- Agency
- The City of Stockton business license tax office, which sits in the city's revenue services division
- Form or filing
- A new business license tax certificate for the buyer, and notice from the seller that ownership has changed or the business has closed
- Timing
- Tell the city when ownership changes and apply before the buyer opens under new ownership. Late payments carry penalties.
Common snag: Assuming the certificate passes with the business. The city says it does not transfer on a change of ownership, so a buyer who skips this may operate without a valid certificate.
The Certificate Does Not Transfer
The City of Stockton's published answers say a business license tax certificate is not transferable when ownership changes. The new owner needs a certificate of their own, and the old owner should tell the city about the change.
The city also asks owners to report relocations and closures.
What the Seller Does
Pay any license tax you owe through your last day, tell the city's business tax office the business is sold or closed and keep proof. Contact details are on the city's business license page.
What the Buyer Does
The buyer applies for a new certificate in the new owner's name, using the city's current application and any activity or location details it requires. Do this before the sign changes on the door.
Penalties and Records
Late business license tax payments can carry penalties that add up month by month, up to a limit set by the city. Keep copies of the final payment and the notice to the city.
Other Cities
If your business operates in Lodi, Manteca, Tracy, Lathrop or Ripon, each city has its own license rules and fees. Check with the city in which you work, not only the one where your office sits. See neighbor cities.
What to Bring to the City
Have your old certificate number, the buyer's legal name, the business address and a description of what the company does. If the buyer will add or drop activities, mention them, since the city treats a change of activity as a new application.
Closing Day Checklist
Ask your escrow officer to list the city certificate next to the other closing items.
The buyer should leave closing with a plan to apply, and the seller should leave with proof that the city was told. A short phone call early is easier than a notice later.
Related Steps
Pair this with the county business property statement and the EDD payroll account.
Questions to Ask Before Closing
Ask the city whether any balance or penalty is open, what the buyer must bring and how long a new certificate takes. Ask your escrow officer to put the city step on the checklist.
A balance owed by the seller can follow the business, so clear it first.
Before You Close
This is general information, not tax or legal advice. Confirm fees, forms and contacts with the city and your CPA. Ready for a number? Request a valuation call.