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Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.
Pasco city endorsement
Requirements and fees
General business license
Variable
The city of Pasco requires a license for all businesses located within city limits, or conducting business within city limits. If you are not sure if you will do business within the city limits, contact the city directly before you apply.
If you will have more than one business located on a single property, you must complete a separate application for each business.
For Hire Pasco drivers must obtain a city of Pasco For Hire Business directly with the city of Pasco, a General Business license For Hire is not required.
License fee is determined by number of employees (FTEs) who work within the city limits of Pasco.
Method for calculating FTEs
Total hours worked in the year by all employees, both full and part time, divided by 1,920 hours, equals number of FTEs. Round fractions to the nearest whole number. The minimum number of FTEs is one. This includes self-employed persons, sole proprietors, owners, managers, and partners. New businesses must estimate the first year’s employee hours.
Origination fee:
| License fee: | $80 |
|---|---|
| Employee fee: |
$20 fee per full-time equivalent (FTE) ($5,000 cap on 250 or more employees) |
Renewal fee:
| License fee: | $80 |
|---|---|
| Employee fee: |
$20 fee per full-time equivalent (FTE) ($5,000 cap on 250 or more employees) |
Home businesses
Variable
If your business is in a residence within the city, you must comply with Pasco Municipal Code 25.66.030 and 25.66.040. For more information on home occupation requirements, contact the city directly.
License fee is determined by gross income and number of employees (FTEs) who work within the city limits of Pasco.
Method for calculating FTEs
Total hours worked in the year by all employees, both full and part time, divided by 1,920 hours, equals number of FTEs. Round fractions to the nearest whole number. The minimum number of FTEs is one. This includes self-employed persons, sole proprietors, owners, managers, and partners. New businesses must estimate the first year’s employee hours.
Origination fee:
| Reported gross annual income | License fee |
|---|---|
| $0 through $2,000 | $0 |
| Above $2,000 |
$80 + $20 per FTE ($5,000 cap on 250 or more employees) |
Renewal fee:
| Reported gross annual income | License fee |
|---|---|
| $0 through $2,000 | $0 |
| Above $2,000 |
$80 + $20 per FTE ($5,000 cap on 250 or more employees) |
Non-resident businesses
Variable
If your business is physically located outside city limits, but conducts business within city limits, your license fee is determined by gross annual income earned within this city’s limits and number of employees (FTEs).
Method for calculating FTEs
Total hours worked in the year by all employees, both full and part time, divided by 1,920 hours, equals number of FTEs. Round fractions to the nearest whole number. The minimum number of FTEs is one. This includes self-employed persons, sole proprietors, owners, managers, and partners. New businesses must estimate the first year’s employee hours.
Origination fee:
| Reported gross annual income | License fee |
|---|---|
| $0 through $2,000 | $0 |
| Above $2,000 |
$80 + $20 per FTE |
Renewal fee:
| Reported gross annual income | License fee |
|---|---|
| $0 through $2,000 | $0 |
| Above $2,000 |
$80 + $20 per FTE ($5,000 cap on 250 or more employees.) |
Businesses exempt from city licensing
Your business may be exempt from getting a city business license. For more information, please contact the city directly.
Average approval time
City approval time not available. Contact the city directly for more information.
