Compton, CA Business Licensing & Operations: Towing Companies (2026)

To operate within the City, a towing business must first obtain both a towing service permit and a business license (§ 9-22.5). Applicants file with the local law enforcement agency in person only between 8:00 a.m. and 4:00 p.m. on Fridays, submit a photograph taken within 30 days, fingerprints of every principal, and a nonrefundable $12 fee (§ 9-22.6). The City Council holds a public hearing on each application, giving at least 10 days' written notice to the applicant, existing permit holders and the public, and weighs the number of towing services already operating, the applicant's character and financial responsibility, and the effect on City service (§ 9-22.14).

Tow trucks must be equipped to handle passenger cars, motorcycles and heavy trucks, carry a cable winch for embankment recoveries, and be radio-equipped to standards the local law enforcement agency approves; converted pickup trucks are not permitted (§ 9-22.7). Storage yards must be enclosed by a wire fence or wall at least six feet high with lockable gates, hold 200 vehicles outside plus 10 under cover, and repair any damage to the enclosure within 24 hours (§ 9-22.8); an attendant must be on duty 8:00 a.m. to 5:00 p.m. weekdays and 8:00 a.m. to noon Saturdays (§ 9-22.9).

Section 9-22.16 fixes the maximum rates permittees may charge: $69.50 for the first hour of a standard tow and $34.75 per additional half-hour, escalating heavy-duty rates up to $190.50 an hour for overturned or embedded trucks, and daily storage fees from $4.25 for motorcycles to $19.25 for large trucks, with the first hour of storage waived if the vehicle is released promptly. Permittees must carry $300,000 bodily-injury and $100,000 property-damage liability coverage (§ 9-22.13) and remit 5% of gross receipts over $5,000 per quarter to the City, with a 10% penalty added for late payment (§ 9-22.24).