The Port Orchard City Council adopted an ordinance amending municipal code section 5.12.100 to raise the minimum threshold for required business licenses from $2,000 to $4,000 and to add an automatic periodic increase every four years tied to cumulative CPI, staff said.

Staff explained the change aligns the city with the Washington State model business license ordinance, which cities were required to adopt in 2018 and which was updated in 2024. The state law requires cities that participate in the state’s business-licensing service to adopt the updated threshold by Jan. 1, 2026, the staff report said.

Under the ordinance the minimum threshold is $4,000 for both in-city and out-of-city businesses effective Jan. 1, 2026; the threshold will rise automatically every four years based on cumulative CPI for the relevant period. Staff said the business-license fee is $35 and is administered by the state, and that the city retains that fee revenue. Council discussion focused on whether $4,000 was the appropriate level and whether raising the threshold further would reduce administrative burden, but staff said the city has not seen significant staff-time impacts and that the city is following the state standard.

Councilmembers discussed concerns about burdening small vendors and the potential benefits of the license for legitimacy at pop-ups and markets. Some members suggested further study by the economic-development committee to evaluate alternative thresholds, exemptions or other administrative changes; staff said that would be an appropriate next step and that deviating from the model could have unintended consequences because the city participates in the state’s licensing service.

The council approved the ordinance as presented.

The ordinance does not change the city's requirement that businesses register; it raises the gross-sales threshold that triggers a required paid license.