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Chehalis adopts state model raising out-of-city business threshold to $4,000
Summary
Council adopted ordinance 11-15-B on second and final reading to align municipal code with the Washington Department of Revenue model, raising the threshold that triggers out-of-city business licensing from $2,000 to $4,000 effective Jan. 1, 2026.
On second and final reading, the council adopted ordinance 11-15-B to amend Chapter 5.04 of the Chehalis Municipal Code. The change mirrors a Department of Revenue model and raises the threshold for requiring an out-of-city business license from $2,000 to $4,000 in annual gross receipts within Chehalis city limits. Staff said the change will be effective Jan. 1, 2026, and that the Department of Revenue will conduct notification of affected licensees as part of the licensing-renewal process.
A councilmember asked whether the $4,000 threshold referred to gross or net receipts; staff confirmed it applies to gross receipts within city limits. Staff said the fiscal impact is expected to be small.
Outcome: ordinance 11-15-B adopted on second and final reading.
