Frequently Asked Questions
Below you will find information that might help you understand how to find things or learn about information you might need to know about your city or town.
Finance Department - Business License Taxes and Fees
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Finance Department - Business License Taxes and Fees
Visit the Business License Fees and Taxes web page for more information. You may also visit our office located at 1010 10th Street in Modesto on the second floor suite 2100.
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Finance Department - Business License Taxes and Fees
You can pay your business license in person or online using our online portal.
Internet explorer and Safari web browsers do not work with our online portal. Please use another browser to pay your taxes online.
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Finance Department - Business License Taxes and Fees
These are the forms that would need to be attached to your business license renewal depending on the type of business. These forms should be filled out, saved to your device and uploaded to the online renewal portal.
Subcontractor Adjustment List (PDF)
This form is for General Contractors to adjust the amounts paid to a licensed sub-contractor. General Contractors must fill this form out and attach it to their renewal to be allowed this adjustment.
A taxpayer may reduce total receipts from the operation of business or from work performed in the City by a percentage that represents activities that occur outside the city. If you believe this applies to your business please complete this BL-2 Apportionment worksheet.
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Finance Department - Business License Taxes and Fees
Refunds for overpayment will be processed within four weeks. In the event of a balance on previously unpaid taxes, any refund due will be applied towards this balance. Refunds will be issued in the form of a check.
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Finance Department - Business License Taxes and Fees
Region 5 Central Valley Regional Water Board - Sacramento Office
Website: www.waterboards.ca.gov/centralvalley/
Email: jenna.yang@waterboards.ca.gov
Phone: 1-916-464-4764
State Water Board
Website: www.waterboards.ca.gov/waterboards_map.html
Email: stormwater@waterboards.ca.gov
Phone: 1-866-563-3107
Finance Department - Outside Business Licenses
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If you have a fixed place of business, the license must be posted in a visible location. If your business is mobile, carry your license with you.Finance Department - Outside Business Licenses
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As long as the ownership remains the same, you may reactivate a business license by paying the new license fees and any past due fees and taxes. There must also be a current business license application on file.Finance Department - Outside Business Licenses
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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.Finance Department - Outside Business Licenses
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Finance Department - Outside Business Licenses
Yes. You must report your gross receipts as zero either online or by signing, dating, and returning the Declaration of Gross Receipts form that was mailed to you, so that your license will remain current and active.
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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:Finance Department - Outside Business Licenses
$5000 X .002 = $10
For a list of allowed Adjustments, see the back of the Declaration of Gross Receipts form or contact the Business Licensing Division. 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.Finance Department - Outside Business Licenses
Finance Department - Commercial Business Licenses
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If you have a fixed place of business, the license must be posted in a visible location. If your business is mobile, carry your license with you.Finance Department - Commercial Business Licenses
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As long as the ownership remains the same, you may reactivate a business license by paying the new license fees and any past due fees and taxes. There must also be a current business license application on file.Finance Department - Commercial Business Licenses
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Finance Department - Commercial Business Licenses
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.
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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.Finance Department - Commercial Business Licenses
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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 For a list of allowed Adjustments, see the back of the Declaration of Gross Receipts form or contact the Business Licensing Division. Be sure to write the adjustments on the appropriate lines on the back portion of the form that is returned to the city.Finance Department - Commercial Business Licenses
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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.Finance Department - Commercial Business Licenses
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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.Finance Department - Commercial Business Licenses
Finance Department - Home Business Licenses
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Finance Department - Home Business Licenses
Each partner is required to complete a Home Business Agreement application for each one of their Modesto addresses.
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If you have a fixed place of business, the license must be posted in a visible location. If your business is mobile, carry your license with you.Finance Department - Home Business Licenses
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Finance Department - Home Business Licenses
We require a business license per business type. If the two (2) or more businesses are located at the same location, we require a business license for each business.
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As long as the ownership remains the same, you may reactivate a business license by paying the new license fees and any past due fees and taxes. There must also be a current business license application on file.Finance Department - Home Business Licenses
Finance Department - Hotel Transient Occupancy Tax (TOT)
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Finance Department - Hotel Transient Occupancy Tax (TOT)
Hotel owner will need to fill out a business license application and a Transient Occupancy Registration Permit Application.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
Yes, the business licenses account requires a $100 deposit. The transient occupancy registration account requires a deposit that shall not be greater than twice the business’s estimated average liability for the period for which the business files returns or ten thousand dollars ($10,000), whichever amount is the lesser.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
Hotel Transient Occupancy Tax (TOT) deposits are refundable upon the close of your business. Business License deposits may be requested after two consecutive full fiscal quarters of operation are reported and paid by the due date. Refund requests must be made in writing.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
TOT is a tax collected from guests that occupy or have a right to occupy a living space or establishment for 27 days or less. This tax must be remitted to the City of Modesto.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
TOT is currently nine percent (9%) of the rent and must be collected by the operator from the guest.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
A list of lodging fees which should be captured as part of the definition of “rent” and subject to the City’s Transient Occupancy Tax (TOT) can be viewed on the Exemptions to Transient Occupancy Tax (TOT) web page.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
TOT must be reported and paid in our office, online, or postmarked by the 20th day of the close of each month.
Example
Reporting Period Payment Due Date (postmark date) July 1 – July 31 August 20 August 1 – August 31 September 20 September 1 – September 30 October 20 -
Finance Department - Hotel Transient Occupancy Tax (TOT)
As the operator, you are responsible for paying your quarterly mill tax of .002 based on your Gross Receipts. The mill tax is not a fee that is collected from the guest.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
Mill taxes must be reported and paid to the City within one calendar month of the close of each reporting period.
Mill Tax reporting periods and payment schedule:
Reporting Period Payment Due Date (postmark date) July 1 – September 30 October 31 October 1 – December 31 January 31 January 1 – March 31 April 30 April 1 – June 30 July 31 -
Finance Department - Hotel Transient Occupancy Tax (TOT)
You can pay your TOT and Mill Taxes in person, via mail, or online.
In person payment can be made Monday through Friday, 8:30 a.m. to 4:30 p.m., except for holidays, at:
1010 10th Street Suite 2100 (2nd floor)
Modesto, CA 95354TOT & Mill Tax payments can be mailed to our office along with the TOT reporting form and the Declaration of Gross Receipts Form. Payments postmarked after the due date are considered late and will accrue penalties.
Mail payments to:
Business License
PO Box 3442
Modesto, CA 95353TOT tax payments and Mill tax payments are made separately. For TOT tax payments you will need to contact our office to provide you with the account number and the pin required to make the online TOT tax payment.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
Yes, you must file your Transient Occupancy Tax report and report your gross receipts by filing the Declaration of Gross receipts, even if they are zero, to keep your license current and active.
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Finance Department - Hotel Transient Occupancy Tax (TOT)
If you have any questions, reach out to the City of Modesto by emailing BusinessLicenses@modestogov.com or calling 209-577-5389.