Permits & licenses
City of Sacramento Business Operations Tax (BOT) Certificate: How to Apply
The City of Sacramento has no general business license. Instead, you need a Business Operations Tax certificate. Here is who needs one, the cost, and the steps.
Last reviewed October 20, 2026 · 8 min read
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The BOT is an annual tax, not a one-time fee. Many new owners in Sacramento search for a "business license" and get confused. This guide clears it up.
Who needs a BOT certificate?
The city says all businesses that operate in the City of Sacramento, or do business with the city, must pay the business operations tax. Its online portal adds that this includes businesses "without a physical presence within the City limits."
City limits matter. Many addresses say "Sacramento" but are not in the city. Places like Carmichael or Arden-Arcade are unincorporated county. They use the county's license instead. See our Sacramento County business license guide.
What you'll need
Your business start date (the first day you operated in the city)
Sole owners: your Social Security number and California driver license or ID number
LLCs, partnerships, and corporations: your federal EIN
Your business address and a description of what you do
Home business: a home occupation permit application (submitted with the BOT)
How do I apply for a BOT certificate, step by step?
Check if you need a special permit. Some business types need a city Special Business Permit too. The city lists them on its Business Permits and Taxes page.
Apply. Apply online through the city's portal. Or email, mail, or bring a paper application to the Revenue Division at 915 I Street, Room 1214, Sacramento, CA 95814.
Wait for the amount due. For online applications, the city says no payment is needed until it reviews your application. It says you'll get an email with the amount due and payment steps within 5 business days.
Pay. The city takes payment online, by phone, by mail, at the City Hall drop box on H Street, or in person.
Pass the zoning check. Your application goes to the Community Development Department. They confirm your business is in a properly zoned location.
Get your certificate. After zoning approval, the city mails your BOT certificate.
One thing to note: The city's main BOT page says "fees are due at the time of application" for paper applications. The online portal says no payment is due until review. Ask Revenue Services which applies to you.
What does the BOT cost?
It depends on your business type. The city groups businesses into types such as sales and service, professional, broker, commercial rental, residential rental, and cannabis.
For most sales and service businesses, Sacramento City Code 3.08.170 says:
Annual gross receipts$10,000 or less
BOT for the year$30
Annual gross receiptsMore than $10,000
BOT for the year$30 plus $0.0004 per dollar above $10,000
Annual gross receiptsMaximum
BOT for the year$5,000 per year
| Annual gross receipts | BOT for the year |
|---|---|
| $10,000 or less | $30 |
| More than $10,000 | $30 plus $0.0004 per dollar above $10,000 |
| Maximum | $5,000 per year |
"Gross receipts" means your total sales before expenses.
Other types:
Professionals (such as attorneys, CPAs, and doctors) pay based on years licensed and number of licensed staff.
Brokers pay a flat rate plus an amount per supervised employee.
Cannabis businesses pay 4% of gross receipts, monthly.
Heads up on future changes: The city has studied updating the BOT, which a May 2025 city staff report says has not changed since 1991 for most businesses. In 2023 the city council sent a measure to modernize it to the March 2024 ballot (Measure C). Ballotpedia reports voters rejected it. A May 2025 city report still lists the rates above, and the city's FY2026/27 proposed budget says any update requires voter approval. Because this could change, always go by the amount the city sends you.
Home businesses also pay a one-time home occupation permit fee. City documents we found list different amounts, so we cover it in our home occupation permit guide.
How long does it take?
StepOnline application
TimeAbout one sitting
StepAmount-due email
TimeWithin 5 business days (per the city's portal)
StepZoning review and mailed certificate
TimeVaries; ask Revenue Services
| Step | Time |
|---|---|
| Online application | About one sitting |
| Amount-due email | Within 5 business days (per the city's portal) |
| Zoning review and mailed certificate | Varies; ask Revenue Services |
How do I renew?
The BOT is paid every year. You can renew online through the same city portal. Keep your account current. For home businesses, the city says your home occupation permit stays good as long as your BOT stays current and you stay at the same address.
Who can I call?
City of Sacramento Revenue Services: (916) 808-8500. The city also lists businesspermits@cityofsacramento.org.
Just getting started in the city? We'll go over the permit steps with you on a free Business Launch Audit.
This is general information, not legal or tax advice. Fees and rules change, so please check the linked official pages before you file or pay.
Questions people ask
Does the City of Sacramento have a business license?
No. The city says it does not issue a general business license. Instead, City Code Chapter 3.08 requires businesses that operate in the city to get a Business Operations Tax (BOT) certificate.
How much is the BOT for a small service business?
Under City Code 3.08.170, most sales and service businesses pay $30 a year if gross receipts are $10,000 or less. Above that, it is $30 plus 0.04% of receipts over $10,000, up to $5,000 a year. Other business types have different rules. The city confirms your amount after review.
Do I need a BOT if my business is not located in the city?
Possibly. The city says the tax applies to businesses engaged in business in the City of Sacramento, even those without a physical location in city limits. Call Revenue Services at (916) 808-8500 if you are unsure.
I work from home in Sacramento. What else do I need?
A home occupation permit. The city says it must be submitted with your BOT application, and online applications submit it automatically. It is a one-time fee.
How do I get my certificate?
After you pay, the city sends your application to Community Development for a zoning check. After zoning approval, the city mails your BOT certificate.
We walk Sacramento founders through the filings people usually miss.
See the Launch AuditWords to know
BOT: Business Operations Tax. The City of Sacramento's version of a business license.
Gross receipts: All the money your business takes in, before you subtract expenses.
Home occupation permit: City permission to run a low-key business from your home.
Zoning: Local rules about what kinds of businesses can operate at each address.
EIN: Employer Identification Number. Your business's federal tax ID number, free from the IRS.
Sources
- Business Operations Tax - City of Sacramento · cityofsacramento.gov
- BOT Online Application: Getting Started - City of Sacramento (HdL portal) · sacramento.hdlgov.com
- Different Types of Businesses - City of Sacramento · cityofsacramento.gov
- Sacramento City Code 3.08.170 Gross receipts · codelibrary.amlegal.com
- Business Operations Tax Overview, City Council Law and Legislation Committee, May 20, 2025 · records.cityofsacramento.org
- City Council report: Business Operations Tax Modernization (Oct 31, 2023) - City of Sacramento · sacramento.granicus.com
- Sacramento Measure C, Business Operation Taxes Measure (March 2024) - Ballotpedia · ballotpedia.org
- FY2026/27 Proposed Operating Budget - City of Sacramento · cityofsacramento.gov
- Business Permits and Taxes (Special Business Permits) - City of Sacramento · cityofsacramento.gov
This is general information for Sacramento and Northern California businesses. We are not attorneys or tax advisors, and this is not legal or tax advice. Check the official sources, and a local pro, before you act.