Business Tax Rates and Fees
The Office of the City Treasurer bills retroactively for up to three (3) years with a late fee applicable to each year. The annual fee for the Business Tax Certificate is based on the number of employees:
- $34.00 for a business with twelve (12) employees or fewer.
- $125.00 plus $5.00 per employee for a business with thirteen (13) employees or more.
Senate Bill 1186 - State Mandated Fee
On September 19, 2012, Governor Brown signed Senate Bill 1186 (SB 1186) into law. SB 1186 is intended to increase disability access, encourage compliance with construction-related accessibility requirements, develop education resources for businesses, and facilitate compliance with Federal and State disability laws. Cities and counties were required to collect a State mandated fee of $1.00 from "any applicant for a local business license or equivalent instrument or permit, and from any applicant for the renewal of a business license or equivalent instrument or permit." Assembly Bill 1379 was passed on October 11, 2017 which extends the assessment of the fee indefinitely and increases the State mandated fee from $1.00 to $4.00.
Business Tax Late Fees
Businesses that fail to pay the tax within 15 days from the business start date will be assessed a late fee of $25.00 or 10% of the amount owed, whichever is greater. Beginning one calendar month from the due date of the Business Tax, a penalty of 1% per month will be added to any past due business taxes and late fees.
In addition to the penalties for delinquent payment, all businesses found to be operating without having paid the Business Tax will pay a surcharge of $68.00 for small business (12 employees or fewer) or $250.00 for large business (13 employees or more).
Business Improvement District Fees
If your business is located in a Business Improvement District (BID), you may be subject to additional fees. BIDs are authorized by State law to assess benefited businesses for the cost of certain improvements or activities. These activities are generally promotional in nature. Once a BID is established, the Office of the City Treasurer collects the assessment and the City disburses it to the appropriate entity representing the district businesses pursuant to an annual operating agreement. There are currently eighteen (18) active BIDs in the City of San Diego. Questions regarding BIDs should be directed to the Office of Small Business Staff at 619-236-6700 or via email at [email protected].
BID Late Fees
Businesses that fail to pay the BID fee by the date business has commenced will be charged a late fee of $25.00 or 10% of the amount owed, whichever is greater. Beginning one calendar month from the due date of the BID, a penalty of 1% per month will be added to any past due BID fees and BID late fees.