Cabinet will make its decision at a meeting on 7 May. The Council said the move would help York’s night-time economy "become more pleasant and successful".
The late-night levy will allow the local authority to charge premises authorised to sell alcohol between midnight and 6am.
The Council said that York currently has approximately 263 licensed premises authorised to sell or supply alcohol at these times, which breaks down into 246 premise licences and 17 club premise certificates. It predicts an business an annual gross income of £286,000.
However, it recognised that some licensees may change their hours and "this income could be significantly reduced". Of the proceeds, 30% would be retained by City of York Council and 70% would go to the Police and Crime Commissioner.
A statement from the Council added: "If introduced, the money raised would be spent on measures in York, managing the late-night economy, the impact of alcohol-related anti-social behaviour and noise nuisance issues between midnight and 6am. It would also help protect vulnerable people and communities affected by alcohol-related public nuisance and crime and disorder during the late night period, in the whole authority area."
Councillor Dafydd Williams, City of York Council’s cabinet member for Crime and Safer Communities, said: “Maintaining City of York Council’s focus on the impact of alcohol on crime, health and anti-social behaviour (ASB) in the week of the council’s Crime Summit, this request for a consultation is further evidence of our commitment to address alcohol-related issues in the city.
“We’ve successfully prosecuted people for urinating in public in the city centre and, working with our partners in Safer York Partnership and the police, as well as community groups like the Street Angels, we are working to make our communities safer and stronger for residents and businesses in York. We’re giving out the message that alcohol-related anti-social behaviour won’t be tolerated on our streets: we want people to enjoy the best of our city and for our night-time economy to be safe, prosperous and pleasant for all.”