August 27, 2010 --The City of Santa Monica Municipal Code requires all businesses operating in Santa Monica to pay an annual business license tax. The business license tax year is a fiscal year: July 1st through June 30th.

Business License Tax renewals are due by August 31, 2010. Late payment penalties will be assessed on renewals received after August 31.

For newly established businesses the Business License Tax is paid in advance. Most businesses pay a tax for the current fiscal year (July through June) based on gross receipts. A few businesses pay a flat fee.

When a business license tax is to be paid based on gross receipts, the business pays the minimum fee when it begins operation. At renewal time, an additional fee is charged based on actual gross receipts applicable to the first year of operation, less the minimum paid for the business license when the original license was obtained.

In addition, the business license tax for the license renewal is also due based upon the first year's actual gross receipts. Thereafter, each renewal will be based on gross receipts from the previous calendar year.

For more information regarding the business license tax contact the Business License Office. City of Santa Monica, Business License Office, Room #103, 1685 Main Street, P.O. Box 2200, Santa Monica, California 90407-2200. Phone (310) 458-8745 Fax (310) 451-3283

Businesses physically located in Santa Monica whose worldwide gross receipts do not exceed $40,000 per year are exempt from payment of business tax. However, they are required to maintain a business license and pay all fees, assessments and other taxes.