Murrieta, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- Murrieta Code § 5.04.370
- Fee categories
- I, II, III, IV, Flat Rate, Exempt
- Dual-category rule
- Higher fee basis applies (§ 5.04.120)
- Late payment penalty
- 25% plus 1.5%/month interest
- Unlicensed operation penalty
- 100% civil penalty added to fee
- Enforcing officer
- City business license officer
Summary
Murrieta sorts every business into one of four fee categories under Municipal Code Section 5.04.370, plus a flat-rate professional class and a charitable exemption. The category a business lands in, set by the business license officer and city council resolution, drives whether the license fee is based on gross receipts, a flat rate, or a special assessment.
A. Category I. Category I businesses are businesses which are neither Category II, Category III, nor Category IV businesses. They shall be assessed business license fees on the basis of gross receipts plus fixed-rate fees, if any... B. Category II. Category II businesses are businesses which require a complex inspection or investigation in order to grant a business license... C. Category III. Category III businesses are those businesses which require the most complex inspection or investigation in order to grant a business license... D. Category IV. Category IV businesses are those businesses so designated by resolution of the city council, which, because of the manner in which their business is conducted, indicates a special method of assessment... E. Flat Rates. Professional license fees shall be as established as flat rate fees. This category supersedes Section 5.04.120. F. Exempt. This category includes businesses defined in Section 5.04.060.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-23: A Codification of the General Ordinances of the City of Murrieta, California through Ord. 634-26, passed 7-7-2026).
Full Breakdown
370 of the Murrieta Code of Ordinances divides businesses into Category I (the default: fees based on gross receipts plus any fixed-rate fee), Category II (businesses needing a complex inspection or investigation, or a greater use of public services, to get licensed), Category III (businesses needing the most complex inspection or investigation, or the greatest frequency of public services), and Category IV (businesses the city council designates by resolution because of how they operate, with a fee set no lower than the Category I minimum).
060. 120, when a business could reasonably fall into two or more categories with different fee bases, the business license officer must use whichever basis produces the higher fee. 040 lets the city council set the actual dollar fees, gross-receipts rates, and flat-rate amounts by resolution rather than by ordinance, so the category assignment in the code stays fixed while the dollar figures behind each category can be updated administratively. 140 before a license issues.
Violations & Fines
Failing to pay a gross-receipts, flat-rate, or daily license fee by 5:00 p.m. on the due date adds a 25 percent penalty plus interest at 1.5 percent per month (1 percent per additional day for daily licenses) under Section 5.04.170. Operating without first securing a license adds a separate 100 percent civil penalty under Section 5.04.180. Any violation of the licensing chapter, or knowingly misrepresenting a material fact to obtain a license, is a misdemeanor under Section 5.04.170(G) and is punishable under Sections 1.32.010 through 1.32.020; each day a business operates out of compliance is a separate violation under Section 5.04.330.
Frequently Asked Questions
How does Murrieta decide which business license category applies?
What happens if a business fits two categories?
What is the penalty for not getting a Murrieta business license?
Sources & Official References
Other rules in Murrieta
California rules heatmap·Compare Murrieta to another location·View the California local taxes & fees overview
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