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I have a State License (Real Estate, construction contractors, etc). Does this exempt me from City of Santa Barbara business license?

No. The City business "license" and your State license serve entirely different purposes. The regulatory licensing of certain trades rests entirely with the State of California. The City of Santa Barbara does not regulate, in any way, these industries. If your relationship to you employer is that of an "independent contractor" or you are self-employed and working in the City, you need to pay the City business tax.