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

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

Key Facts

Gross-receipts track
Retail, wholesale, manufacturing, telephone, professions
Flat-rate track
Named trades listed in § 5.08.040
Lowest gross-receipts bracket
$50.00 for receipts up to $25,000
Default flat fee
$100.00 for any unnamed business
Mixed-business rule
Pay under gross receipts, never less than flat (§5.04.150)

Summary

San Clemente sorts every business license into one of two tax tracks: retailers, wholesalers, manufacturers, telephone providers, and most professions pay under a graduated gross-receipts schedule set by § 5.08.030, while a fixed list of named trades and occupations instead pay a flat annual amount printed in § 5.08.040.

Every person having an established place of business within the City and who is engaged in manufacturing and selling any goods, wares or merchandise at retail or wholesale, or selling any goods, wares or merchandise at retail or wholesale, or providing telephone services, and not otherwise specifically taxed by other provisions of this chapter, shall pay an annual business license tax based upon the annual gross sales or receipts of such business in accordance with fee schedule Code 01 as follows: ... 0 to $25,000.00 . .$ 50.00 ... The provisions of this chapter notwithstanding, the following named businesses or occupations shall pay an annual (unless indicated otherwise) business license tax in the respective amount specified below in this section: ... Any other business not classified elsewhere in this chapter . .100.00

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Traffic: Supplement 30 | Code of Ordinances: Supplement 66 Update 1).

Full Breakdown

00 and climbs through higher brackets as receipts grow, up through businesses earning several million dollars a year. 030(B), are billed on the same gross-receipts model. 040 instead lists specific named trades and occupations, among them contractors, boarding houses, dance halls, billiard rooms, and pawnbrokers, that pay a flat annual amount set out business-by-business in that section regardless of how much revenue they earn. 00 license tax under the section's catch-all line. 150 requires the licensee to report total gross receipts for all the correlated or allied activities and pay under whichever gross-receipts schedule applies, so long as the total is never less than what the flat-rate section alone would charge.

Businesses that genuinely operate as separate, unrelated enterprises at the same location and under the same management still owe a separate license tax for each one; the License Collector decides whether activities are correlated or allied enough to combine into one filing.

Violations & Fines

Section 5.04.020 makes it unlawful to transact business in San Clemente without first procuring a license and paying the tax due under whichever classification applies. Under § 5.04.080, a delinquent renewal draws a 20 percent penalty or $5.00, whichever is greater, added on the first of each month it remains unpaid, capped at 100 percent of the tax, plus 6 percent simple interest, and the license itself becomes void 30 days after becoming delinquent.

Frequently Asked Questions

How does San Clemente decide whether my business pays flat or gross receipts?
Section 5.08.040 names specific trades, like contractors, boarding houses, dance halls, and pawnbrokers, that pay a set flat annual amount no matter their revenue. Everything else, including retail, wholesale, manufacturing, telephone service, and most professions, falls under § 5.08.030's graduated gross-receipts schedule instead, starting at $50.00 for receipts up to $25,000.00.
What if my business does not fit any named category?
Section 5.08.040(A) closes the list with a catch-all: 'Any other business not classified elsewhere in this chapter' pays a flat $100.00 annual license tax, unless the License Collector determines your activity actually fits the gross-receipts track under § 5.08.030 instead.
I run two different types of business from one location. How am I taxed?
Section 5.04.150 treats correlated or allied activities together: you report total gross receipts for all of them and pay under the applicable gross-receipts schedule, but never less than the flat-rate section would charge. Genuinely separate, unrelated businesses at the same address still need their own license and tax for each one.

Sources & Official References

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