Avenu Insights & Analytics:

Please be advised that the City of Santa Cruz has authorized the firm of Avenu Insights & Analytics to conduct a review of compliance with the City’s Business License Fee Ordinance. Avenu Insights & Analytics only provides these services to local governments so no conflict of interest will exist in their work with the City.

Information obtained as part of the review shall be used only by the City for the purpose of the administration of its Business License Ordinance, except as mandated by law. Avenu Insights & Analytics has extensive experience in similar compliance review work for over 250 cities located throughout the State of California. Please extend your cooperation to their staff.

New Businesses: Apply Online

Visit MyCityofSantaCruz, our new online portal, to complete your new business license application and zoning clearance.

First-Time User? Register your account at https://www.mycityofsantacruz.com

Renewals:

1. Renew Online at MyCityofSantaCruz.com 
2. Add Your Account under Account Management and Pay Online

Change in Use or Change Business Information

If you're changing the use of your business in the same location, apply for a Change of Use Zoning Clearance with the City Planning. To update your business information, use the Business License Information Change Form or submit your business changes online.

Additional Resources:

Doing business in the city limits of Santa Cruz requires a City of Santa Cruz Business License Tax Certificate. Application must be submitted on or before the day you start business. The business license tax is not refundable nor transferable. Payment of the Business License Tax Certificate does not relieve the applicant of any regulatory provisions, including, but not limited to City Ordinances. Check this list of city streets to see if your business is located within city limits.

• Check Status or Search Business License Database - Our Search Feature is Currently Unavailable. For Status, Please call (831)420-5070 or email revenue@santacruzca.gov
• Business License Application - This PDF must be signed, and payment must be received in order to process.
  • Zoning Clearances: To complete the zoning clearance process email cityplan@santacruzca.gov your business license application. If you have questions regarding zoning clearances, please call (831) 420-5100.
• SB 205 Stormwater Compliance Form - If applicable to your business, this PDF must be printed, signed, and mailed in with your Business License Tax application.
• Business License Discontinuance Form - Submit this form if you are no longer doing business in the City of Santa Cruz.
• Business License Information Change Form - Submit this form for changes to information in your City of Santa Cruz Business License Tax account.
• Business License Tax Fee Schedule

Non-Profit Status

Charitable and non-profit organizations are exempt from the business license tax. Please attach, to the completed application, a copy of the letter from the Internal Revenue Service or the California State Franchise Tax Board as evidence of your current tax exempt status.

For more information on obtaining a Non-Profit or Tax-Exempt status, contact either:

State of California - Office of the Attorney General
Website: https://oag.ca.gov/office

IRS Tax-Exempt Status Information
https://www.irs.gov/charities-non-profits

Occupancy Permit-Planning Requirements
If you are starting a business in the City of Santa Cruz or conducting business here, check with the City Planning Department for any required permits or approvals.

In order to update a delinquent business license, please email revenue@santacruzca.gov. Make sure to include the name and/or business license number of the business.

City Admission Tax and Entertainment Permits
If your business will have live music, dancing, or other forms of entertainment and an admission is charged, you may be subject to the admission tax. Live music, dancing, etc. requires an Entertainment Permit. Contact the Finance Department at (831) 420-5070 for information. More information about the Admission Tax.

For more information contact the City Police Department at (831) 420-5840.

City Transient Occupancy Tax
If your business is a hotel, inn, motel, bed and breakfast, or other lodging where living accommodations are provided for periods of less than thirty days, you may be subject to the Transient Occupancy Tax. Contact the Finance Department at (831) 420-5070 for information. More information about the Transient Occupancy Tax.

Other Permits and Fees:

• Business Improvement Assessment FAQ's
• Starting a Business in Santa Cruz County lists other common requirements with agency names and addresses.
• Oversize Load Permits

Starting A Small Business?

If you're unsure of the permits and licenses that you'll need for your business, the Economic Development Department can provide additional help. They have also set up Business Roadmap, an online small business resource portal which provides an overview of all the steps involved in starting a business and will inform you of specific requirements and fees you may be responsible for as a small business owner.

