Business License

Commercial Business License/Fees

What are the fees for a Commercial Business? (Note: Please read all information below before filling out the Business License Application)

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
Start Date 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
  • 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 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).

 

Sample Calculation:

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.

Late Penalties

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.

Deposit Refunds

  • 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.

More Information


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