Finance Department

Business Tax

New! For our current business license customers, we now offer the ability to renew a business license online. Click to register for access to your business license renewal. Once you enroll as an eUser and link your business license, you may calculate and pay your renewal fee online.

 

Please note- if you’ve moved your business location, you will need to request a zoning check from the Planning Department before you can renew your business license.

 

Please feel free to visit our web section built to address a variety of business-related questions and needs, or contact the City's Economic Development Manager to discuss your business needs at ialverde@ci.petaluma.ca.us, or 707-778-4549.

To apply for a Business Tax Certificate, either pickup at City Hall or download the application. You can also view the instructions. As of Mar. 28, 2013, we are accepting business tax/license renewals via the web. Link.

For information on other agencies, please also view our Agencies to Call list for other contact information. For information about other agency requirements and a list of business resources, please view the Opening a Business Checklist.

Review the Business License Steps guide to give you a general idea of the process of obtaining a Business License with the City of Petaluma.

Frequently Asked Questions

1. General Information
2. Where to get information about Business Tax requirements?
3. Who is taxed?
4. What information do I need to provide to receive my Certificate?
5. Where do I go to get a Zoning Clearance, Home Occupation Use Permit or Police Clearance?
6. What is the fee for a Zoning Clearance, Home Occupation Use Permit and Police Clearance?
7. What is the fee for NEW businesses?
8. What is the fee for a renewal tax calculation?
9. What if my business is in the County? Where do I go to get information?
10. Why is a $1.00 charge being added to my business license renewal or business license application?

General Information

Each of the incorporated cities in Sonoma County (Petaluma, Santa Rosa, Rohnert Park, Cotati, Sonoma, Sebastopol, Cloverdale, and Healdsburg) requires businesses doing business in their cities to pay a business tax also known as a business license. The business license is renewed every calendar and is due no later than March 31st.

Where to get information about Business Tax requirements?

City of Petaluma
Finance Department
11 English St
PO Box 61
Petaluma, CA 94953
Email: bustax@ci.petaluma.ca.us
Phone: 707.778.4354

Who is taxed?

Businesses that are either located in Petaluma or that are located out of Petaluma but generate receipts within the City limits are required by City Ordinance (Chapter 6.01) to pay a business tax to the City. Such businesses will then receive a Business Tax Certificate.

What information do I need to provide to receive my Certificate?

To obtain a Business Tax Certificate, you will be asked to complete an application asking information about the business. If the business is located in Petaluma, you will also need a Zoning Clearance or Home Occupation Use Permit from the Community Development Department. In addition, some businesses, such as solicitors, mobile vendors and taxicabs, will need clearance from the Police Department.

Where do I go to get a Zoning Clearance, Home Occupation Use Permit, or Police Clearance?

Community Development Department
11 English St
Petaluma, CA 94952
707.778.4470

Petaluma Police Department
969 Petaluma Blvd No.
Petaluma, CA 94952
707.778.4372

A Zoning Clearance should be obtained by all new businesses locating within the City of Petaluma, as well as businesses relocating within the City limits. Home Occupation Use Permits are required for businesses conducted from a residence. Prior to obtaining a Zoning Clearance it may be necessary to apply for a Conditional Use Permit.

What is the fee for a Zoning Clearance, Home Occupation Use Permit and Police Clearance?

Zoning Clearance (fee changes yearly)	$26.00 +9%; or $28.34
Home Occupation Use Permit (fee changes yearly)	$102.00 +9%; or $111.18 flat
Police Clearance	No Charge

 

What is the tax for NEW businesses?

As a new business, you have 30 days to take care of your business taxes before you are charged penalty fees. The following are the initial minimum tax rates for different types of businesses:

Description	Price	Duration
Retailers, Wholesaler, Administrative Headquarters, Miscellaneous businesses, Contractors, Service Businesses, Rental of Property, Amusement, Professionals	$46 ($45+$1**) ;	Ends with the calendar year
Transient Sales / Solicitors / Peddlers / Mobile businesses	$66 ($65+$1**)	for 120 days only
Production / Film Making	$251 ($250+$1**)	Per day
Seasonal Sales	$126 ($125+$1**)	Per each sale event
Special Events	$226 ($225+$1**)	Per day
Transportation of persons & goods	$51 ($50+$1**)	Per vehicle

Renewal tax calculation

The business tax is calculated on the business’ gross receipts generated within the City of Petaluma for the previous year. The tax calculation for all business classifications (except for, administrative headquarters, manufacturers, transient sales, special events, seasonal sales, transportation of persons and goods, and production/film making) is based on gross receipts generated within the City of Petaluma for the previous year.  For administrative headquarters and manufacturers, the tax calculation is based on the cost of operations or gross receipts, whichever is greater, generated within the City of Petaluma for the previous year.  For the business classifications of transient sales, special events, seasonal sales, transportation of persons and goods, and production/film making the tax calculation is based on the fixed period, activity, or vehicles.  The following are the current rates for different types of business:

Retailers, Wholesale / Suppliers, Public Utilities Miscellaneous businesses	0.016% of total Gross Receipts ($0.16 per $1,000) OR $45.00 whichever is highest
Administrative Headquarters and Manufacturers	0.016% of total Gross Receipts OR Cost of Operations, whichever is Greater ($0.16 per $1,000) OR $45.00 whichever is highest
Contractors, Recreation and Entertainment, Service Businesses, Rental of Residential or Non-Residential Property	0.032% of total Gross Receipts ($0.32 per $1,000) OR $45.00 whichever is highest
Professionals	0.048% of total Gross Receipts ($0.48 per $1,000) OR $45.00 whichever is highest

Those businesses located outside of Petaluma should only use the gross receipts earned within the city limits of Petaluma to calculate their tax due.

What if my business is in the County? Where do I go to get information?

The County of Sonoma does not require a Business License or Business Tax payment at this time. However, if you are located in the County but are generating receipts within the City limits of Petaluma, you are required to pay a business tax and may need County zoning clearances. The County of Sonoma is divided into many zoning districts. Within each district certain rules apply. For more information on whether or not a business will require county permits contact:

County of Sonoma Department of Planning - Zoning Enforcement
2550 Ventura Ave.
Santa Rosa, CA 95403
(707)565-1900

 

**Why is a $1.00 charge being added to my business license renewal or business license application?

On September 19, 2012, Governor Brown signed into law, SB 1186, a bill which goes into effect on January 1, 2013. SB 1186 imposes a $1.00 state fee on any application for a local business license or a renewal, and mandates the cities to collect the fee for the State. The purpose of this fee is to increase disability access and compliance with construction-related accessibility requirements and to develop educational resources for businesses in order to facilitate compliance with federal and state disability laws, as specified.

Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public. You may obtain information about your legal obligations and how to comply with disability access laws at the following agencies:

The Division of the State Architect at www.dgs.ca.gov/dsa/Home.aspx

The Department of Rehabilitation at www.rehab.cahwnet.gov

The California Commission on Disability Access at www.ccda.ca.gov