Paramount, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Group 1 retail and general
- $0.30 per $1,000 gross receipts
- Groups 2 and 3
- $0.70 per $1,000: professional services and rental
- Groups 4 and 5
- $0.40 per $1,000: services and contractors
- Group 6 long-term medical care
- $0.35 per $1,000 gross receipts
- Minimum tax
- $25, applied to the first $25,000 in gross receipts
- Annual CPI cap
- 10% in any one year
- Classification authority
- Director of Finance; final, not appealable
Summary
In the City of Paramount, California, every business license tax is based on one of six Groups, each with a rate per $1,000 of gross receipts. Rates run from $0.30 for retail and general businesses to $0.70 for professional services and rentals, and the Director of Finance fixes the classification.
A business, profession, occupation or trade shall pay the business license tax for each tax year based on the licensee's business Group as defined below. ... The Director of Finance or designee ("Director of Finance") shall determine the license classification for each business in the City. Such determination shall be final and not subject to appeal. ... Group 1: ... Retail-Related Business and General Businesses. ... Businesses in Group 1 pay business tax at the rate of $0.30 per $1,000 gross receipts. ... Businesses in Group 2 pay business tax at the rate of $0.70 per $1,000 gross receipts. ... Businesses in Group 3 pay business tax at the rate of $0.70 per $1,000 gross receipts. ... Businesses in Group 4 pay business tax at the rate of $0.40 per $1,000 gross receipts. ... Businesses in Group 5 pay business tax at the rate of $0.40 per $1,000 gross receipts. ... Businesses in Group 6 pay business tax at the rate of $0.35 per $1,000 gross receipts.
Full Breakdown
Section 5.12.075 of the Paramount Municipal Code taxes each business, profession, occupation or trade by Group. The rate is dollars per thousand dollars of the licensee's gross receipts derived from business conducted in the City for the previous tax year. In the first tax year of operation, the tax is instead measured by gross receipts earned in the City during that first year. The Director of Finance determines the classification of every business, and the determination is final and not subject to appeal.
Group 1, retail-related and general businesses, pays $0.30 per $1,000. It covers retail and wholesale sales including restaurants, manufacturing, packing or processing, and listed examples such as Bars and Pubs, Secondhand Dealer, Skating Rink, Solicitors and Warehouse and Storage. Group 2, professional services, pays $0.70 per $1,000 and lists Accountant, Attorney At Law, Physician's Office and Veterinarian. Group 3, rental, also pays $0.70 per $1,000 and lists Hotels and Motels, Residential Rental, Self-Storage Facilities and Vehicle Rentals or Leasing. Group 4, services, pays $0.40 per $1,000 and lists Barbershop, Childcare, Taxicab and Travel Agency. Group 5, contractors, pays $0.40 per $1,000, and Group 6, long-term medical care facilities, pays $0.35 per $1,000, with the facility's State license type used to decide.
Each business in Groups 1 through 6 pays a minimum tax of $25, applied to the first $25,000 in gross receipts (§ 5.12.076). The minimum tax and flat rates adjust annually by the change in the Los Angeles/Long Beach/Anaheim CPI-U, cumulative but capped at 10% in any one year (§ 5.12.077). Section 5.12.078 lets the City Council phase in the rates by resolution over the two calendar years after voter adoption.
A new business owes the tax 30 calendar days after its first day of operation, and it is delinquent after 60 days (§ 5.12.080). Nonprofit organizations obtain a receipt but the tax is waived (§ 5.12.040). Gross receipts exclude the City's transient occupancy tax (§ 5.12.010). The ordinance behind the schedule is Ord. 1192, dated 11/5/2024.
Violations & Fines
Carrying on a business without a license is a separate violation for each day it continues (§ 5.12.030). Tax unpaid at the close of the 30th day of the month the receipt is issued takes a 10% penalty, plus 5% more every 30 days until paid (§ 5.12.090). The City can sue for unpaid sums and recover enforcement and third-party collection costs (§ 5.12.100).
Frequently Asked Questions
Who decides which Group a Paramount business is in?
What are the six Groups and their rates?
Is there a minimum business license tax?
When is the tax due for a new business?
Do nonprofits pay the business license tax?
Sources & Official References
Other rules in Paramount
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