Long Beach, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- LBMC § 3.80.146, Classifications of businesses
- Classification count
- 12 statutory categories
- Oil production
- Taxed separately under §§ 3.80.221-3.80.226
- Misrepresentation penalty
- Misdemeanor, up to $500 fine/6 months
- Administering office
- Business license section, Dept. of Financial Management
- Last amended
- ORD-24-0002 (2024)
Summary
Long Beach's business license tax (LBMC Chapter 3.80) sorts every business into one of twelve statutory classifications, from contract construction to oil production to rental of residential property, because each classification is taxed under its own separate section of the code.
classifications of businesses [...] As used in this Chapter, the following classifications of businesses shall have the meanings set forth in this Section: A. "Contract construction" means any business conducted or carried on by any person who is licensed as a contractor by the State of California [...] B. "Manufacturing" means any business conducted or carried on by any person engaged in the business of manufacturing, rebuilding or processing any goods, wares, merchandise, articles, substance or commodity at a fixed place of business within Long Beach. [...] D. "Oil production" means the business of producing oil from any well located in the City, including the City when functioning in the capacity of unit operator.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 52 Update 1 | City Charter: Supplement 5).
Full Breakdown
Section 3.80.146 defines the twelve classifications the City uses to determine which business license tax provision applies to a given operation: contract construction (any state-licensed contractor); manufacturing (rebuilding or processing goods at a fixed Long Beach location); miscellaneous business (anything not specifically taxed elsewhere in the chapter); oil production (producing oil from any City well, taxed instead under Sections 3.80.221-3.80.226); profession (state-licensed professions such as physicians, dentists, attorneys and accountants); recreation and entertainment (arcades, dancehalls, cardrooms and similar amusement uses); rental of residential property (apartment houses, roominghouses and similar dwelling rentals, excluding qualifying bed and breakfasts under Section 21.52.209); rental of nonresidential property (offices, warehouses, commercial and industrial space); retailing (goods sold other than for resale, spanning automotive dealers, food stores, general merchandise and miscellaneous retail); services (repairs, personal services and hotel/motel operation, covering everything from auto repair to health services to massage and photography); vending operations (coin-operated machines retained under the owner's title); and wholesaling (goods sold for resale).
Each classification then routes to its own tax-computation section elsewhere in Chapter 3.80, for example Section 3.80.220 taxes miscellaneous businesses and Section 3.80.230 taxes recreation and entertainment, so a business's classification under Section 3.80.146 directly determines which rate schedule and reporting rule in the Chapter it must follow. The definitions were most recently amended by ORD-24-0002 in 2024, building on amendments dating to Ordinance C-6259 in 1986.
Violations & Fines
Section 3.80.446 makes any violation of Chapter 3.80, including knowingly or intentionally misrepresenting a material fact to a City officer or employee to procure a business license, a misdemeanor punishable by a fine of up to $500, imprisonment of up to six months, or both. Section 3.80.447 makes clear that a criminal conviction does not excuse the unpaid license tax debt itself; the City may still pursue a separate civil action to recover the tax owed even after a criminal conviction for the same violation.
Frequently Asked Questions
How does Long Beach decide which business tax rate applies?
Which classification covers a landlord renting apartments in Long Beach?
Is oil production taxed the same way as other businesses?
What happens if a business misclassifies itself to avoid the tax?
Sources & Official References
Other rules in Long Beach
California rules heatmap·Compare Long Beach to another location·View the California local taxes & fees overview
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