Tehama County, CA Home Business: Cottage Food Operations (2026)

Unincorporated Tehama County folds cottage food into its zoning code by writing it directly into the home occupation definition in Title 17, which defines a home occupation to include 'a cottage food operation, as defined in Health and Safety Code section 113758.' That definition specifically allows a cottage food operation to have not more than one full-time-equivalent cottage food employee who is not a family or household member - a narrow exception to the otherwise family-only home occupation rule. Because home occupations are a permitted use by right in the RE, R-1, and AG-1 through AG-4 districts, a cottage food operation that meets the home occupation limits (confined within the dwelling, not more than 25 percent of floor space, sign not more than one square foot) is a permitted residential use in those zones. The underlying state law (Health and Safety Code Section 113758, originating with AB 1616) defines a cottage food operation and sets two classes: a Class A operation may not exceed $75,000 in verifiable gross annual sales and may engage only in direct sales, while a Class B operation may not exceed $150,000 in gross annual sales and may engage in direct and indirect sales. State law (California Government Code Section 51035) also requires local agencies to classify cottage food operations as a permitted residential use or grant a nondiscretionary permit subject only to reasonable standards. Food-safety registration or permitting is handled by the County's Environmental Health Department.