In March of 2008, the City Council approved the creation of an annual business license program, effective October 1, 2008.  There are many beneficial reasons for this new annual program.  The primary reason is to enable the City to keep current on business emergency contact information, critical in emergencies.  This information is currently gathered with the 10-year General Occupancy Permit, whose 10 year term has been deemed an inadequate tool for keeping current on contact information.  The annual business license program will collect emergency contact information in a routine manner in an organized and timely way, and enable the efficient transmission of this information to the Police and Fire Departments.  Secondly, this program will allow for a business roster that will provide solid data for economic development purposes of applying for grants for funding important programs and projects, and enhance the marketing efforts to attract businesses and industries to Forest Grove.  Thirdly, the business license program will enable the City to automate and computerize information that is currently maintained by hand, increasing productivity.  Lastly, the business license fee will raise revenue to help support general fund programs, primarily in the public safety and economic development areas.

Do you do business in Forest Grove?  Starting October 1, businesses and persons doing business within Forest Grove will need to obtain a Business License.  There is a one-time set up fee of $25.00 for each application, in addition to the annual fee.  The annual business license fee will be based upon the number of employees and will range from an annual amount of $35.00 for up to 2.5 employees to a maximum annual fee of $250.00 for more than 51 employees.    

Counting up the number of employees in a business depends on how many hours an employee works.  An employee working thirty-two (32) or more hours per week throughout the year is considered full-time and is counted as one (1) Full Time Equivalent (FTE), but an employee who works less than that or who is temporary or seasonal is considered part-time and is counted as one-half (0.50) of an FTE.

Already have a General Occupancy Permit issued by the City?  The General Occupancy Permits are being discontinued and will be replaced by the Business License.  All General Occupancy Permits issued prior to October 1, 2008, will expire in the month of their issuance in 2009.  For example, if you received your General Occupancy Permit in July of 2003, it will expire in July of 2009.  You will need to obtain a business license by July of 2009.  As an incentive to encourage businesses with General Occupancy Permits to obtain a business license early, the City will waive the one-time set up fee of $25.00.  Additionally, those businesses with a valid General Occupancy Permit who apply and obtain a business license prior to January 1, 2009, will receive a prorated credit applied to the first two years the business license fee is owed.  The prorated credit will be based on the time remaining on the General Occupancy Permit.   No refunds of the General Occupancy Permit will be issued.  If the credit does not cover the full fee, you will need to make payment to the City for the difference.  After January 1, 2009, the full annual fee will be charged.  Businesses with current General Occupancy Permits will be mailed business license applications in early September.

Is your business selling secondhand goods such as antiques, household goods, guns, coins or scrap, or other such items?  You will also need to obtain a Dealer’s Permit, in addition to a business license.  These permits are free of charge.  Applications will be available at City Hall in late September, and will be routed to the Police Department for approval.  These types of businesses can present an extraordinary risk of being used as a means of concealing criminal behavior involving the theft of property.   Issuing Dealer’s Permits to these types of businesses is hoped to reduce criminal activity by providing more timely police awareness of business transactions involving materials which may have been obtained through illegal means.    

Do you manage a religious, fraternal, social or community organization within City limits?  Such organizations that conduct business like activities on an on-going basis – exchanging goods or services for payment – will need to obtain a business license. However, if the organization exists to promote altruistic or philanthropic goals, it will need to obtain an exemption certificate, and submit location, purpose and contact information.  

Forms will be available in City Hall beginning in late-September. 

For more information, check Business Licenses under City Services on the City’s website at www.forestgrove-or.gov or contact City Hall at 503-992-3269.