Business Tax Certificates

Tax Certificate Requirements

Thank you for doing business in Morro Bay!

The City of Morro Bay requires all organizations operating within the City limits to have a current business tax certificate (commonly referred to as a business license).

Funds collected from this certificate help support crucial City functions in order to better serve businesses, like paying for police and fire protection, business support and economic development initiatives, fixing streets, and more.

Business tax certificates apply to businesses operating as a general or sub-contractor (with offices located both inside and outside of the City), as a home occupation, from a commercial or office space, or as businesses conducting temporary activities within the City limits.

Business License Tax Rate Schedule 

Fiscal Year 2022-2023

Fiscal Year 2023-2024

Application Process

Applications for new business licenses and renewals of current business licenses can be processed online, by email, or by U.S. mail. 

  • Online: Visit morrobay.hdlgov.com to complete and submit an electronic application, request a license renewal, and pay the fee
  • OR, scan and email your completed form to MorroBay@HdLGov.com
  • OR, mail completed form to: 
    City of Morro Bay
    Business Support Center
    8839 N. Cedar Ave #212
    Fresno, CA 93720

For Customer Support, call (805) 339-2649

Transient Occupancy Tax (TOT)

The City of Morro Bay has contracted with HdL to collect and process TOT Returns. Registered Operators can file their TOT Returns through the TOT Processing Center using the following methods:

TOT Ordinance Update

The City of Morro Bay recently completed an update to its TOT Ordinance by adopting Ordinance No. 660, amending section 3.21.100 and repealing and replacing section 3.24.100 of Chapter 3.24 of the Morro Bay Municipal Code. These changes impact the "Failure to collect and report tax - Determination of Tax" and "Appeal" sections. The full ordinance can be viewed here.

Please note: Appeals must be submitted in accordance with Chapter 3.24 of the Morro Bay Municipal Code within fifteen (15) days after the service or mailing of a final determination notice.

Short-Term Vacation Rentals

Currently, the City is working hard on implementing a new City Ordinance relating to Short-Term Vacation Rentals. The goal of this ordinance is to balance the tourism industry with the desires to keep our community feeling like home. Last month, Coastal Commission approved the new City Ordinance, and Community Development is hard at work on putting it into effect. If you are interested in maintaining a vacation-rental in the City of Morro Bay, please fill out the Vacation Rental Waitlist Application. If you are on the list, when we have all the details ironed out, we will send you further information and a more in-depth application to get you a formal license. 

If you currently operate a vacation rental in the city, you will be grandfathered-in under the new ordinance, just continue to pay for your business license. 

If you have further questions on the matter, please don't hesitate to call! 

Short-Term Rental Forms and Links