Fountain Valley, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Retail and service
- Category A
- Wholesale and manufacturing
- Category B
- Contractors and developers
- Category D
- Catch-all class
- Category X
- Fee basis
- Category, employees over one, vehicles over one
- Fee amounts
- Set by City Council resolution
Summary
In the City of Fountain Valley, California, every business license falls into a lettered category under § 5.08.030, from Category A retail and Category B wholesale to Category F real estate rentals, with Category X as the catch-all. Fees follow the category, the number of employees and the number of vehicles, and City Council resolution sets the amounts.
The following categories of businesses are hereby established: Category "A" Retail Sales and Service. Any person conducting, managing, or carrying on a business consisting mainly of selling at retail any goods, wares or merchandise, or conducting, managing or carrying on of any trade, occupation, calling or business designed to render accommodations or services of individual skills and not otherwise specifically licensed by other section of this chapter, shall be licensed as Category "A." Category "B" Wholesaling and Manufacturing Businesses. Any person conducting, managing or carrying on a business consisting mainly of manufacturing, packing, warehousing, processing, carrying or selling at wholesale any goods, wares, merchandise or produce, and not otherwise specifically licensed by other sections of this chapter, shall be licensed as Category "B." Category "C" Professions. Any person engaged in the business activity of rendering professional services and not otherwise specifically licensed by other sections of this chapter shall be licensed as Category "C."
Full Breakdown
Chapter 5.08 of the Fountain Valley Municipal Code classifies businesses for licensing in the City of Fountain Valley, and the City Council found in § 5.08.010 that the categories are reasonable and based on local experience with business practices. Section 5.08.030 sets them out: Category A for retail sales and service, B for wholesaling and manufacturing, C for professions, D for general engineering and general building contractors, swimming pool contractors (Class C53), developers, subdividers and owner/builders, E for specialty subcontractors (Class C other than C53), and F for renting, leasing or managing apartments, motels, hotels, roominghouses, trailer parks or commercial and industrial property of three or more units. Telephone companies license as Category A, coin-operated machines fall under V-1 or V-2, and Category Y is a special license for resident students 18 and under who are self-employed with no employees.
Category X catches any business not named in the other categories or in the exceptions of § 5.08.060, which lists amusement centers, dance halls, taxis and other special businesses. Under § 5.08.020, the fee combines a base fee, which covers the owner or one employee and one vehicle, plus a separate fee for each additional employee and each additional vehicle. The dollar amounts are not in the code: City Council resolution sets them, with a letter after each fee showing annual (A), semiannual (S), quarterly (Q), monthly (M) or daily (D) payment, and "CM" marking businesses that need city manager approval. A determination by the license collector can be appealed to the City Council (§ 5.08.010(b)).
Violations & Fines
Operating without the required license, or knowingly misrepresenting a material fact to procure one, is a misdemeanor under § 5.04.360, punishable by a fine set by City Council resolution, up to six months in the County Jail, or both. Unpaid license tax and penalties under Chapters 5.04 and 5.08 become a debt to the city, and a licensee who forces the city into court pays reasonable court costs and attorney's fees. The license collector must mail notice of a grant or denial within 60 days, and a denial carries a right to an administrative hearing before the city manager (§ 5.04.190).
Frequently Asked Questions
Which category does a contractor pay in Fountain Valley?
How is the business license fee calculated in the City of Fountain Valley?
What if my business fits none of the categories?
Can I appeal how the city classified my business?
Sources & Official References
Other rules in Fountain Valley
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