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Council asks city attorneys for analysis of payroll expense tax amid litigation risk
Summary
Facing a lawsuit alleging the city’s payroll expense tax is unconstitutional, the Los Angeles City Council asked staff to analyze options including repeal to limit future liability.
The Los Angeles City Council voted Wednesday to request a thorough analysis of the city’s payroll expense tax after staff described ongoing litigation that could expose the city to multimillion-dollar liability.
City attorneys told the Council the payroll expense tax was adopted to capture taxation from businesses that might otherwise be constitutionally exempt from a standard business tax, and that a lawsuit…
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