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Commercial
Business License FAQ
What if I have two different types of businesses at a single
location?
If both business types fall under the same
classification (for example 'retail sales') and the financial records are kept together, then only one license
is required. If the business type falls under two or more
classifications (for example 'retail sales and service'), then
multiple licenses are required. If the financial records are
kept separately, then multiple licenses are required. For more
information, contact the Business Licensing Division.
Where should I post my business license?
If you have a fixed place of business, the license
must be posted in a visible location. If your business is mobile, carry your
license with you.
I used to have a Modesto business license, how do I reactivate it?
As long as the ownership remains the same, you may reactivate a
business license by paying the new license fees and any past due fees
and taxes. There must also be a current business license application
on file.
Do I have to file the Declaration of Gross Receipts
forms if I have a
minimum license?
Although you do not pay Mill or DID tax, you must
report your gross
receipts (even if they are zero) to keep your license current and
active.
Do I have to file even if I did not do any business?
Yes. You must report your gross receipts as zero, sign, date, and
return the Declaration of Gross Receipts form, so that your license
will remain current and active.
How do I calculate Mill tax?
Gross Receipts less the Adjustments (see reverse side
of the Declaration of Gross Receipts form) equals the Taxable Gross.
Multiply the Taxable Gross times the Mill tax rate. This is the Mill
tax due. For example, if the tax rate is .002 and the taxable gross
receipts for the quarter are $5000, the fee is calculated as follows:
$5000 X .002 = $10.00
For a list of allowed Adjustments, see the back of the Declaration
of Gross Receipts form or contact the Business Licensing Division. Be
sure to write the adjustments on the appropriate lines on the back
portion of the form that is returned to the city.
Can I deduct expenses?
No. You must report the total amount of money collected, not just
your profit. See the back of the Declaration of Gross Receipts
form for allowed adjustments.
What is DID 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 Mill tax and paid at the same time.
Click here to view or print the
Business
License Application.
Click here to view the Business
Licenses Homepage.
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P.O. Box 642, Modesto, CA 95353