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Pacifica, CA Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Classifications
Seven tiers, A through G, by net profit margin
Minimum tax (Classes A-E)
$40 per year
Minimum tax (contractors, Class F)
$50, capped at $1,000
Minimum tax (professionals, Class G)
$100 per year
Reclassification appeal window
15 days to request Council hearing
Enforcing office
License Collector, City of Pacifica

Summary

The City of Pacifica sorts every business with a fixed location into seven license-tax classifications, A through G, under Municipal Code §§ 3-1.202-3-1.208, based on the business's reported net profit margin. Manufacturers, wholesalers and retailers fall into A through E by rising profit tiers, contractors form Classification F, and licensed professionals like doctors and attorneys form Classification G, each paying a different minimum tax and per-$1,000 rate on gross receipts under § 3-1.213.

Every person who engages in business at a fixed place of business within the City shall pay a license tax based upon gross receipts at the rates and in the classifications set forth in this article. ... Classification "A" shall comprise the following businesses: ... (d)Any other business not set forth in this section operating on a net profit on net sales of one and ninety-nine one-hundredths (1.99%) percent, or less, as reported by Robert Morris Associates Annual Statement Studies or other acceptable comprehensive study. ... (a)Classification "A", businesses reporting less than Twenty-five Thousand and no/100ths ($25,000.00) Dollars of annual gross receipts shall pay a minimum tax of Forty and no/100ths ($40.00) Dollars; businesses reporting more than Twenty-five Thousand and no/100ths ($25,000.00) Dollars of annual gross receipts shall pay the minimum of Forty and no/100ths ($40.00) Dollars plus thirty (30¢) Cents per One Thousand and no/100ths ($1,000.00) Dollars of annual gross receipts over Twenty-five Thousand and no/100ths ($25,000.00) Dollars;

Full Breakdown

The City of Pacifica taxes every business with a fixed place of business on gross receipts, sorted into seven classifications, A through G, under Chapter 1, Article 2 of Title 3 of the Municipal Code. 206. 208. 213 sets the actual rates: businesses under $25,000 in annual gross receipts pay a flat minimum (from $40 for Classifications A-E up to $100 for Classification G), and businesses above that threshold pay the minimum plus a per-classification cents-per-$1,000 rate on the excess, from 30 cents for Classification A to 77 cents for Classification G.

Contractors in Classification F face a $1,000 cap on the tax. 211, whose finding is final. Reclassification isn't retroactive: it applies starting with the next tax calculation. 137.

Violations & Fines

Violating any provision of Pacifica's business tax chapter, or knowingly misrepresenting a material fact to get a license, is punishable under the general penalty scheme in Chapter 2 of Title 1 of the Code per § 3-1.138. Unpaid tax becomes a debt the City can sue to collect under § 3-1.134, and a taxpayer on a payment plan accrues 8 percent simple annual interest on the unpaid balance under § 3-1.132; a license can also be revoked for missed installments.

Frequently Asked Questions

How does the City of Pacifica classify businesses for the license tax?
The City of Pacifica sorts every business with a fixed location into one of seven classifications, A through G, under Municipal Code §§ 3-1.202 through 3-1.208. Manufacturers, wholesalers and retailers get sorted by their reported net profit margin as shown in Robert Morris Associates Annual Statement Studies, while contractors form Classification F and licensed professionals such as doctors, attorneys and veterinarians form Classification G.
What is the minimum business license tax a Pacifica business pays?
Classifications A through E carry a minimum tax of $40 a year under § 3-1.213; Classification F contractors pay a $50 minimum capped at $1,000, and Classification G professionals pay a $100 minimum. Businesses reporting gross receipts above $25,000 owe the minimum plus a per-classification rate for every $1,000 of receipts above that threshold.
Can a Pacifica business dispute its assigned classification?
Yes. Under § 3-1.209, a business owner may apply to the License Collector for reclassification, who investigates and assigns the classification that most nearly fits the business. If dissatisfied, the applicant has 15 days under § 3-1.211 to request a hearing before the City Council, whose decision is final.

Sources & Official References

Other rules in Pacifica

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