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

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

Key Facts

Classifications listed
18 categories in § 5.08.010(A)
Contractor tax
$292.16/year or $73.04/quarter
Oil well operator tax
$.3329 per barrel produced
Gross receipts add-on
sliding scale, § 5.08.020
Rate adjustment
annual CPI change each July 1
Late penalty
10% per month, capped at 100%

Summary

In the City of Montebello, business license taxes are set by classification under Montebello Municipal Code Section 5.08.010 rather than a flat citywide fee. Rates range from a flat annual charge for contractors to a per-barrel tax on the city's oil well operators, and every rate escalates each July 1st with the regional consumer price index.

A.The following businesses, occupations and professions shall be required to pay, as and for business license taxes, the amounts hereinafter set forth in this section, pertaining thereto:1.Advertising vehicle: Fifty-one dollars and thirty-three cents per vehicle, per day; ... 5.Contractors: Seventy-three dollars and four cents per quarter, two hundred ninety-two dollars and sixteen cents per year; ... 13.Oil well operator: A tax equal to $.3329 per barrel of oil produced from wells owned or operated by such person located within the city; ... B.Except where otherwise stated, the tax imposed by this section shall be increased or decreased annually as of July 1st of each calendar year, commencing on July 1, 1979, in an amount equal to the increase or decrease from the base index in the then latest available consumer price index, as prepared and released by the U.S. Department of Labor, Bureau of Statistics, for the Los Angeles-Riverside-Orange County area.

Full Breakdown

Section 5.08.010(A) of the Montebello Municipal Code lists eighteen separate business classifications, each with its own tax formula. An advertising vehicle pays fifty-one dollars and thirty-three cents per vehicle per day. Contractors pay seventy-three dollars and four cents per quarter, or two hundred ninety-two dollars and sixteen cents per year. A public dump pays one thousand three hundred thirty-eight dollars and thirty-eight cents per month or two percent of gross receipts, whichever is greater. Reflecting Montebello's Montebello Hills oil field, Section 5.08.010(A)(13) taxes an oil well operator at $.3329 per barrel of oil produced from wells the operator owns or runs within the city, a classification most California cities do not need.

Section 5.08.020 layers an additional tax on top of these flat rates, based on each business's prior-year gross receipts on a sliding scale running from $133.25 for receipts up to $25,000 to $1,380.82 plus eighty cents per thousand dollars over $1,000,000. Section 5.08.010(B) escalates or reduces every rate in the section each July 1st, starting July 1, 1979, by the change in the consumer price index for the Los Angeles-Riverside-Orange County area measured against the June 1978 base month, except where a rate is stated otherwise.

Chapter 5.04 governs administration: Section 5.04.045 lets the license collector calculate or recalculate any classification's tax, subject to the taxpayer's right to a hearing and appeal.

Violations & Fines

Section 5.04.350 adds a ten percent penalty on any unpaid business license tax on the last calendar day of each month it remains unpaid, capped at one hundred percent of the tax under that section. Section 5.04.360 makes the unpaid tax, penalty, and fees a debt owed to the city, collectible by civil action with attorney fees under Section 5.04.370, and Section 5.04.400 makes conducting business without paying the required classification tax a misdemeanor, chargeable as a separate offense for each day it continues.

Frequently Asked Questions

How does Montebello classify businesses for its license tax?
Montebello Municipal Code Section 5.08.010(A) sets eighteen specific classifications, from advertising vehicles and contractors to junk dealers and oil well operators, each with its own flat or per-unit tax rate, plus a separate gross-receipts-based tax under Section 5.08.020 that applies on top of the classification rate.
Why does Montebello tax oil well operators separately?
Section 5.08.010(A)(13) creates a distinct classification taxing oil production at $.3329 per barrel from wells an operator owns or runs in the city, reflecting the Montebello Hills oil field within city limits, a classification most cities without active oil production do not carry in their code.
Do Montebello's business license tax rates ever change?
Yes. Section 5.08.010(B) escalates or reduces nearly every rate in the classification schedule each July 1st, based on the change in the Los Angeles-Riverside-Orange County consumer price index measured against a June 1978 base, a mechanism running continuously since July 1, 1979.

Sources & Official References

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