Economic Development Department General Information
Business
Operations Tax Certificate
(Business License)
City Insurance and Bond Requirements
Fictitious Business Name Statement
Fire Department Limited Time Special Events Permit
Incorporation/Trademark/Service Mark Registration
Seller's Permit/Sales and Use Tax Permit
Special Permit to Operate a Business
Special Permit to Sell Alcoholic Beverages
Weights and Measures Device Registration
- Top -
Building Permit/Commercial Plan Check/Permit Issuance
Downtown Development Design Requirements
Environmental Regulations - Federal
Environmental Regulatory Assistance
Hazardous Materials Business Plan - County
Hazardous Materials Survey - City
Plan Check for Food-Related Businesses
Plan Check for Processed-Food Manufacturers
Regional Sanitation Sewer Impact Fees
Solid Waste Collection and Removal
Underground Storage Tank Permit
Zoning/Land Subdivision/Special Permits
- Top -
Business
and Professional
Licenses
Business Improvement Associations
Business Inquiries/Economic Information
Sacramento Area Chambers of Commerce
Sacramento Commercial Revitalization Areas
- Top -
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ONE-STOP
CHECKLIST
HOW
TO DO BUSINESS
in
THE
CITY OF SACRAMENTO
CITY
COUNCIL
District
2
Jimmie
Yee
District
5
Lauren
Hammond
District
7
This Checklist and the services described are designed to help
you understand the process of expanding your existing business or starting
a new venture in the city of Sacramento.
For instance, if you are interested in starting a business,
this Checklist will provide information on the necessary steps to obtain
a business tax certificate in order to carry out your operations in Sacramento.
If you are expanding your business, this Checklist provides you with information
to identify the local agencies involved with permits for new construction
or improvements.
The permits you need depend upon the type of business you plan
to operate. This Checklist provides a quick reference to all permits described
in this brochure. Carefully read the description of each permit to help
you determine the permits that are applicable to your business and the
documentation you need to obtain each permit. This Checklist, however,
is only applicable to people examining the options of opening a new business
or expanding an existing business in the city of Sacramento. Please note
that all fees are subject to change.
FOR ADDITIONAL ASSISTANCE
If you have any questions or would like assistance, please
contact the:
CITY
OF SACRAMENTO
The
Economic Development Department is responsible
for developing programs and policies to support small businesses and to
retain and recruit major employers. Economic Development staff can provide
information regarding demographics, site location, permit assistance,
and financial and technical resources.
The information contained in this Checklist does not constitute
legal advice and does not operate as a waiver of any applicable City,
State or Federal laws, rules or ordinances. Prices for fees and permits
are subject to change.
Economic
Development Department
1030 15th Street, Ste. 250
• The Sacramento River waterfront
Citywide Economic Development is focused on the attraction of targeted industries, retention
and expansion of businesses, implementation of key opportunity development
sites and neighborhood commercial corridor revitalization.
Neighborhood commercial corridor revitalization is focused on the physical, historical and
commercial assets of the 19 identified neighborhood commercial corridors.
The object is to develop programs and projects that preserve and enhance
the unique attributes and enhance the economic viability of these corridors.
SacSites
If you want business development information, go to SacSites.
Office
of Small Business Development
The Office of Small Business Development's Emerging and Small Business Development Program is designed to foster economic development within the City. The program is meant to provide business owners - regardless of race or gender - equal opportunities in the City's contracting and procurement activities, and is aimed at achieving the City's priorities related to inclusiveness, diversity, and economic development.
Components of the program include Sheltered Market, Bid Price Preference, Business Development and Technical Assistance, and Mentor-Protege. The Office of Small Business Development also provides Emerging and Small Business certifications.
City
Planning and Building Department
Before applying for any of the business permits outlined in
this Checklist, you should make sure that the proposed use of the property
is consistent with the zoning. To check the zoning, you must know the
Assessor’s Parcel Number (APN) of the property.
