Santa Cruz County, CA Home Business: Zoning & Home Occupation Permits (2026)

613, Home Occupations as Secondary Uses. A home occupation is an income-producing activity carried on by a full-time inhabitant of the dwelling that is secondary to the residential use and does not adversely affect nearby residential properties through excessive noise, traffic, public expense, or nuisance. 613(B), the home occupation must be carried on entirely within the dwelling, or in an accessory structure normally allowed in the zone district, unless a Level V conditional home occupation use permit is obtained to authorize outdoor unenclosed activities. The use may not occupy floor area exceeding 35 percent of the total floor area of the dwelling without a conditional permit.

Many home occupations can operate without a discretionary permit when they meet all the standards; a Level V conditional home occupation use permit is required when an applicant wants to exceed the by-right limits (such as more employees, more floor area, outdoor storage or activity, or larger signage). Cottage industries, including cottage food businesses, are allowed as home occupations if consistent with State law and the County's Environmental Health requirements. Commercial weddings, community events, and fundraisers are not eligible as home occupations, and a commercial firewood operation (cutting, processing, or storing wood for public sale) is prohibited.