What is the sales tax within the city?
The current sales tax rate in Sonoma is 9.5% per the CA Department of Tax and Fee Administration. More information on sales tax rates by city and county can be found here. Last updated January 2nd, 2025.
FAQ Topic: Business
How do I get a fictitious business name?
This would be done through the County of Sonoma. Additional information and forms can be found on the County of Sonoma website.
I operate a business out of my home, do I only need a business license, or do I need a special permit?
If you are doing any kind of business out of your home, you must obtain a home occupation permit from the City of Sonoma Planning Department. Apply Online.
I live in the City of Sonoma and work out of my home providing services to customers remotely. None of these customers a located in the City of Sonoma. Do I still need a business license? If so, is there a specific category for home business?
Yes, you do need a City of Sonoma Business License. Even though you are not serving local customers, your business is operating within the City of Sonoma. There is no specific category for home businesses, so you would select the classification/category that is applicable to the services you provide.
I had an active business license two years ago, but didn’t renew last year because I did not do business in the City of Sonoma, but now need a license for this year. Do I still have to pay for a last year’s license?
If the City does not have evidence of notification from you and records indicate your license was not inactivated, then you must pay for last year’s business license, including penalties before you can obtain a license for the new year.
Do I need to pay per employee and per vehicle if I deliver to customers in the City of Sonoma and provide services?
No, businesses are not required to pay both business taxes. If services are provided, then the business tax would only be calculated based on the services, not delivery. For example: a business delivers furniture to a new restaurant, assembles, and installs the furniture. The business license tax would be calculated based on category “A” / … Continued
I only deliver goods to customers within the City of Sonoma, how do I calculate my business license tax?
For each motor vehicle used for the delivery of goods, wares merchandise, or tangible property within the City of Sonoma from a supply or stock outside of the City, the business license tax shall be calculated according to the following: Delivery for redistribution or resale: $44.00 for each vehicle Delivery of construction materials to job sites: $60.00 … Continued
Last year I had five (5) employees but only three and a half (3.5) full-time equivalent (FTE) employees, which number do I use to calculate my business license tax?
The annual business license tax shall be based on the average number of persons employed during the previous calendar year (SMC 5.08). In this scenario, five employees would be used to calculate the business license tax.
Am I penalized for not renewing on time?
To avoid penalties, license fees must be paid by February 1 of each year. If payment is received after the delinquent date with a late or missing postmark – the payment will be considered late, penalties will be added and a balance due email will be sent to you.
When do I renew my license?
Business Licenses must be renewed annually. The City mails courtesy renewal notices in December for the following calendar year. It is the business’s responsibility to ensure their license is renewed on an annual basis prior to the due date.