Sweeping business license ordinance amended to benefit Goodyear residents

The Goodyear City Council Monday heard revisions to a proposed business license ordinance that initially would have subjectively required all commerce within Goodyear to be subject to business licensure.

According to City Attorney Roric Massey, the original ordinance was amended to include definitions and provide additional exemptions to the business license requirements.

The amendment comes after the Goodyear City Council tabled a draft approval on April 29 after Councilmember Bill Stipp requested a carve-out to protect home-based businesses.

Under the new draft, infrequent or short isolated sales, such as a garage sale, would be exempt from the licensure requirement.

“If you're having a lemonade stand. That's not the type of item that we're trying to regulate in the city,” Massey said. “Homemade goods sales that are isolated in nature, garage sales would not fall under the business license program, if you're conducting a business activity that's less than two days in duration, that would not fall under the business license requirement. Or if your aggregate sales were under $5,000, you would be considered a casual sales activity and not be requiring a license in the city.”

Freelancers or professionals who work from home and have clients would also be exempt from the licensure requirement.

“Home occupations, with certain exceptions, would be exempted from the license,” Massey said. “Council had asked some questions about the accountant who's doing business in his home and frequently has customers coming in; those would be exempted from having a business license.”

According to Massey, home-based professionals who have employees who work in residence but don't live there would, unfortunately, qualify for the licensure requirement.

“If you're having multiple employees come into the business, that's kind of getting to be on a small (business) basis,” he said.

Other exemptions include school-aged children engaged in a school-sponsored fundraiser or persons in residential districts tutoring or providing educational lessons.

Independent contractors that only offer products for sale, such as beauty and kitchen utensils, on behalf of a parent organization would not be required to register as a business.

The city proposed providing a person operating a business without a license a warning and 30 days to correct the violation.

According to Massey, subsequent penalties for operating without a license are not less than $1,000 and not more than $2,500.