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Ruston council adopts business-license threshold change; $4,000 exemption takes effect Jan. 1, 2026

City of Ruston City Council · September 2, 2025
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Summary

The council adopted Ordinance No. 1592 to update Ruston's minimum out-of-city business license exemption from $2,000 to the state-recommended $4,000 effective Jan. 1, 2026; the law also triggers automatic four‑year CPI adjustments.

The Ruston City Council adopted Ordinance No. 1592 to align the city's business-license exemption with updated Association of Washington Cities recommendations. Under the ordinance, businesses with annual gross proceeds in the city at or below $4,000 (and that do not maintain a place of business in Ruston) will be exempt from the city’s business-license fee beginning Jan. 1, 2026. The update also establishes an automatic adjustment mechanism: every four years after 2026 the threshold will increase based on cumulative inflation (CPI-U Western), rounded to the nearest $100 and capped per the stated formula.

City staff explained that the change results from the 2018 state model ordinance and a 2024 AWC workgroup update; the council was advised that cities partnering with the state's Business Licensing Service must meet an earlier administrative deadline (notice to BLS by Oct. 17, 2025). The ordinance passed on a 5-0 vote (moved by Councilmember Hedrick; seconded by Councilmember Syler). The city noted potential minimal revenue loss from businesses grossing between $2,001 and $12,000 that currently pay an annual $37 license fee.