The City of Newport Beach Municipal Code provides that every business operating in the City of Newport Beach is required to file a Business License Tax application prior to the start of business and pay the annual tax each year thereafter. This ordinance applies to businesses operating at a commercial or residential location within the city, or any business using a City of Newport Beach address or Post Office box for receiving mail. Businesses based out of the City of Newport Beach who are conducting activity in the City (for example, contractors, consultants, and landscape maintenance companies) must also file an application. Exemptions may apply to charitable and non-profit organizations and to disabled veterans.
Business License Tax Rates
The City Business License Tax is an annual tax, based on a fiscal year. It is renewable every 12 months. The business license tax is based on the location of where your business operates in the City. Every year in July, the business tax is adjusted to reflect inflation, as measured by the Consumer Price Index (CPI). The 2015/2016 tax year rates are:
|Location Type||Base Tax (Applies to All)||STATE FEE †||Amount per W2 Employee||Maxi. Tax|
|Collects Sales Tax||$164||$1||$8.00||$820|
|No Sales Tax Collected||$164||$1||$16.00||$1,640|
|Out of Town Based||$246||$1||N/A||N/A|
|Post Office Box / CMRA*||$164||$1||N/A||N/A|
Note: These rates are valid through June 30, 2016
* Commercial Mail Receiving Agency (The UPS Store, FedEx Kinko's, Executive Suites, etc.)
* Avoid processing fee by applying online
† On September 19, 2012, Governor Brown signed into law SB-1186 which adds a state fee of $1 on any applicant for a local business license or similar instrument or permit, or renewal thereof. The purpose is to increase disability access and compliance with construction-related accessibility requirements and to develop educational resources for businesses in order to facilitate compliance with federal and state disability laws, as specified.
† Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public. You may obtain information about your legal obligations and how to comply with disability access laws at the following agencies:
The Division of the State Architect at www.dgs.ca.gov/dsa/Home.aspx.
The Department of Rehabilitation at www.rehab.cahwnet.gov.
The California commission on Disability Access at www.cda.ca.gov.
Certain types of businesses, in addition to the filing of and payment for the annual business license tax, must also be licensed or permitted by the City.
Other City Licenses and Permits