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Business License Taxes, Fees and Deadlines
Annual Business Taxes
Business licenses expire June 30th. The renewal fee is billed on the Declaration of Gross Receipts form for period ending June 30th and due by July 31st.
Business License Application Taxes and Fees Due
The business license taxes (fees) due with your application are prorated based on the month the business is started. Use the charts to figure out the amount due with your completed application.
Commercial Business License Taxes and Fees
| Start Month | Tax (Fee) | Deposit | AB1379 Fee | Total |
|---|---|---|---|---|
| July | $50.00 | $100.00 | $4.00 | $154.00 |
| August | $45.83 | $100.00 | $4.00 | $149.83 |
| September | $41.67 | $100.00 | $4.00 | $145.67 |
| October | $37.50 | $100.00 | $4.00 | $141.50 |
| November | $33.33 | $100.00 | $4.00 | $137.33 |
| December | $29.17 | $100.00 | $4.00 | $133.17 |
| January | $25.00 | $100.00 | $4.00 | $129.00 |
| February | $20.83 | $100.00 | $4.00 | $124.83 |
| March | $16.67 | $100.00 | $4.00 | $120.67 |
| April | $12.50 | $100.00 | $4.00 | $116.50 |
| May | $8.33 | $100.00 | $4.00 | $112.33 |
| June | $4.17 | $100.00 | $4.00 | $108.17 |
Home & Outside Business License Taxes and Fees
| Start Month | Tax (Fee) | Deposit | AB1379 Fee | Total |
|---|---|---|---|---|
| July | $75.00 | $100.00 | $4.00 | $179.00 |
| August | $68.75 | $100.00 | $4.00 | $172.75 |
| September | $62.50 | $100.00 | $4.00 | $166.50 |
| October | $56.25 | $100.00 | $4.00 | $160.25 |
| November | $50.00 | $100.00 | $4.00 | $154.00 |
| December | $43.75 | $100.00 | $4.00 | $147.75 |
| January | $37.50 | $100.00 | $4.00 | $141.50 |
| February | $31.25 | $100.00 | $4.00 | $135.25 |
| March | $25.00 | $100.00 | $4.00 | $129.00 |
| April | $18.75 | $100.00 | $4.00 | $122.75 |
| May | $12.50 | $100.00 | $4.00 | $116.50 |
| June | $6.25 | $100.00 | $4.00 | $110.25 |
Quarterly Mill and DID Taxes
In addition to the business license fee, you are responsible for paying your quarterly tax based off of your Gross Receipts per quarter. You will receive a Declaration of Gross Receipts form from The City of Modesto quarterly to assist you in calculating the amount of tax due.
Mill Tax Rates
| Business Type | Rate | Sample Calculation |
|---|---|---|
| Commercial Retail Business | .001 (1 mil) | $5,000 Gross Receipts times .001 equals $5.00 ($5000*.001=$5) |
| Commercial Service Business | .002 (2 mil) | $5,000 Gross Receipts times .002 equals $10.00 ($5000*.002=$10) |
| Home Business | .002 (2 mil) | $5,000 Gross Receipts times .002 equals $10.00 ($5000*.002=$10) |
Quarterly Tax Deadlines
| Reporting Period Ending | Months Reported | Tax 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 |
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.
Late Penalties
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.
Deposit Refunds
- If gross receipts are filed quarterly, a refund may be requested after two (2) 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 past due three (3) quarters or more in paying your taxes, your deposit may be forfeited. View our municipal code for more information.