71.990.  Home-based business, use of residential dwelling — limitations on restrictions by political subdivisions — reasonable regulations permitted. — 1.  As used in this section, the following terms mean:

  (1)  "Goods", any merchandise, equipment, products, supplies, or materials;

  (2)  "Home-based business", any business operated in a residential dwelling that manufactures, provides, or sells goods or services and that is owned and operated by the owner or tenant of the residential dwelling.

  2.  Any person who resides in a residential dwelling may use the residential dwelling for a home-based business unless such use is restricted by:

  (1)  Any deed restriction, covenant, or agreement restricting the use of land; or

  (2)  Any master deed, bylaw, or other document applicable to a common-interest ownership community.

  3.  Except as prescribed under subsection 4 of this section, a political subdivision shall not prohibit the operation of a no-impact, home-based business or otherwise require a person to apply for, register for, or obtain any permit, license, variance, or other type of prior approval from the political subdivision to operate a no-impact, home-based business.  For the purposes of this section, a home-based business qualifies as a no impact, home-based business if:

  (1)  The total number of employees and clients onsite at one time does not exceed the occupancy limit for the residential dwelling; and

  (2)  The activities of the business:

  (a)  Are limited to the sale of lawful goods and services;

  (b)  May involve having more than one client on the property at one time;

  (c)  Do not cause a substantial increase in traffic through the residential area;

  (d)  Do not violate any parking regulations established by the political subdivision;

  (e)  Occur inside the residential dwelling or in the yard of the residential dwelling;

  (f)  Are not visible from the street; and

  (g)  Do not violate any narrowly tailored regulation established under subsection 4 of this section.

  4.  A political subdivision may establish reasonable regulations on a home-based business if the regulations are narrowly tailored for the purpose of:

  (1)  Protecting the public health and safety, including regulations related to fire and building codes, health and sanitation, transportation or traffic control, solid or hazardous waste, pollution, and noise control; or

  (2)  Ensuring that the business activity is compliant with state and federal law and paying applicable taxes.

  5.  No political subdivision shall require a person, as a condition of operating a home-based business, to:

  (1)  Rezone the property for commercial use;

  (2)  Obtain a home-based business license; or

  (3)  Install or equip fire sprinklers in a single-family detached residential dwelling or any residential dwelling with no more than two dwelling units.

  6.  Whether a regulation complies with this section is a judicial question.