Determination, Calculation and Payment of the Business Operations Tax

Sacramento City Code tit. 3, ch. 3.08, art. IV

in effect

Sacramento City Code § 3.08.170 Gross receipts.

3.08.170 Gross receipts. Every person not falling within the categories described in Sections 3.08.180, 3.08.190, 3.08.200, and 3.08.205 of this chapter shall pay an annual business operations tax as follows: A. Every person which has gross receipts of ten thousand dollars ($10,000.00) or less shall pay a tax of thirty dollars ($30.00) for each year. B. Every person which has gross receipts in excess of ten thousand dollars ($10,000.00) shall pay a tax of thirty dollars ($30.00) plus $.0004 for each dollar of gross receipts in excess of ten thousand dollars ($10,000.00) for the reporting period; provided, however, that the maximum annual tax liability for any person under this section shall be five thousand dollars ($5,000.00). (Ord. 2010-020 § 4; prior code § 23.04.401)

Sacramento City Code § 3.08.180 Professionals.

3.08.180 Professionals. A. Professionals-General. Every person engaged in the profession of: accountant, architect, attorney, audiologist, bacteriologist, certified public accountant, engineer, dentist, mortician, optometrist, osteopath, physician, podiatrist, psychologist, surgeon, or veterinarian shall pay an annual business operations tax determined by the number of years the individual has been licensed by the state of California to practice such profession: Three years or less: | $75.00 More than three years but less than seven years: | $150.00 Seven years or more: | $300.00 Nothing in this subsection shall be construed or deemed to apply to any person engaged in any of the professions enumerated in this subsection solely as the employee of any other person conducting, carrying on or managing such business, occupations or professions in the city, except, however, that each such employee who has a contractual right to participate in the income or profits of the business, or is a shareholder of a professional corporation organized pursuant to Section 13400 et seq., of the California Corporations Code must pay the tax. Every person who employs an individual who would be subject to a business operations tax under this section if the individual was not exempted from the payment of said tax by the preceding paragraph shall pay an annual business operations tax of thirty dollars ($30.00) for each such exempt individual in their employ. B. Professionals-Brokers. Every person engaged in the business of real estate broker, insurance broker, or stockbroker, whether full or part-time, shall pay an annual business operations tax of one hundred dollars ($100.00) for the principal broker or broker of record plus thirty dollars ($30.00) for each employee, agent, representative or independent contractor subject to supervision by a principal broker or broker of record who devotes time to handling of rents, listing property, collecting or selling property, soliciting or writing insurance policies or working as a salesperson or floorperson. C. Maximum Tax. The maximum annual tax payable by any firm under provisions of this section is five thousand dollars ($5,000.00). "Firm" is defined as any professional corporation, partnership or other business entity whose individual members share in the profits of the business entity. D. Revenue Measure. Nothing contained in this chapter shall be construed as giving the city council, or any of the officers of the city in charge of administration of this chapter, any regulatory powers over any licensee who is engaged in the practice of a profession, trade, or calling and is one whose privilege to so engage in such profession, trade or calling is granted by the state or any of its agencies. As to such persons, and as indicted in Section 3.08.020 of this chapter, this chapter shall be construed as existing for revenue purposes only. (Prior code § 23.04.402)

Sacramento City Code § 3.08.190 Contractors.

3.08.190 Contractors. Every person engaged in any type of business activity as a contractor which requires a city building permit in order to be performed shall pay a business operations tax at the time the building permit is issued at the rate of forty cents per one thousand dollars ($1,000.00) for each one thousand dollars ($1,000.00) or fraction thereof of the value used to determine the charge for the building permit. The maximum annual tax payable by any person under this section shall be five thousand dollars ($5,000.00). It shall be the responsibility of the contractor who has paid the maximum tax to establish at the time a building permit is issued that the maximum has been reached and that no additional tax is due. (Prior code § 23.04.403)

Sacramento City Code § 3.08.200 Housing and shelter.

3.08.200 Housing and shelter. A. Rental of Residential Real Property. Every person engaging in the business of offering residential real property for rental shall pay an annual business operations tax of twenty-five dollars ($25.00) plus one dollar and seventy-five cents ($1.75) for each rental unit in excess of four units. Any person with fewer than four units is exempt from payment of the business operations tax. The maximum annual tax payable by any person is five thousand dollars ($5,000.00). B. Hotels, Motels. Every person engaging in the business of renting out accommodations substantially on a transient occupancy basis shall pay an annual business operations tax of fifty dollars ($50.00) plus seventy-five cents for each rental unit in excess of four units per situs. The maximum annual tax payable for any situs is five thousand dollars ($5,000.00). C. Rental of Nonresidential Real Property. Persons engaging in the business of offering nonresidential real property for lease or rental shall be taxed pursuant to Section 3.08.170 of this chapter. (Prior code § 23.04.404)

Sacramento City Code § 3.08.205 Marijuana businesses.

