This Chapter enumerates each primary business classification, and the tax rate group applicable to each such classification in calculating the business license tax due. Tax rate groups are more particularly described in Chapter 6.12. In addition, specific information relevant to calculation of gross receipts for particular business classifications is described herein.
(Prior code § 6050; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The Director of Finance or his or her designee shall determine the business license classification for each business in the City. Such determination shall be final and not subject to appeal.
(Prior code § 6051; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
The business classifications set forth in Sections 6.08.040 through 6.08.160 shall pay a business license taxes based upon gross receipts except for Section 6.08.080 which shall be taxed based on cost of operations.
(Prior code § 6052; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group III and applies to a person or entity who, for a fee or commission, engages in the occupation of bringing buyers and sellers together for negotiations, or negotiates or arranges terms and conditions for buyers and sellers for the purpose of effecting a sale of real property or personal property (including, but not limited to, securities, real estate brokers, commodities, travel agents, bond brokers, manufacturer's representatives, stock brokers and/or insurance). For purposes of this business classification, the following criteria shall apply:
(a) 
Gross receipts for an agent/broker licensee shall include:
(1) 
All commissions, fees, charges, monies, or compensation of any character, received by such person and/or entity for performing in the capacity described herein.
(2) 
All other monies received by such person and/or entity in connection with the sale of real or personal property, except those monies received and placed in a segregated account or escrow for the benefit of a third party, and not subject to such person and/or entity's use or control.
(b) 
An agent/broker shall not obtain or retain title to the real or personal property which is the subject of the sales transaction.
(Prior code § 6052A; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
This business classification is in Tax Rate Group II and applies to the buying, selling or offering for sale, of new or used automobiles, trucks, vans, trailers, house trailers or campers, including parts and accessories.
(b) 
A separate business license is required for each new vehicle dealership regardless of whether it is owned or managed by a person who owns or manages more than one new vehicle dealership. A separate business license is required for each used vehicle dealership.
(c) 
The gross receipts for each vehicle dealership or used vehicle dealership in the City shall include all sales arising from the dealership regardless of where the product is delivered. The gross receipts from a dealership shall include receipts from sales of new and used vehicles, sales of parts, all other sales revenue associated with that dealership.
(Prior code § 6052B; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 3, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group III and applies to a general building contractor whose principal contracting business is in connection with any structure built, or to be built for the support, shelter and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of more than two unrelated building trades or crafts, or to do or superintend the whole or any part thereof or a general engineering contractor whose principal contracting business is in connection with fixed works requiring specialized engineering knowledge and skill including, but not limited to, irrigation, drainage, water, power, railroads, highways, streets, pipelines, powerhouse plants, industrial plants, land leveling, earth moving, harbors, and concrete surfacing. This Section does not include anyone who merely furnishes material or supplies without fabricating them in the performance of the work of a general building or engineering contractor.
(Prior code § 6052C; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group III and applies to any person or entity engaging in any of the following listed building trades and is not intended to be exhaustive:
(1) 
Awning.
(2) 
Boilers, hot water heating, steamfitting.
(3) 
Burglar alarm.
(4) 
Cabinet and mill work.
(5) 
Cement and concrete.
(6) 
Electrical contractor.
(7) 
Electric signs.
(8) 
Elevator installation.
(9) 
Excavating, grading, trenching, paving, surfacing.
(10) 
Fire protection engineering.
(11) 
Floodlight service.
(12) 
Flooring.
(13) 
Glazing, glass.
(14) 
Heating and/or air conditioning.
(15) 
House and building moving or wrecking.
(16) 
Insulation.
(17) 
Landscaping.
(18) 
Lathing.
(19) 
Masonry.
(20) 
Miscellaneous, specialty.
(21) 
Ornamental metals.
(22) 
Painting and decorating.
(23) 
Pest control.
(24) 
Plastering only.
(25) 
Plumbing.
(26) 
Refrigeration.
(27) 
Roofing.
(28) 
Screens.
(29) 
Sewer.
(30) 
Sheet metal.
(31) 
Signs.
(32) 
Sprinkling.
(33) 
Steel.
(34) 
Tile (ceramic and mosaic).
(35) 
Weather stripping.
(36) 
Welding.
(37) 
Well drilling.
Any contractor that holds a State license for one or more uses his or her or its own employees to do both may be issued one license covering both activities.
(Prior code § 6052D; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group VIII and applies to corporate or administrative headquarters located in the City. Any business in this classification shall pay a business license tax based upon cost of operations as specifically defined herein. "Cost of operations" shall be equal to the total of the following items:
(a) 
Annual fair rental value of all real property located in the City and used for such corporate or administrative headquarters.
