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Cobb County, GA Local Taxes & Fees: Business Tax Classification (2026)

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

Key Facts

Governing section
Cobb County Code § 78-33
Classification basis
SIC major group classification
Legal test
"Dominant line" earning greatest revenue share
Feeds into
Profitability-ratio rate under § 78-34
Administrative fee
$55.00 flat, non-refundable
Late penalty
10% after 90 days, plus 1.5%/month interest
Territorial scope
Unincorporated Cobb County only

Summary

Every business in unincorporated Cobb County is classified under Code § 78-33 by Standard Industrial Classification major group, using the single line of goods or services that produces the largest share of the business's gross revenue. That classification then sets which profitability-ratio rate applies when the business license office calculates the annual occupation tax.

These county ordinances apply to unincorporated areas of Cobb County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

Every business subject to the provisions of this article shall be classified according to the major group classification of the Standard Industrial Classification Manual, as amended, and published under the auspices of the U.S. Office of Management and Budget. Classification of each business subject to this article shall be based upon the principal activity or dominant line of such business, i.e., that series of goods or services which produces the largest proportion of the business's gross revenues from all sources.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 53).

Full Breakdown

S. Office of Management and Budget. , the series of goods or services producing the largest proportion of gross revenues from all sources. S. OMB and IRS statistics, and no rate can be charged to a classification containing a business with a higher profitability ratio than its own. 00 administrative fee that is never prorated or refunded. Businesses report their SIC code on the registration form itself under § 78-41(b), along with taxable gross revenue for the preceding 12 months and employee count. § 48-13-9(c)(1)-(22), such as physicians, engineers, architects and accountants, remain subject to § 78-33's classification and fee-setting mechanics even though they are otherwise exempted from most of chapter 78 by § 78-3(6); lawyers and law firms are the one category exempted from classification entirely.

This scheme applies only to businesses operating in the unincorporated area of the county; Marietta, Smyrna, Kennesaw, Acworth, Powder Springs and Austell each classify and tax businesses under their own separate municipal codes. The business license office, aided by the county police department under § 78-4, administers and enforces the classification and tax scheme, and keeps gross-revenue and employee data confidential.

Violations & Fines

Operating without first obtaining a business registration certificate under this chapter is unlawful under § 78-46(a). Unpaid occupation taxes and fees draw interest at 1½ percent per month from the original due date, and a tax or fee still unpaid 90 days after its due date carries an added ten percent penalty under § 78-46(b)-(c). Misclassifying a business or refusing to produce the sales records, W-2s, 1099s or gross-receipts documentation the business license supervisor may demand under § 78-42 can also support suspension or revocation of the registration certificate for due cause under § 78-45, following notice and a hearing before the board of commissioners. Beyond those tax-specific consequences, any violation of chapter 78 is punished under the county's general penalty, § 1-10, by a fine and imprisonment or probation up to the maximum set by O.C.G.A. § 15-10-60.

Frequently Asked Questions

How does Cobb County decide my business's SIC classification?
The business license office assigns your Standard Industrial Classification major group based on your "dominant line," the single product or service line generating the largest share of your gross revenue from all sources, as reported on your registration form under § 78-41(b). That classification, not your business name or entity type, drives which profitability-ratio rate applies to your occupation tax.
Does this classification rule apply if my business is in Marietta or Smyrna?
No. Chapter 78's classification and occupation tax scheme covers only the unincorporated area of Cobb County. Marietta, Smyrna, Kennesaw, Acworth, Powder Springs and Austell each administer their own business license and classification ordinances, so a business inside any of those cities is taxed under municipal code, not § 78-33.
What if my business has more than one product or service line?
Section 78-33 classifies you by whichever line is "dominant," meaning it produces the largest proportion of your total gross revenue. Section 78-1 defines this precisely: it is the type of business within a multi-line operation from which the greatest income is derived, not an average or a count of separate activities.
Are doctors, engineers and other licensed professionals classified under § 78-33?
Yes, with one exception. Section 78-3(6) exempts most licensed professionals under O.C.G.A. § 48-13-9(c)(1)-(22) from most of chapter 78, but expressly keeps them subject to § 78-33 and the related fee sections (§§ 78-34 through 78-40). Only lawyers and law firms are exempted from the classification requirement entirely.
What happens if I never register or misreport my classification?
Operating without a business registration certificate is unlawful under § 78-46(a), and the county can assess interest at 1.5% per month plus a 10% penalty once a tax is 90 days overdue. The business license supervisor can also suspend or revoke a certificate for due cause, including failing to pay a tax due, after notice and a hearing before the board of commissioners under § 78-45.

Sources & Official References

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