Skip to main content
CityRuleLookup

Layton, UT 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
LMC 5.04.060, Classifications and Fees
License categories
10, professional through special categories
Utility/bank fee
$150 flat, plus franchise fee
License period
1 year from date of issue
Late penalty
25% after 15 days, +10% per month
Enforcing officer
City License Officer

Summary

Layton sorts every business into one of ten license categories under LMC 5.04.060, from professional and personal-service firms to contractors, manufacturers, amusements, and coin-operated machines. Most pay an annual fee tied to gross income; utilities and banks instead pay a flat $150 plus any franchise fee. The License Officer administers billing, and late renewals trigger escalating penalty surcharges.

The following businesses, activities, persons, or machines shall be licensed and a fee shall be paid in accordance with the latest fee schedule adopted by the City Council. The City Council shall set the appropriate fees by resolution. The respective lists are not deemed exclusive, and any similar business, activity, person, or machine, though not listed, shall be licensed and shall pay the fee required for the category into which it logically fits. 1. Professional. A person operating a business, which uses professionally trained persons, shall pay a license fee based on the gross annual income of the business as set by resolution... 6. Utilities and Public Services. A person operating a utility business or a business in the nature of a public service where the person is granted a monopoly under government regulations and banking institutions and finance companies, shall pay a license fee, additional to any franchise fee, of $150.

Full Breakdown

020, it is unlawful to conduct any business or nonprofit enterprise in Layton without first obtaining a license, and one act of selling goods, soliciting business, or using a vehicle or premises for a business purpose is enough to trigger the requirement. Each branch location needs its own separate license. 060 then sorts businesses into ten fee classifications: Professional (architects, attorneys, CPAs, dentists, physicians); Personal Services (barbershops, laundries, real estate brokers); Repair Services; Retail Business and Business Services; Contractors (electricians, plumbers, roofers); Utilities and Public Services, which pay a flat $150 fee in addition to any franchise fee rather than a gross-income-based rate; Manufacturing and Processing; Amusements (bowling alleys, theaters, pool halls); Machines (jukeboxes, vending machines, pay an additional fee, though non-profit-operated gum or candy machines are exempt); and Special Categories such as carnivals, circuses, fortunetellers, and temporary celebration booths of three days or less, billed per the Consolidated Fee Schedule.

Most categories pay a fee based on gross annual income as set annually by City Council resolution, and any business type not explicitly listed still must be licensed and pay the fee for the category it logically fits. 160 sets the license period at one year from issuance, with fees due before the year ends. 140, may inspect any licensed, formerly licensed, or unlicensed premises to enforce the title.

Violations & Fines

Operating without a license is unlawful under LMC 5.04.020, and unpaid license fees become a debt to the City that the City Attorney may sue to collect under 5.04.140(9); a civil judgment does not bar separate criminal prosecution for the same violation. Renewing late costs a 25% penalty once more than 15 days pass after expiration, plus another 10% added on the first day of every month it stays unpaid, under LMC 5.04.160. Under 5.04.140(7), the City Manager can summarily suspend or revoke a license, or order a business closed, if conduct is an imminent threat to public health, safety, or welfare, though the licensee gets a special hearing within 5 days unless waived.

Frequently Asked Questions

Does Layton use a gross receipts tax or a flat business license fee?
Most Layton businesses pay a license fee tied to gross annual income under LMC 5.04.060, set annually by City Council resolution rather than a fixed tax rate. Exceptions exist: utilities and banks pay a flat $150 in addition to any franchise fee, and categories like amusements or machines carry an added fee set by resolution, so the amount depends on which of the ten classifications the business falls into.
What happens if I renew my Layton business license late?
LMC 5.04.160 assesses a 25% penalty on the regular license fee once a license is procured more than 15 days after expiration, then adds another 10% on the first day of every month the renewal stays unpaid. The license period runs one full year from the date of issue, so tracking that anniversary date is what avoids the escalating surcharge.
Can Layton revoke my business license without a full hearing first?
Yes, under LMC 5.04.140(7). If a licensee's conduct is an imminent threat to public health, safety, or general welfare, the City Manager can summarily order the business closed or the license suspended or revoked immediately. The licensee then gets a special hearing within 5 days unless they waive it in writing, and the City Manager's post-hearing decision is final and appealable to a court.

Sources & Official References

Other rules in Layton

All Layton rules

Compare Layton to another location·View the Utah local taxes & fees overview

Get notified when Business Tax Classification in Layton, UT changes

We'll email you the moment we detect a change in the code. No spam, unsubscribe anytime.

We'll never sell or share your email. One-click unsubscribe in every email.

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.