Chico, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Schedule A
- $25 to $80+ per employee tier
- Schedule B
- flat rate by business type
- Schedule C
- percentage of gross receipts
- Threshold
- applies above $5,000 gross receipts
- Enforced by
- City Finance Director
Summary
Chico sets business license tax by classification: most businesses pay a per-employee tier, but specific business types (hotels, cardrooms, waste haulers) pay flat or gross-receipts-based rates instead.
A. Unless otherwise provided under schedules B and C of this section, every person who engages in business within the city whose gross receipts in a license year exceeds $5,000.00, shall pay a license tax based upon the average number of employees employed during the prior year, as follows: 1 employee - $25.00. 2 - 5 employees - $40.00. 6 - 10 employees - $50.00. ... Over 25 employees - $80.00 plus $1.00 for each employee in excess of 25.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Supplement contains local legislation current through: Codified Resolution No. 53-26, adopted 7-14-26 and Ordinance No. 2622, adopted 6-2-26).
Full Breakdown
Chico Municipal Code § 3.32.320 sets three tax schedules. Schedule A: businesses with over $5,000 in annual gross receipts pay a per-employee tax ranging from $25 (1 employee) to $80 plus $1 per employee beyond 25. Schedule B assigns flat rates to specific business types, e.g., cardrooms/pool halls at $4.00 per table, hotels/motels on a per-unit scale, auto parking lots at $25.00 per lot. Schedule C taxes coin-operated machines and solid waste collectors as a percentage or tier of gross receipts. The Finance Director administers and enforces the chapter.
Violations & Fines
Unpaid license tax is a debt to the city (§ 3.32.340) collectible by civil action; violating the chapter is a misdemeanor punishable by up to a $500 fine, up to six months in jail, or both (§ 3.32.380).
Frequently Asked Questions
How does Chico decide my business license tax rate?
What happens if a Chico business doesn't pay its license tax?
Sources & Official References
Other rules in Chico
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