Taxes

Currently, a 40% tax credit based on sales tax generated in one year is available. This credit may be used to offset up to 100% of the business license tax liability in any given year.


Utility User Tax Comparison

El Segundo boasts one of the region's lowest utility user tax rates; another of the many advantages to operating a business here. The following chart illustrates comparable utility user taxes among notable ccommunities within 20 minutes of El Segundo.

City Utility Tax (Water, Gas & Phone)
Burbank 7%
Culver City 11%
El Segundo 3%
Telecommunication 2%
Long Beach 10%
Los Angeles 10% - Telecommunication 9%
Redondo Beach 4.75%
Santa Monica 10%
Torrance 6.5% - Water 6%


Transient Occupancy Tax Rates

The Transient Occupancy Tax (TOT), or hotel bed tax, is remitted by hotel operators to the City of El Segundo as part of room payments. El Segundo boasts a significantly lower TOT than a number of major cities. Here are the comparisons:

City Transient Occupancy Tax
Burbank 10%
Culver City 12%
El Segundo 8%
Beverly Hills 14%
Long Beach 12%
Los Angeles 14%
Manhattan Beach 10%
Santa Monica 14%


No Property or Parking Taxes

As a no/low property tax city, El Segundo does not and has never levied its own municipal property tax. El Segundo's allocation from the County is 6.4% of $1.00 per $100.00 of assessed valuation. The City has also never levied any parking taxes.


Business Taxes

El Segundo not only standardly features some of the lowest business taxes in the region, but also offers exceptional tax credit incentives that can reduce those fees even further. Listed below are general business license fees only.  These fees will not necessarily apply to all business types.  Additionally, there may also be other required permit or inspection fees depending on your business activity.  Contact Business License at (310)524-2317 for help in determining your business' exact business license tax.

General Business General Business
General Office, Professional Office, Retail,
Wholesale, Manufacturing and Personal Service
Base Tax First 10 Employees & 5,000 Sq. Ft. - $95.00
Employee Per employee over 10. - $118.00
Square Footage Per Square Foot over 5,000. - $0.22
Home Occupation Flat Fee - $23.00
Contractors-General Engr(A), Bldg(B), Elec(C), Plmb(C36), - $139.00 plus $0.50 per vehicle
Contractors-Specialty All Classifications, Except C35 - $96.00 plus $0.50 per vehicle





 

Sales and Use Tax Credit
You may be entitled to a sales tax credit if sales tax is collected and apportioned to the City of El Segundo.  This credit is based solely on the 1% local sales and use tax allocated to the City and is calculated on the actual amount of sales and use tax received by the City.  This credit may offset up to 100% of the business license tax.  You may also be entitled for a use tax credit if use tax is paid to State Board of equalization using a Direct Pay Permit.  For information on applying and establishing a Direct Pay Permit contact the Business Services Manager at (310)524-2332.










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