Special Business Taxes

All businesses in Berkeley must have a current business license and pay annual business license taxes for each location. Certain kinds of businesses must also pay other special business taxes outlined below.

empty homes tax

An annual tax on property owners who keep a residential unit vacant for more than 182 days in a calendar year, whether consecutive or nonconsecutive. This tax is effective January 1, 2024 to December 31, 2034. The Berkeley Rent Stabilization Board administers the tax; the City’s Finance Department sends tax bills, accepts tax payments, and schedules appeals. Learn more about the Empty Homes Tax.

Utility Users Tax

Any business that uses utilities (telephone, gas, electric, cable television, and cellular telephone services) must pay the Utility Users Tax.

Complete the Utility Users Tax Remittance form and send with payment to the City of Berkeley Treasury Division.

Parking Lot Tax

Any business that charges customers to park in a lot must pay the Parking Lot Tax (officially known as the Parking Space Rental Tax). The customers pay a 10% tax to the parking lot operator, who remits payment to the City of Berkeley.

Complete the Parking Lot Tax Remittance form and send with payment to the City of Berkeley Treasury Division.

Transient Occupancy Tax

Any business that rents spaces to transients must pay the Transient Occupancy Tax. The customers pay a 12% tax to the business, who remits payment monthly to the City of Berkeley. This includes general rentals such as:

• Hotel/Motel/B&B/Inn
• Mobile Homes
• Secondary operators (managing agent, booking agent, etc.)

It also includes short-term rentals of any kind rented directly by the owner, by a property management company, or through an online platform such as AirBnB, VRBO, Craigslist, etc. Learn more about registering as a short-term rental business.

General rentals should apply for a Transient Occupancy Registration Tax Certificate within 30 days of starting business. Each month, general rentals should complete the Transient Occupancy Tax Remittance Form for General Rentals and send with payment to the City of Berkeley Treasury Division.

Short-term rentals may pay monthly through the online portal. If you prefer to submit by mail, complete Transient Occupancy Tax Remittance Form for Short-Term Rentals and send with payment to the City of Berkeley Treasury Division.

Transportation Network Companies User's Tax

Transportation Network Companies (TNCs), commonly referred to as “ridesharing” companies, must collect a per-ride charge on all trips originating within Berkeley, register with the City, and remit taxes quarterly.

Complete the Registration Certificate within 30 days of beginning to operate. Complete the Transportation Network Companies User’s Tax Remittance Form quarterly and send with payment to the City of Berkeley Treasury Division.

Sugar-Sweetened Beverage (SSB) Tax

Distributers of sugar-sweetened beverages must pay the Sugar-Sweetened Beverage Tax. Distributers include companies that sell to other business entities or within the company, but not retailers who sell directly to customers.

Complete the Sugar-Sweetened Beverage Remittance form and send with payment to Muniservices LLC (a private company the City of Berkeley contracts with to administer the tax).