Taxes

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Rancho Cordova’s Finance Department will have the most complete and up-to-date information on local taxes and fees, including links to county departments. The list below provides a quick overview.

Tax Profile – City of Rancho Cordova / County of Sacramento

Tax

Rate/ Basis

Agency/Phone

Business License

$99 general business

$215 special business license

$213 employee permits

$81 rental property + $10/unit

Rancho Cordova Finance Department

Fictitious Name Fee

$37 first name and owner; $5 for each additional name or owner

County of Sacramento

Transient Occupancy

12% on stays less than 30 days

Rancho Cordova Finance Department

Business Personal Property Tax

1 - 1.5% of assessed value (business supplies, equipment, fixtures)

County Assessor’s Office

Property Tax (Real Property)

1.1% avg. countywide based on assessed value of real property (1% + local bonds approved by voters)

County Assessor’s Office

Utility Users Tax

2.5% of net taxable charges; typically added to utility bills

Rancho Cordova Finance Department

Source: Rancho Cordova Finance Department, County of Sacramento, County Assessor’s Office, updated 10/2015.

State Taxes

Tax Profile – State of California

Tax

Basis

Rate

Agency

Corporate Income and Franchise Tax

Net Income apportioned to California

Corporations-8.84%
S- Corps-1.5%

Banks/Financial Corps-10.84%

Banks/Financial S-Corps-3.5%
Alternative Min. Tax-6.65%

Franchise Tax Board

Sales and Use Tax

Receipts from sales or lease of taxable items

8.5%

Board of Equalization

Personal Income Tax

Taxable personal income

1.0% to 12.3%

Franchise Tax Board

Finished Goods, Raw Material, Inventory Tax

None

None

None

Mineral Severance Tax

None

None

None

Inheritance Tax

None

None

None

Employment Taxes & Mandated Benefits

Unemployment Insurance

First $7,000 of wages per employee per year

0.1% to 6.2%

3.4% for new employers

Employment Development Department

Disability Insurance

First $104,378 of wages

0.9%

(paid by employee through wage deductions)

Employment Development Department

Family Leave

 

Covered under Disability Insurance (see above)

 

Employment Training Tax

First $7,000 wages per employee per year

0.1% (max. $7 per employee per year)

Employment Development Department

Workers' Compensation

Payroll and Occupation

Variable

Department of Industrial Relations

Sources: State of California – Franchise Tax Board, Board of Equalization, Department of Industrial RelationsEmployment Development Department, updated 09/2015.

State Tax Credits for Businesses

The State of California offers several tax credits to offset the cost of doing business. More information is available through the Franchise Tax Board (FTB) and the Governor’s Office of Business and Economic Development (GO-Biz).

California Competes

Cal Competes is a 5-year tax credit obtained through a competitive process during several open application periods throughout the year. The amount of the credit is negotiated with GO-Biz. Overall, a $200,000 million pool of funds is available during each fiscal year from 2015-16 through 2017-18. Cal Competes is administered by Governor’s Office of Business and Economic Development (GO-Biz).

Manufacturers’ Investment Credit

Manufacturers can receive a tax credit for 6% of the qualified costs for the acquisition or construction of qualified property, including real property and some equipment.

California Research Credit

Qualifying companies can receive 15 percent of excess research expenditures over a computed base amount, plus 24% of the basic research payments. The credit is applied to income or franchise tax.

Sales and Use Tax Exclusion — Alternative Energy and Transportation

A full sales and use tax exclusion is available for manufacturers of alternative source and advanced transportation products, components or systems.

Sales and Use Tax Exclusion — Manufacturing and R&D

A partial sales and use tax exclusion is available for qualified manufacturing and research & development equipment purchases and leases.