Pearland, TX Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax rate
- 1/2 of the state occupation tax
- Payment schedule
- Annually, in advance
- Adopted by
- Ord. No. 99, § 1, 8-27-64
- Revenue destination
- City general fund (§ 28-3)
- Non-display penalty
- Fine up to $50 (§ 28-4)
- Related chapters
- Alcohol, coin machines, peddlers, junk dealers
Summary
Pearland collects an annual local occupation tax equal to half of the state occupation tax from every person pursuing an occupation the state taxes, under Sec. 28-2 of the Code of Ordinances, and failing to display the paid tax receipt is a separate misdemeanor.
Sec. 28-2. - Occupation tax—Generally. There is hereby levied and there shall be collected from every person pursuing any occupation taxed by the general laws of the state, an annual occupation tax equal in each instance to one-half (½) of the state occupation tax, which taxes shall be paid annually in advance except where otherwise provided by state laws, in which event the same may be paid as is provided by state law. ... Sec. 28-4. - Same—Penalty. Whoever shall pursue or follow any occupation, calling or profession to do any act taxed by law, or exhibit any machine or instrument for which a tax is required to be paid by the provisions of this article or state law, without exhibiting and displaying the tax receipt issued to him in the manner provided by state law shall be guilty of a misdemeanor and upon conviction, fined in any sum not exceeding fifty dollars ($50.00).
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 28).
Full Breakdown
Sec. 28-2 (Occupation tax, generally) levies and collects, from every person pursuing an occupation taxed by the general laws of the state, an annual city occupation tax equal to one-half of the corresponding state occupation tax, payable annually in advance unless state law sets a different payment schedule for that occupation. The provision dates to Ord. No. 99, § 1, adopted August 27, 1964, and it cross-references several other chapters where the city separately regulates specific taxed occupations: alcoholic beverages (Chapter 4), coin-operated machines (Sec.
), pool and billiard rooms (Sec. ), electricians (Sec. ), junk and junk dealers (Sec. ), mobile home parks (Sec. ), and peddlers (Sec. ). Sec. 28-3 directs that all occupation taxes collected under the article go to the city assessor and collector, who deposits them to the credit of the city's general fund rather than any dedicated account. A. Tax Code Chapter 191, an occupation that the state does not separately tax generates no local occupation tax liability under this article, which is why the city's business tax structure today runs mainly through Chapter 28's hotel occupancy tax and sales and use tax articles for most revenue, with Sec. 28-2 remaining on the books for occupations the state still taxes directly.
Violations & Fines
Sec. 28-4 (Same, Penalty) makes it a misdemeanor to pursue any taxed occupation, calling, or profession, or to exhibit any taxed machine or instrument, without exhibiting and displaying the tax receipt issued for it in the manner state law requires, punishable on conviction by a fine not exceeding $50.00, with the same fine level applying under the parallel state penalty in V.T.C.A. Tax Code § 191.102.
Frequently Asked Questions
Does Pearland charge its own occupation tax on top of the state's?
What happens if I don't display my Pearland occupation tax receipt?
Where does Pearland's occupation tax money go?
Sources & Official References
Other rules in Pearland
Texas rules heatmap·Compare Pearland to another location·View the Texas local taxes & fees overview
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