If you are the property owner, this number can be obtained from
your property tax statement. If
you are a renter or lessee, your landlord will have the number. If it
is not readily available, you can obtain this information from:
700 H Street
You will need the exact address of the property. Once you have
obtained the Assessor’s Parcel Number, go to the City Planning Division
to check the
zoning. Some zones have restricted uses. A planner will assist you in
determining whether the proposed use is consistent with the zoning for
your parcel. Projects in Design Review Areas, i.e. Central City, Oak Park,
Del Paso Heights and Strawberry Manor, may require additional review through
the Design Review Board if the project involves new construction. Contact
City Planning and Building Department at 264-5959 for further information.
BUSINESS PERMITS
General
Information
Business
Permits Made Simple
(Business License)
City Finance, Revenue Division
City Hall, 730 I Street, Suite 114
A BOT is good for one year or less, depending on the date of
issuance. The maximum tax assessed for any business is $5,000. BOT Certificates
are based on one of the following categories:
Business Operations Tax
Certificate
for Professionals
Included in this category are professionals such as architects,
attorneys, dentists, engineers, optometrists, morticians, brokers, real
estate agents, accountants, and physicians. For a complete list of professionals
in this category, call theCity Revenue Division at 808-8500.
The tax for the professional tax certificate is based on the
number of years the individual has been licensed by the State of California
to practice the profession:
0 to 3 years $75
per professional in the firm
More than 3 but less than 7 years $150 per professional
in the firm
More than 7 years $300
per professional in the firm
If you are a broker (insurance or real estate), the fee for
this certificate is $100 for each principal plus
Business Operations Tax Certificate for
Housing and Shelter
If you rent residential property or are in the motel or hotel
business, the fee for this tax certificate is based on the number of units
you rent. This fee is paid annually during the month of March. The tax
certificate for rental property will be sent to each landlord. There is
no need to go to City Hall unless you are in the motel/hotel business.
The tax is assessed as follows:
• If your total rental
residential property has less than four units, there is no tax.
• If your total
rental residential property has four or more units, you must pay $25 plus
$1.75 for each additional unit over four.
• If you are in
the motel or hotel business (transient occupancy), you must apply for
a Business Tax Certificate at City Hall. The fee schedule is determined
as follows:
Business Tax
For people operating a motel/hotel establishment, a Transient
Occupancy Tax form will need to be completed at the time you apply for
the BOT Certificate. The Transient Occupancy Tax form is available at
the Revenue Office. The City’s
Transient Occupancy Tax is currently 12.0 percent of gross room rental
receipts.
Rental or lease of nonresidential (commercial) real property
is taxed based on gross receipts (see below).
Business Operations Tax for Contractors
This tax is collected at:
City
Planning and Building Department
The BOT for contractors is collected each time a contractor
applies for a Building Permit. The tax, based on the permit value of the
work to be done, has a maximum of $5,000 during any calendar year. To avoid paying more than $5,000 as a contractor,
you must retain receipts and provide proof of payment totaling $5,000
to City Finance.
Business Operations Tax Certificate Based
on Gross Receipts
This Certificate is issued to businesses which do not fall
under any of the categories listed above.
The tax rate for this certificate is:
Annual Gross Receipts Tax
Tax Certificate for Businesses Without
a Fixed Location Within the City
If you do not have a fixed business location within the City
Limits but conduct business in the city, you will need to apply for a
Business Tax Certificate. Businesses in this category include door-to-door
salespeople, street vendors, or branch subsidiaries where the principal
place of business is located outside the city.
The tax is based on total gross receipts for business conducted
within the City.
Business Improvement District (BID) Tax
Assessment
Based on the location of the business within the city, the
business may be subject to a business improvement district (BID) assessment.
Examples of current BID locations are Del Paso Boulevard, Downtown Sacramento,
Franklin Boulevard, Old Sacramento, Capitol Station, and Stockton Boulevard.
The BID is established by the City Council at the request of
local businesses that want to generate a continuous revenue stream to
fund activities and improvements that enhance the business climate of
the immediate area. Examples of activities and improvements include banners,
marketing materials, graffiti abatement, litter removal and newsletters.
For more information, contact the Economic Development Department or the
City Revenue Division.
SPECIAL PERMIT TO OPERATE A BUSINESS
7
7
You will need a Special
Permit(s) if your business
falls under any one or more categories listed here. Special Permits
those permits
are issued by the City to businesses that require additional investigation
and/or approval by other City departments. The Special Permit is renewed
annually and is require a Business Operations Tax Certificate
before they can
be issued. Special Permits are applied for at various City locations depending
on the permit. Please see listing below. For additional information call
the Revenue Division at 808-8500.