Disclaimer:

The information presented here has been prepared and provided to you for information purposes only. It does not supplant the laws, regulations, and procedures governing licenses, permits, and taxes of the City of Santa Cruz. In the event of changes in those laws, regulations, or procedures, the laws, regulations, and procedures are binding and take precedence. For the specific wording of the law, you are strongly urged to get a current copy of the municipal code section that you are interested in.

Revenue Division email - revenue@santacruzca.gov

Most businesses are subject to a basic business license tax of $145.15, plus employees fees of $2.55, $4.95, or $7.40 for each employee depending on the type of business. Please refer to the schedule below for applicable taxes for your type of business. If you are unsure what your taxes will be, please ask for assistance. Payment of business license taxes are due on or before starting date of your business in Santa Cruz. Penalties are applied to late payments.

In addition to the basic business license tax, applicants for a new license are charged a $33 registration fee and a $4 fee mandated by the State of California for accessibility compliance through AB 1379. Annual business license renewals are charged the business license tax, a renewal fee of $14, and the $4 state-mandated fee. These fees are authorized by Council Resolution NS-29,343 and, except for the accessibility compliance fee, will be adjusted every January 1 for increases in the Consumer Price Index. Registration, renewal, and state-mandated fees are not prorated and not refundable.

On June 13, 2023, City Council approved Resolution NS-30,161 to increase the Technology Surcharge fee from 5% to 6% to apply to various permits and licenses processed by the following departments:

• Planning and Community Development, including the Code Enforcement and Residential Rental Inspection Programs,
• Water,
• Finance,
• Public Works,
• Fire, and
• Parks and Recreation.

Effective August 12, 2023, payments towards certain permits and licenses are subject to a surcharge fee of 6% to cover the costs associated with maintaining and updating the City's annual software licenses. The City of Santa Cruz charges fees for a wide variety of planning and building permits and other cost recovery. The Technology Surcharge is designed so as not to exceed the estimated cost to provide the service for which the Technology Surcharge is levied.

The City's Technology Fee Surcharge will assist in capturing costs associated with the implementation, enhancement, management, and maintenance of the City's software platform and technology. Additionally, the fee will be used to support the Department's staff in maintaining and enhancing the City's eServices platforms, ensuring better service for the public and fostering improvements in the interconnected services and business operation across departments.

Persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of business at the request of a specific patient, client, customer, or contractor will have their business license tax prorated as follows:

If you have questions regarding license fees, please phone our office:
City of Santa Cruz
Finance Department
831-420-5070
revenue@santacruzca.gov

NOTICE: The Finance Department mailing address recently changed. Please mail any UUT forms to 1200 Pacific Ave Suite 290 Santa Cruz, CA 95060

The utility tax is a charge on the use of public utilities such as phone, cell phone, cable television, gas and electric services, as well as municipal water, wastewater, and refuse services. The utility tax applies to both businesses and residents.

All proceeds of the City utility tax are used for local government services in the City of Santa Cruz. The tax pays for law enforcement, fire protection services, emergency medical response, maintenance of city parks and streets, youth programs and the other basics of local government.

For service providers that need to report UUT tax collected on behalf of the City, you may use the following form, or a form of your choosing that provides the same information:

• UUT Remittance Form

Measure H
In November 2010, a local revenue measure (Measure H) was passed increasing the City’s existing utility tax by 1.5% (from 7% to 8.5%) for the purpose of supporting municipal services in our community and modernizing the City utility tax law to ensure that users of different forms of telecommunication utilities are treated equally. The new tax rate went into effect after January 1, 2011. The exact effective dates vary based on each service provider’s implementation schedule and billing cycle.

The links below explain the ordinance in greater detail.

• UUT Ordinance
• UUT Exemption Resolution
• UUT Election Results
• UUT Administrative Ruling

Please direct inquiries to:
City of Santa Cruz, Finance Department
Revenue Division
Phone: 831-420-5070
Fax: 831-420-5051
revenue@santacruzca.gov

• Exempts a residential service user from paying electricity and gas users taxes on the first $100 in combined monthly charges for electricity and gas services.
• Eligibility – the individual must either a) be 65 years of age or older; or b) share his or her residence with a spouse or registered domestic partner that is 65 years of age or older. The individual must reside at the service location; the exemption will not apply to any nonresidential location.
• To request an exemption, a service user needs to file an application with the City.

