Business License Update - December 16, 2014

The purpose of this page is to provide up to date information about Morro Bay Business Licenses, the ongoing Business License Audit, and the recent ordinance changes allowing a limited amnesty from penalties, and establishing a new reduced cost business license for low revenue businesses.

Tax Collectors Business License Code Overview
The new Tax Collector’s Business License Code Overview is linked here. This helpful memo clarifies requirements for business licenses in the City of Morro Bay. Chapter 5 of the Morro Bay Municipal Code (MBMC) is the governing document for Business License fees and taxes in the City. The Business License Tax Collector's Memo (PDF) articulates the City of Morro Bay’s interpretation of our code and puts parts of Chapter 5 of the MBMC into “layperson’s terms,” to provide a more readable reference for all of our businesses and residents. In all cases, the MBMC is the controlling document and this memo is subordinate to it.

 
Morro Bay Business License Change Memo – Amnesty and Low Revenue Businesses
The Business License Changes Regarding Amnesty and Low Revenue Business (PDF) provides very important information concerning changes to the Morro Bay Municipal Code that could save you $1,200 or more. Those changes were recently passed by the City Council and became effective on December 13, 2014. The ordinances provide a provision for business license penalties to be forgiven, and for low revenue businesses to qualify for a reduced-cost business license. If you have any reason to think you may be conducting business in Morro Bay, then you should read this memo.

Limited Time Amnesty Application
The Business License Amnesty Application (PDF) is for businesses seeking amnesty from penalties. Businesses may complete this application at the Business License Office at 955 Shasta Avenue. Businesses that get a current license and complete an amnesty application are eligible to have up to 5 years of penalties forgiven.

Low Revenue Business License
Low revenue businesses, defined as those grossing under $12,000 per year, are eligible for a low-cost Low Revenue Business License. Businesses that complete Low Revenue Business License Certification Form (PDF), with the Tax Collector at 595 Harbor Street, are eligible for a low-cost business license. To qualify, businesses are required to demonstrate their low revenue status, likely showing the Tax Collector a copy of their most recent year tax return. To keep this exchange private, the Low Revenue Business License application is in the Tax Collector’s office at City Hall, 595 Shasta Avenue.