Downtown Pacific Grove Businesses Face an Assessment Equal to 35% of Their City License Tax

PACIFIC GROVE, Monterey County — October 23, 2026. New business owners considering a storefront in downtown Pacific Grove should budget for more than the usual city business license. Under Pacific Grove Municipal Code Chapter 6.50, businesses inside the defined Downtown Pacific Grove Business Improvement District generally pay an additional annual assessment equal to 35% of the business’s annual city business-license tax, with the code identifying an exception for catalog sales establishments.

What is the business improvement district?

The district is a legally established downtown area within Pacific Grove. The ordinance identifies the district boundaries and is intended to support promotion, marketing and advertising of professional and retail businesses operating within it. Its assessments are dedicated to those district purposes under the code. An assessment is different from a citywide tax or a property owner’s private neighborhood association fee.

How much is the extra assessment?

The statute sets the calculation at 35% of a covered business’s annual business-license tax. As an illustration only, if the appropriate business-license tax were $200, an additional assessment equal to 35% would be $70. This example is not a statement of the current license tax for any specific Pacific Grove business; the correct underlying tax depends on the business category and city assessment rules.

When is payment due?

Chapter 6.50 says the downtown assessment is generally payable July 1 each year, in connection with the business license tax. Separately, the city’s online business-license guide says annual licenses expire June 30, meaning new downtown enterprises should plan their licensing and renewal calendars carefully. The city may assess fees and other charges separately where permitted.

Why does the storefront address matter?

The extra assessment applies only to businesses within the district boundaries as defined by ordinance. Not every address carrying a Pacific Grove postal designation is automatically located in the downtown improvement district. Business owners should confirm that the proposed premises are included and obtain the exact required fees before committing to commercial rent.

What should a shop owner ask before signing a lease?

Confirm the zoning and legal permitted use of the proposed space, whether a city business license and downtown district assessment apply, whether special county health or state professional permits are needed, and whether the building requires accessible-entry, fire or other improvements. The cost of a storefront can change significantly once renovations and ongoing licenses are included.

How to verify

Consult Chapter 6.50 of the city’s Municipal Code and contact the official Business License processing center at 831-920-3890. Ask for the current assessment and fee calculation for the precise business address, since a newspaper cannot determine eligibility.

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Primary sources: City of Pacific Grove Municipal Code Chapter 6.50, Downtown Pacific Grove Business District, and Business License instructions. Independent service information, not tax or legal advice.

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