The Shelton City Council voted to place an ordinance on the Sept. 16 action agenda that would amend the municipal code to reflect a state business‑licensing model, raising the local threshold that exempts certain out‑of‑city sellers from a city business license from $2,000 to $4,000. The council approved the motion to place ordinance number 2032-0725 on the action agenda by voice vote.

The change tracks what staff described as the state work group's updated model: "the exemption from business license requirements, threshold exemption from 2,000 to 4,000," Interim Finance Director Terry Smith said, and the updated threshold would take effect Jan. 1, 2026. Smith told the council the draft ordinance also incorporates the state rule that the threshold will be adjusted every four years and tied to the consumer price index.

Supporters said the revision brings Shelton into compliance with the state's model and reduces administrative burdens for very small, out‑of‑city sellers. Council members asked staff about budget impacts and whether the higher threshold could divert business activity away from local brick‑and‑mortar establishments. Smith said the city cannot know the full revenue effect until businesses file under the new standard and that staff could try to report on businesses with gross receipts under the threshold before final adoption.

The ordinance, as described in staff materials, applies to businesses or persons whose annual value of products, services or sales in the city is equal to or less than $4,000 and who do not maintain a place of business within the city. The city will continue to rely on state business licensing for statewide registration; local licensing triggers additional city checks such as coordination with building, fire and health inspections when a license is issued.

The council did not vote to adopt the ordinance at this meeting; it voted only to place the ordinance on the Sept. 16 action agenda for final consideration. Staff was asked to provide follow‑up information on how many local activities fall below the new threshold and on possible budgetary impacts.

Details the council requested include the number of non‑city businesses that historically reported less than $4,000 in city sales and the degree to which the change would affect proactive local inspections tied to business license applications.