Tempe — Dozens of residents and business owners told the Tempe City Council on Tuesday they were split over a proposed ordinance to require a general business license for businesses operating in the city.

The ordinance, introduced as an amendment to Tempe City Code Chapter 16A, would create a municipal general business license and a business registry. City staff opened the first public hearing and heard seven speakers with arguments both for and against the proposal; no vote was taken. The council scheduled the second and final public hearing and vote for July 1, 2025.

Supporters said a city‑level license would give staff better data to target outreach and programs. “You can’t support what you can’t see,” said Melissa Harlan, a Tempe small‑business owner, adding that a license could be “simple and low cost” and would let the city better direct programs and emergency communications. Gabe Hagan, who said he operates businesses in both Tempe and Mesa, described Mesa’s recently adopted license program and said a phased or low introductory fee encouraged adoption.

The Tempe Chamber of Commerce also voiced support. “This will go a long way when we talk about targeting resources, really understanding who is in our community,” said Robert Arredondo Savage, speaking for the chamber, and he thanked staff for early outreach to business stakeholders.

Opponents warned that the license would add cost and regulatory burden and risk privacy harms for home‑based operators. “This proposal is a revenue grab disguised as public safety,” said Eric Fuller, chair of the Maricopa County Libertarian Party, calling elements of the ordinance punitive and invasive. Small‑business owner Joe Forte said the estimated revenue—about $150,000 annually at a 20% registration rate, a figure he offered—would be outweighed by compliance and administration costs and would harm volunteer‑led nonprofits.

Other critics suggested the city pursue a free, voluntary directory rather than a mandatory fee. “There are far better ways to get the data that you’re looking for than forcing businesses to pay $25 a year,” said Jason Turnquist, a Tempe business owner and entrepreneur.

Council members did not vote and heard the public record; the second hearing is scheduled July 1, 2025, when the council may adopt, amend or reject the proposed ordinance.