Earlier editions: 2026-09
Chapter 32 — TAXATION›Article V — BUSINESS LICENSES
Redwood City Municipal Code Div. 6 License Taxes
Redwood City Municipal Code · 2026-10 edition · updated 2026-10-04 · Redwood City
Cite as: Redwood City Municipal Code Division 6 · Text as of 2026-10-04
Footnotes:
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Editor's note— Ord. No. 2370, § 1, adopted Dec. 5, 2011, amended Div. 6 in its entirety to read as herein set out. Former Div. 6, §§ 32.151—32.190, pertained to similar subject matter and derived from Ord. No. 2016, § 2, adopted May 7, 1990; Ord. No. 2089, §§ 3 and 5, adopted May 8, 1995; and Ord. No. 2365, §§ 2 and 3, adopted Aug. 22, 2011.
Sec. 32.151. - TAX IMPOSED:¶
Every person commencing, engaged in, conducting or carrying on a business within the City shall pay an annual business license tax. The tax consists of two (2) components: an "annual registration fee" calculated pursuant to Section 32.152 and an "incremental tax" calculated pursuant to Section 32.154.
(Ord. No. 2370, § 1, 12-5-11; Ord. No 2545, § 3, 11-5-24)
Sec. 32.152. - ANNUAL REGISTRATION FEE:¶
The annual rate for the annual registration fee is ninety dollars ($90.00) effective July 1, 2025.
(Ord. No. 2370, § 1, 12-5-11; Ord. No 2545, § 3, 11-5-24)
Editor's note— Ord. No. 2545, § 3, adopted Nov. 5, 2024, amended the title of § 32.152 to read as herein set out. The former § 32.152 title pertained to base tax rate.
Sec. 32.153. - RATE ADJUSTMENT:¶
The City Council may, by resolution or ordinance and without voter approval, adjust the rate of the business license tax, including the annual registration fee in Section 32.152 and incremental tax rates in Section 32.154. However, in no event may the City Council:
Set any adjusted rates that exceed the maximum rates set forth in Sections 32.152 and 32.154, as adjusted by Section 32.156, for the date on which the adjusted rate will commence; or
Adjust the maximum tax in Section 32.155.
(Ord. No. 2370, § 1, 12-5-11; Ord. No 2545, § 3, 11-5-24)
Editor's note— Ord. No. 2545, § 3, adopted Nov. 5, 2024, amended the title of § 32.153 to read as herein set out. The former § 32.153 title pertained to incremental tax rate.
Sec. 32.154. - INCREMENTAL TAX RATES:¶
The rate for the incremental tax with respect to each type of business listed in this Section shall be:
| Business Category | Number of Employees | Per Employee Rate |
|---|---|---|
| General Commerce and Retail | 1-3 | $10 |
| 4—10 | $50.00 | |
| 11+ | $80.00 | |
| Contractors | NA | $150.00 |
| Services | NA | $130.00 |
| Professional Services | First 3 employees | $175.00 |
| Employees 4—10 | $200.00 | |
| Employees 11+ | $250.00 | |
| Rental (Residential) | NA | $31.00 per unit |
| Rental (Commercial) | NA | $75.00 per 1,000 sq. ft. |
A. The rates set forth above shall be phased-in over one (1) year, such that only fifty percent (50%) of each rate shall be assessed effective July 1, 2025, but the full rate shall be assessed effective July 1, 2026 and thereafter, provided, however, that the rate for rental (residential) shall not be phased-in and shall be assessed at the full rate as of July 1, 2025.
| Business Category | Number of Employees | Per Employee Rate | Per Employee Rate |
|---|---|---|---|
| Business Category | Number of Employees | 50% Rate July 1, 2025 | 100% Rate July 1, 2026 |
| General Commerce and Retail | 1—3 | $5.00 | $10.00 |
| General Commerce and Retail | 4—10 | $25.00 | $50.00 |
| General Commerce and Retail | 11+ | $40.00 | $80.00 |
| Contractors | NA | $75.00 | $150.00 |
| Services | NA | $65.00 | $130.00 |
| Professional Services | First 3 employees | $88.00 | $175.00 |
| Professional Services | Employees 4—10 | $100.00 | $200.00 |
| Professional Services | Employees 11+ | $125.00 | $250.00 |
| Rental (Residential) | NA | $31.00 per unit | $31.00 per unit |
| Rental (Commercial) | NA | $37.50 per 1,000 sf | $75.00 per 1,000 sf |
B. The number of employees for a business shall be the average number of persons employed, including employees of contractors, subcontractors and professional persons engaged in or to be engaged in such business.
C. For general commerce and retail businesses, one (1) incremental rate shall apply to all employees, based on the total number of employees. For example, in 2026 a business with six (6) employees shall pay an incremental rate of three hundred dollars ($300.00) (six (6) employees times fifty dollars ($50.00)). For professional services businesses, the incremental rates shall apply on a graduated basis. For example, in 2026 a professional service business with six (6) employees shall pay an incremental rate of one thousand one hundred twenty-five dollars ($1,125.00) (three (3) employees times one hundred seventy-five dollars ($175.00) plus three (3) employees times two hundred dollars ($200.00)).
(Ord. No. 2370, § 1, 12-5-11; Ord. No. 2545, § 3, 11-5-24)
Editor's note— Ord. No. 2545, § 3, adopted Nov. 5, 2024, amended the title of § 32.154 to read as herein set out. The former § 32.154 title pertained to special incremental tax rates.
Sec. 32.155. - MAXIMUM TAX:¶
Notwithstanding anything to the contrary contained in this Article, the annual business license tax payable for any one (1) business shall not exceed two hundred fifty thousand dollars ($250,000.00) effective July 1, 2025.
(Ord. No. 2370, § 1, 12-5-11; Ord. No. 2545, § 3, 11-5-24)
Sec. 32.156. - AUTOMATIC ADJUSTMENT:¶
Commencing July 1, 2027 and on each subsequent July 1, each rate set forth in this Division (including the maximum rate set forth in Section 32.155) shall automatically adjust by a percentage equal to the Consumer Price Index (CPI) for All Urban Consumers for the San Francisco-Oakland-Hayward Areas published by the United States Department of Labor, Bureau of Labor Statistics, for February of that year. For purposes of this automatic adjustment, in no event shall any rate be reduced below the rate in effect immediately prior to the applicable adjustment. In the event the CPI is no longer published, the City Manager shall select a price index most nearly conforming to the CPI.
(Ord. No. 2370, § 1, 12-5-11; Ord. No. 2545, § 3, 11-5-24)
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