(b) 
Annual payroll of all employees based in the City.
(c) 
The cost of all utilities related to the operation of such corporate or administrative headquarters.
(Prior code § 6052E; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group I and applies to a business which engages in the manufacturing, fabrication, or assembly of goods, wares, merchandise, or components. Gross receipts of a business licensed as a manufacturer shall include all gross receipts from products manufactured in the City. In addition, if the product is not sold from the manufacturer's location in the City, an amount equal to the value of all component parts of the product, shall be included in the licensee's gross receipts.
(Prior code § 6052F; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group IV and applies to any person, group, association, partnership, firm, or corporation engaged in a profession, vocation or calling including, but not limited to, the following:
(1) 
Accountant.
(2) 
Architect.
(3) 
Attorney at law.
(4) 
Auditor.
(5) 
Bacteriologist.
(6) 
Certified financial planner.
(7) 
Certified public accountant.
(8) 
Chemist.
(9) 
Child, marriage and family counselor.
(10) 
Chiropodist.
(11) 
Chiropractor.
(12) 
Civil engineer.
(13) 
Dentist.
(14) 
Doctor - medical.
(15) 
Electrical engineer.
(16) 
Electrologist.
(17) 
Geologist.
(18) 
Landscape architect.
(19) 
Mechanical engineer.
(20) 
Mining engineer.
(21) 
Optician.
(22) 
Optometrist.
(23) 
Osteopath.
(24) 
Physician.
(25) 
Psychiatrist.
(26) 
Psychologist.
(27) 
Surgeon.
(28) 
Surveyor.
(29) 
Tax counselor.
(30) 
Veterinary.
Whenever a State of California license is required to entitle a person to practice a profession, the Director of Finance may require, before issuing a license pursuant to this Section, that the applicant exhibit an unexpired and unrevoked license entitling said applicant to practice such profession in the State of California.
(Prior code § 6052G; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group I and applies to any person or entity engaged in providing recreation, entertainment, or amusement opportunities. Gross receipts for such classification shall include all receipts from all business locations in the City. Examples of businesses within the recreation and entertainment classification include, but are not limited to, museums, theaters, dance halls, night clubs, golf courses, bowling, billiards, skill games and machines, arcades, rides, shooting galleries, concert venues, and fortune telling.
(Prior code § 6052H; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group I and applies to any person, group, association, partnership, firm, corporation or other entity (whether as the owner or an agent for the owner, a lessee, sublessee or licensee) which rents, leases, subleases or has available for rent, lease, sublease or license, any commercial building, industrial building, office or office building, structure, land or vacant lot that may be utilized for commercial, industrial, office or storage uses.
(Prior code § 6052I; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 4, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
This business classification is in Tax Rate Group I and applies to any person, group, association, joint venture, partnership, firm, corporation or other entity (whether as the owner, or an agent of the owner), which rents, leases, subleases, licenses or has available for rent, lease, sublease or license, accommodations for residential use where such units are located on the same or an adjoining property.
(b) 
For purposes of this business classification, a living unit for residential use shall include, without limitation, an apartment, hotel or motel room or suite, rooming house, trailer court, auto court or permitted home-share other accommodations.
(Prior code § 6052J; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 5, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group I and applies to the selling of any goods, wares or merchandise at retail, and not otherwise specifically licensed by other provisions of this Code.
(Prior code § 6052K; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 6, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group III and applies to the selling or providing for pay any service which is not otherwise specifically licensed by other provisions of this Code. The services referred to herein include, but are not limited to, the following:
(1) 
Advertising and marketing.
(2) 
Alarm.
(3) 
Ambulance.
(4) 
Animal care.
(5) 
Appraiser.
(6) 
Assayer.
(7) 
Artificial Intelligence.
(8) 
Auction house or Auctioneer.
(9) 
Auto maintenance, service, repair and auto dealership services.
(10) 
Auto parks (parking).
(11) 
Auto service station (exclusive of retail sales of gasoline and diesel fuels, and any products, parts or accessories, which are subject to a business license fee for retail sales under Section 6.08.140 above).
(12) 
Auto wash and detailing.
(13) 
Auto wrecking.
(14) 
Barbershop, beauty parlor.
(15) 
Bathhouse or bath treatment (police permit required).
(16) 
Bookkeeping.
(17) 
Booking or theatrical agent.
(18) 
Bus sightseeing.
