The council said that it is considering the measure to “reduce alcohol-related crime and disorder” in the city centre.
It will operate in conjunction with the licensing policy, which is currently under review, and the city’s commitment to minimum unit price for alcohol.
The council believes said money raised through the scheme would be split between the police and the council. The police will be entitled to a 70% share.
It explained that the levy may be spent on taxi marshalling, CCTV improvements, street pastors, street cleaning, enforcement and personal safety initiatives and increased toilet facilities.
The council is planning to implement the late-night levy on 1 November 2013.
The announcement comes just days after the Association for Licensed Multiple Retailers said that it has set up a fighting fund which will be used for judicial reviews, if necessary, against councils introducing a late-night levy.
The legislation for the levy came into force on 31 October.
Linda Hobson, deputy cabinet member for community safety and regulation for Newcastle City Council, said: “The vibrancy and vitality Newcastle’s night time economy has a world wide reputation and makes an invaluable contribution to the city’s prosperity.
“However, it also has less welcome consequences – noise, crime, anti-social behaviour and negative health impacts. These proposals, which will be delivered in partnership with the police, licensing trade and residents, seek to strike the right balance by ensuring those businesses which benefit should make a limited contribution to these costs, maintaining the city as one of the safest in the country.”
The consultation document and questionnaire is available on the Council's website.