Palmdale, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- PMC § 3.44.290, 18 classifications A-V
- License term
- Up to 15 months, issued quarterly
- Renewal due dates
- Mar 31, Jun 30, Sep 30, Dec 31
- Late penalty
- 25%/month, capped at 50% of tax
- Tax amounts
- Set by separate Council resolution (§ 3.44.300)
- Classification K
- Vehicle businesses taxed per vehicle
Summary
Palmdale sorts every business into one of 18 lettered tax classifications under PMC § 3.44.290, from services and retail to contractors, home occupations, vehicles and vending machines. Each classification carries its own flat-rate, per-employee, per-square-foot or gross-receipts tax formula, with amounts set by City Council resolution.
§ 3.44.290. Business classifications and license taxes.
(A) Classification A – Services Industries. All persons engaged in service industries shall pay a flat rate tax, plus a flat rate per employee.
(B) Classification B – Retail, Wholesale and Manufacturing. All persons engaging in retail, wholesale, or manufacturing businesses shall be in classification B and shall pay a flat-rate tax, plus a flat tax per employee and per square foot of business floor area.
(C) Classification C – Contractors. All persons engaged as a contractor or subcontractor shall be in classification C and shall pay a flat rate tax.
(D) Classification D – Professions. All persons engaged in a business of a professional nature shall be in classification D, and shall pay a flat rate tax for each professional employee, plus a flat tax for each nonprofessional employee.
Full Breakdown
040 nonetheless makes it unlawful to commence or conduct any business in the City, or even to advertise one located here, without first procuring a business license and paying the required tax. 290 then splits every taxed business into Classifications A through V (18 categories, some letters unused). Classification A (services) pays a flat rate plus a flat rate per employee; Classification B (retail, wholesale, manufacturing) adds a per-square-foot charge on business floor area; Classification C (contractors) pays a flat rate; Classification D (professions) pays per professional and per nonprofessional employee; Classification E and F cover residential and commercial leasing per unit; Classification H covers home occupations; Classification K covers vehicle-based businesses, taxed per vehicle with mandatory proof of insurance, and food truck operators must also show a health permit per vehicle.
Classifications N, O, P and S (newsracks, amusement devices, vending machines, launderettes) are taxed on gross receipts instead of a flat rate. 300 leaves the actual dollar amount for each classification to a separate City Council resolution rather than fixing figures in the code itself. 060.
Violations & Fines
Under § 3.44.070, a license tax not paid by 5:00 p.m. on its due date becomes delinquent and the Director adds a 25 percent penalty of the unpaid tax on the first of each following month, capped at 50 percent of the original tax owed. Delinquent accounts can be turned over to a collection agency, adding a separate processing fee set by resolution. Section 3.44.190 lets the Director inspect business books and records and authorizes an enforcement accountant; conviction for violating the chapter does not excuse payment of the tax, and payment does not bar criminal prosecution for the same violation, since remedies are cumulative.
Frequently Asked Questions
What tax classification covers a Palmdale retail store?
Where are the actual Palmdale business license tax dollar amounts published?
What happens if I pay my Palmdale business license tax late?
Does a Palmdale home business need its own tax classification?
Sources & Official References
Other rules in Palmdale
California rules heatmap·Compare Palmdale to another location·View the California local taxes & fees overview
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