At the November 8, 2022 City of El Segundo municipal election, Measure BT was passed by El Segundo voters.

The passed measure goes into effect starting January 1, 2024 and adopts an ordinance amending various sections of the El Segundo Municipal Code dealing with business license taxes ("BLTs") and amends the Business License Tax rates including annual consumer price index (CPI) adjustments. Most of the language in the BLT program was developed in the 1960s and 1970s, Measure BT updates the program to better align with the City's current and future business landscape.

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The Business License Tax increase provides an estimated additional $3 million in General Fund Revenue that can be used for City services and facilities that benefit both businesses and residents, such as:

• Street and sidewalk repairs
• Community Facility and Park Needs
• Emergency Response and Public Safety
• Senior and Youth Services and Programs

The specific use of the funds will be determined during the City Council budget process each year. All funds generated by the revised ordinance are controlled by the City and not the County or State.  The increase in the Business License tax remains in effect unless repealed by El Segundo voters.

Additional details: 

The amended ordinance governing the El Segundo Business Tax changed in several areas, including: 

• Phasing out the sales tax credit which allowed businesses to receive a credit towards their BLT of up to 40% of their last year's sales tax; the revised ordinance limits the credit to three years and an overall cap of $25,000.
• Modifying the formula for calculating the annual BLT adjustment from a ten-year average and changing it to the most recent five-year average increase of the annual Consumer Price Index (CPI).
• Aligning the apartment and hotel/motel businesses to the base BLT structure.
• Setting the BLT for hotels/motels at $150 for the first three rooms and $150 for each additional room.
• Eliminating the BLT exemption for non-profit/charitable organizations & imposing a flat $150 annual fee.
• Setting the base BLT at $150 per year for businesses with ≤ 2,000 sq. ft. and up to five employees (previously $113.60 for ≤ 5,000 sq. ft. and up to ten employees) and $138 for every additional employee.
• Transitioning to a progressive tax on floor area ranging from $0.26 per sq. ft. for businesses ranging from 2,001 and 5,000 sq. ft. to $0.30 per sq. ft. for businesses occupying more than 250,000 sq. ft.

How much will my business pay? 

Current business license rates can be found on the Business Tax Registration page.