A Belmont business license is an annual tax required for anyone conducting business within the city, even if that business is based outside of city limits. It is required for home-based and brick-and-mortar businesses, regardless of the trade, profession, or occupation.

Under Belmont's prior tax structure, charitable and non-profit organizations as well as certain businesses generating annual revenue under $1,500 were exempted from the tax; however, effective January 1, 2025, exemptions have been expanded to include any business grossing under $10,000 in Belmont within a tax period (the calendar year). Regardless of exemption, all businesses are required to register for a business license and pay the $4 state-mandated CASp fee.

Measure DD was unanimously placed on the November 5, 2024 ballot by the Belmont City Council for the purpose of restructuring the City’s business license tax program. The Measure aimed to modernize Belmont’s business license program, originally established in 1976, by making it more simplified and equitable. The proposed changes came after several months of engagement with the Belmont business community including business forums, focus groups, and a business survey.

The new proposed tax structure moves away from basing business license rates primarily on employee counts and instead establishes rates based on gross receipts from business activity conducted within the city. It also reduces the number of rate categories from 43 to 4. Altogether, the City estimates the changes will decrease rates for over 60% of Belmont businesses due to reducing the base tax from $341 to $25 and expanding exemptions so any business making under $10,000 is exempted from paying the tax. 

Business license fees support general community services such as fixing potholes, repairing streets and sidewalks, 911 response times, maintaining public areas, public works staffing, and providing quality of life services including recreation programs, parks, open spaces, and sports fields. These services benefit businesses, their employees, and customers by making Belmont an attractive and safe place to live, visit, shop, and conduct business.

As of 2024, Belmont business licenses generate approximately $1.2 million annually, constituting approximately 4% of the City’s general fund revenue. The business license tax program update effective January 1, 2025 was not intended to increase or decrease this revenue source but rather restructure the program to make it more simplified and equitable.

Effective January 1, 2025, for during renewals, you will need to provide the total amount of your business’s gross receipts from the previous tax year. This is a self-reported value; you will not be required to submit a copy of your State or Federal income tax return unless your account is audited. “Gross receipts” are the total compensation received from all business activities (occurring within the City of Belmont) without the deduction of any expenses.

Your gross receipts, along with your business category, will be used to calculate your business license rate. Business categories and rates are summarized in the table below. You may also find more information on each business category in the business license ordinance and download our quick-and-easy tax calculator here.

*Exceptions

• If your business's gross receipts exceed $10,000 but your tax rate is calculated to be under $25, your tax will be $25. 
• All Category 1 and 2 businesses grossing under $10,000 will be exempted from paying the tax.
• For Category 3 and 4 only, if the gross receipts within Belmont are less than the cost of maintaining operations within the city and the difference between the gross receipts and the cost of operations is the greater of either $300,000 or 20% of the gross receipts, the business must produce gross receipts in an amount at least equal to the cost of maintaining such operations. Costs of operations include, but are not limited to, rent, depreciation, salaries, wages, fixed charges, loan payments, utilities, insurance premiums, and other expenses.

Effective January 1, 2025, all businesses' licensing periods (i.e., the “tax period”) will be January 1 to December 31. This means all businesses, regardless of their prior business license expiration date, must file their 2025 business license renewal no later than March 1, 2025 for the 2025 calendar year. For the first year, there will be a grace period for payments until April 1, 2025, during which there will be no penalties while the new tax structure is implemented.

In 2026 onwards, all businesses will be required to file for renewal no later than February 1, with payment submitted no later than March 1 for that calendar year.

Yes. Prior to renewal letters, a credit was automatically applied to your account for any months in 2025 you already paid for. For example, if your license previously expired on March 31, 2025, a credit was applied for three months, or 25%, of the last business license tax paid. In this example, if you previously paid $400, you would receive a $100 credit.

You have the right to either apply your credit to future tax filings or request a refund. To request a refund, please email belmont@hdlgov.com or call HdL Companies at (650) 453-0400. Refunds are typically processed within four to six weeks and post-mailed to the address on file. 

For your initial application, your business license payment will be calculated on your estimated gross receipts for your first calendar year. On your second calendar year, you will report your actual gross receipts from the prior year and either pay or receive a credit for the difference.

From January 1, 2025 onwards, an application for a business license will include: 

• The business name and address.
• The nature of the business’s activities (to determine the appropriate rate category).
• The amount of your business’s gross receipts from the previous tax year for business activity occurring within the City of Belmont. This is a self-reported value--you will not be required to submit a copy of your State or Federal income tax return unless your account is audited. “Gross receipts” are the total compensation received from all business activities (within the City of Belmont) without the deduction of any expenses.

General business licensing information and applications are available here.

HdL Companies, the City’s business license tax agent since 2016, welcomes any inquiries regarding the transition to the new tax structure. Their Business Support Center is available Monday through Friday, 8 a.m. to 5 p.m. at (650) 453-0400 or Support@HDLgov.com. Please have your account number available when you reach out.

If you encounter issues beyond what HdL Companies can provide, please email econdev@belmont.gov for assistance from City staff.