San Mateo County, CA Local Taxes & Fees: Business Tax Classification (2026)

Chapter 5.150, adopted in 2012, is the county's business license tax specifically for "vehicle rental businesses," defined in Section 5.150.010 as any business that rents motor-propelled vehicles or trucks, including motorcycles, for consideration. Section 5.150.040 sets the tax at two and one-half percent (2.5%) of gross receipts from that rental activity. Section 5.150.030 defines gross receipts broadly, covering the rental charge plus any optional equipment, insurance, or service fees, while excluding taxes passed through to the customer, refunded amounts, money collected as an agent for someone else if disclosed to the Tax Collector, and refundable deposits that aren't ultimately forfeited.

Every operator must register with the Tax Collector within 30 days of starting business, obtain a Vehicle Rental Business License Certificate, and post it conspicuously on the premises; the certificate itself does not authorize unlawful operation or substitute for any other required permit. Section 5.150.060 requires a quarterly return and full remittance by the last day of the month following each calendar quarter, and the Tax Collector can shorten that reporting period for any operator when needed to protect collection. Every operator must keep supporting records for three years and make them available to the Tax Collector on request under Section 5.150.100. The tax took effect July 1, 2012, and applies to every dollar of gross receipts collected from that date forward under Section 5.150.130.