City of Richland Requirements and Fee Calculation Instructions

City of Richland Requirements and Fee Calculation Instructions

General businesses

License fee: $40.00

Employee fee: $12.00 per full-time equivalent (FTE) employee. There is no fee for the first two employees.

Rental fee: $2.00 per unit

If you do not have a physical location inside Richland city limits, but you will travel into Richland to conduct business, count only the employees that work in the City of Richland.

Employee definition

Any person who performs work, labor, or services for a business within the city limits and is on the payroll including all fulltime, part time, and temporary employees; and Self employed persons, sole proprietors, owners, managers, and partners.

Method for calculating FTEs

Estimate the number of employees that will be working at the business location on the last day of each of the coming 12 months, add the monthly totals, divide by 12, and drop fractions. When applying online, enter the total number of calculated employees and the system will subtract two.

Rental unit information

Fees may be charged on properties available for rent within Richland: counted as a total of any combination of individual apartments, houses, commercial or retail rental units, or mobile homes, regardless if vacant or rented. Landlords that offer fewer than three rental units are fully exempt from the Richland rental unit licensing requirement. Landlords that offer three or more rental units in the city limits are considered in the property rental business and must hold a rental property business endorsement. The landlord registers the business office location and reports the total of all rental units offered city-wide under that one location record.

Exception: Properties that have three or more units on a single premise must be registered as a separate business location, and the total units of that one property counted for that one location’s licensing fees (and not included in the one, city-wide rental unit count or location).


General Business Non-Resident Fee Calculation

Reported gross annual income

License fee

$0 through $2,000

No license required

Above $2,000


Nonprofit businesses

License fee: There are NO fees for nonprofit businesses unless the business has more than 20 employees* at a location account, then all General Business Licensing fees apply, including the $40 license fee, $12 per employee fee, the $2 per rental unit fee, and the Richland city late renewal fee ($20 or 10% of total city license fees, whichever is greater).

*Note: The employee count is established after the ‘two free employees’ have been deducted from the gross total.

Nonprofit businesses, other than religious organizations, must provide a copy of the confirmation from the Internal Revenue Service of tax exemption under IRS Code 501(c) 3, 4, or 5 to qualify for a nonprofit endorsement from the City of Richland.