Commercial Business License/Fees
What are the fees for a Commercial Business? (Note:
Please read all information below before filling out the
Click here to download the Commercial Business License Application
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 below to figure out the amount due.
|Commercial Business License Fees
||Fee + Deposit + SB1186
||$50.00 + $100.00 + $1.00
||$45.80 + $100.00 + $1.00
||$41.70 + $100.00 + $1.00
||$37.50 + $100.00 + $1.00
||$33.30 + $100.00 + $1.00
||$29.20 + $100.00 + $1.00
||$25.00 + $100.00 + $1.00
||$20.80 + $100.00 + $1.00
||$16.70 + $100.00 + $1.00
||$12.50 + $100.00 + $1.00
||$8.30 + $100.00 + $1.00
||$4.20 + $100.00 + $1.00
- If gross receipts are less than $2000 per year,
The fee is $35.00 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.
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 below) and due by July 31st, unless
Mill and DID Taxes
In addition to the business license fee, you will receive quarterly Declaration of Gross Receipts forms as follows:
||July, August, September
||October, November, December
||January, February, March
||April, May, June
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 $1,500.00 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 Mill tax, DID tax and license fee if the payment is paid in our
office or postmarked by the post office after the Last Day to Pay.
- If gross receipts are filed quarterly, a refund may be requested after two consecutive full fiscal quarters of operation are paid by due date, or
- If gross receipts are filed annually, a refund may be requested after a full calendar year of operation.
To be eligible for the refund, all taxes and fees must be paid by the due date during the applicable time period.
Refund requests must be made in writing.
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.
If you are closing your business, you need to file a final mil tax form in order inactive your business license with the City of Modesto.