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Sandy, UT Home Business: Zoning & Home Occupation Permits (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Licensing office
Business License Office, Community Dev. Dept.
Residency rule
Owner lives on-site 183+ days/year
Nonresident employees
1 max on-site at a time
Floor area cap
25% of main floor or 50% of basement
Category II
Requires Planning Commission CUP

Summary

Every home occupation in Sandy must be licensed by the Business License Office unless a narrow exemption applies, and the city sorts businesses into a by-right Category I or a Planning Commission-reviewed Category II conditional use. The city can terminate a home occupation outright if the owner violates the standards.

Provide a means to enforce and regulate the businesses that are licensable through the authority of the business license regulations of this Code, and, if necessary, terminate home occupations if violations of the ordinances regulating home occupations occur. Home Occupation License. All home occupations shall be licensed unless specifically provided an exemption in this Section or in the business license regulations of this Code... The authority to issue a license to conduct a home occupation shall be under the jurisdiction of the Business License Office of the Community Development Department. Categories and Requirements of Home Occupation Licenses. Home occupation businesses are classified as Category I, Permitted Home Occupation, or Category II, Conditional Use Home Occupation. A Category II, Conditional Use Home Occupation requires review and approval of the Planning Commission.

Full Breakdown

Section 21-11-5 puts home-based businesses on two tracks. Category I, Permitted Home Occupation, is administratively licensed by the Business License Office within the Community Development Department once an applicant meets a long list of standards: the operator must be a bona fide resident living in the home at least 183 days a year (proven with tax returns or government ID), only one nonresident employee may work on-site at a time, all business vehicles must park off-street, and no more than 25 percent of the main floor (or 50 percent of a basement) may be used for the business.

A license isn't required at all unless the operation crosses specific thresholds, customer visits, exterior signage, a nonresident employee, business deliveries, required inspections, a sales-tax number, or more than 25 percent of the dwelling in business use. Any business that can't meet the Category I qualifications must instead apply for a Category II conditional use permit, which requires Planning Commission review and approval before a license can issue. The ordinance's stated purpose is explicit that regulation exists to "terminate home occupations if violations of the ordinances regulating home occupations occur," giving the city direct authority to pull a license rather than merely fine the operator.

Violations & Fines

Sandy can terminate a home occupation's license outright for violating § 21-11-5's standards, since the section's stated purpose is to "enforce and regulate" licensable home businesses and, if necessary, end them. Beyond license revocation, operating an unlicensed home occupation that should be licensed, or violating the Code generally, is a Class B misdemeanor under §§ 1-2-2 and 1-2-3, punishable by up to $1,000 and up to six months in jail for an individual.

Frequently Asked Questions

Does every home business in Sandy need a license?
Not automatically. Section 21-11-5 exempts a home occupation from licensure unless it crosses specific thresholds, customer visits, visible signage, a nonresident employee, deliveries, required inspections, or use of more than 25 percent of the home. Cross any of those lines and a license from the Business License Office is required.
What's the difference between Category I and Category II?
Category I is a Permitted Home Occupation that the Business License Office can license administratively once the applicant meets all standards. Category II is a Conditional Use Home Occupation for businesses that can't meet every Category I qualification, requiring Planning Commission review and approval before licensing.
Can Sandy shut down my home business?
Yes. Section 21-11-5 states its purpose includes the authority to terminate home occupations if violations of the home occupation ordinances occur, in addition to the general Class B misdemeanor penalties under §§ 1-2-2 and 1-2-3 for Code violations.

Sources & Official References

Other rules in Sandy

All Sandy rules

How Sandy compares: Easiest Cities to Run a Home Business·Compare Sandy to another location·View the Utah home business overview

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