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

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. Classification depends on the reported net profit margin: Classification A covers grain-mill and dairy manufacturers, wholesale groceries and meat, and any business with net profit on net sales of 1.99 percent or less; the classifications climb through B, C, D and E as the reported margin rises, topping out at 6 percent or above for Classification E under §§ 3-1.202-3-1.206.

Contractors and subcontractors licensed by the State Contractors' State License Board form their own Classification F under § 3-1.207, and licensed professionals such as physicians, chiropractors, veterinarians, attorneys and dentists form Classification G under § 3-1.208. Section 3-1.213 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. A business that believes it was misclassified can apply to the License Collector for reclassification under § 3-1.209; the Collector investigates and assigns the classification that most nearly fits, and an applicant unhappy with the result has 15 days to demand a hearing before the City Council under § 3-1.211, whose finding is final. Reclassification isn't retroactive: it applies starting with the next tax calculation. The License Collector, assisted by the Director of Public Safety, enforces the chapter and may inspect any place of business under an inspection warrant per § 3-1.137.