The City determines within 60 days whether the exemption is granted and notifies the service supplier. The Senior Citizen Exemption Application Form may be accessed through the link below. This form will be mailed to all residential City customers once per year in January.

Senior Citizen Exemption Form

• The exemption shall apply from the date of the determination that the service user qualifies for the exemption.

Questions regarding the Senior Exemption should be directed to the Revenue division at 831-420-5070 or email revenue@santacruzca.gov.

• Exempts a residential service user from paying electricity and gas users taxes on the first $100 in combined monthly charges for electricity services and gas services.
• Eligibility – the individual must be enrolled in the Pacific Gas & Electric Company's (PG&E) California Alternate Rates for Energy (CARE) program and must reside at the location receiving the service; the exemption will not apply to any nonresidential location.
• To request an exemption, a service user needs to file a CARE program application with PG&E.

PG&E CARE Program
The CARE (California Alternate Rates for Energy) Program provides a monthly discount on energy bills for income-qualified households and housing facilities. Qualifications are based on the number of persons living in your home and your total annual household income.

To apply:

• Enroll online
• Enroll by mail
  • Print online application and mail to PG&E CARE Program, P.O. Box 7979, San Francisco, CA 94120-7979
  • Have an application mailed to you by calling 1-866-PGE-CARE or emailing CAREandFERA@pge.com.

For more information call 1-866-PGE-CARE or visit http://www.pge.com/myhome/customerservice/financialassistance/care/singlefamily/

Citywide Master Fee Schedule

Compilation of most fees charged by the City for services, organized by department.

*NOTICE: The Finance Department mailing address recently changed. Please mail any admission tax forms to the new address at 1200 Pacific Ave Suite 290, Santa Cruz, CA 95060.* 

This document contains summary information about the City of Santa Cruz, California, Admission Tax. It is not a complete representation of the ordinance. Your event(s) may be subject to the tax. If so, you will need to register for collection of the tax at the City Planning Department for one-time events or the Finance Department for ongoing events.

Please direct any inquiries to:
City of Santa Cruz, Finance Department
Revenue Division
Ph 831-420-5070
revenue@santacruzca.gov

Information for ongoing events
Information for one-time events

The Admission Tax
The admission tax ordinance (Chapter 3.36 of the Santa Cruz Municipal Code) was adopted by the Santa Cruz City Council effective October 1, 1986. A copy of the ordinance may be obtained from the City Clerk's Office or the Finance Dept. The tax is designed to raise revenues from admission and registration charges for attendance at recreational and entertainment activities and events.

Taxable Operations
Taxable operations may include, but are not limited to: races, dances, concerts, picnics, entertainment events, sports, lectures, films, etc. An admission termed "donation" is still taxable if the fee is a set price. Nonprofit organizations are not exempt from collecting the tax. Political fundraising activities are also subject to the tax. See Section 3.36.040 of the Santa Cruz Municipal Code for specific exemptions of charges subject to the admission tax.

Active Bodily Health Exemption
Established health clubs, athletic gyms, martial arts studios, yoga studios and physical fitness facilities, that do not take same day payment for facility use or classes can apply for an exemption from submitting Admission Tax payments. Please submit an Admission Tax Exemption Certification Form to the Finance department for consideration.

How Does It Work?
The tax is 5% on the price of admission or registration for events within the city limits of Santa Cruz. For example, an admission of $5.00 would be taxed $.25; for a total of $5.25 to be collected. The tax collected is remitted to the Planning Department (walk-in payments) or the Finance Department (mail-in payments).

Ongoing Events

What to Do if You Have Ongoing Operations:
If you regularly provide recreation, entertainment, or any "event" subject to admission tax on an ongoing basis, you must register (Admission Tax Certificate Application) with the Finance Department for an Admission Tax Operator's Certificate (no fee) prior to collecting the tax. The certificate must be posted conspicuously at your place of business or the location of your ongoing event. You will then be issued a supply of monthly remittance forms. The forms can be mailed to the Finance Department (1200 Pacific Ave Suite 290, Santa Cruz, CA 95060) along with your tax remittance on a monthly basis or paid in person at the Planning Department, 809 Center Street, Room 101. The tax collected must be sent to the City on or before the last day of the month following the close of the prior month. If the tax is not remitted on time, penalties and interest will apply. If you happen to have a month in which no admission tax is collected, you must still mail your monthly tax form to the Finance Department.

