For Questions Regarding Business Tax Certificate Renewal - (805) 583-6736
The law provides that a Business Tax Certificate is necessary before any Business, Trade, Profession, Enterprise, Establishment, Occupation, or Calling is conducted within the City. A Tax Certificate is required even though the business may be located outside the City or have a Tax Certificate from another city.
The Business Tax Certificate is valid until December 31st of the year in which it is issued and must be renewed by April 30th of the following year. It is the responsibility of the tax certificate holder to insure that the tax is paid each year.
California State Mandated Fee of $4.00 for all Business Licenses and Renewal of Business Licenses:
California CASP Fee: SB-1186 went into effect 01/01/2013, and imposes, on and after January 1, 2013, and until December 31, 2018, an additional State fee of $1 on any applicant for a local business license or equivalent instrument or permit, or renewal thereof, for purposes of increasing disability access and compliance with construction related accessibility requirements and developing educational resources for businesses to facilitate compliance with federal and state disability laws, as specified.
The Senate Bill 1186 creates a continuously appropriated fund, the Disability Access and Education Revolving Fund, for the deposit of funds to be transferred to the Division of the State Architect. By adding to the duties of a local entity, this bill imposes a State-mandated local program, which results in costs incurred by the local agencies. On October 11, 2017, AB 1379 went into effect and extends the operation of this fee indefinitely and, on and after January 1, 2018, and until December 31, 2023, increases the amount from $1 to $4. The bill would revert the amount of the fee back to $1 on and after January 1, 2024.
The collection of this mandated fee imposed by the State is already included in the business tax registration fee, and the renewal fee of $19.00.
For more information on SB-1186 and AB 1379, please visit http://leginfo.legislature.ca.gov.
Applications and Renewals
Effective January 1, 2018, all businesses operating within the City of Simi Valley are required to obtain a Business Tax Certificate with a fee of $82.00 (with a business address inside the city) or $39.00 (with a business address outside the city). To obtain a new Business Tax Certificate, please contact the Customer Services Division at (805) 583-6736 for further information.
Effective January 1, 2018, if you are renewing your Business Tax Certificate with the City, an annual renewal fee of $19.00 will be required in addition to the tax due. We encourage you to renew online via the City's business tax renewal portal. Customers unable to use the online payment system can still submit their renewals in person at City Hall, 2929 Tapo Canyon Road, Simi Valley, or through the mail at Post Office Box 1680, Simi Valley, CA 93062-1680. Customers with questions about the online renewal system can call the Customer Services Division of the Department of Administrative Services at (805) 583-6736 during regular business hours or via e-mail to email@example.com.
RatesThe business tax rate is determined according to the following schedules. The tax for most businesses is based on annual gross receipts for the previous year. A new business should estimate their gross receipts from the day the business begins operation through December 31st of that year. On December 12, 2011, the Simi Valley City Council adopted a resolution waiving business tax for Simi Valley businesses with gross receipts of $300,000 or less beginning January 1, 2012. The waiver was extended through December 31, 2017, and as of January 1, 2018, these business tax rates are reinstated. All businesses are still required to register with the City and obtain a Business Tax Certificate.
Gross Receipts ScheduleAnnual Gross Receipts
PAYMENT IS REQUIRED AT TIME OF APPLICATION.
Automobile Dealers Annual Gross Receipts
Adjustments and PenaltiesNew businesses taxed pursuant to the gross receipts provision not in business a full year at the time of renewal shall be eligible for adjustment of the taxes upon renewal of the Business Tax Certificate.
For failure to renew a Business Tax Certificate on or before April 30, the Department of Administrative Services Customer Services Division shall add a penalty of Ten Dollars ($10.00) or Ten Percent (10%) of said tax, whichever is the greater, on the first day of each month after the delinquency thereof, to a maximum of no more than 100% of the tax. It is the responsibility of the taxpayer to pay the tax each year that business is conducted in Simi Valley.
Effect of the Business Tax CertificateThe Business Tax Certificate is evidence only of the fact that such tax has been paid. It does not sanction any act not otherwise permitted.
Zone Clearance, Sign Permits, and a Home Occupation Permit may be required on certain types of businesses.
A separate Business Tax Certificate must be obtained for each branch of operation. In addition, a person owning and/or managing two or more types of businesses must pay a tax for each establishment.
Any person who by the use of signs, circulars, cards, telephone books, newspapers, email solicitations, or other means of communication, advertises, holds out or represents that he/she is engaged in business in the City of Simi Valley, the transaction of which a tax is levied, shall be evidence of the liability of such party to pay such tax on business conducted within the City.
All certificates must be displayed at a fixed location. For those businesses that do not have a fixed location, the responsible party must carry his/her Business Tax Certificate.
Regulated BusinessFor protection of the public, various types of businesses are regulated through the Police, Fire, Health, and Environmental Services Departments. Your business may or may not be regulated.
The following is a list of some of the operations that need a "permit" in addition to a Business Tax Certificate:
Health Department permits are required of those businesses that handle food. These include fixed places of business, canteen trucks, ice cream trucks, and temporary food stands, etc. For more information, contact the Ventura County Health Department, 800 So. Victoria Avenue, Ventura, (800) 660-5474 Ext. 2437.