Merced, CA Home Business: Zoning & Home Occupation Permits (2026)

Section 20.48.020 draws the line: a minor home occupation involves only telephone, computer, mail, and common delivery services, with no more than two client visits per week; anything beyond that, including any cottage food operation under the California Homemade Food Act, is a major home occupation. Section 20.48.030 sets the permit path. A minor home occupation needs no Planning Division approval at all, just a home occupation certificate and a city business license. A major home occupation needs a minor use permit if it's a cottage food operation, or a Site Plan Review Permit with a public hearing under Sections 20.68.050 and Chapter 20.70 for any other major use.

Section 20.48.040(A) then layers standards onto every home occupation regardless of type: the business area cannot exceed 25% of the dwelling's floor area or 400 square feet, whichever is less; products cannot be sold directly to customers or displayed in windows; deliveries run only 8:00 a.m. to 8:00 p.m., Monday through Saturday; and no mechanical equipment, hazardous materials, or auto repair not normally associated with residential use is allowed. The Director of Development Services can suspend any home occupation under Section 20.48.050 for nuisance, code violations, or failure to commence within a year.