(19) 
Caterer.
(20) 
Check cashing.
(21) 
Cleaning service (janitorial and cleanup for commercial, industrial and residential properties, including window washing).
(22) 
Cleaning (laundry and dry cleaning).
(23) 
Collection agency.
(24) 
Commercial artist.
(25) 
Consultant.
(26) 
Credit reporting.
(27) 
Computer programmers.
(28) 
Data processing.
(29) 
Decorator.
(30) 
Dental technician or hygienist.
(31) 
Designer.
(32) 
Draftsman.
(33) 
Drugless practitioner.
(34) 
Employment bureau and/or business for provision of labor services (whether such employment or labor services are permanent or temporary).
(35) 
Art studio.
(36) 
Gardening and landscaping.
(37) 
Hairdressing salon, hairdresser.
(38) 
Health club, gym, figure salon.
(39) 
Herb doctor, herbalist.
(40) 
Hypnotist, hypnotherapist.
(41) 
Illustrator.
(42) 
Instructional schools and institutions.
(43) 
Information Security and Research.
(44) 
Lithographer.
(45) 
Loans.
(46) 
Manicurist.
(47) 
Massage establishment (police permit required).
(48) 
Massage technician (police permit required unless state licensed).
(49) 
Mortuary, mortician.
(50) 
News bureau.
(51) 
Odor and/or pest control.
(52) 
Pawnbroker (police permit required).
(53) 
Physical therapist.
(54) 
Private investigation, patrol and/or security services.
(55) 
Public relations, publicity, publicist.
(56) 
Public stenographic service or certified court reporter.
(57) 
Rental or leasing of vehicles, equipment, or other personal property.
(58) 
Repair service of any type including auto repair and maintenance.
(59) 
Research firm.
(60) 
Software, Network and Web Development.
(61) 
Tailors or dressmakers.
(62) 
Telephone answering service.
(63) 
Ticket reservation service.
(64) 
Tree care.
(65) 
Transportation and mobility related services (excluding taxi operations).
(66) 
Television, video, and film production.
(67) 
Information technology and cloud services.
(68) 
Distribution centers (excluding cannabis distribution).
(Prior code § 6052L; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1851CCS § 7, adopted 5/28/96; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group I and applies to any person or entity engaged in the selling of any goods, ware, or merchandise at wholesale prices. For purposes of this classification, gross receipts include all receipts derived from the wholesale selling of any goods, wares, or merchandise.
(Prior code § 6052M; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group I and applies to any regulated utility company subject to Article XIII, Section 19 of the Constitution of the State of California. For purposes of this business classification, gross receipts shall include one hundred percent of gross receipts derived from utility services provided within the City of Santa Monica and gross receipts attributable to any other business activity conducted within the City.
(Prior code § 6052N; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group V and applies to the running, driving, or operating of any vehicle used for the delivery or pickup of goods, wares, merchandise, or material.
(Prior code § 6053A; added by Ord. No. 1523CCS, adopted 5/8/90; Ord. No. 2797CCS, eff. 1/1/2025)
(a) 
This business classification is in Tax Rate Group VI and applies to event planners and promoters of any recreation, entertainment, cultural and educational events and exhibitions which are conducted for limited periods of time. Included in such classification without limitation are sporting events/competitions, circuses, carnivals, trade shows, and special sales of goods or services.
(b) 
For purposes of this classification, event planner or promoter shall mean any person or entity who organizes, sponsors or administers any activity classified in the category of special or community event.
(c) 
All event planners or promoters in a special or community event shall be subject to the business license requirements described in this Chapter regardless of whether the special or community event is carried on for profit or for charitable purposes.
(Prior code § 6053B; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 1598CCS § 1, adopted 9/10/91; Ord. No. 1851CCS § 8, adopted 5/28/96; Ord. No. 2008CCS § 2, adopted 5/8/01; Ord. No. 2797CCS, eff. 1/1/2025)
This business classification is in Tax Rate Group VII and applies to the running, driving, or operating of any taxicab when driven by the owner of the taxicab franchisee, or a member, employee or other representative of the taxicab franchisee, or by the person or persons hiring or renting the same at rates per mile, per trip, per hour, per day, per week, or per month; and such vehicle is routed under the direction of such passenger or passengers, or of such persons hiring the same.
(Prior code § 6053C; added by Ord. No. 1523CCS, adopted 5/8/90; amended by Ord. No. 2292CCS § 7, adopted 7/28/09; Ord. No. 2797CCS, eff. 1/1/2025)