Dickson said even a flag which was displayed from inside a bedroom window would likely need a permit.
But council said enforcement of the bylaw has been low on its list of priorities, particularly after the 2016 earthquakes.
"This was due to the response and recover priorities for council resourcing and the view that the community had greater challenges and enforcement was counterproductive."
A lack of a review of both the district plan or the signs bylaw had further exacerbated problems and had left the frameworks "potentially dated", council said.
Review of the bylaw has already had varying responses from residents.
During the council meeting's public forum, Kaikōura Hunting and Fishing Ltd owner Anton Evans argued signs were good for the district moving forward.
Resident Courtnay Wilson later raised concerns around the "visual pollution" of billboards and large signs in the town, which she said was part of the growing commercialisation of the area.
Dickson said there may be a low appetite from the Covid-hit business community to have their structures put under scrutiny.
"Would going out and questioning, and challenging businesses' signs at the moment, be something that the community wants us to focus on."
He said checks on how other councils approached rules for signs would likely be part of the review.