Earlier editions: 2026-09
Title 4 — BUSINESS LICENSES AND REGULATIONS\
Palo Alto Municipal Code Ch. 4.60 Business Registration Program
Palo Alto Municipal Code · 2026-10 edition · updated 2026-10-05 · Palo Alto
Cite as: Palo Alto Municipal Code Chapter 4.60 · Text as of 2026-10-05
4.60.010 Purpose.¶
The purpose of this chapter is to establish a regulatory mechanism to maintain an accurate record of businesses conducting business in the city in order (1) to develop recommendations on land uses; (2) to better coordinate transportation programs; (3) to assist in zoning compliance and (4) to gather statistical information for other city purposes. This chapter is not intended to apply to home based or transitory businesses.
(Ord. 5279 § 1 (part), 2014)
4.60.020 Definitions.¶
The following words, terms and phrases, when used in this chapter, shall have the meanings set forth in this section, except where the context clearly indicates a different meaning:
(a) "Business" means any commercial enterprise, trade, calling, vocation, profession, occupation, or means of livelihood, whether or not carried on for gain or profit.
(b) "Business registration certificate" means a written statement issued by the city to a business owner as evidence of registering a business in the city.
(c) "Fixed place of business" means a place of business located in the city boundaries and occupied for the particular purpose of conducting business.
(d) "Home based business" means a home occupation as defined in Section 18.04.030.
(e) "Person" means and includes any business owner, individual, firm, co-partnership, joint venture, association, corporation, estate, business trust, or any other group or combination acting as a unit.
(f) "Transitory business" means a business that is carried on for a short duration (such as pumpkin sales, special events, and filming) or a business that does not have a fixed place of business within Palo Alto (such as landscaping or construction contractors based in other cities).
(Ord. 5279 § 1 (part), 2014)
4.60.030 Business registration requirement.¶
(a) No person shall conduct any business in a fixed place of business without first having obtained a business registration certificate, paid the applicable business registration fee and complied with all applicable provisions of this chapter.
(b) The issuance of a business registration certificate under this chapter shall not excuse the business from complying with other applicable Code requirements.
(c) A business registration certificate shall not be transferable.
(Ord. 5279 § 1 (part), 2014)
4.60.040 Exemptions from business registration.¶
The following types of businesses are exempt from this chapter:
(a) Home based business.
(b) Transitory business.
(c) Non-profit organizations having less than one full time equivalent employee.
(d) Businesses having less than one full time equivalent employee.
(e) Religious organizations which operate a worship hall but have no other ancillary facilities or services. For purposes of this exception ancillary facilities or services include but are not limited to religious or educational classrooms, gift shops, and daycare services.
(Ord. 5379 § 1, 2016: Ord. 5279 § 1 (part), 2014)
4.60.050 Fee required.¶
(a) Every person engaging in business in the city shall pay a business registration fee as prescribed by resolution adopted by the city council.
(b) The business registration fee is not a revenue raising device, but shall bear a reasonable relationship to the service to be performed by the city and the costs incurred by the city in reviewing, processing and acting upon the application.
(c) The city council shall, from time to time, review the resolution fixing the business registration fee and may revoke, modify, adjust, add or determine any amount or rate of such business registration fee.
(Ord. 5279 § 1 (part), 2014)
4.60.060 Application procedures.¶
Every person operating a business in the city shall apply to obtain a business registration certificate on a form prescribed by the city. Upon receipt of a completed application and any fee required, the city shall process the application and issue a business registration certificate. The application may be reviewed by other city departments or governmental agencies to determine if the business premises to be occupied meet the requirements of federal, state, and local laws.
(Ord. 5279 § 1 (part), 2014)
4.60.070 Contents of business registration certificate.¶
(a) Upon receipt of a completed application and payment of the prescribed business registration fee, the city shall issue to the applicant a business registration certificate which shall contain the following:
(1) Name of business;
(2) Business location;
(3) Expiration date;
(4) Certificate Number; and
(5) Such other information as deemed necessary by the city.
(b) A separate certificate may be obtained for each and every branch establishment or separate place of business in which a business is carried on.
(Ord. 5279 § 1 (part), 2014)
4.60.080 Term and annual renewal of business registration.¶
(a) Term. A business registration certificate shall be effective for no more than one year. Unless otherwise specified, all certificates shall expire on March 31st. Business registration fees shall be due and payable annually in advance.
(b) Renewal. Business registration certificates shall be renewed annually on a form prescribed by the city. Every application for the renewal of a certificate shall be made at least fifteen days prior to the expiration date of such license. Any person applying to renew a business registration shall submit to the city a completed renewal application and pay the renewal fee.
(c) Alternative Periods. If deemed necessary, the city may establish alternative registration periods for businesses.
(Ord. 5279 § 1 (part), 2014)
4.60.090 Refunds.¶
No business registration fees or penalties collected shall be refundable.
(Ord. 5279 § 1 (part), 2014)
4.60.100 Rules and regulations.¶
The City Manager may adopt rules and regulations from time to time to implement this chapter. Implementing rules and regulations shall not be inconsistent with the provisions of this chapter.
(Ord. 5279 § 1 (part), 2014)
4.60.120 Penalties and remedies.¶
(a) Penalties for Delinquency. Any person engaging in business in the city that fails to secure a business registration certificate before commencing business in the city or fails to timely renew their license shall pay, in addition to the amount of the license fee, a penalty in an amount to be determined by ordinance or resolution.
(b) Action to Collect. If a business fails to comply with the fee requirements of this action, the city may refer the matter to a collection agency and/or the city attorney may file a civil action against any business. Notwithstanding subsection (a) of this section, should court action be required to collect any business registration fee and/or penalties, an additional penalty shall be charged equal to the cost incurred by the city for court action, including but not limited to reasonable attorney fees. All penalties shall be added to the business registration fee and shall become due and payable along with the delinquent business registration fee.
(c) Remedies Cumulative. All remedies prescribed under this Chapter shall be cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Chapter.
(Ord. 5279 § 1 (part), 2014)
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