Home Business License/Fees
What are the fees for a Home Business? (Note:
Please read all information below before filling out the
Home Business
License Application and Home Business Agreement)
Click here to download the Home Business License Application and Home Business Agreement
A Home-based business is operated from a residence in the City limits of Modesto.
Both the Home Business License Application and the Home Business Agreement (HBA) Forms
must be submitted with applicable fees in order to process your 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.
| Home Business License Fees |
| Start Date |
Fee Plus Deposit |
Total Dues |
| July |
$75.00 + $100.00 |
$175.00 |
| August |
$68.80 + $100.00 |
$168.80 |
| September |
$62.50 + $100.00 |
$162.50 |
| October |
$56.30 + $100.00 |
$156.30 |
| November |
$50.00 + $100.00 |
$150.00 |
| December |
$43.80 + $100.00 |
$143.80 |
| January |
$37.50 + $100.00 |
$137.50 |
| February |
$31.30 + $100.00 |
$131.30 |
| March |
$25.00 + $100.00 |
$125.00 |
| April |
$18.80 + $100.00 |
$118.80 |
| May |
$12.50 + $100.00 |
$112.50 |
| June |
$6.30 + $100.00 |
$106.30 |
- If gross receipts are less than $2000 per year,
The fee is $20.00 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 home-based businesses grossing over $2,000 per year is 2 mil (.002).
Sample Calculation:
$5,000 gross receipts * .002 (mil tax rate) = $10.00 due
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
|
