Commercial Business License/Fees
Find more on the fees for a Commercial Business. Note: Please read all information before filling out the Business License Application (PDF).
The business license fees are based on the annual gross receipts of the business. If gross receipts are more than $2000 per year, the fee is based on the month the business is started. Use the chart to figure out the amount due.
- If gross receipts are less than $2000 per year, the fee is $35 per fiscal year.
- Please note, if you choose a minimum license and go over $2000 in gross receipts, you will receive an invoice for the Mill tax, DID tax (if applicable), deposit and the difference in the license fees.
Commercial Business License Fees
|Start Month||Fee + Deposit + SB1186||Total Dues|
|July||$50.00 + $100.00 + $1.00||$151.00|
|August||$45.80 + $100.00 + $1.00||$146.80|
|September||$41.70 + $100.00 + $1.00||$142.70|
|October||$37.50 + $100.00 + $1.00||$138.50|
|November||$33.30 + $100.00 + $1.00||$134.30|
|December||$29.20 + $100.00 + $1.00||$130.20|
|January||$25.00 + $100.00 + $1.00||$126.00|
|February||$20.80 + $100.00 + $1.00||$121.80|
|March||$16.70 + $100.00 + $1.00||$117.70|
|April||$12.50 + $100.00 + $1.00||$113.50|
|May||$8.30 + $100.00 + $1.00||$109.30|
|June||$4.20 + $100.00 + $1.00||$105.20|
License Expiration Date
The business license year begins July 1st and ends June 30th. Business licenses expire June 30th. The renewal fee is billed on the Declaration of Gross Receipts form for period ending June 30th (see schedule ) and due by July 31st, unless otherwise noted.
Mill and DID Taxes
In addition to the business license fee, you will receive quarterly Declaration of Gross Receipts forms as follows:
|Period Ending||Time Period||Due Date|
|September 30th||July, August, September||October 31st|
|December 31st||October, November, December||January 31st|
|March 31st||January, February, March||April 30th|
|June 30th||April, May, June||July 31st|
Mill tax rate for commercial retail businesses is 1 mil (.001). Mil tax rate for commercial service businesses is 2 mil (.002).
- Commercial Retail Business -
- $5,000 gross receipts * .001 (mil tax rate) = $5.00 due
- Commercial Service Business -
- $5,000 gross receipts * .002 (mil tax rate) = $10.00 due
DID (Downtown Improvement District) Tax
Businesses in the downtown area of Modesto pay an additional tax to the Downtown Improvement District (DID). DID tax is calculated in the same manner as Mil tax except the tax rate is 1/2 of mil rate (.0005 for commercial retail and .001 for commercial service) and paid at the same time. A $1,500 cap per year applies to DID collections from each business.
A 5% penalty per month (up to a maximum of 25%) will be levied on the Mil tax, DID tax and license fee if payment is NOT paid in our office or postmarked by the post office by the Last Day to Pay.
- If gross receipts are filed quarterly, you may request a refund in writing after 2 consecutive full fiscal quarters paid by due date, or
- If gross receipts are filed annually, a refund may be requested after a full calendar year of operation.
If you cancel your license, the deposit will automatically be refunded after a final Declaration of Gross Receipts form is filed and all outstanding taxes and license fees paid.
Closing Your Business
To close your license, a final Declaration of Gross Receipts form needs to be filed, reporting your final date of business, and all taxes and license fees paid.
View our License Changes page to learn about how to move forward with various business license changes.