Westminster, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Default classification
- General gross-receipts schedule, § 5.12.010
- Contractor rate
- 0.10% Westminster gross receipts + payroll formula
- Late payment penalty
- 10%/month, capped 120% annually
- Unlicensed operation penalty
- Back tax x years operated, 2-year minimum
- Governing chapter
- WMC Chapter 5.12, License Tax
Summary
Westminster sorts businesses into named tax classes, each carrying its own license tax formula, and only routes a business into the general gross-receipts schedule if no specific classification in Chapter 5.12 already covers it.
Every person engaged in the wholesaling or retailing business or providing any service to the public or engaging in or conducting any business not specifically mentioned elsewhere in this article, shall pay an annual license tax in accordance with the ordinance.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4982734; v10 updated 2026-06-10).
Full Breakdown
010: every person engaged in wholesaling, retailing, or providing a service to the public, or conducting any business not specifically mentioned elsewhere in this article, pays an annual license tax under the general gross-receipts schedule set out in that section. That schedule tiers by gross receipts, starting under $100,000. 150 classifies apartment, mobile home, trailer park, and roominghouse operators by per-unit rate. 250 addresses branch establishments under separate ownership, each triggering its own classification and tax. 260 sets a citywide maximum annual license tax ceiling regardless of classification. Classification therefore determines both the enforcing rate schedule and which section a business must cite on its license application.
Violations & Fines
Section 5.08.180 imposes a 10 percent per month penalty, capped at 120 percent annually, for late payment of any license tax; operating without a license or misclassifying a business to obtain a lower tax exposes the business to back taxes and penalties computed by multiplying the tax and penalties due by the number of years operated without a license, with a minimum two-year penalty period under Section 5.08.180(B).
Frequently Asked Questions
How does Westminster decide which tax rate a business pays?
Do contractors pay the same tax as a retail business?
Is there a cap on how much license tax a business can be charged?
Sources & Official References
Other rules in Westminster
California rules heatmap·Compare Westminster to another location·View the California local taxes & fees overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Business Tax Classification in Nearby Cities
How other cities in Orange County handle business tax classification.