Committee continues wildfire business tax-waiver ordinance after debate over eligibility window

The Budget and Finance Committee on Thursday discussed a draft ordinance to amend the Los Angeles Municipal Code to waive business gross receipts taxes for firms affected by the January 2025 wildfires, but delayed a final vote to allow more policy framing and verification details.

Councilmember Traci Park opened the public discussion urging committee members to approve the measure so it could return to full council quickly. "There should be no delay when it comes to providing the relief and reassurance that our community needs," Park said, asking for support on item 7 to waive payment for businesses impacted 60 or more consecutive days.

The Finance Department explained how the proposed relief would operate and raised implementation questions. Diana Mangiolo of the Office of Finance said the proposed ordinance would provide complete tax relief for the 2025 tax year for taxpayers that either (1) demonstrate their business location was destroyed, or (2) show the business was interrupted for 60 consecutive days beginning on the date of the wildfire event. She noted the city—s business tax structure requires businesses to prepay the tax for the calendar year and that applicants would need to provide documentation to the Office of Finance for review.

Business groups urged a shorter eligibility threshold. James Finney Conlin of the LA Area Chamber of Commerce said the Chamber supports the waiver but requested the committee consider reducing the consecutive-days threshold from 60 to 45 because many small businesses cannot afford to remain closed for 60 days and still qualify.

The CAO and committee members repeatedly flagged the city—s fiscal constraints and the need to craft a workable verification and eligibility process that would not create undue administrative burdens or risk unsustainable costs. Chair Yaroslavsky asked the Finance Department to clarify verification mechanics and stressed the need to balance relief with budgetary realities.

After discussion the committee did not vote on item 7 and continued it for further conversation with staff; the chair said additional interdepartmental discussion was necessary before a committee vote. The committee recorded a motion to continue the remaining calendar items (including item 7) and passed it 5-0. The chair also asked the Finance Department and CAO to return with clarifications on eligibility, verification and fiscal impact before the committee takes a final vote.