building Rental Registration Program from the TMC. This section of the code required all owners of residential properties with dwelling units for rent to register with the City of Tacoma. The purpose of the Residential Building Rental Registration Program is to prevent neighborhood blight and deterioration by providing accurate information for the notification of owners, by officers of the City of Tacoma, so as to be able to respond quickly and accurately if a complaint is filed against the property. There was a one time fee of $25.00 per owner for the registration of properties with the city, and a $10 fee for changes. There was also an exemption from the fees for those that voluntarily participated in crime reduction programs.

Next, the ordinance looks to clarify and explicitly state that businesses renting or leasing real properties are not required to acquire a home occupations license. Chapter 6.24 Home Occupations deals with license requirements for home occupations, which are defined in Chapter 13.06.700.H as:

Home occupation. A business, profession, occupation, or trade conducted for gain or support and located entirely within a residential building or a building accessory thereto, which use is accessory, incidental, and secondary to the use of the building for dwelling purposes and does not change the essential residential character or appearance of such building.

Before the change found in this current ordinance, Chapter 6.24 Home Occupations could have easily been misinterpreted as requiring an home occupation license for those renting or leasing real property. The new ordinance adds an exemption for “Business of renting or leasing real property” to Chapter 6.24.020 Exemptions, thus clearing up this confusion once and for all.

Finally, the new ordinance, by editing 6.69.020 Date of Payment of the chapter of the TMC that deals with city business licenses, requires that all persons or businesses that engage in rental or leasing activity of residential or commercial within the boundaries of the City of Tacoma purchase a business license. The city sees this as a tool to hold landlords accountable for the conditions of their properties and activities engaged in on their properties. The city says that the fees, estimated at about $250,000 annually, will only be used to cover the additional costs of enforcing, educating and maintaining the new program.

Payment is due by March 31, 2004 in the first year and then subsequently on the 1st of January for every year thereafter. The license must be posted in all places of business. Charitable organizations and businesses with gross revenues of less than $10,000 are exempt. Failure to comply, according to 6.24.050 Violation – Penalties, can lead to at the maximum to the following: an initial fine of $1000 fine, a $250 a day civil penalty for the period in violation, and/or 90 days in jail. Information on obtaining a business license can be obtained either by navigating the City of Tacoma’s web site, directly at from this link, or by calling the Tacoma Licensing Department at 253-591-5252.

At this point, it is unclear why the old system was scrapped in favor of the new. The new is certainly less complicated, but it lacks both the ability to easily track those responsible for specific properties and any incentive for property owners to participate in crime reduction programs. One could assume that they old system was not achieving these goals due either to lack of funding, poor participation, or nominal enforcement.

Sources: The full Chapter 6.69 Licenses, which deals with business licenses, is included here for reference. Also included are 6.02.070 Suspension or Revocation and 6.24.050 Violation – Penalties, for further reference. The changes to the TMC can be viewed here, and the complete/current TMC can be found here.

Disclaimer: Information in this report was taken from various sources assumed to be reliable. Nowhere is the author attempting to give legal advice. The author makes no representations or warranties as to the accuracy or completeness of the information contained in this report.

For more information, contact Luke Campbell at lcampbell@valueone.com. Luke Campbell is a full time employee at ValueOne Appraisal, an appraisal firm located in Federal Way, Washington.