Santa Maria, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- No tax owed
- gross receipts up to $600
- Top tier tax
- $500/yr over $1,000,000 receipts
- New business fee
- $40 provisional, non-refundable
- Minimum annual fee
- $40 for Article 200 licensees
- Mixed businesses
- wholesale + retail taxed separately
- Rate authority
- City Council sets rates by resolution
Summary
Santa Maria taxes most retail and commission-based businesses under a tiered gross-receipts schedule in Municipal Code Chapter 4-3, ranging from no tax on receipts up to $600 to $500 a year over $1,000,000; new businesses instead pay a flat $40 provisional fee.
Every person who, at a fixed place of business within the City, sells or offers for sale at retail any goods, wares or merchandise... shall pay an annual license tax based upon annual gross receipts, as the same are defined in this title, in accordance with the following schedule and the further provisions of this title: RATE SCHEDULE Gross Receipts in Preceding Four Quarters License Tax Per Year: $-0- to $600, None; 600.01 to 3,000, $40; 3,000.01 to 10,000, $60; 10,000.01 to 40,000, $80; 40,000.01 to 70,000, $100; 70,000.01 to 100,000, $120; 100,000.01 to 160,000, $140; 160,000.01 to 220,000, $160; 220,000.01 to 280,000, $180; 280,000.01 to 340,000, $200; 340,000.01 to 420,000, $220; 420,000.01 to 500,000, $240; 500,000.01 to 650,000, $320; 650,000.01 to 800,000, $400; 800,000.01 to 1,000,000, $480; 1,000,000.01 and over, $500.
Full Breakdown
Chapter 4-3 of the Santa Maria Municipal Code, the Rate Schedule, sets the classification and rate structure for the City's business license tax. 101 caps the rates the City may charge for each business type listed in the chapter, with the actual rates charged, up to and below those maximums, set by City Council resolution. Article 200 classifies businesses that sell goods, wares, or merchandise at a fixed place within the City, whether at retail or on commission, under a gross-receipts license tax. 01-$40,000, and up to $500 for gross receipts over $1,000,000.
202 requires purely retail businesses to file a statement of the prior four quarters' gross receipts with each license application or renewal; a newly established business instead pays a flat $40 provisional license fee, never refunded even if the resulting gross-receipts tax would have been lower. 203 requires a business conducting both wholesale and retail sales from the same premises to file a segregated statement, so retail receipts are taxed under the Article 200 schedule while wholesale receipts are taxed under the separate wholesale schedule elsewhere in the chapter, with the two amounts added together.
204 sets a $40 annual minimum license fee for any Article 200 licensee, except newly established businesses and any business whose annual gross receipts fall below $600, which owe no tax at all.
Violations & Fines
Filing a false gross-receipts statement to land in a lower tier, or failing to segregate retail and wholesale receipts as Section 4-3.203 requires, exposes a business to correction of its tax classification and back taxes for the correct tier. The $40 provisional fee a new business pays under Section 4-3.202 is forfeited outright and is never refunded, even after actual receipts are reported.
Frequently Asked Questions
How is a Santa Maria business's license tax calculated?
What does a brand-new business pay in its first year?
How are businesses that sell both wholesale and retail taxed?
Is there a minimum business license fee in Santa Maria?
Sources & Official References
Other rules in Santa Maria
California rules heatmap·Compare Santa Maria to another location·View the California local taxes & fees overview
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