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Council gives first reading to update business license classes to comply with state law
Summary
Council held a first reading of Ordinance 25-17 to update the city’s business license class schedule under Act 176 of 2020; staff said the business license tax accounts for about 35% of the general fund and gave an example showing a typical business could save roughly $144 under the new class schedule.
The Lancaster City Council on first reading considered Ordinance 25-17, which would amend the city’s business license ordinance to update rate classes in order to comply with Act 176 of 2020.
City staff presenter Miss Coffey said the state requires updates to licensing classifications every odd-numbered year and that the updates take effect for the licensing year beginning May 1. She told the council the business license tax accounts for roughly 35% of the city’s general fund and walked through examples showing how moving a business from one class to another changes the base rate and per‑$1,000 charge. In one example, she said, a business reporting $100,000 in receipts would save about $144 under the new class schedule.
Council members asked for clarification of class movements and how businesses will be notified; staff said the city follows municipal association guidance and will provide notification. Council member Harris moved to approve the ordinance on first reading; the motion was seconded and carried on a roll call vote.
The ordinance will return for subsequent readings as required by the city’s legislative process.
