Santa Rosa, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- City Code Sec. 6-04.220
- Minimum annual tax
- $200 for receipts under $100,000
- Maximum annual tax
- $10,000 (CPI-adjusted from Dec. 2025)
- Highest marginal rate
- $1.68 per $1,000 (Group 4, professions)
- Late payment penalty
- 15% plus 0.84% monthly interest
Summary
Santa Rosa taxes businesses on gross receipts under four classification groups with different taxing ratios, from retailers at ratio 1 to professions at ratio 5. Every business owes at least $200 per year, with the rate climbing per $1,000 of receipts above $1,000,000, and total tax capped at $10,000 annually.
Every person who engages in business in the City, except those covered in Section 6-04.230 of this chapter, shall pay a tax based upon gross receipts resulting from business activities within the City limits of the City at the following rates and ratios for the following classifications: (A) Business Classification—Group 1—Taxing Ratio 1: Retailing, Wholesaling, Manufacturing, Corporate Headquarters... $1,000,000.01 and over: $1,000.00 plus 34 cents per $1,000.00 portion thereof for each $1,000.00 over $1,000,000.00
Full Breakdown
220 sorts every business into one of four groups. Group 1 (ratio 1) covers retailing, wholesaling, manufacturing and corporate headquarters. 5) covers services, health care centers, residential and non-residential rental property, short-term rental businesses, and public utilities. 25) covers contractors, land developers, and recreation and entertainment businesses. Group 4 (ratio 5) covers professions. All four groups share the same tiered structure at the low end: $200 for gross receipts up to $100,000, $500 up to $500,000, and $800 up to $1,000,000. 68. If a business is not listed in any category, the tax collector assigns the classification.
A business that believes it was misclassified may apply to the collector for reclassification under subsection (F); the change is not retroactive and applies starting with the next tax cycle, and a business cannot be reclassified more than once per year. Corporate and administrative headquarters pay based on cost of operations (gross payroll, utilities, and rent) rather than gross receipts, excluding payroll taxes, employee benefit contributions, and depreciation. Newspapers, radio, and television stations get a 15 percent discount applied to gross receipts before the tax is calculated.
250 caps the maximum tax payable by any business at $10,000, adjusted every December starting 2025 by the Bay Area Consumer Price Index, with the annual change limited to between 2 and 4 percent.
Violations & Fines
Failure to pay by the due date under Section 6-04.200 adds a 15 percent penalty plus interest at 0.84 percent per month on the unpaid tax and penalty until paid in full. Businesses must post the tax certificate conspicuously at a fixed location, or carry it on their person if mobile, under Section 6-04.180. A refund claim for an erroneous payment must be filed with the collector within three years of the last day of the month following the payment period, per Section 6-04.210.
Frequently Asked Questions
How does Santa Rosa decide which tax group my business is in?
Can I appeal my business tax classification in Santa Rosa?
What happens if I pay my Santa Rosa business tax late?
Sources & Official References
Other rules in Santa Rosa
California rules heatmap·Compare Santa Rosa to another location·View the California local taxes & fees overview
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How other cities in Sonoma County handle business tax classification.