Staff seeks to align Pasco business-license exemption with state threshold and extend to local brick-and-mortar businesses

5810899 · August 26, 2025

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Summary

Staff reported a state-mandated threshold increase for business-license exemptions and recommended Pasco extend the same low-revenue exemption to local brick-and-mortar businesses while keeping fire-safety inspection requirements for moderate/high-risk occupancies.

City staff told council on Aug. 25 that state Business Licensing Services has increased the low-revenue exemption for out-of-city businesses from $2,000 to $4,000, and Pasco staff proposed changing municipal code to match the state threshold. Staff also recommended Pasco apply the same exemption to local brick-and-mortar businesses but retain fire-safety inspection requirements for businesses that meet the city’s moderate or high fire-risk thresholds. Staff said the state program (BLS) made licensing easier for businesses operating across multiple cities and that the proposed change would reduce administrative burden. No formal ordinance vote was held at the workshop.