Exemptions

The City of Long Beach offers exemptions from the business license tax for non-profit organizations and disabled veterans pursuant to State law.

Businesses that are exempt from the business license tax are not exempt from applying for and obtaining a business license. Businesses wishing to claim exemption must submit the application for exemption along with the business license application. 

Religious & Charitable Organizations (Non-Profit)

Religious, charitable, educational, fraternal, and philanthropic organizations operated not for a profit are exempt from paying the full business license tax. Those organizations operating a particular business activity for profit must pay half the business license tax. 

How to Apply

To claim exemption from the business license tax, submit the Application for Exemption along with the following documentation:
  • Letter from the Internal Revenue Service (IRS) stating that the business is exempt under Section 501(C) of the Internal Revenue Code. 
  • A letter/statement from the Secretary of State that the business qualifies as a non-profit under California Revenue and Taxation Code Section 23701(d).
  • CA Secretary of State Articles of Incorporation for the business. 
  • A copy of the IRS 990 return forms for the two previous years. If the organization is newly created, these forms do not need to be provided. 
Submit the application for exemption along with the business license application. To learn how to apply for a business license, visit Apply for a Business License

Veterans

A veteran of the Armed Forces who is a resident of California is exempt from paying a business license tax or fee if the veteran is the sole owner of the business.

In addition, disabled veterans who wish to vend, hawk, or peddle any goods, wares, or merchandise (except liquor) are exempt from paying the business license tax if they are:
  • Physically unable to obtain a livelihood by manual labor
  • Honorably discharged or honorably relieved from duty
  • A California resident

How to Apply

To claim an exemption from the business license tax, submit the Application for Veteran's Exemption along with the following documentation:
  • Proof of residency in California (driver's license, utility bill, etc.)
  • Proof of honorable discharge/relief from the military
  • Proof of disability from Veterans Affairs (for disabled veteran exemption)
Submit the application for exemption along with the business license application. NOTE: The exemption applies to one license annually.

To learn how to apply for a business license, visit Apply for a Business License.