Examples of businesses
requiring Special Permits:
Adult-Related Establishment
(Revenue)
City
Insurance and Bond Requirements
Risk Management
921 10th Street, Room 700
Sacramento, CA 95814
(916) 808-5556
Depending on the type
of business you plan to operate, you may be required to show proof of
liability insurance or a bond before the City will issue a Business Operations
Tax Certificate or Special Permit.
Insurance and Bonds are issued by private companies such as banks and
insurance companies.
The following sample
types of businesses require insurance and/or bonds:
Business
Cardroom License
Amusements
House Movers
Demolition
Taxicabs
Astrology
Tow Cars
Somatic Practitioner
For information regarding
the amount and types of coverage you need, call the City Risk Management
Office at 264-5556.
Fictitious
Business Name Statement
County
Finance Department
If you are going to
conduct business under a name other than your legal name, you need to
file a Fictitious Business Name Statement with the County Recorder’s Office.
This statement can be filed within 40 days of the first day of business;
however, it is recommended that you file before opening your business
to avoid confusion.
To file, go to the public
counter at the County Recorder’s Office. Check the business name index
to make sure no one else is doing business under the name you have chosen.
After a Fictitious Business Name Statement has been filed, you will receive
a certified copy of the application. The bank you choose for your business’
financial transactions will request a copy of this certified form to open
your account.
Within 30 days after
filing a Fictitious Business Name Statement, you need to publish the statement
in a newspaper of general circulation in the County. The statement must be published once a week for four weeks. Depending
on the newspaper’s policy, either you or the newspaper will need to send
proof of publication to the County Recorder.
The fee for filing a
Fictitious Business Name Statement is $10 for filing one name/one owner.
A $2 fee will be charged for each additional owner and name.
Incorporation/Trademark
and Service Mark Registration
Secretary
of State’s Office
Corporate Filing Division
Limited Partnership Division
The Secretary of State’s
Office handles Articles of Incorporation, Corporation Qualification, Service
Mark Registration, and Trademark Registration. For details, call either
of the above phone numbers.
Seller’s Permit/Sales and Use Tax Permit
3321 Power Inn Road
There is no fee for
a Seller’s Permit; however, depending on your type of business, you may
be required to post a deposit which would be refundable after three years
of nondelinquent payments. The
sales tax rate in Sacramento County is currently 7.75 percent. A California
Driver’s License is required as proof of identification.
State Employment Development Department
If you hire employees,
you must register with the State Employment Development Department within
15 days after your first employee is hired.
The Employment Development
Department regulates State Disability Insurance, Unemployment Insurance
Tax, Income Tax Withholdings and Employment Training Tax. There is no
fee to register as an employer. The Employment Development Department
will have information on tax rates and payment schedules.
Worker’s Compensation
State Industrial
Relations Department
Federal Income
Tax
Internal Revenue
Service (IRS)
For
information regarding employee withholdings, self-employment tax, sole
proprietorship, partnership, and corporation taxes, contact the IRS.
Home Occupation
Permit
City
Revenue Division
To set up a business in your home, you first contact the Planning
& Building Department. For a detailed listing of eligible occupations
as well as restrictions and special conditions, please contact the City
Planning and Building Department at 264-5656. The fee for a Home Occupation
Permit is $45 and is issued by the City’s Revenue Division. A Business
Operations Tax Certificate is also required in addition to the Home Occupation
Permit. Both the BOT and Home Occupation Permit may be applied for at
the same time at the City Revenue Division.
Sample Eligible Occupations
Accountant
SPECIAL PERMIT TO SELL ALCOHOLIC BEVERAGES
City
Planning and Building Department
A Special Permit is needed to operate a bar or establishment
selling beverages for off-site consumption. A Special Permit requires
the approval of the City Planning Commission. You need to have this Special
Permit before you can obtain an Alcoholic Beverage License from the State
Department of Alcoholic Beverage Control. Please contact the City Planning
and Building Department for more information.
