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Sacramento, CA Business Licensing & Operations: Towing Companies (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Permit required per vehicle
Tow car vehicular permit, city director
Driver permit
Separate permit for each tow car driver
Permit expiration
September 30th annually
Renewal application window
August 1 to August 31
Signage lettering minimum
2.5 inches, contrasting color

Summary

Sacramento requires a separate tow car vehicular permit from the director for every tow truck operating from a city-based business under City Code Chapter 5.144, plus a driver permit for each operator. Permits require inspection, insurance, a filed rate schedule, and annual renewal, with revocation for unlawful rate or receipt practices.

It is unlawful for any person having its principal place of business within the city to engage in the business of operating a tow car without first obtaining a tow car vehicular permit for each tow car as required by this chapter. ... It is unlawful for any tow car driver or person in the business of operating a tow car for compensation to ... [c]harge an additional type of rate or higher rate other than those rates on the schedule required to be carried by Section 5.144.060(A)(2) of this section.

Full Breakdown

030 makes it unlawful for anyone with a principal place of business in the city to operate a tow car without a tow car vehicular permit for each vehicle. 020 applies only to tow businesses or drivers whose principal place of business or employment is outside the city, and any exemption claim requires a sworn declaration reviewable by the director with an appeal path to the city manager and, ultimately, the city council. 090, a smog/lamp/brake compliance certificate dated within six months, every vehicle storage site, a written rate schedule, and criminal history disclosures for major stakeholders, accompanied by a nonrefundable annual permit fee set by council resolution.

050 requires the director to physically inspect the tow car for compliance with the posting and radio-dispatch sections and to inspect all storage locations for zoning compliance; permits expire every September 30th, with renewal windows from August 1 to August 31. 060 requires the vehicle to carry a copy of the permit and current rate schedule for inspection on request, plus exterior signage with the company name, address, and phone number in letters at least two and one-half inches tall. 070 mandates an FCC-approved two-way radio dispatch system in every tow car. 180.

Violations & Fines

Operating without a valid tow car vehicular permit, or continuing to operate with knowledge that revocation grounds exist, is unlawful under Section 5.144.170.A. Charging undisclosed or higher rates than the filed schedule, refusing a written tow receipt on request, or failing to display the permit and fee schedule are separately unlawful under Section 5.144.170.B and are grounds for the director to revoke or suspend the driver's permit under Section 5.144.180.

Frequently Asked Questions

Does a tow truck operating in Sacramento need a city permit?
Yes, if its business is principally based in the city. Section 5.144.030 makes it unlawful to operate a tow car without a permit issued for that specific vehicle, and Section 5.144.130 requires a separate permit for each tow car driver.
Can a Sacramento tow company charge more than its posted rate?
No. Section 5.144.170.B.1 makes it unlawful to charge any rate other than what is on the schedule filed with the city, though charging less than the filed rate is expressly allowed.
When do Sacramento tow car permits expire?
All tow car vehicular permits expire on September 30th of the year following issuance under Section 5.144.050.B, and renewal applications must be filed between August 1 and August 31 for the permit period beginning the following October 1.

Sources & Official References

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