Douglas County proposes major changes to home occupation regulations to streamline processes

In a pivotal meeting held on January 29, 2025, the Douglas County Board of Commissioners discussed a proposed tax amendment aimed at updating the regulations governing home occupations. This amendment seeks to modernize standards that have remained largely unchanged since their last significant revision in 2000, reflecting the evolving landscape of home-based businesses, particularly those leveraging the internet.

The current zoning code categorizes home occupations into two types: Type 1, which are low-impact businesses operated entirely within a dwelling, and Type 2, which can extend to accessory buildings but require a minimum of five acres in certain zoning districts. With the rise of online commerce, such as crafting and selling goods on platforms like Etsy, the need for a more flexible regulatory framework has become apparent.

During the meeting, staff presented findings from a comprehensive review of existing regulations, noting that many jurisdictions across the country have begun to adopt more permissive policies regarding home occupations. The proposed changes aim to streamline the registration process and reduce barriers for residents wishing to operate small businesses from their homes. Key changes include:

1. **Type 1 home occupations would be permitted by right**, eliminating the need for annual registration, provided they meet specific standards.
2. **Type 1 businesses would be allowed to utilize up to 400 square feet of an accessory structure**, a significant shift from the current rule that restricts them to the dwelling only.
3. **Removal of the five-acre minimum for Type 2 home occupations**, allowing for greater flexibility in various zoning districts.
4. **Extension of the registration period from annual to biannual**, reducing fees and administrative burdens for business owners.
5. **Changes to the permitted use table**, allowing Type 2 home occupations to operate more freely while still requiring a conditional use permit if they exceed established standards.

The planning commission had previously reviewed these amendments and unanimously recommended their approval, emphasizing that the changes align with the county's comprehensive plan, which supports the growth of home-based businesses.

Commissioners raised questions about specific provisions, such as the distinction between pet sitting and commercial kennels, and the enforcement of registration for businesses that may start unregistered but grow beyond the threshold. Staff reassured that monitoring typically occurs through complaints or inquiries from business owners themselves.

As the meeting concluded, the board expressed a commitment to fostering an environment conducive to entrepreneurship while ensuring that residential areas remain primarily residential. The proposed amendments are set to enhance the viability of home occupations in Douglas County, reflecting a broader trend towards supporting local businesses in an increasingly digital economy.