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. This legislation was enacted to promote increased accessibility for individuals with disabilities, encourage compliance with state and federal construction-related accessibility standards, provide educational resources for businesses, and support adherence to disability access laws. 

From January 1, 2013, through December 31, 2017, cities and counties were required to collect a state-mandated fee of $1.00 from any applicant applying for or renewing a local business license or a similar permit. 

On October 11, 2017, Assembly Bill 1379 was signed into law. This bill extended the collection of the state-mandated fee indefinitely and increased the fee from $1.00 to $4.00 effective January 1, 2018, through December 31, 2023. 

On September 30, 2022, Assembly Bill 2164 repealed the provision that would have reduced the fee back to $1.00 starting January 1, 2024. As a result, the $4.00 fee remains in effect indefinitely. 

Additionally, Assembly Bill 3002, effective January 1, 2019, requires that business owners receive information regarding disability access requirements and available resources.  To read the full notice click here.

Notice to Business Owners

In accordance with federal and state law, compliance with disability access requirements is a serious and important responsibility that applies to all California building owners and tenants whose facilities are open to the public.

You can find information about your legal obligations and how to comply with disability access laws at the following agencies:

• Division of the State Architect:    https://www.dgs.ca.gov/dsa
• Department of Rehabilitation:    http://www.dor.ca.gov
• CA Commission on Disability Access:    https://www.dgs.ca.gov/CCDA

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.

Surcharges

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 sdbusiness@sandiego.gov.

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.