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Council adopts ordinance raising small-business license exemption threshold to $4,000
Summary
The council unanimously adopted Ordinance 2025-672 to update Newcastle's general business license language to match state model language; the key change raises the out-of-city business exemption threshold from $2,000 to $4,000 and adds periodic CPI adjustments, effective Jan. 1.
The Newcastle City Council unanimously adopted Ordinance 2025-672 on Aug. 18, updating the city's general business license code to match state-recommended model language and increasing the threshold for out-of-city businesses required to take a Newcastle business license.
Finance Director Chambers told the council the state-updated model language requires adoption by October for an effective date of Jan. 1. The primary change in the ordinance raises the prior exemption threshold for a business located outside Newcastle that conducts limited activity inside the city from $2,000 to $4,000; the ordinance also sets an automatic consumer-price-index adjustment every four years.
Director Chambers said the higher threshold and stronger impact-fee receipts would help capital funds and reduce reliance on debt for capital projects. The council moved, seconded and adopted the ordinance by a 7-0 roll call.
Ending: The ordinance was adopted without dissent; staff said the change is mainly housekeeping to align local code with the updated model language and state reporting requirements.
