Palm Desert, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- Palm Desert Municipal Code § 5.06.010
- Categories printed
- A through H, plus J
- Contractors
- Category B, with proof of a valid state license
- Unlisted businesses
- Category H: tax administrator sets the fee
- Appeal deadline
- Fifteen calendar days after service (§ 5.04.080)
- Misdemeanor fine
- Not more than one thousand dollars per violation
Summary
The City of Palm Desert, California licenses every business activity for revenue and sorts each business into lettered tax categories in Palm Desert Municipal Code § 5.06.010. Retail, professionals, wholesalers and landlords of three or more units sit in Category A, contractors in B, and any business the code does not name goes to the tax administrator under Category H.
Category A. Businesses Included in this Category. 1. Retail sales and services, amusement and recreational centers, private and public clubs, state licensed professionals and skilled services, agents, brokers and salespersons of any kind, developers, property management, private schools, accommodations such as hospitals, rest homes, day care centers, maintenance services and other trade or occupational callings designed to render services of individual skills and not otherwise specifically licensed by other categories of this chapter; ... Category H. Businesses Included in this Category. 1. It is the intent and purpose of this chapter to license, for revenue, as set forth in this title, all business activities conducted within the city, and if an application for a license tax certificate is made for any business not specifically referred to in this title or not included in any provision of this title fixing license tax fees, the tax administrator shall determine the fee applicable. If an appeal is made, it shall be submitted to the city council for a final determination.
Full Breakdown
Chapter 5.06 of the Palm Desert Municipal Code sets the classification a business license tax certificate is issued under. Category A is the broad bucket: retail sales and services, state licensed professionals, brokers and salespersons, developers, property management, private schools, wholesaling, manufacturing, warehousing, and anyone renting or managing three or more units or spaces such as apartments, hotels, motels, roominghouses, recreational vehicle parks or mobilehome parks. Utilities operating without a city franchise, auctions, bankrupt sales and temporary sales also land in Category A.
Category B covers general engineering, general building, swimming pool, plumbing and electrical contractors, subcontractors, specialty contractors and owner/builder. A contractor must show satisfactory evidence of a current and valid state contractors license before a city certificate is issued, each general engineering, general building and swimming pool contractor must furnish a list of subcontractors before the building and safety department gives the final inspection, and the fee follows the highest classification on the state license under Section 2 of City Council Resolution 83-73. A contractor who also runs a store, shop or maintenance service in the city pays the Category A tax as well.
Category C reaches out-of-city businesses whose people or equipment are physically in Palm Desert soliciting sales. Category D is coin-operated vending machines and laundry equipment. Category E is boxing or wrestling exhibitions, sporting events, carnivals and circuses. Category F is outdoor advertising structures, billboards, signs and benches. Category G is utilities operating under a city franchise. Category J is sellers and service providers working outdoor events or outdoor sales.
Category H states the catch-all. The stated intent is to license, for revenue, all business activities conducted within the city, and the tax administrator determines the fee for any business not specifically referred to in the title. If an appeal is made, the city council makes the final determination. This section prints classifications, not dollar rates.
Violations & Fines
Under Palm Desert Municipal Code § 5.04.090, violating Title 5, misrepresenting a material fact to obtain a license, or willfully failing to exhibit a license on demand is a misdemeanor punishable by a fine of not more than one thousand dollars or jail of not more than six months, or both, for each violation. Late tax draws a penalty of ten percent, then twenty-five percent, then fifty percent, capped at fifty percent of the license amount. In Category D, the city is authorized to seize a machine that stays unlicensed thirty days after first notification.
Frequently Asked Questions
Which Palm Desert business tax category covers a retail shop or professional office?
How are contractors classified in the City of Palm Desert?
What happens if my business is not named in any category?
How long do I have to appeal a business tax decision in Palm Desert?
Sources & Official References
Other rules in Palm Desert
California rules heatmap·Compare Palm Desert to another location·View the California local taxes & fees overview
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