Huntington Beach, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Classes
- A (professional), B (contractor), C (wholesale/mfg), D (retail/other)
- Base rate
- $75.00 for first 3 employees
- Rate, 4-12 employees
- $4.00 per employee
- Rate, 13-52 employees
- $3.00 per employee
- Rate, 52+ employees
- $2.00 per employee
- Minimum annual license
- $75.00 per classification
- Reclassification authority
- City Treasurer / Chief Financial Officer
Summary
Huntington Beach sorts every taxed business into four license classes under Municipal Code Section 5.16.040: Class A professionals (doctors, engineers, accountants and similar service providers), Class B licensed contractors, Class C wholesalers/manufacturers, and Class D retailers and catch-all businesses, each paying an annual tax scaled to average employee count.
Every person described in the following classifications who engages in business within the City shall pay a license tax based upon the average number of employees at the rates hereinafter set forth: ... B. Classification B. Any person who is licensed as a general building, general engineering or specialty contractor. C. Classification C. Any person conducting, managing or carrying on a business consisting mainly of manufacturing, packing, processing, carrying or selling at wholesale any goods, wares, merchandise, or produce, comes under this classification. D. Classification D. Any person conducting, managing or carrying on a business consisting mainly of selling at retail any goods, or conducting and maintaining a recreation park or amusement center under one general management, or business not otherwise specifically licensed by other sections of this chapter comes under this classification.
Full Breakdown
040. Class A covers professional service providers named in the section, from accountants and architects to veterinarians and tree surgeons, plus any other professional-service business not separately listed elsewhere in the chapter. Class B is reserved for anyone licensed by the state as a general building, general engineering, or specialty contractor. Class C covers businesses mainly engaged in manufacturing, packing, processing, or wholesale selling of goods or produce. Class D catches retailers, recreation parks and amusement centers under single management, and any business not specifically licensed elsewhere in the chapter.
00 for each employee beyond 52. 020 sets a $75 annual minimum in every classification and lets a business that believes it was placed in the wrong class apply to the City Treasurer for reclassification; the Chief Financial Officer investigates and reassigns the business to the classification the investigation shows is proper. 030 requires the City Treasurer to notify the applicant of the reclassification decision either by personal service or by mailing notice to the applicant's last known address.
Violations & Fines
Doing business without paying the correct classification-based license tax is enforced the same as any other unlicensed business activity: Section 5.08.100 adds a 10% penalty for every month a payment is late, Section 5.08.110 bars a new license to anyone who still owes a prior fee, and Section 5.08.370 makes operating without the required license a misdemeanor carrying up to a $1,000 fine, six months in jail, or both.
Frequently Asked Questions
How does Huntington Beach classify businesses for the license tax?
How is the Huntington Beach business license tax calculated?
Can I challenge my business's license classification?
Sources & Official References
Other rules in Huntington Beach
California rules heatmap·Compare Huntington Beach to another location·View the California local taxes & fees overview
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Business Tax Classification in Nearby Cities
How other cities in Orange County handle business tax classification.