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

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

Key Facts

Governing section
Tustin City Code § 2523
General classes
Retail/wholesale, manufacturing, services
Base tax range
$25 to $100 per year
Top gross-receipts bracket
Over $600,001
Late payment penalty
25%/month, capped at 100%
Enumerated example
Ambulance: $25 per vehicle

Summary

Tustin sorts every taxed business into one of four classes under Tustin City Code Section 2523: retail and wholesale sales, manufacturing, services, and a list of specifically enumerated businesses. The three general classes share one graduated schedule running from $25 to $100 a year by gross receipts, while enumerated businesses like ambulances, arcades and dance halls pay flat, business-specific fees instead.

2523 - TAX SCHEDULES a Retail and Wholesale Sales Generally Retail and wholesale sales businesses, and all other businesses not otherwise specified: ... b Manufacturing Any business consisting primarily of manufacturing, packing, processing, canning, or fabricating goods or produce: ... c Services Generally Any profession, trade, or occupation, not including retail or wholesale sales or manufacturing, and not otherwise specifically named or described, and involving principally a service rather than a sale or the furnishing or rendering of a facility or thing: ... d Enumerated Businesses The taxes for certain particular business shall be as follows: Ambulance (per vehicle) . .$25.00

Full Breakdown

Section 2523 divides the annual business license tax into four schedules. Subsection (a) covers retail and wholesale sales and any business not otherwise specified; subsection (b) covers manufacturing, packing, processing, canning or fabricating; subsection (c) covers services, meaning any profession, trade or occupation involving a service rather than a sale. All three run the identical gross-receipts ladder: $25 for receipts up to $25,000, $40 for $25,001 to $100,000, $50 for $100,001 to $200,000, $60 for $200,001 to $300,000, $80 for $300,001 to $600,000, and $100 for everything over $600,001; the bottom bracket carries a note excluding activities that qualify fully as a 'Home Occupation' under Tustin Ordinance No.

330. Subsection (d), Enumerated Businesses, sets flat per-unit rates instead of a gross-receipts scale: $25 per ambulance vehicle, $25 per amusement facility plus $5 per additional table, court, alley, ride or device, $50 for skating rinks, shooting galleries, golf courses and similar rink-and-range facilities, and $100 for cafes with dancing, nightclubs, dance halls charging admission, and public halls for rent. Coin-operated machines are taxed on the gross receipts they generate under the same Section 2523 schedule, and operators must file a list of every City location and machine count with the Director, updated within fifteen days of any change.

Violations & Fines

Failure to pay the license tax when due draws a 25 percent penalty on the last day of each month it remains unpaid, capped at 100 percent of the tax owed, under Tustin City Code Section 2521(c); the unpaid tax and penalty are treated as a debt owed to the City that can be collected by civil action under Section 2521(e). Operating a business without the required license is separately enforceable as a misdemeanor under the general penalty, Section 1121, punishable by up to $1,000 and six months in jail, or as an infraction with escalating $100/$200/$500 fines.

Frequently Asked Questions

How does Tustin classify a business for its license tax?
Tustin City Code Section 2523 sorts businesses into retail/wholesale sales, manufacturing, services, or a list of specifically enumerated business types such as amusement facilities, skating rinks and nightclubs, each with its own tax treatment.
How much is Tustin's business license tax?
Retail, manufacturing and service businesses pay $25 to $100 a year on a gross-receipts ladder topping out over $600,001 in receipts. Enumerated businesses like ambulances or dance halls instead pay flat per-unit fees set out in Section 2523(d).
What happens if I pay my Tustin business license tax late?
The Director adds a 25 percent penalty on the last day of each month the tax stays unpaid, up to a maximum of 100 percent of the tax due, and the unpaid amount becomes a debt collectible from you by the City in civil court.
Are home-based businesses exempt from Tustin's business license tax?
The lowest gross-receipts bracket of Section 2523 specifically excludes activities that are conducted wholly within the limits of a 'Home Occupation' as defined in Tustin Ordinance No. 330 from that bracket's $25 tax.

Sources & Official References

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