St. Paul Considers Temporary Business License Fee Reprieve

The proposed ordinance aims to amend Chapter 310, allowing Class N license renewal fees to be paid up to six months past their due dates in 2026. This measure waives late-fee penalties if 2025 or 2026 renewal fees are paid within 2026. The city’s Department of Safety and Inspections (DSI) is responsible for issuing business licenses and collecting fees.

Class N licenses cover approximately 50 types of businesses, primarily in the hospitality and nightlife sectors. Examples include auto body repair shops, motor vehicle dealers, health clubs, massage centers, and currency exchanges. City Council President Rebecca Noecker noted that many businesses hold multiple licenses, leading to significant cumulative costs.

Angie Wiese, director of the DSI, acknowledged that the license fee break is a small but important step in helping businesses recover. Businesses failing to pay fees by the end of 2026 could face penalties in 2027, including fines, closures, and license revocation.

The City Council is scheduled to hold a public hearing on May 6, with a potential final vote on May 13.

Operation Metro Surge was a federal immigration enforcement crackdown that significantly impacted local businesses in Minneapolis and St. Paul, leading to reduced revenue and staffing challenges.

Class N businesses, primarily in the hospitality and nightlife sectors, are eligible. This includes businesses with licenses for serving alcohol or providing entertainment, as well as auto body shops, health clubs, and currency exchanges.

Businesses that do not pay their 2025 and 2026 license fees by the end of 2026 may face penalties in 2027, including fines, forced closures, and license revocation.

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