Admission Tax Return - Remittance Form [PDF]
Admission Tax Certificate Application (For Ongoing Operators) [PDF]

One-Time Events

What to Do if You Have One-time/Infrequent Operations
If you have a one-time event, and do not provide ongoing events, you must register at the Planning Department, 809 Center Street, Room 101, for a one-time admission tax operator's certificate prior to collecting the tax. The certificate must be displayed at the event for which tax is to be collected. At the time of registration, you must also estimate the number of admissions or registrations to the event, and pay an advance deposit based on the estimated admissions. You will be provided with an Admissions Tax Deposit form for this purpose. You will also be provided with an Admissions Tax Return form to be completed and returned to the Planning Department within ten (10) days after the event. You will determine the actual number of admissions and the total amount of admission tax due from the event. If additional tax is due, it is remitted to the Planning Department. If a refund of over-payment is due, a claim form will be completed by the Finance Dept., and the refund will be mailed to you. If the tax is not remitted to the City on time, penalties and interest will apply.

One-Time Event Admission Tax Form [PDF]

In mid December of each year, the City of Santa Cruz will mail an annual billing statement (invoice) to each retail seller of alcohol in the City. The invoice will detail the amount of the annual Alcohol Sales Permit Fee. Payment is due January 31st.

On November 24, 1998, the Santa Cruz City Council established an Alcohol Sales Permit Fee to recover the cost of the Police Department's Alcohol Education, Monitoring and Compliance Program. Initially, the fee was intended to fund the cost of one police officer and one records technician assigned to the Program. Historically, the City has not collected the full amount authorized. On July 28, 2009, the Santa Cruz City Council revised the Alcohol Sales Permit Fee to recover only the cost of one police officer; however, the full costs associated with this officer would be collected.

The Alcohol Sales Permit Fee is based on the following three components:

1. The risk component is determined by definition under the local alcohol ordinance. Businesses are classified as either low or high risk.
2. The hours component is determined by the latest hour in which a business sold alcohol on any day in the previous year.
3. The volume component refers to the dollar volume of an outlet's wholesale alcohol purchases for the previous calendar year. In the case of a partial year for new businesses, the volume will be based on annualized purchases.

The individual outlet's fee will be calculated based on classification into various categories within the risk, hours, and volume components. The hours and volume components are divided into 3 categories as described in the table below.

The exact amount of each outlet's fee will vary from year to year because fees are set by a risk-based formula to recover costs, so that as the City's cost of running the program changes and as the mix of low risk to high risk businesses changes, the amounts of the permit fees change as well. The City assigns each business a category for hours and volume based on reported information.

Important:
Questions regarding the fee or the Alcohol Education, Monitoring and Compliance Program, should be directed to the Revenue division at 831-420-5070 or email revenue@santacruzca.gov.

Payment of Alcohol Sales Permit Fee is due by January 31st. Penalties and interest are charged for late payment. If payment is made in February, a 10% penalty is assessed. If payment is made after February, a second 10% penalty is also charged. In addition to penalties, interest on late payments is charged at the rate of one and one-half percent per month, or fraction thereof until the invoice is paid in full.

This is the online system to make it easier for community members to register their bikes and receive a bicycle license sticker. Not only are bicycle license stickers a deterrent to thieves, but in case your bike is lost or stolen, the bicycle license registration may aide police in finding your bicycle.

What are Business Improvement Assessments?
Business Improvement Assessments are spent exclusively on promoting and improving the downtown area. Assessments are collected by the City of Santa Cruz and forwarded directly to the Downtown Association of Santa Cruz.

How are they calculated?
Business Improvement Assessments are based on the following formula:

(Business Area X Rate [.55] X Type X Zone) + $100.00 = Annual Assessment
Annual Assessment / 2 = Semi-Annual Assessment

Example: (1,000 Sq Ft) x .55 x 100% (Type 1) x 60% (Zone 2) + $100.00 = $430.00 / 2 = $215.00 Semi-Annual Assessment

Who pays Business Improvement Assessments?
Businesses operating in the Downtown Parking and Business Improvement District on January 1 and July 1 are billed for the semi-annual Business Improvement Assessment. A penalty is charged for all bills not paid by January 31 and July 31.

