Downey, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Base tier
- $30/year, gross receipts under $50,000
- Top tier
- $348 plus $0.26 per $1,000 over $1,500,000
- Administering officer
- Tax Collector (Director of Finance or designee)
- Branch rule
- Separate license needed per branch location
- Peddler tax
- $56.07/year per vehicle on fixed route
- Appeal path
- City Council appeal under § 6301(f)
Summary
Downey requires a business license under Municipal Code Section 6203 for every trade, profession or occupation conducted in the city, and classifies the tax owed by activity. Any business without its own fee schedule falls under the Section 6255 catch-all: an annual gross-receipts tax running from $30 for revenue under $50,000 to $348 plus $0.26 per $1,000 above $1,500,000.
For every person conducting, managing, or carrying on any business or profession, whether as mentioned or otherwise, or in any manner doing business within the City and not otherwise specifically licensed by this chapter, there shall be an annual license fee measured by gross receipts as follows: GROSS RECEIPTS FEES A – Less than $50,000 $30.00 B - $50,000 to $200,000 $36.00, plus $0.12 for each $1,000 over $50,000 C – Over $200,000 to $500,000 $54.00, plus $0.18 for each $1,000 over $200,000 D – Over $500,000 to $1,500,000 $108.00, plus $0.24 for each $1,000 over $500,000 E – Over $1,500,000 $348.00 plus $0.26 for each $1,000 over $1,500,000
Full Breakdown
Downey's Tax Collector, the Director of Finance or a designee, administers a two-part licensing scheme set out in Article VI, Chapter 2 of the Municipal Code. Part 1 (Sections 6200-6221) sets registration and enforcement rules; Part 2 (Sections 6225-6270) sets the classified tax schedule itself. Section 6200 states the tax is "for revenue purposes only, for all businesses," while regulatory conditions (zoning, fire, building and safety) attach separately. Every applicant must hold a license before operating (Section 6203), and a separate license is required for each branch establishment, though one owner running several classified businesses at one address may pay the highest applicable fee to cover all of them (Section 6204).
1); and licensed professionals in medicine, law, dentistry and engineering pay $75 per year plus $4 per employee (Section 6258). Any activity that does not fit one of these named classifications defaults to the Section 6255 gross-receipts schedule. 2); such statements are kept confidential. All fees tied to a Consumer Price Index adjustment update automatically each October 1.
Violations & Fines
The Tax Collector must deny or revoke a license for an unpermitted business, a zoning or safety violation at the site, a false application statement, or a prior denial or revocation of the same activity within 12 months (Section 6206(b)). An unlawful business loses its license under Section 6221. Unpaid or evaded license tax is enforceable under the general penalty, Section 1200: a misdemeanor up to $1,000 and six months in jail, or a graduated infraction fine of $100 to $500. Denials go to the City Council under Section 6301(f).
Frequently Asked Questions
What tax class does a small business fall into if it isn't named in the code?
Do I need a separate business license for each Downey location?
Can the city audit my reported gross receipts?
What happens if I never register my business with the city?
Sources & Official References
Other rules in Downey
California rules heatmap·Compare Downey to another location·View the California local taxes & fees overview
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