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

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Governing chapter
Municipal Code Chapter 5.08
Default schedule
$50 + $0.50/$1,000 up to $100K
Named classifications
Roughly 30 separate business types
Rate adjustment
CPI resolution each July 1
Exempt
Farmers selling own produce on-site
Enforcement
License Collector and Chief of Police
Unlicensed operation
Misdemeanor plus civil debt to city

Summary

El Monte taxes nearly every business operating in the city under Chapter 5.08 of the Municipal Code, sorting operations into roughly 30 named classifications, from contractors to pawnshops to fortunetellers, each carrying its own rate table. A business without a listed classification defaults to the gross receipts schedule in Section 5.08.030, collected annually by the License Collector.

Every person, whether or not having an established place of business within the city, operating or conducting any business within the city and not otherwise specifically licensed by this chapter, and specifically including the business of astrology and the business of operating or supplying any coin-operated device, contraption or vending machine of any kind, shall pay an annual license tax, based upon the gross receipts of such business according to the following schedules: Up to $100,000, $50.00 plus $0.50 per $1,000; $100,000 to $1,000,000, $100.00 plus $0.55 per $1,000 over $100,000; $1,000,000 and above, $595.00 plus $0.15 per $1,000 over $1,000,000.

Full Breakdown

020 lets the Council raise or lower every tax annually each July 1st by the change in the Consumer Price Index for the Los Angeles-Long Beach area, measured against the April 1992 base index, with the adjusting resolution required at least 60 days before the increase takes effect. 15 per $1,000 above $1,000,000. 320. 320. 330.

Violations & Fines

Unpaid license tax plus any penalty is deemed a debt to the city, enforceable by civil action in any court of competent jurisdiction under Section 5.04.350. A criminal conviction for operating without a license does not excuse payment of the tax, and payment of the tax does not bar prosecution; the city may pursue both remedies cumulatively under Section 5.04.360. Refusing to exhibit a license certificate on an officer's demand is a misdemeanor under Section 5.04.330(B).

Frequently Asked Questions

How does El Monte decide what business license tax I owe?
The city sorts businesses into named classifications in Chapter 5.08, each with its own rate table, covering everything from contractors to pawnshops to professions like attorneys and architects; if your business type isn't separately listed, it defaults to the gross receipts schedule in Section 5.08.030.
What if my business type isn't specifically listed in Chapter 5.08?
It falls under the general gross receipts classification in Section 5.08.030, which taxes annual gross receipts on a tiered scale starting at $50.00 plus $0.50 per $1,000 for receipts up to $100,000, rising to $595.00 plus $0.15 per $1,000 above $1,000,000.
Can El Monte raise business tax rates without a ballot vote?
Yes. Section 5.08.020 lets the City Council adjust every license tax annually each July 1st by resolution tied to the Consumer Price Index for the Los Angeles-Long Beach area, without needing voter approval, as long as the resolution is adopted at least 60 days before the increase takes effect.
What happens if I don't get a business license or don't pay the tax?
The unpaid tax becomes a civil debt the city can sue to collect under Section 5.04.350, and operating without a license can also be prosecuted criminally under Section 5.04.360; the city can pursue both remedies at once, and neither one excuses the other.

Sources & Official References

Other rules in El Monte

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