Home Business License/Fees

What are the fees for a Home Business license?  (Note: Please read all information below before filling out the business license application and home business agreement or click here to view the Home Business License FAQ.)
 

Click Here to download the Home Business License Application
and
Home Business Agreement

 
The business license fees are based on the annual gross receipts of the business.

• 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.

• 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.

The business license year begins July 1^st and ends June 30^th.  Business licenses expire June 30^th.  The renewal fee is billed on the Declaration of Gross Receipts form for period ending June 30^th (see schedule below) and due by July 31^st, unless otherwise noted.

In addition to the business license fee, you will receive quarterly Declaration of Gross Receipts forms as follows:

After establishing a pay history, businesses with gross receipts less than $25,000 per year may be switched to a license that is valid for a calendar year (January 1^st through December 31^st).  Mill and DID taxes for the prior calendar year, along with the license renewal fee will be billed on the Declaration of Gross Receipts form that is sent out in January.  The license fee and taxes are due by January 31^st, unless otherwise noted.

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.

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.

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. Be sure to write the adjustments on the appropriate lines on the back portion of the form that is returned to the city.

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.

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.

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 full fiscal quarters of operation, 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.

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