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Pomona, CA Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Governing section
City Code Sec. 50-411
Retail threshold
75% of gross receipts from sales
Employee tiers
5 brackets, <6 to >60 employees
Contractor job fee
30% of building permit / 100% MEP
Operating unlicensed
Infraction, separate violation per day
Business promotion district cap
Class III capped at $1,500

Summary

Pomona sorts businesses into gross-receipts and employee-count tiers under City Code Sec. 50-411, charging retailers, professionals and landlords based on scale rather than a flat citywide fee. Sec. 50-412 layers a separate itemized schedule onto specialty and entertainment-type businesses, from auctioneers and pawnbrokers to junk dealers and secondhand dealers.

Every person engaged in the business of making sales at retail, where 75 percent of the gross receipts of such business are derived from such sales, shall pay an annual business license tax (based upon the annual gross receipts of the business) in the amount indicated in the city's business license tax schedule available through the city's revenue division and available on the city's website.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: City Code: Supplement 31).

Full Breakdown

Sec. 50-411(a) taxes any retailer earning 75 percent or more of gross receipts from sales at retail based on the annual gross receipts schedule published by the revenue division. Subsection (b) sweeps in listed businesses such as hotels, kennels, laundries, mobile home parks and physical culture studios, and, for businesses that receive no direct city revenue, applies a five-tier employee count schedule: fewer than six, seven to 15, 16 to 30, 31 to 60, and more than 60 employees. Subsection (c) applies the same employee-tier structure to professionals including attorneys, accountants, engineers, physicians, real estate brokers and veterinarians.

Subsection (f) hits contractors with a job fee equal to 30 percent of the grading or building permit fee, or 100 percent of the mechanical, electrical or plumbing permit fee, due when the permit issues, unless the work is done by an owner-builder on their own property. Sec. 50-412 sets a parallel schedule for auction houses, billiard rooms, bowling alleys, dance studios, junk dealers and auto dismantlers, pawnbrokers, peddlers, secondhand dealers, and stock and bond brokers, among others. Within the business promotion district, Sec. 6 times the ordinary license tax, capped at $1,500 or three-tenths of one percent of gross annual receipts, whichever is less.

Violations & Fines

Sec. 50-336 makes conducting business without a required license an infraction, with each day of operation counted as a separate violation. Sec. 50-333(c) gives the business license division, its deputies and any police officer the power to enter a place of business, demand the license certificate, and cite anyone who willfully refuses to exhibit it as a misdemeanor. Refusing to permit an examination of business books and records under Sec. 50-340 is separately grounds for suspension, cancellation or revocation of the license under Sec. 50-381, on top of any other criminal or civil penalty.

Frequently Asked Questions

How does Pomona decide how much business license tax a company owes?
Sec. 50-411 splits businesses by type: retailers pay based on annual gross receipts once retail sales reach 75 percent of revenue, listed service businesses without direct city revenue pay on a five-tier employee-count schedule, and professionals like attorneys and engineers follow the same tier structure under subsection (c).
What happens if a business operates in Pomona without a license?
Sec. 50-336 makes it an infraction to conduct business without first obtaining a license and complying with the article, and every day the business continues to operate without one counts as a separate violation subject to its own citation.
Are pawnbrokers and secondhand dealers taxed differently than other Pomona businesses?
Yes. Sec. 50-412 lists pawnbrokers and secondhand dealers on the itemized business license tax schedule alongside auctioneers and junk dealers, and within the business promotion district Sec. 50-456 taxes secondhand dealers as a Class III business at 1.6 times the ordinary rate, capped at $1,500.

Sources & Official References

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