Business License Frequently Asked Questions (FAQ)

A business license is an annual license issued by the Monterey County Treasurer-Tax Collector for the privilege of conducting business within the unincorporated area of Monterey County. The purpose of a business license is to provide for necessary regulation of certain lawful businesses being conducted within the unincorporated area of Monterey County, in the interest of the public health, safety, and welfare of the people of the county.

The Monterey County Treasurer-Tax Collector (TTC) is responsible for issuing Business Licenses.

A business license is required for hotels/motels, commercial and limited vacation rentals, homestays and commercial cannabis businesses operating in the unincorporated areas of the County of Monterey. 

“Business” is defined by Monterey County Code Section 7.02.020 and includes “professions, trades, vocations, enterprises, establishments, occupations, and all and every kind of calling, any of which are conducted or carried on for the purpose of earning in whole or in part a profit or livelihood, whether or not a profit or livelihood actually is earned thereby, whether paid in money, goods, labor, or otherwise. A business shall also include a person as herein defined. “Business” also means the soliciting of orders and the delivery of goods at either a fixed physical location and/or those that are operated on a mobile basis.”

A business license is required prior to the commencement of business. You should submit a business license application in advance of your anticipated start date.

All applicants are encouraged to contact County of Monterey Housing and Community Development (“HCD”) at (831) 755-5025 to determine if the business activities at the proposed business site are authorized before submitting an application and paying the non-refundable fee.

You may apply for a business license online at https://hdlweb.co.monterey.ca.us/PrimeWeb/Apply/Apply1/BusinessLicense. Should you have questions, you may contact our office at business.tax@countyofmonterey.gov

All sections of the application must be completed. Incomplete applications will not be processed. Applications must be submitted with all required forms and the total business license application fee.

Yes. Every business having a fixed place of business is required to display a valid license in a conspicuous place on site. A licensee that does not have a fixed place of business is required to carry the license on their person at all times during any actions related to the conduct of carrying on the licensed business, and shall exhibit it, whenever requested to any person.

State law mandates a $4.00 surcharge on all new and renewing business licenses and permits, as required by Government Code Section 4467. The surcharge is already included in those fees below:

Commercial Cannabis Business License Fees:
Business License Application $ 411.00
Business License Annual Renewal $ 322.00
Expired License Annual Renewal $ 614.00
Duplicate or Replacement Business License $ 88.00

TOT Business License Fees effective November 11, 2024:
Hotels/Motels Business License Application: $164.00
Commercial & Limited Vacation Rental Business License Application: $207.00
Homestays Business License Application $207.00

TOT Business License Annual Renewal Fees effective November 11, 2024:
Hotels/Motels Business License Renewal: $76.00
Commercial & Limited Vacation Rental Business License Application: $119.00
Homestays Business License Application $119.00

Section 16102 of the California Business and Professions Code allows every soldier, sailor, or marine of the United States, who has received an honorable discharge or release from active duty under honorable conditions from such service, to hawk, peddle, and vend any goods, wares or merchandise owned by him, (except spirituous, malt, vinous, or other intoxicating liquor), without payment of any license fee. The $4 CA ADA fee and late fees are not waived. This fee exemption is subject to annual review and approval. To apply for the exemption, submit a “Claim for Veteran’s Exemption of Business License Fee.”

No. All application and renewal fees are non-refundable.

There are a number of documents which must be submitted simultaneously with the Business License Application in order for the Application to be considered complete. Those documents are:

1. For corporations: A copy of the Articles of Incorporation Filed with the State of California.
2. For limited liability companies: A copy of the Articles of Organization filed with the State of California.
3. For Individuals signing on behalf of the Applicant: Written, signed authorization by the Applicant or other equivalent legal instrument authorizing the individual to act on behalf of and assume responsibility for the Applicant with respect to the business license.
4. A copy of the driver’s license or government issued identification card if the applicant is an individual.
5. A copy of the current sales tax permit issued by the State of California Board of Equalization, as required by Revenue and Taxation Code §6066, as applicable.
6. Copies of all applicable permits and licenses required by the State of California to engage in business.
7. Copies of all applicable permits and licenses required by the County of Monterey to engage in business, both generally and at the specific location of the business.
8. Proof of worker’s compensation insurance or basis for exemption.
9. Worker’s Compensation Compliance Affirmation
10. For Commercial Cannabis Businesses: Form A
11. The Tax Collector may ask for additional information to process your application.

Yes. If your business license application is complete except for one or two of the required missing documents, you should still submit the application with an explanation regarding the missing documentation and/or the date that you anticipate submitting the missing documentation.

It is the goal of the Treasurer-Tax Collector to process Business License Applications within 45 days of receipt of a complete application. This timeframe is largely dependent upon having a complete application submitted by the applicant addressing all of the requirements of Chapter 7.02 of the Monterey County Code. Upon approval, a license will be sent to the applicant. If the license is denied, the applicant will receive written notice and be provided with an opportunity to appeal the decision.

A business license is an annual license. It will remain valid for a period of one year from the original date of issuance. The expiration date will be clearly identified on the business license.

Government Code Section §4467 adds a state fee of $4 to any applicant for a local business license, similar instrument or permit, or renewal. The purpose of this fee is to increase disability access and compliance with construction-related accessibility requirements and to develop education 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 (www.dgs.ca.gov/dsa); The Department of Rehabilitation (www.dor.ca.gov); The California Commission on Disability Access (www.dgs.ca.gov/CCDA). All Business Licenses issued or renewed by the County include a $4.00 fee pursuant to Gov. Code §4467 to fund increased certified access specialties (CASp) services for the public.

A separate business license is required for each separate place of business, even though the businesses are owned or operated by the same person or entity. Where a combination of two (2) or more classes of businesses are carried on at the same fixed place of business by the same owner and under one management, only one (1) license is required.

Even if your business has no physical presence and exists solely as an internet storefront, all regulations that apply to offline businesses also apply to your business. You will need a Business License if you are based in the unincorporated area of Monterey County.

No. Business licenses may not be transferred to another person, location or type of business.

You should immediately notify the Treasurer-Tax Collector of the date you plan to cease business.

A separate business license is required for each place of business, even though the businesses are owned or operated by the same person. A business license only authorizes you to conduct business at the location licensed. If your business changes locations, you will need to submit a new business license application and pay the application fee.

A business license may be issued to a person operating under a fictitious business name who has complied with all other provisions of Section 17900 et seq. of the Business and Professions Code. Otherwise, all licenses shall be issued in the true name of the individual or individuals only.

There is a $84 fee charged for a duplicate copy of a business license. You may request a duplicate or replacement business license by sending a request via email to business.tax@co.monterey.ca.us or by U.S. Mail to Monterey County Treasurer Tax Collector, Business License, P.O. Box 891, Salinas, CA 93902 and paying the required fee.

If you fail to renew your business license prior to the expiration date, your license will be canceled. You will need to re-apply for a business license, following all of the requirements for an initial business license application. In addition, you will be required to pay a penalty for failing to renew your license by the expiration date. The penalty for failing to renew by the expiration date is fifty percent (50%) of the license fee, which will be in addition to the new application fee.

Note: This information is provided as a summary of Monterey County Code, Chapter 7.02 and should not be relied upon as conclusive or complete information related to the Monterey County Business License.