Alcoholic Beverage
License
State
Department of Alcoholic Beverage Control
An Alcoholic Beverage License must be obtained if you want
to sell alcoholic beverages from your business. The type of license you obtain depends on whether you sell alcoholic
beverages for consumption off the premises (such as grocery store or liquor
store) or on the premises (such as restaurant or bar).
The initial licensing fee ranges from $50 to $12,000. The license
must be renewed annually at a cost of $28 to $800, depending on the type
of license. The processing time
is approximately 45-60 days. For
details regarding proper documentation, contact the Sacramento District
Office of the Department of Alcoholic Beverage Control.
Health Permit
County
Environmental Management Department
A Health Permit is required
for businesses selling food to the public and for pool cleaning or septic
tank businesses. A Health Permit, issued by the County’s Environmental
Management Dept., is required before you can open for business. Fees for
a Health Permit range from approximately $125 to $508, depending on the
type of establishment. An annual re-inspection fee, ranging from approximately
$30 to $151, may also be required.
A Health Permit is required
for the following businesses:
Bars
4137 Branch Center Road
If you will be using
commercial weighing or measuring equipment in your business, you are required
to notify the County Office of Weights and Measures within 24 hours of
equipment installation. Businesses such as delicatessens, candy stores,
grocery stores, or gas stations are included in this category. Within two weeks of notification, the scales
or weights in your business will be inspected.
Businesses are billed
annually during the month of January for registration fees. Registration
fees are:
1-3 devices $20 per
year
Revocable
Encroachment Permit
City
Public Works Department
If you wish to use property or right-of-way owned by the City,
you need to obtain a Revocable Encroachment Permit. Enforcements
include items such as sidewalk cafes, planter boxes extending onto City
sidewalks or other property, awnings, underground storage tanks, or signs
obstructing the right-of-way. The
Revocable Encroachment Permit must be filed at the City Public Works Engineering
Office. This office will determine
the other departments or agencies you will need to contact to obtain approval.
A Revocable Encroachment Permit requiring
excavation is $250, a Revocable Encroachment Permit requiring City Council
action is $200, and a Revocable Encroachment Permit that does not require
Council action is $50.
Driveway
Permits
City
Public Works Department
1231 I Street, 2nd Floor
A Driveway Permit is required if
you plan to construct or modify a driveway.
The fee for a Driveway Permit is $100/parcel plus 15 percent of
the value of each driveway. Residences with a vertical curve require a
driveway permit.
You will need an Oversize Vehicle Permit if your business will
use large vehicles or vehicles with loads exceeding State limits. For
specific information on dimensions and weight limitations, call the City’s
Public Works Department The fee for this permit is either $15 for a trip
permit which is valid for 5 days, or $70 for an annual permit. Annual permits for additional vehicles are
available at a cost of $35/vehicle.
Parking
Delivery Permits
City
Parking Division
A Parking Delivery Permit, issued to noncommercial vehicles,
allows a passenger car to park in an alley for pickup and delivery for
up to 30 minutes. However, the
vehicle may not be unattended more than 10 minutes. An Emergency Parking
Permit issued to commercial vehicles allows parking in alleys while repairing
equipment such as heating and cooling systems for an unlimited time until
work is completed. These permits are issued annually for a specific vehicle
and are valid through the following June 30, at which time they expire.
The fee for the permit is $40 per year.
Fire Department Limited Time Special Event Permit
This limited-time permit is required to operate Christmas tree
lots, fireworks booths and displays, carnivals and fairs, helicopters
for special events and equipment lifts, parachute landings, tents and
canopies, and other special events or occurrences.
Large events may require a coordination meeting and site review.
Fire prevention code enforcement and/or medic standby may be required
during the actual event for which cost recovery will be sought at an hourly
rate. In addition, certain requirements exist for food vendors who maintain
heat-producing appliances. A permit is issued for each event and requires
a minimum fee of $40.00.
Building and Land
Use Permits
Zoning/Land
Subdivision/Special Permits
City
Planning and Building Department
If you are constructing
your own building or remodeling an existing one, check the zoning codes
and the building codes that apply. Some
projects require entitlements granted by the Planning Commission and/or
City Council. Check the Zoning Ordinance to determine whether you need
an entitlement. You need to go to City Planning for all the necessary
applications and instructions. A minimum time period for approval is nine
weeks: six weeks to be heard by the Planning Commission and three additional
weeks to be heard by the City Council. A fee will be charged based on
the request you are filing.
