Lubbock, TX Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax rate
- Half of the state occupation tax
- License issuer
- City Manager or designee
- Late/no-license fine
- $10.00 per day
- Posting fine
- Up to $10.00
- Refusal-to-exhibit fine
- Not less than $10.00 each time
- Enforcing court
- Municipal Court of Record
Summary
Lubbock's Charter requires every business, profession or occupation operating in the city to buy an annual license from the City Manager before starting work. The city occupation tax equals half of whatever occupation tax the State of Texas levies on that same trade, paid annually in advance.
§ 1. Duty to pay occupation tax; penalty. That it shall be the duty of every person, firm, association of persons, company or corporation pursuing a business, profession, occupation, avocation or calling within the limits of the City of Lubbock... upon which there is or may be levied an occupation tax by the governing authorities of the City of Lubbock before commencing or engaging in such business... to procure a license from the City Manager or his designee for said City to pursue the same, and the failure, neglect or refusal to procure said license shall be an offense against the City of Lubbock... fined in the sum of Ten Dollars ($10.00), for each and every day such violation may have, or may thereafter be.
§ 2. Occupation taxes. That there shall be levied and collected from every person, firm, company or association of persons in the City of Lubbock pursuing any of the occupations taxed by the State of Texas, an annual occupation tax, equal to one-half (1/2) of the occupation tax as levied by the State of Texas, until otherwise ordained, which shall be paid annually in advance.
Full Breakdown
City Charter Article VI sets Lubbock's business tax classification scheme by piggybacking on the state's own occupation tax categories. 00 for each day of the violation. Section 2 sets the rate: the city tax equals "one-half (1/2) of the occupation tax as levied by the State of Texas," paid annually in advance, so classification tracks whatever category the state assigns the business under. Once paid, Section 3 requires the City Manager to issue a countersigned receipt showing the date, amount and payer. 00 for noncompliance.
00 for each refusal. Section 6 assigns enforcement jointly to the Police Department and the City Manager, who must refer violators to the Judge of the Municipal Court of Record. Section 7 gives violators an out: a prosecution for nonpayment can be dismissed once the tax due, plus court costs, is paid. Because the tax rides on state occupation tax categories rather than a separate city classification schedule, businesses not taxed by the state under Article VI's terms owe no parallel city occupation tax.
Violations & Fines
Operating without first procuring the City Manager's occupation license is a fineable offense at $10.00 per day the violation continues. Failing to post the license conspicuously draws a fine up to $10.00, and refusing to exhibit the license on demand to the City Manager, police, or a special inspector is a separate offense carrying arrest and a fine of not less than $10.00 for each refusal, referred to the Municipal Court of Record.
Frequently Asked Questions
How much is Lubbock's occupation tax on a business?
Do I need a license before I start a taxed business in Lubbock?
Can Lubbock dismiss a prosecution if I pay the tax late?
Sources & Official References
Other rules in Lubbock
Texas rules heatmap·Compare Lubbock to another location·View the Texas local taxes & fees overview
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