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Council backs business-tax information and approves exemption rules for writers; sends revenue-use motion to committee
Summary
The council approved an ordinance clarifying when creative professionals are treated as employees for business tax purposes, endorsed state bill AB 83’s negotiated changes, and sent a motion on AB 1992 revenue use to committee for further study.
The Los Angeles City Council approved a package of actions aimed at improving business tax administration and clarifying tax treatment for creative professionals.
On item 33 the council approved amended language to the city’s business-tax code that aligns local practice with state and federal common-law tests for distinguishing employees from independent contractors. The clerk reported 13 ayes and the council adopted the item. Writers’ representatives, including Cheryl Roden and Doreen Braverman of the Writers Guild of America, urged approval and said the negotiated language would protect creative content and reduce uncertainty for screenwriters and other artists.
Council Member Feuer, who led negotiations with staff and stakeholders, described the votes as a “breakthrough” after years of state-level attempts to provide cities with tax information and clearer rules. Feuer and other members said AB 83’s amendments, combined with proposed state legislation AB 1992, would let the city access state tax records and improve collection from businesses that currently do not pay local business tax.
Angela McGahn of the Central City Association urged flexibility in how any eventual new revenue would be used and endorsed Council Member Chick’s motion to prioritize business tax reform as a top use of funds if AB 1992 yields revenue for the city.
Council Member Chick moved that the council support AB 83 and AB 1992 and that any related motion on revenue priorities go to committee. Council members agreed those matters should be considered by the Intergovernmental Relations Committee and the ad hoc Business Tax Reform Committee for further review and recommendations. The council recorded agreement to send the item to those committees; public speakers including industry representatives supported the coordinated approach.
Separately, the council approved a substitute report and item 30a (concerning business assistance centers) that incorporated recommendations from the City Administrative Officer (CAO) and the Chief Legislative Analyst (CLA). The clerk recorded 14 ayes on item 30a.
The council’s actions do not themselves change state law; they adopt local code clarifications, register support for state bills, and refer revenue-priority proposals to committee for further deliberation and possible future ordinance or budget actions.
