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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.
| 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:
| 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.
Base Tax First 10 Employees & 5,000 Sq. Ft. $90.00
Employee Per employee over 10. $112.00
Square Footage Per Square Foot over 5,000. $0.21
Home Occupation Flat Fee $21.00
Contractors-General Engr(A), Bldg(B), Elec(C), Plmb(C36),
$131.00
Contractors-Specialty All Classifications, Except C35 $90.00
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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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