ZDC 3-412. Home Occupation.

A. Purpose. Home occupation allows small commercial ventures for which the leasing of commercial quarters is not cost effective and which, by the nature of the venture, are appropriate in scale and impact to be operated within a residence.

B. Applicability. Home occupations are permitted in all residential dwellings as an accessory use (see Section 7-102 for definition), subject to any of the following standards indicated to protect the residential character of Tempe’s neighborhoods. Deviation from any provision noted below shall be considered a violation of this Code.

1. Appearance of Residence.
a. The home occupation shall be restricted to lawfully-built enclosed buildings and be conducted in such a manner as not to give an outward appearance of a business.
b. The home occupation shall not result in any structural alterations or additions to a building that will change its primary use or building code occupancy classification.
c. The home occupation shall not violate any conditions of development approval (i.e., prior development permit approval).
d. Products and or equipment produced or used by the home occupation shall not be displayed or visible from outside any building.
e. No offensive noise, vibrations, smoke, dust, odors, heat or glare shall be produced.

2. Storage.
a. On-site storage and use of hazardous materials (including toxic, explosive, noxious, combustible or flammable) beyond those normally incidental to residential use is prohibited.
b. Inventory, products, equipment, fixtures, and activities associated with the home occupation shall be allowed in any building, provided that the building conforms to the provisions under Section 3-412(B)(1).

3. Employees.
a. A home occupation shall have no more than three (3) individuals working within a residence for the purpose of the business. 
b. No more than one (1) person, who is not a family member residing within the dwelling located on the home occupation site, may be permitted to work for the benefit of the home occupation.
c. Additional individuals may be employed by or associated with the home occupation, so long as they do not report to work or pick up/deliver at the home.
d. The home occupation site shall not be used as a headquarters for the assembly of employees for instruction or other purposes, including dispatch to other locations.

4. Signs. Home occupations shall not display an identification sign for the purpose of the business.

5. Vehicles, Parking and Traffic.
a. Vehicles associated with the home occupation must comply with TCC Section 21-4.
b. There shall be no more than three (3) commercial vehicle deliveries to or from the home occupation site daily. There shall be no commercial vehicle deliveries during the hours of 8 p.m. to 7 a.m.
c. There shall be no more than one (1) client or customer vehicle on the premises at any one (1) time and the activity shall not generate traffic beyond that normal in its district.

6. Business Hours. Clients or customers are permitted at the home occupation from 7 a.m. to 8 p.m. only. Additional hours of operation for such use shall require the approval of a use permit.

7. Prohibited Uses. A home occupation shall not include the sale of commodities on premises nor the following: clubs, barber shops, beauty parlors, commercial stables, veterinary offices, hospitals, hotels, motels, kennels, restaurants, motor vehicle repairing, massage parlors, and any use that does not conform to the
provisions in Section 3-412. 

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A common example:

A common violation for this code is a vehicle repair shop being run out of a home. The violation in this scenario is having a business in home that repairs vehicles.