The move was the result of the council's recently implemented plan change aimed at "progressive removal" of footpath signs from the city's art deco centre.
The change allowed shops to have one footpath sign if they paid an annual fee of $100. This increases to $300 next year and $500 every year thereafter.
The fee was due by January 22. A letter to those who had not paid requested payment by February 19, and said they would get no further warning.
Those who paid their fee got a licence sticker to affix to the signs.
Twenty-two signs were confiscated.
Napier Inner City Marketing committee member Graham Edwards said the policy had been widely known but "we were certainly under the impression there would be a policy of encouragement and education".
"It's a ridiculous way to have gone about it. They could have put pink stickers on the signs. They've gone from nothing to confiscation."
Jude's Cafe owner Judy Groube, said the truck and four council staff took her three signs and a flag outside her Dalton St cafe shortly after 11am.
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