Classifications & Tax Rates

The following tables summarize Santa Monica business license classifications and tax rates.

Business Types Taxed on Gross Receipts

Business Type

Tax Rate Classification

Business License Tax Rate per $1,000 in Gross Receipts ¹

Corporate or Administrative Headquarters ²
Manufacturer / Retail / Wholesaler
Recreation and Entertainment
Rental of Residential or Non-Residential Property
Utilities
Group I $1.25 (0.00125 x Gross Receipts)

Auto Dealer ³

Group II $1.25 (0.00125 x Gross Receipts)
Agent / Broker
Contractor / Specialty Contractor
Service
Group III $3.00 (0.003 x Gross Receipts)

Professions

Group IV $5.00 (0.005 x Gross Receipts)

Business Types Taxed on Flat Rates

Business Type

Tax Rate Classification

Business License Tax Rate

Delivery Group V $50 per vehicle
Planners and Promoters for Special or Community Events Group VI $150 per day
Vendor Permit SMMC §6.36 $50 flat rate
Taxi Group VII $250 per vehicle

¹ Gross receipts should be rounded up to the nearest thousandth (ex. $95,432 should be rounded to $96,000). The tax rate applies only to those gross receipts in excess of $60,000. The minimum tax of $75 is due for all gross receipts up to $60,000.

² Corporate or Administrative Headquarters are taxed on the basis of the cost of operation in Santa Monica, where the cost of operation is equal to the sum of the annual rental value of the property, its payroll, and all utility costs.

³ Auto Dealers - Maximum business license tax due is $25,000 per fiscal year.

NOTE: Businesses located in Santa Monica that qualify for the SBE are required to maintain a business license and pay all fees and assessments. Verification of taxable gross receipts may be requested. Failure to apply for or renew the business license by the deadline disqualifies the business from exercising the exemption and imposes both tax and late payment penalties.