The Port Orchard City Council voted to amend the municipal code to raise the minimum gross-sales threshold for required business licenses from $2,000 to $4,000 and to add an automatic periodic adjustment for cumulative inflation every four years. Staff said the change mirrors the Washington State model business license ordinance and must be adopted by Jan. 1, 2026.

Mr. Crocker said the state required cities to adopt the updated threshold and that the city historically set a $2,000 threshold in 2018. Under the proposed ordinance the $4,000 threshold applies to in‑city and out‑of‑city businesses effective Jan. 1, 2026; staff also proposed indexing the threshold every four years using cumulative CPI calculations for June of each relevant year.

Council members asked about administrative costs and whether the increase might push low-volume vendors (for example, farmers-market vendors) out of the licensing system. Staff replied the state administers the licensing service, the city collects a local fee (noted at $35), and the city has not done a detailed internal time-cost study. Several councilmembers favored the state-aligned threshold while asking staff to return with data on administrative burden and potential alternatives (for example, whether to require registration without fee for very low‑volume vendors).

The council voted to adopt the ordinance as presented; staff recommended future committee work to review whether requiring all businesses to apply for a license (versus exempting smaller vendors entirely) is appropriate.