Council adopts ordinance raising small-business license exemption threshold to $4,000

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.