Who can I call if have more questions?
If you have any questions about the Downtown Association, your billing or how the assessment fees are calculated you can learn more at downtownsantacruz.com or contact the Downtown Association Executive Director Jorian Wilkins at jorian@downtownsantacruz.com or call (831) 332-7422.

For assistance making payment on your bill, call the City Finance Department at (831) 420-5070 or email revenue@santacruzca.gov. We will be happy to answer any questions you may have.

Making Payments

*NOTICE: The Finance Department mailing address has recently changed. Please send Cannabis Business Tax forms to 1200 Pacific Ave, Suite 290, Santa Cruz, CA 95060*

Payments can be made in the following ways:

• Mail (check only - no cash): 1200 Pacific Ave Suite 290, Santa Cruz, CA 95060
• Phone (credit card only): Call (831)420-5100
• In-Person (by appointment only): Call (831) 420-5100 to schedule.

Payment of the Cannabis Business Tax in no way authorizes or legalizes business activities that are otherwise unlawful in the City of Santa Cruz. For further information on the Cannabis Business Tax, see the City's Municipal Code. Information about cannabis licenses and regulations can be obtained from the Planning and Community Development Department.

• Cannabis Business Tax monthly remittance

Tax Rates

As approved by the voters of the City of Santa Cruz on November 4, 2014 and November 8, 2016, any and all cannabis businesses operating in the City are required to pay the City's Cannabis Business Tax. Pursuant to Chapter 5.07 of the City’s Municipal Code, which was amended by Ordinance No. 2019-10 on June 11, 2019, the following Cannabis Business Tax (CBT) rates are in effect beginning August 1, 2019:

**The Cannabis Business Tax for cannabis cultivation and cannabis manufacturing businesses is set at five percent of gross receipts through December 31, 2019. Commencing on January 1, 2020, the tax rate will increase to six percent of gross receipts through December 31, 2021. Commencing on January 1, 2022, and continuing thereafter, the tax rate will increase to seven percent of gross receipts.

As of July 1, 2023, all parking deficiency fees have been eliminated in the City of Santa Cruz per City Council Resolution No. NS-30,132.

The city levies a 10% tax on any parking fee that is charged in any privately owned parking lot in the City of Santa Cruz. The driver of each motor vehicle using a parking lot shall pay the tax to the parking lot operator at the time the parking fee is paid. This tax does not apply to fees for monthly parking permits or fees which are charged for parking on a monthly, quarterly, or yearly basis.

If your business is subject to the Parking Lot Tax, please return the registration application, using a separate registration form for each property address.

• Application
• Forms

*NOTICE: The Finance Department Mailing address has recently changed. Please send Parking Lot Tax forms to 1200 Pacific Ave Suite 290, Santa Cruz, CA 95060.*

Questions regarding the Parking Lot Tax should be directed to the Revenue division at 831-420-5070 or email revenue@santacruzca.gov.

The City levies a Transient Occupancy Tax (TOT) for the privilege of occupying any space where accommodations are offered for hire for periods of thirty (30) days or less. The tax is paid by the occupant and collected by the operator. The operator then remits the tax to the City.

Effective January 1, 2023, two new tax rates will go into effect and Santa Cruz Municipal Code 3.28 will be amended as follows:

1. For commercial properties like hotels, motels, inn, and B&Bs, the rate will increase from 11% to 12%.
2. For residential properties like single-family homes and apartments, which require a short-term rental permit, the rate will increase from 11% to 14%.

If your property is subject to the TOT, you are required to register with the City within thirty (30) days of commencing business, and to file monthly TOT returns.

There are four other ways to submit TOT:

1. Pay on-line at https://tot.cityofsantacruz.com/primeweb
2. Mail to City of Santa Cruz at 1200 Pacific Ave, Suite 290, Santa Cruz, CA 95060.
3. Check only payments may be placed in the drop-box located outside of the City’s Planning Department at 809 Center Street, Room 101.
4. Credit card payments may be made by phone Monday – Friday from 8:00 AM – Noon and from 1:00 PM – 3:00 PM by calling the City’s Planning Department at 831-420-5110. Credit card payments will be assessed a 3% convenience fee.

If you have any questions, please email revenue@santacruzca.gov.

