Downey, CA Local Taxes & Fees: Business Tax Classification (2026)

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).

Specific classifications carry their own numeric schedules rather than a flat citywide rate: peddlers pay $56.07 per year per vehicle on an established route or $100 per year on an irregular route (Section 6256); open-area operators with more than six vendor stalls pay $30 per stall annually, or $1 per stall per day (minimum $30) for pop-up events of 30 days or less (Sections 6231, 6231.1); amusement rides are billed $15 per quarter for children's rides and $30 per quarter for adult rides, with carnivals paying $200 for the first day and $100 each additional day plus a $500 cleanup deposit (Section 6227.1); 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. The Tax Collector may require a sworn gross-receipts statement at application and renewal (Sections 6207, 6207.1) and can audit or inspect a licensee's books at any time (Section 6207.2); such statements are kept confidential. All fees tied to a Consumer Price Index adjustment update automatically each October 1.