Not that this will make you feel any better, but I'm in a similar situation as you. The difference is:
1) I obtained everything needed including the local business permit with "valid for retail sales" on it
2) after submitting again for my CFD I received a response that I needed to obtain a local permit from the PD in my area which is what I'm waiting on approval for now.
3) I'm not doing business at home, but in a commercial zone, but was confronted with similar stock questions when I applied for my local business permits (which in my area required a special "conditional use permit").
#2 wasn't a requirement for the feds, but is a requirement for CA DOJ, unfortunately. This may be what they're saying you need from your local PD. I sent in all the paperwork my PD needed last week and am waiting for their response. Fortunately, since they were part of my city permit inspection I shouldn't have to wait too long. Then I'm back to submit for my CFD and hopefully then will be in business.
1) I obtained everything needed including the local business permit with "valid for retail sales" on it
2) after submitting again for my CFD I received a response that I needed to obtain a local permit from the PD in my area which is what I'm waiting on approval for now.
3) I'm not doing business at home, but in a commercial zone, but was confronted with similar stock questions when I applied for my local business permits (which in my area required a special "conditional use permit").
#2 wasn't a requirement for the feds, but is a requirement for CA DOJ, unfortunately. This may be what they're saying you need from your local PD. I sent in all the paperwork my PD needed last week and am waiting for their response. Fortunately, since they were part of my city permit inspection I shouldn't have to wait too long. Then I'm back to submit for my CFD and hopefully then will be in business.

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