Eureka Springs Times-Echo The Holiday Island City Council has passed the final hurdle in a project that has spanned many months in establishing license fees and requirements for businesses in the city.

After approving a final round of small changes to the draft at its Feb. 20 regular meeting, the council passed the third and final reading of Ordinance 2023-020, which establishes business license rules and fees.

The only big change to the newly adopted ordinance that was approved is that a landlord must have more than one property they’re renting out before they are considered a business.

“It was proposed that we change the ‘rents out one or more’ to two or more long-term rental units,” Holiday Island Mayor Dan Kees said. “That way, if someone’s mom and dad passes away and they want to rent out the house rather than selling it they don’t have to get a business license just to rent one house. [Renting] two or more it would be considered a business.”

According to the rules and regulations for businesses attached to the ordinance, “A business license shall be required for any person, firm, individual or corporation that engages in, carries on or follows any trade, business, vocation, or calling in the City of Holiday Island, including any business, occupation, institution, corporation, entity, sole proprietorship, or other non-governmental entity which operates within the Holiday Island city limits unless exempt by state law.”

Religious entities and non-profits are exempt from the license requirements, the ordinance reads.

Other highlights of the ordinance include that anyone who operates a short-term rental must obtain a business license “after receiving a Conditional Use Permit issued by the City of Holiday Island.”

Business licenses must be applied for annual fees between $25 and $150 depending on the type of business. and the ordinance includes the city’s code enforcement officer stepping in and assisting with violations and the city also relying on state laws and due process hearings for offenders.

“… Business licensing ensure that businesses operate legally and safely provide for the protection of the public health, safety and welfare, and provides accountability for business operations in the city,” Kees read as part of the ordinance during the first reading in December. “… A business license registry allows for better communication between the city and businesses, should the city need to communicate on the spending issue and on a pending issue. … A business license registry assists the city in evaluating the economic health of the city and in determining the needs of and opportunities for the city. And … business licensing in Holiday Island will increase the public trust and confidence in the city businesses.

“… The city council has determined that business license are necessary for the reasons set forth above and in order to anticipate the needs of emergency personnel to protect the city sewer and water system from contamination and to provide for more efficient fire protection.”