Lakewood, CA Local Taxes & Fees: Business Tax Classification (2026)

Section 6501 requires every person transacting business in Lakewood to procure a business tax certificate from the Director of Finance before operating, and Section 6502 states the tax raises general revenue rather than regulating conduct. Section 6527.1 fixes the two gross-receipts brackets: Classification A covers retail sales, wholesale sales, general services, and any business not enumerated elsewhere, including aircraft, vehicle, and farm or heavy equipment dealers, at a minimum $85.00 tax on the first $100,000.00 of gross receipts plus $0.15 for every additional $1,000.00. Classification B is reserved for new and used automobile dealers, grocers, and gasoline service stations, which pay a minimum $85.00 on a larger $500,000.00 threshold plus only $0.07 per additional $1,000.00, a materially lower marginal rate reflecting their high-volume, low-margin sales. Section 6527.2 sets a separate, employee-count-based tax for service businesses such as barber shops, beauty shops, and business services, letting the operator choose that flat per-employee rate or the Classification A gross-receipts rate instead.

A separate tax certificate is required for each branch establishment under Section 6503, though warehouses and incidental service facilities tied to an existing certified business do not count as separate locations. Section 6504 lets the Director of Finance treat advertising or holding oneself out as doing business in the City as prima facie evidence a business tax is owed. Exempt businesses under Section 6506, such as those protected by the U.S. or California Constitution or a franchised public utility, must file a sworn statement to claim the exemption, which the Director of Finance can revoke after notice and a hearing if the claim proves false.