Morgan Hill, California

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City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037-4128
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8 a.m. - 5 p.m.
Business Licenses
Who needs to apply for a Business License?
All persons or companies conducting business within the city limits of Morgan Hill are required to obtain a City Business License. Business types include: retailers, wholesalers, manufacturers, service providers, professionals, contractors, non-profit organizations, self-employed or consultants (home businesses), and residential landlords renting three or more units.

When should an application be submitted?
An application must be submitted and taxes and fees must be paid prior to commencement of business operations.

Where can I obtain a Business License application?
Applications may be completed online or forms are available at the Development Services Center, located at 17575 Peak Avenue, Morgan Hill, CA. A completed and signed business license application must be returned with payment to the Development Services Center. Once an application is submitted, it is reviewed and approved by various departments prior to issuance and mailing.

How are fees calculated?
A variety of classifications and rates are set forth in the Business License Ordinance. A brief rate schedule of the most common classifications is available from the Development Services Center. One-time fees charged for processing your business license application include an application review fee and a zoning permit fee.

Additional classifications and rates are available and can be provided.

What is SB1186?
DISCLAIMER: On September 19, 2012 Governor Brown signed into law SB-1186 01/01/2013 (Dutton; Special access: liability), a new law which imposes a $1.00 State fee on every applicant for a local business license or renewal (including all in-city commercial and home-based, all exempts, all non-profits, all landlords, all out-of-city, and all contractors) and is required to be collected by all cities and counties throughout California, including the City of Morgan Hill.

This new law requires that you be provided the following notices:
Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public. You may obtain information about your legal obligations and how to comply with disability access laws at the following agencies:

The Division of the State Architect at
The Department of Rehabilitation at
The California Commission on the Disability Access at

To obtain a copy of the SB 1186 mandate, please click the link listed below:

When do I renew my license?
Business Licenses are valid July through June, and therefore must be renewed annually. The City mails courtesy renewal notices, and Municipal Code 5.04 states that the City is not required to send notification to any person/business who is liable for the tax.

Is non-compliance penalized?
Failure to comply with the ordinance is an infraction. Any person who fails to pay the fees prior to business commencement or 30 days after the renewal date is liable for penalties (10 percent after 30 days, an additional 15 percent after 60 days).

Where is my license valid?
Your Business License is valid only within the city limits of Morgan Hill - while doing business from your commercial / professional location, your residence, or when you are providing services to a resident or business within the city limits.

Your business license is not a permit to operate and does not authorize you to operate a business that is otherwise prohibited by law or ordinance.

Secondhand Smoke Ordinance for Outdoor Areas
The City Council has adopted Ordinance 2024 regulating secondhand smoke in outdoor settings. Click here to read the Ordinance in its entirety. To learn more.