§ 12111 Tow Truck License Tax Limits

• •Cities can't charge a business license tax just because a tow truck works there, if the tow truck company doesn't have an office in that city.
• •If the tow truck company doesn't have an office in the city, the city can still charge a tax, but it has to be based on how much money the company makes from jobs in that city.
• •The tax must go up or down depending on how much money the tow truck company makes in that city.

A tow truck company based in Sacramento does some work in San Francisco but doesn’t have an office there.

San Francisco can’t charge a flat business license tax just because the tow truck works there sometimes. But if San Francisco wants to charge a tax, it has to be based on how much money the tow truck company makes from jobs in San Francisco. If the company makes more money there, the tax goes up.