3.08.205 Marijuana businesses. A. Every person engaged in a marijuana business shall pay an annual business operations tax as follows: 1. On and after July 1, 2011, four percent of each dollar of gross receipts for the reporting period. 2. Notwithstanding the tax rate imposed in subsection (A)(1), the city council may, in its discretion, at any time by resolution implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rate established under subsection (A)(1). B. For purposes of this section, the following terms have the following meanings: "Gross receipts" has the meaning as defined in Section 3.08.020, as it pertains to the marijuana business' reporting period, and includes receipts from the sale of marijuana and from the sale of paraphernalia used for consuming marijuana and any other products, goods, or services sold or provided by the marijuana business. "Marijuana" or "Cannabis" has the meaning as defined in California Health and Safety Code Section 11018. "Marijuana business" means a business activity including, but not limited to, planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, providing, or selling wholesale and/or retail sales of marijuana. A marijuana business includes any facility, building, structure or location, whether fixed, mobile, permanent or temporary, where marijuana is made available, sold, given, distributed, or otherwise provided in accordance with Health and Safety Code Section 11362.5 and Article 2.5 of Chapter 6 of Division 10 of the Health and Safety Code (Health and Safety Code Section 11362.7 et seq.). A marijuana business includes medical marijuana "cooperatives" and "collectives" that are established as not for profit businesses. "Reporting period" means a year, quarter or calendar month, as determined by the administrator. C. The provisions of Section 3.08.210 do not apply to any marijuana business. (Ord. 2010-020 § 5)

Sacramento City Code § 3.08.210 Businesses without fixed place of business within city.

3.08.210 Businesses without fixed place of business within city. Every person, other than a contractor, not having a fixed place of business within the city who engages in business within the city shall pay a business operations tax calculated pursuant to Section 3.08.170 of this chapter; provided, however, that as to any person who would be taxed pursuant to Section 3.08.080 of this chapter if the person had a fixed location within the city, the tax due shall not exceed the tax which would have been payable under Section 3.08.080 of this chapter if the person had a fixed place of business within the city. (Prior code § 23.04.405)

Sacramento City Code § 3.08.220 When and how payable.

3.08.220 When and how payable. A. Quarterly Payment Periods Established-Payment Due. For purposes of this chapter, the annual calendar shall be divided into four quarters consisting of three-month periods commencing January 1st, April 1st, July 1st, and October 1st, of each year. All annual taxes shall be due and payable in advance on the first day of the quarter immediately following expiration of any existing certificate. B. New Businesses-No Proration. If a person establishes a business on or after July 1, 1984 for which a tax is payable, his or her first tax period shall commence on the day when he or she first engages in said business and shall terminate on the last day of the third quarter following the quarter during which the person first engaged in said business, and the tax payment for that period shall not be reduced by the administrator even if the tax period is less than twelve (12) full calendar months. Thereafter, the annual tax period shall be for twelve (12) full months and the full annual tax shall be due and payable on the first day of the new annual period. The administrator may assign a shorter tax period, in such case the annual tax shall be reduced on a proportionate basis by the administrator. C. Contractor Payment. A contractor's business operations tax shall be due and payable at the time the city building permit is issued. (Prior code § 23.04.406)

Sacramento City Code § 3.08.230 Constitutional apportionment.

3.08.230 Constitutional apportionment. None of the business operations taxes provided for by this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the state of California. In any case where a tax is believed by a business or applicant for a certificate to place an undue burden upon interstate commerce or to be violative of such constitutional clauses, he or she may apply to the administrator for an adjustment of the tax. Such application may be made before, at, or within six months after payment of the prescribed business operations tax. The applicant shall, by sworn statement and supporting testimony, show his or her method of business and the gross volume or estimated gross volume of business and such other information as the administrator may deem necessary in order to determine the extent, if any, of such undue burden or violation. The administrator shall then conduct an investigation, and after having first obtained the written approval of the city attorney, shall fix as the tax for the applicant, an amount that is reasonable and nondiscriminatory, if the tax has already been paid, shall order a refund of the amount over and above the tax so fixed. In fixing the tax to be charged, the administrator shall have the power to base the tax upon a percentage of gross receipts or any other measure which will assure that the tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the tax as prescribed by this chapter. Should the administrator determine the gross receipts measure of tax to be the proper basis, he or she may require the applicant to submit, either at the time of termination of applicant's business in the city, or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of tax therefor, provided that no additional business operations tax during any one calendar year shall be required after the business shall have paid an amount equal to the annual tax as prescribed in this chapter. (Prior code § 23.04.407)

Sacramento City Code § 3.08.240 Penalties.

3.08.240 Penalties. Thirty (30) days after an annual business operations tax is due and payable, a penalty of fifteen dollars ($15.00) shall be added to the unpaid amount. After thirty (30) additional days, if the tax is still delinquent, an additional penalty of one hundred dollars ($100.00) shall be added to the unpaid amount to cover the costs of enforcement. (Prior code § 23.04.408)

Sacramento City Code § 3.08.250 Refunds.

3.08.250 Refunds. No tax collected under the provisions of this chapter shall be refundable or prorated in any manner unless the business subject to the tax presents, within a period of one year from the day on which the overpayment was made, a claim for refund in accordance with the provisions of Section 3.04.070 of this code and establishes that it has overpaid the tax. The administrator may refund, or allow credit on a renewal, of the sum so overpaid. (Ord. 2010-036 § 3; prior code § 23.04.409)

Source: City of Sacramento, Sacramento City Code (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0-0-0-4819Fetched: 10/24/2026