THE CITY IS PLEASED TO INTRODUCE
AN ONLINE TOT REGISTRATION AND PAYMENT OPTION!

The new TOT online system will allow you to register your rental property, file your monthly return, and remit TOT collected from your guests.

To apply, go to the City’s Online Payments Web Page, click on Transient Occupancy Taxes (TOT), then select Apply for TOT Certification. [Please see below for printable forms if you are unable to use the online system.]

Residential Short-Term Rental (STR) Permit and Valid TOT Registration Certificate Required

The City's Residential Short-Term Rental Ordinance (Municipal Code Section 24.12.1700 et seq.) was adopted by the City Council in October, 2017, and became effective with Coastal Commission approval in April, 2018. These regulations provide a set of standards governing the renting or leasing of residential property on a short-term basis. All residential short-term rental properties are required to obtain a Short-Term Rental Permit.

A listing of active short-term rental properties with STR Permits is available here.

If you did not submit a new application for a TOT Registration Certificate and STR Permit by September, 2018, your old TOT Registration Certificate is no longer valid. If you have subsequently submitted an application, your new TOT Registration Certificate will be valid when issued.

You may not engage in any short-term rentals until you have been issued a valid TOT Registration Certificate and STR Permit.

You are required to remit TOT for any short-term rentals that have occurred, even if they occurred when you did not have a valid TOT Registration Certificate or if you are not eligible to continue short-term rental of your property.

For more information regarding your eligibility to apply for a STR Permit, please visit the City’s Short-Term Rentals web page, or call John Jezek, at (831) 420-5305.

PRINTABLE FORMS

Application
If you are unable to use the online TOT system, following is a link to a fillable PDF application to print and submit (original document only, no faxes or emails):

• STR Permit & TOT Registration Certificate Application

TOT Return Forms
TOT Operators are required to file a TOT return every month. If you are unable to do so using the City’s online system, please use the following fillable PDF form:

• TOT Return Form

GENERAL TOT INFORMATION

• Santa Cruz Municipal Code (SCMC) Chapter 3.28
• Transient Occupancy Tax Frequently Asked Questions

TOT Exemptions
Room occupancy is exempt from taxation for any federal officer or employee when on official business, and for certain officers or employees of foreign governments. For more information please refer to Santa Cruz Municipal Code Section 3.28.040. To claim an exemption from the TOT, the guest and hotel operator must complete the TOT Certificate of Tax Exemption form at the time the rent is collected. Note: The TOT Certificate of Tax Exemption must be kept on file for at least four years, in case of audit.

Santa Cruz County Tourism Marketing District (SCCTMD)
Operating since July 1, 2010, the Santa Cruz County Tourism Marketing District (SCCTMD) is a benefit assessment district developed to help fund marketing and sales promotion efforts for the Santa Cruz County lodging businesses. The SCCTMD includes all lodging businesses located within Santa Cruz County, in all of the incorporated cities as well as the unincorporated area.

NOTE: Effective July 1, 2024, the TMD Rate increased as follows: Tier 1: $2.20, Tier 2: $2.85, Tier 3: $3.20, Tier 4: $4.10

To report TMD fees collected on behalf of the SCCTMD, the operators can use the form provided here:

• TMD Remittance Form (July 2023)
• TMD Remittance Form (July 2024)

The City reviews the fee schedule approximately every five years with the goal of only charging what it costs to provide each service. There may be adjustments to fees, which could include increases, decreases, or the introduction of new charges. The last comprehensive study and update was effective on July 1, 2017. In October 2023, the City contracted with MGT Impact Solutions to review and update the City's user fees. The Fee Study analysis were discussed at the October 22, 2024 City Council Meeting and will be effective January 1, 2025.

The scope of the Fee Study encompasses a review and calculation of the fees listed in the existing Fee Schedule and charged by the following City of Santa Cruz Departments:

• Planning and Community Development - Building and Safety Division,
• Economic Development and Housing,
• Public Works - Engineering Division,
• Fire - Marine Safety Division, and
• Fire - Prevention Schedule Division.

To learn more about the User Fees, please view the recordings.

• Tuesday, 8/20/24 at 11:00 AM  | View Recording
• Thursday, 8/29/24 at 3:00 PM | View Recording