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16400 Colorado Avenue | Paramount, CA 90723

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Property Parcel Tax

The City of Paramount Public Safety, Environment, Streets and Business Improvement Measure

On November 3, a Special Municipal Election will be held in the City of Paramount. Paramount voters will consider the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure. If approved, this measure would establish a locally controlled tax on commercial, industrial and vacant commercial and industrial parcels. Residential property owners, homeowners, and apartment tenants will not be subject to this tax. Every dollar generated by the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure would remain in Paramount under local control to fund four services: streets, public safety, air quality monitoring and environmental services, and investment in local businesses. 

Language That Will Appear on the Ballot

The City of Paramount Public Safety, Environment, Streets and Business Improvement Measure

Without taxing residential property owners or renters, shall the ordinance to fund services for Paramount 911 response/public safety; reducing crime; responding to business burglaries; addressing street racing; monitoring/improving water/air quality; repairing streets/potholes; supporting businesses by annually levying between 8¢ and 13¢ per square foot on industrial/commercial properties only, with annual adjustments up to 3%, raising approximately $4,000,000 annually until ended by voters, requiring audits, spending disclosure, local control, be adopted?

What is The City of Paramount Public Safety, Environment, Streets and Business Improvement Measure?

The City of Paramount Public Safety, Environment, Streets and Business Improvement Measure, is a special tax projected to generate approximately $4 million in annual locally controlled revenue. If passed, the measure would apply exclusively to commercial and industrial properties and charge up to 8¢ per square feet (sq. ft.) for commercial, 11¢ per sq. ft. for industrial and 13¢ per sq. ft. for vacant commercial/industrial properties.

Under this proposed rate structure, approximately 80% of affected property owners are expected to pay $5,000 or less per year, and approximately 90% are expected to pay $10,000 or less per year. Typical small business property owners (parcels between 228 and 1,178 sq. ft.) will pay between $23 and $97 annually.

The parcel tax rates would be phased in over a three year period:

  • Year 1: 65% of the full rate
  • Year 2: 80% of the full rate
  • Year 3+: 100% of the full rate

 

After year three, annual increases are capped at 3% or the rate of inflation (whichever is lower).

The City of Paramount Public Safety, Environment, Streets and Business Improvement Measure includes built-in safeguards to promote accountability. An independent citizens’ oversight committee will review all spending, and full annual reports will be posted publicly on the City website. If the measure is adopted, property owners are expected to receive their first bill as part of their property tax bill at the end of 2027 and will only be expected to pay 65% of the full rate at that time. Property owners can estimate a parcel’s specific tax amount by visiting the City’s Budget Update page.

Fiscal Overview

Paramount has worked hard to maintain a balanced budget by taking internal cost-saving actions, including reducing citywide operating budgets by 5%, freezing vacant staff positions, cutting part-time employee hours, limiting overtime, defer maintenance and delaying equipment replacements. However, rising prices and growing infrastructure demands mean City expenses are outpacing incoming revenues. For the 2026–27 budget year, City expenses are projected to reach $49.4 million while incoming revenues are expected to be $48.8 million, leaving a $545,000 deficit. If the City does nothing to fix this gap, Paramount faces an estimated $27.7 million cumulative deficit over the next 10 years*.

*Figures mentioned here can be found in the FY 2026-27 adopted budget

Community Priorities

While general City services are typically funded by the General Fund, a parcel tax is a dedicated funding source for specific purposes. The City of Paramount has identified four main community priorities: public safety, environmental care, road repair and local business support. If passed, the approximately $4 million generated from the City of Paramount Environment, Infrastructure, Public Safety and Business Improvement Measure annually after the full rate is imposed will be deposited into a dedicated special fund rather than the General Fund to directly support safety patrol, water and air monitoring, street repair, and local business grants.

Public Safety in Neighborhoods and Businesses

The City contracts with the LA County Sheriff’s Department for Public Safety services which takes up 35% of Paramount’s operating budget. This contract increases by 3% to 5% every year. The City of Paramount Public Safety, Environment, Streets and Business Improvement Measure could invest $1.5 million directly into supporting rising Sheriff contract costs, ensuring fast deputy response times and protecting neighborhood patrols. The City could hire two dedicated private security cars to patrol business districts every night, stopping commercial burglaries and freeing up Sheriff deputies to handle resident emergency calls.

*Figures mentioned here can be found in the FY 2026-27 adopted budget

Environmental Protection

Paramount operates five air monitoring stations that test for industrial pollutants like hexavalent chromium to protect community health. If passed, the revenue generated from the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure could invest $250,000 to help keep these air monitors running. It could also pay for neighborhood cleanup crews to clear illegal dumping along railroad lines, remove graffiti from commercial buildings, help businesses comply with state recycling laws and residents monitor water usage.

Street Repair in Commercial and Industrial Areas

Heavy truck traffic in industrial areas of Paramount has caused wear and tear to the streets in those areas. A 2023 Citywide study found that the commercial and industrial roads in Paramount need repairs and will cost the City $43 million. Out of that $43 million, one of the heavily used industrial areas will cost $28.7 million to repair. If the City were to defer these repairs the cost to repair the streets would increase year by year. For example, if the City were to delay a $6.5 million repaving project from 2026 to 2028 the cost would increase to $7.3 million; an extra $810,000 in taxpayer money. If passed, the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure could direct $2 million annually toward a bond that funds $30 million in immediate road repairs over five years. This could prioritize repaving on major streets like Garfield Avenue, Somerset Boulevard, Rosecrans Avenue, and Alondra Boulevard.

Investment in Local Business

The City is an active participant in the Paramount Chamber of Commerce and keeps an open door to businesses of all sizes to encourage their success in Paramount. The City currently partners with the Chamber of Commerce to offer scholarships to local business owners. If passed, the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure could invest $250,000 in a new grant that could help small businesses upgrade storefronts, improve wheelchair accessibility, and build proper trash enclosures to help local businesses stay ADA and environmentally compliant.

The actual amounts dedicated to each of the four service areas authorized by the parcel tax, and specific programs paid for by the tax, would be determined on an annual basis as part of the City Council’s budgeting process and may fluctuate based upon actual revenues generated by the parcel tax in any given year.

If the Measure Does Not Pass

If the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure is not approved, the City will not receive additional revenue from this tax. Paramount faces a projected $27.7 million budget deficit over the next ten years, and this projected deficit would remain absent additional revenue sources, reductions in programs and services, or the use of reserve funds.

Frequently Asked Questions

Why is the City considering this measure now? +
Will residential property owners or renters pay for this measure? +
Do commercial and industrial property owners currently pay property taxes in Paramount? +
How is the City of Paramount Public Safety, Environment, Streets and Business Improvement Measure different from Measure LR (Business License Tax), which passed two years ago? +
Can the City lower its budget deficit by renegotiating the contract with the LA County Sheriff's Department? +
How are parcel tax assessments calculated and phased in? +
When would property owners make their first payment if approved? +
Do other nearby cities have a parcel tax like this? +
How many votes are required for the measure to pass? +
How many commercial and industrial businesses are located in Paramount? +
What is the difference between a property tax and a parcel tax? +
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