If no Planning entitlements
are required, check the Zoning Ordinance to determine any regulations
you need to comply with to construct your building (e.g. parking, landscaping,
building setbacks). Building permits are still required.
Downtown
Development Design Requirements
City
Planning and Building Department
All development in the
Central Business District is guided by the Urban Design Plan. This comprehensive
set of guidelines directs architectural designs and streetscapes. It provides
City staff and private interests a common basis for evaluating design
and development issues during the design review and approval process.
Environmental
Determination
City
Planning and Building Department
Any project requiring a land-use entitlement will also require
an Environmental Determination. At the time of filing for an entitlement
or shortly thereafter, you will be notified as to whether you will: 1)
be exempt from this provision, 2) require a Negative Declaration, or 3)
need an Environmental Impact Report for your project. You will be charged
a base fee for the environmental determination. If additional staff work
is necessary, additional costs will be incurred.
The base fees range from $325 to $4,225.
Additional staff time is assessed at the rate of $84 per hour.
Building
Permits/Commercial Plan Check/Permit Issuance
City
Planning and Building Department
City Building Division
2101 Arena Boulevard
Sacramento, CA 95835
(916) 264-7619
In
November, 2001, the City and Planning Building Deptment opened a satellite
office in North Natomas to better serve its clients in the northern region
of the City.
A
Building Permit is required in most cases when you plan to make physical
or some cosmetic changes to the interior or exterior of the building you
plan to occupy, or if you are constructing a new building.
When
required, plans should be submitted for a Plan Check and a Building Permit
issued before starting any construction or remodeling. During the course
of construction or remodeling, building inspectors are required to inspect
the work performed.
Building
Permit fees are based on the value of the work to be performed, including
the mechanical, plumbing and electrical work. Plan Check fees are charged
at 80 percent of the permit fee.
Sign Permit
City
Planning and Building Department
If
you are planning to place a sign on the exterior of your business, you
need a Sign Permit. Regulations regarding the types of signs and their
placement depend on the zoning for the parcel and the type of business. In special sign districts and Planned Unit
Developments, special restrictions may apply.
The
Sign Permit application requires you (the business owner) or your sign
contractor to submit drawings indicating the advertising message, location,
dimensions, construction, electrical wiring and components, and method
of attachment.
Plan
Check For Food-Related Businesses
County
Environmental Management Department
If you are constructing a new food-related facility or are
planning to make any type of tenant improvements to an existing facility,
you need to go through a Plan Check with the County’s Environmental Health
Branch. In the case of tenant improvements, a Plan Check is required only
if the improvements you make are related to the food-preparation area
of your establishment (such as changes to any permanently installed equipment
or structural changes to the food preparation area).
Call the County to inquire about the documentation required
for the Plan Check. In addition to the Plan Check by the County, you need
to submit plans to the City Building Inspections Office. The City will
not grant you a Building Permit until it sees that your plans are stamped
by the County Environmental Health Branch. You may submit plans to the
County and City simultaneously. Once
construction is finished, you need to return to the County Environmental
Health Branch and obtain a Health Permit to operate.
Fees for the Plan Check are based on the square footage of
the establishment. New construction fees range from $501 to $876. For minor remodeling, fees range from $125
to $751 and are subject to change.
Plan Check For Processed-Food
Manufacturers
State
Department of Health Services (DHS)
Businesses
engaged in the manufacturing, packing, labeling or holding (warehousing)
of processed food are required to register annually with the DHS Food
and Drug Branch. The Food and Drug Branch will conduct on-site investigations
to examine a firm’s complete production and quality-assurance system.
Call
the County Environmental Management Department to inquire about potential
documentation required for plan check. In addition, you need to submit
plans to the City Planning and Building Department The City will not grant
you a building permit until it verifies that your plans are stamped by
the Food and Drug Branch. You can submit plans to the City and State simultaneously.
The total amount of fees for Food and Drug Branch inspections range from a minimum of $353.52 to a maximum of $733.79. Broken out, the fees represent the following: $253.52 for registration plus $100.00 to $600.00 for food safety inspection, depending on the size of the facility and the number of employees