PARAMOUNT, Calif. /California Newswire/ — The residents of Paramount, Calif., have voted to approve Measure LR: Paramount City Services, Business License Tax Update Measure during the recent November 2024 general election. This measure will not raise taxes on residents but rather updates the current business license tax structure to create a balance of taxes between large and small businesses.
The updated tax rate structure, based on gross receipts, will take effect on January 1, 2025. Under the new system, over 75% of small businesses will pay a lower tax rate. Larger businesses will see an increase based on their higher gross receipts.
“We appreciate all businesses that have chosen Paramount as their home,” said City Manager John Moreno. “The passing of this measure will help small businesses thrive while also securing the necessary funding to maintain the quality of life our residents expect.”
Some of the essential City services that residents rely on daily include public safety resources, 911 response, gang prevention, and keeping parks and public places safe and clean. Currently, some of these services are funded by business license taxes that go directly into Paramount’s general fund. Measure LR allows the City to continue refining its revenue collection to ensure fairness and sustainable funding for these critical services.
For a detailed breakdown of the new tax categories and rates, visit https://www.paramountcity.gov/government/departments/city-clerk/measure-lr/
Proposed Tax Rate Structure
All businesses in the following categories would pay their business license tax based on a percentage of gross receipts as specified below.
- Retail-related business and General Business
- Taxed at the rate of $.30 per $1,000 gross receipts
- Professional Services
- Taxed rate of $.70 per $1,000 gross receipts
- Rental
- Taxed at the rate of $.70 per per $1,000 gross receipts
- Services
- Taxed at the rate of $.40 per per $1,000 gross receipts
- Contractors
- Taxed at the rate of $.40 per per $1,000 gross receipts
- Long-Term Medical Care Facilities
- Taxed at the rate of $.35 per per $1,000 gross receipts
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This version of news first appeared on CaliforniaNewswire.com – and is baed on a press release provided by the city of Paramount, CA.
