Vallejo, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax basis
- Gross receipts, rated by net-profit classification
- Classification A threshold
- Net profit 20%+ (professions)
- Classification B threshold
- Net profit 10-20% (retail/trades)
- Effective date of current scheme
- June 30, 1993
- Marijuana business add-on
- $500/year base rate
- Appeal window
- 15 days to city clerk
Summary
Every business operating in Vallejo pays an annual license tax set by council resolution and pegged to a classification carved out in Section 5.04.535. The Gross Receipts scheme sorts businesses by net-profit margin, from Classification A (20%-plus margin professions like attorneys and architects) down through lower-margin retailers, so the rate tracks profitability rather than a single flat citywide fee.
5.04.275 - Rates fixed-Payment required. A.The amount or rate of license taxes to be paid to the city by any person engaged in or carrying on any business in the city shall be prescribed by council resolution.B.Every person engaged in any business in the city, whether such business is specifically named in this chapter, or not, shall pay the license taxes as prescribed by council resolution. ... 5.04.535 - Gross receipts license. Every person who engages in business at a fixed place of business within the city shall pay an annual license fee based on gross receipts. That fee is based on classifications in this section... A.Classification "A." Every business included but not limited to those listed herein, operating with a net profit of twenty percent or more, shall be classified in Classification A.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Update 12 - 25).
Full Breakdown
Vallejo's business license tax runs on two operative sections. Section 5.04.275 fixes the mechanism: the city council sets the actual rate or amount of license tax by resolution, and every business operating in the city, whether specifically named in Chapter 5.04 or not, must pay the tax the resolution prescribes. Section 5.04.535 then lays out the Gross Receipts License classification scheme that resolution rates apply against. Classification A covers businesses that clear a net profit of 20 percent or more, naming professions such as accountants, architects, attorneys, chiropractors, dentists, physicians, optometrists, and surveyors. Classification B catches businesses netting 10 to 20 percent, listing dozens of trades from bakeries and hardware stores to job printers and junk dealers. The chapter's Article VI editor's note explains that Sections 5.04.275 and 5.04.535, enacted by Ordinance 1214-1 N.C.(2d), took effect June 30, 1993, replacing the prior 1965 rate schedule in Sections 5.04.280 through 5.04.540.
If the tax and license collector believes a business was assigned the wrong classification under Section 5.04.535, Section 5.04.230 lets the collector redetermine the classification, and the business can request a hearing within ten days of notice. Cannabis businesses pay an added layer: Section 5.04.276 sets a base marijuana business license tax of $500 per year on top of the Chapter 5.05 marijuana tax, adjusted every January 1st by the Bay Area Consumer Price Index.
Violations & Fines
A business that fails to file the statement the tax and license collector needs to assign a classification, or fails to correct one within fifteen days of a demand, faces a collector-determined tax or classification assessment under Section 5.04.230; the business gets ten days after notice to request a hearing before that determination becomes final. Section 5.04.235 preserves a broader right of appeal for any aggrieved licensee: a notice of appeal to the city clerk within fifteen days triggers an informal hearing before a city manager-appointed officer, whose written decision is final except for judicial review.
Frequently Asked Questions
Who decides my business's tax classification?
How is the actual tax rate set?
Do cannabis businesses pay extra?
Can I appeal a classification I disagree with?
Sources & Official References
Other rules in Vallejo
California rules heatmap·Compare Vallejo to another location·View the California local taxes & fees overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Business Tax Classification in Nearby Cities
How other cities in Solano County handle business tax classification.