Outside Business License/Fee

What are the fees for a business located outside Modesto city limits?  (Note: Please read all information below before filling out the business license application or click here to view the Outside Business License FAQ.)
 

Click here to download the Outside Business License Application

 
The business license fees are based on the annual gross receipts of the business in Modesto city limits.

• 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, 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 begins in Modesto city limits. 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  tax 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 tax, you must file 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.

A 5% penalty per month (up to a maximum of 25%) will be levied on the Mill 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 you file a final Declaration of Gross Receipts form and pay all outstanding taxes and license fees.

Have Information to change on your license? Click Here!
 
Click here to view the Business Licenses Homepage.