It could happen here....

From Oregon Live.com:

The girl worked on a sign, coloring in the letters and decorating it with a drawing of a person saying “Yummy.” She made a list of supplies…

Julie was careful about making the lemonade, cleaning her hands with hand sanitizer, using a scoop for the bagged ice and keeping
After 20 minutes, a “lady with a clipboard” came over and asked for their license. When Fife explained they didn’t have one, the woman told them they would need to leave or possibly face a $500 fine.

Surprised, Fife started to pack up. The people staffing the booths next to them encouraged the two to stay, telling them the inspectors had no right to kick them out of the neighborhood gathering. They also suggested that they give away the lemonade and accept donations instead and one of them made an announcement to the crowd to support the lemonade stand.
That’s when business really picked up — and two inspectors came back, Fife said. Julie started crying, while her mother packed up and others confronted the inspectors. “It was a very big scene,” Fife said.

Those bastards would tax the pennies on a dead man's eyes. 

(Jon) Kawaguchi, who oversees the two county inspectors involved, said they must be fair and consistent in their monitoring, no matter the age of the person. "Our role is to protect the public," he said.

No, I beg to differ.  Their role is to collect fees, put up barriers to entry, and generate enough income to pay for their pensions. 

The county's shutdown of the lemonade stand was publicized by Michael Franklin, the man at the booth next to Fife and her daughter. Franklin contributes to the Bottom Up Radio Network, an online anarchist site, and interviewed Fife for his show.

Franklin is also organizing a "Lemonade Revolt" for Last Thursday in August. He's calling on anarchists, neighbors and others to come early for the event and grab space for lemonade stands on Alberta between Northeast 25th and Northeast 26th.

Good idea.  They can't arrest everybody, can they????