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

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

Key Facts

Default basis
Annual tax on gross receipts (§ 5.04.170)
Lowest bracket
$20.00 for gross receipts of 0 to 25,000
Top bracket
$230.00 plus $20.00 per $50,000 above 750,001
Licensing year
October 1 to September 30, paid in advance
Late penalty
Five percent on the fifteenth of each month, capped at fifty percent
Administrator
The city's administrative services director

Summary

In the City of Pismo Beach, California, every person who engages in business must hold a city business license and pay an annual tax. Under § 5.04.170 the default rate is set by gross receipts, from $20.00 for receipts of 0 to 25,000 up to $230.00 plus $20.00 per additional $50,000 above 750,001. Contractors, rental operators, trucking and listed flat-fee businesses use separate schedules.

Except as provided elsewhere in this chapter, every person who engages in business within the city shall pay an annual business tax based upon gross receipts in accordance with the following schedule: Gross Receipt Bracket ($) Fee Amount ($) Gross Receipt Bracket ($) Fee Amount ($) 0— 25,000 20.00 25,001— 50,000 30.00 50,001— 75,000 40.00 75,001—100,000 50.00 100,001—125,000 60.00 125,001—150,000 65.00 150,001—175,000 70.00 175,001—200,000 75.00 200,001—225,000 80.00 225,001—250,000 85.00 250,001—275,000 90.00 275,001—300,000 95.00 300,001—750,000 $95.00 plus $10.00 per each $50,000 additional or portion thereof over $300,001 750,001 and up $230.00 plus $20.00 per each $50,000 additional or portion thereof over $750,001

Full Breakdown

Chapter 5.04 sets the license tax. Section 5.04.020 says no person, unless exempt, can engage in business in the city without a license from the administrator, the city's administrative services director. Business means professions, trades and occupations and every kind of calling carried on for profit or livelihood. Under § 5.04.030 a separate license is needed for each branch or location and for each separate type of business at the same location, except that a business managing commercial property needs one license for all managed properties.

Section 5.04.170 is the default classification: gross receipts brackets that run from $20.00 up to $95.00 for receipts of 275,001 to 300,000, then $95.00 plus $10.00 per additional $50,000 or portion thereof up to 750,000, and $230.00 plus $20.00 per additional $50,000 or portion thereof above that. Gross receipts, defined in § 5.04.010, are the total of all sales and all amounts charged for any act, service or employment, with no deduction for the cost of property sold, materials, labor, interest or losses. Excluded are cash discounts, amounts refunded on rescission, taxes measured by the sales price and collected from the purchaser, and alcoholic beverage receipts subject to state excise. Each person's receipts are calculated separately even when two persons share a location.

The other classes have their own sections. Contractors under § 5.04.190 pay an annual fee of $35.00 for general contractors, $30.00 for electric or plumbing contractors, $25.00 for subcontractors or specialty contractors and $40.00 for pipeline, sewer, grading, street, paving, house-moving, trenching or excavating contractors, plus a per job fee of $10.00, or $15.00 for that last group. Section 5.04.200 lists flat annual fees, from $10.00 for handicraft and piano tuners to $100.00 for fortunetellers, hospitals and pawnbrokers. Section 5.04.210 charges $20.00 per trucking vehicle, and § 5.04.180 prices rental operators by unit count. A business listed nowhere pays the amount for the business nearest corresponding to its nature (§ 5.04.060(B)).

The licensing year runs from October 1 to September 30, and the annual payment is due on the first day of October, or on the first day of doing business in the initial year. Organizations conducted wholly for charitable purposes owe no fee under § 5.04.480.

Violations & Fines

For failure to pay a license tax when due, the administrator adds a penalty of five percent of the tax on the fifteenth day of each month, capped at fifty percent of the license tax due (§ 5.04.160). A license does not authorize conduct contrary to the code, and no fine or punishment excuses the tax owed (§ 5.04.150). Section 1.20.010 makes violating a city ordinance a misdemeanor unless made an infraction, punishable by a fine of not more than one thousand dollars or imprisonment not to exceed six months.

Frequently Asked Questions

When is the Pismo Beach business tax due?
The annual payment is due on October 1 of each licensing year, and licenses are paid in advance. A licensing year runs from October 1 to September 30. For the initial licensing year in which a license is required, payment is due on the first day the licensee conducts business in the city, under § 5.04.060(C).
What if my kind of business is not listed in the chapter?
Under § 5.04.060(B), a person carrying on any business in the city that is not specifically set forth in the chapter pays the amount of license provided for the business nearest corresponding to the nature of the business sought to be licensed. The administrator computes the amount from the application, and a mistake in stating it does not prevent collection of what is actually due.
Do I need one license for several locations?
No. Section 5.04.030 requires a separate license for each branch establishment or location and for each separate type of business at the same location. Warehouses and distributing plants incidental to a licensed business are not separate places of business, and a business managing commercial property needs one license for all managed properties if the administrator is told of every location.
Are gross receipts reduced by my costs?
No. Section 5.04.010 bars any deduction for the cost of property sold, the cost of materials used, labor or service cost, interest paid or payable, or losses or other expenses. Excluded items are cash discounts, refunds on rescission, taxes measured by the sales price and collected from the purchaser, and alcoholic beverage receipts subject to state excise. Each person's receipts are figured separately.

Sources & Official References

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