Santa Monica Sales and Use Tax Rules

Taxation and Finance California 3 Minutes Read · published March 01, 2026 Flag of California

Overview

Santa Monica, California businesses must follow state and local sales and use tax rules that affect collection, reporting, and business licensing. Sales and use tax in Santa Monica is administered through state collection rules while the City administers local business tax and licensing for on‑the‑ground operations. Retailers should confirm the current combined sales tax rate and any city transactions and use tax measures before pricing and remitting. [1]

Check current rates before charging customers.

Retailer Rules & Obligations

Retailers operating in Santa Monica must register where required, collect the correct tax on retail sales, remit on time, and keep records for the required retention period. Local business tax obligations are separate and enforced by the City Finance Department.

  • Register with the California Department of Tax and Fee Administration (CDTFA) when you have a sales tax nexus.
  • Collect the applicable combined state and local sales tax at the point of sale and remit to the CDTFA.
  • Keep accurate sales records, exemption certificates, and purchase invoices for audits.
  • Obtain a City of Santa Monica Business Tax Certificate where required and renew as directed by the City Finance office.[2]
  • Maintain clear contact info for notices and respond promptly to official correspondence.
City and state obligations both apply; compliance with one does not replace the other.

Penalties & Enforcement

Enforcement of sales and use tax collection and remittance is primarily administered by the CDTFA; the City enforces business tax collection and local licensing compliance. Specific statutory penalties and interest for late payment, fraudulent returns, and failure to file are governed by state law and CDTFA procedures. For Santa Monica business tax delinquencies, collection actions and administrative remedies are managed by the City Finance Department.[1][2]

  • Fine amounts: not specified on the cited page.
  • Escalation (first/repeat/continuing offences): not specified on the cited page.
  • Non-monetary sanctions: collection measures, liens, administrative holds, and referral to collections or court are described on official enforcement pages.
  • Enforcer: CDTFA for state sales/use tax; City of Santa Monica Finance Department for business tax and local licensing enforcement.
  • Inspection and complaint pathways: submit questions, complaints, or request assistance via the CDTFA contact options and the City Finance or Business License contact forms.[1]
  • Appeals/review routes and time limits: follow CDTFA protest and appeal procedures and City administrative review processes; specific time limits are not specified on the cited pages.
  • Defences/discretion: documented exemptions, resale certificates, permits, or variance procedures may apply when supported by records.
If you receive a notice, act quickly to preserve appeal rights.

Applications & Forms

  • City Business Tax Certificate: application and renewal information available from the City of Santa Monica Finance/Business pages; specific form numbers or fees may be published there.[2]
  • CDTFA registration: register for a seller's permit and filing account via the CDTFA online services site; see CDTFA for online forms and account setup.[1]
  • Fees and deadlines: refer to the City and CDTFA pages for current fee schedules and filing deadlines; if a specific fee is not listed on the cited page, it is not specified on the cited page.

FAQ

What is the current sales tax rate for Santa Monica?
Rates are published by the California Department of Tax and Fee Administration; check the CDTFA rate page for the current combined state and local rate.[1]
Do I need a City business tax certificate to sell in Santa Monica?
Yes, businesses operating in Santa Monica generally must obtain a City Business Tax Certificate; details and application steps are on the City finance/business tax pages.[2]
Where do I remit collected sales tax?
Collected sales tax is reported and remitted to the CDTFA using the taxpayer's CDTFA account and filing schedule; see the CDTFA site for registration and filing instructions.[1]

How-To

  1. Determine whether your business has a sales tax nexus in California and in Santa Monica.
  2. Register with the CDTFA for a seller's permit and set up online filing if required.[1]
  3. Apply for a City of Santa Monica Business Tax Certificate via the City finance/business pages.[2]
  4. Collect the correct combined tax at point of sale, file returns on your CDTFA schedule, and remit payments by the due date.
  5. Keep records, respond to notices promptly, and use official appeal channels if you dispute an assessment.

Key Takeaways

  • Collect and remit combined state and local sales tax as required by the CDTFA.
  • Obtain and maintain a City of Santa Monica Business Tax Certificate when operating in the city.
  • Keep clear records and respond quickly to notices to protect appeal rights.

Help and Support / Resources

  1. [1] California Department of Tax and Fee Administration - Sales and Use Tax information
  2. [2] City of Santa Monica - Business Tax and Licensing

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