Monterey Park, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Classification groups
- Nine groups under Section 5.12.100
- Professional base fee
- $75.00 on receipts up to $500,000
- Professional marginal rate
- $0.00075 per $1,000 over $500,000
- Multiple businesses, one location
- Pay only the highest classification's tax
- License inspection authority
- Chief of police and officers, Section 5.08.040
- Default violation penalty
- Up to $1,000 fine or 6 months jail
Summary
In the City of Monterey Park, every business, trade or profession must hold a city business license under Monterey Park Municipal Code Section 5.08.010, and Section 5.12.100 sorts every licensee into one of nine fee classifications: professional, retailers, wholesalers, manufacturers, service, contractors, business by vehicle, special businesses, and businesses not otherwise classified, each billed on its own annual schedule in Chapter 5.12.
§ 5.08.060. Two or more businesses—License tax. ... Such person shall pay the highest license tax provided herein for any of the businesses so conducted, and shall not pay any license tax for any other of such several businesses. ... ... § 5.12.100. Classifications. ... All persons engaged in or carrying on any profession, trade, calling, occupation or business in or into the city are classified into nine groups as follows in Sections 5.12.110 through 5.12.190. ... ... § 5.12.200. Fees levied–Businesses, trades and professions. (a) All persons engaged in or carrying on any profession, trade, calling, occupation or business in or into the city as classified in Section 5.12.110, 5.12.120, 5.12.130, 5.12.140, 5.12.150, 5.12.160 and 5.12.190, unless specifically provided otherwise in this chapter, must procure a business license and pay an annual fee as follows: Categories Base Rate for Gross Receipts of $500,000 or less Additional Rate Per $1,000, or portion thereof, of Gross Receipts in excess of $500,000 Professional $75.00 0.00075
Full Breakdown
Section 5.08.010 makes it unlawful to transact any business, trade, profession, calling or occupation in the city without first procuring a license from the license collector. Section 5.12.100 divides every licensee into nine groups defined at Sections 5.12.110 through 5.12.190: professional (accountants, architects, attorneys, physicians, real estate brokers), retailers (drug stores, grocers, liquor stores, furniture, firearms dealers), wholesalers, manufacturers, service businesses (massage establishments, barber and beauty shops, car washes, mortuaries), contractors (electrical, plumbing, roofing, masonry), business by vehicle under Section 5.12.030, special businesses under Section 5.12.230, and businesses not otherwise classified.
Section 5.12.200 sets the annual fee by classification: a licensee in the professional group pays a $75.00 base rate on gross receipts of $500,000 or less, plus $0.00075 for each $1,000, or portion thereof, of gross receipts above that threshold, with "gross receipts" defined at Section 5.12.045. Section 5.08.060 caps double billing: a person running more than one licensed business at a single location, or one business that could fit more than one group, pays only the highest license tax among those businesses and nothing more for the others.
Section 5.08.040 lets the chief of police and any police officer enter a place of business free of charge to demand the license be exhibited; failure to produce it exposes the operator to the code's default violation penalty.
Violations & Fines
Operating any profession, trade or business in Monterey Park without first procuring the classification-based license required by Section 5.08.010 is a code violation. Section 4.10.010 makes every uncorrected code violation a separate misdemeanor for each day it continues, and Section 4.10.020 sets the default penalty at a fine of up to $1,000, imprisonment of up to six months, or both, for each violation not otherwise specified. Police officers may enter the business under Section 5.08.040 to demand the license be shown.
Frequently Asked Questions
What business license classifications does Monterey Park use?
How much is a professional business license in Monterey Park?
What if I run two different classified businesses from one address?
What happens if I operate without the required business license?
Sources & Official References
Other rules in Monterey Park
California rules heatmap·Compare Monterey Park to another location·View the California local taxes & fees overview
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