Hemet, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Classification bases
- Fixed, graduated, graduated+min, receipts
- Graduated scale (1–2 employees)
- $10.00/year
- Graduated scale (51+ employees)
- $200 + $5/employee over 50
- Unlisted business default fee
- $50 + employee-scale fee
Summary
Hemet scales its annual business license tax by classification, a fixed fee, an employee-count graduated scale, that scale with a minimum, or gross receipts, depending on the type of business.
Every person who engages in business, whether or not at a fixed place of business within the city, shall pay a license fee based upon one or more of the following:(1)A fixed fee.(2)The graduated scale as prescribed in this section.(3)The graduated scale with minimum fee as prescribed.(4)A gross receipts basis. The various categories into which particular businesses fall with regard to fee rates payable shall be as more specifically set forth in this article.
(b)Activities covered by license. Each business for which a license fee is paid under this article shall include and embrace the several activities generally understood and accepted as customary to be associated with and a part of the business.(c)Businesses not specifically mentioned. In any case where business is conducted within the city, whether or not at a fixed place of business within the city, and such business is not specifically mentioned in this article, for the purpose of assigning a fee rate thereto, the business shall pay a license fee of $50.00 plus the appropriate fee determined by the graduated scale basis of computation for employees.(d)Graduated scale basis of computation for employees. Whenever the term "graduated scale" is used in this article, it refers to the following basis of license fee computation. Whenever a license fee is to be computed on the basis of a graduated scale, it shall be computed on the basis of the number of employees as follows: GRADUATED SCALE BASIS OF
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 69 Update 2).
Full Breakdown
Sec. 18-53 sets the four bases the city's collector uses to classify and tax a business: a flat fixed fee, a graduated scale keyed to full-time employee count (from $10/year for 1-2 employees up to $200 plus $5 per employee over 50), that same graduated scale with an added minimum, or a percentage-of-gross-receipts basis for categories like coin-operated machines and laundry routes. Businesses not specifically listed default to $50 plus the graduated employee-count fee. Where a business fits two categories, Sec. 18-45(b)(3) requires using whichever basis yields the higher fee.
Violations & Fines
Operating without paying the classified license fee is a misdemeanor under Sec. 18-52, and unpaid fees carry a 10% delinquency penalty plus 20% per month thereafter, capped at 100% of the fee.
Frequently Asked Questions
How does Hemet decide what license fee a business owes?
What if my business fits more than one fee category?
Sources & Official References
Other rules in Hemet
California rules heatmap·Compare Hemet to another location·View the California local taxes & fees overview
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How other cities in Riverside County handle business tax classification.