Santa Cruz County, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Class A rate
- $127.00 base + $2.20 per employee
- Class B rate
- $127.00 base + $4.35 per employee
- Class C rate (professionals)
- $127.00 base + $6.50 per employee
- Class D rate (itinerant vendors)
- $42.35 base + $0.73 per employee
- Late penalty
- 10% if late, 20% after 30 days
- Enforcing agency
- Auditor-Controller-Treasurer-Tax Collector
- Rate adjustment
- Every July 1, tied to CPI
Summary
Santa Cruz County sorts every unincorporated-area business into one of five license tax classes under SCCC § 4.02.060, each with its own basic tax plus a per-employee rate. Class A covers retail, wholesale, contract, construction and manufacturing; Class B covers services, hotels and rentals; Class C covers licensed professionals; Class D covers itinerant vendors; Class E covers faire and flea-market operators.
(A) Class A. Each retail, wholesale, contract, construction and manufacturing business, each business engaged in providing transportation, and each business for which no other classification is provided in this section, shall be treated as a Class A business. Each Class A business shall pay an annual basic license tax in an amount which is the total of a basic license tax of $127.00, as adjusted pursuant to SCCC § 4.02.070, plus an additional license tax determined by multiplying the average number of persons employed by the rate of $2.20, as adjusted pursuant to SCCC § 4.02.070. (B) Class B. Each service business, hotel and motel, apartment house, each business engaged in the leasing or renting of commercial or industrial space, and each business engaged in providing recreation and entertainment services and facilities, shall be treated as a Class B business. Each Class B business shall pay an annual license tax in an amount which is the total of a basic license tax of $127.00, as adjusted pursuant to SCCC § 4.02.070, plus an additional license tax determined by multiplying the average number of persons employed by the rate of $4.35, as adjusted pursuant to SCCC § 4.02.070.
Full Breakdown
060, the County Auditor-Controller-Treasurer-Tax Collector, acting as Tax Administrator, assigns every unincorporated-area business to one of five classes for the annual business license tax. 20 per average employee. 35 per employee. 50 per employee, the highest per-employee rate of the five classes. 070(B). 40 per space per rental day from each concessioner, remitting it to the Tax Administrator by the last day of the following month. 070, all class rates adjust every July 1 by the change in the Bureau of Labor Statistics Consumer Price Index for the San Francisco-Oakland-San Jose area, and a business operating both inside and outside the unincorporated County pays a proportional share based on gross receipts derived from within it, with a floor of 25 percent of the standard rate. 080, and can appeal an adverse decision to the Clerk of the Board within 15 days for a hearing before the Board of Supervisors.
Violations & Fines
Operating without a license after the delinquency date, or violating any regulation in Chapter 4.02, is a separate offense for every day it continues under § 4.02.130(B). Missing the delinquency date adds a 10 percent penalty under § 4.02.190(A); staying unpaid more than 30 days past that date raises the penalty to 20 percent. Knowingly misrepresenting facts to obtain a license is punishable under the general penalty provisions of Chapter 1.12 SCCC.
Frequently Asked Questions
How many business license tax classes does Santa Cruz County use?
Who decides which class a business falls into?
What happens if I pay my business license tax late?
Do the tax rates ever change?
Sources & Official References
Other rules in Santa Cruz County
California rules heatmap·Compare Santa Cruz County to another location·View the California local taxes & fees overview
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