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Committee reviews ordinance to exclude state-imposed special taxes from municipal gross receipts definition
Summary
Staff presented a proposed amendment to the Los Angeles Municipal Code to exclude certain state-imposed special taxes from the definition of gross receipts for businesses, a change staff said would prevent double taxation when effective.
Committee staff presented a proposed ordinance that would change the Los Angeles Municipal Code to exclude certain state-imposed special taxes from the definition of "gross receipts" used to calculate municipal business taxes.
A staff presenter explained that removing the state-imposed special taxes from the municipal gross-receipts definition is intended to prevent businesses from paying a duplicative tax. "Cuando esta ordenanza se haga efectiva, ya no van a pagar doble pago," the presenter said in the committee discussion (Spanish original in transcript).
Officials noted an outstanding question about how many businesses already paid under the current interpretation and whether the city would need to issue refunds or credits for prior payments. Committee members asked the finance office to clarify how many businesses have applied the state rule and what the timeline would be for removing duplicated charges once the ordinance is published and effective.
No final vote on the ordinance was recorded during the meeting; staff indicated the item could appear for council consideration in the near term and that affected businesses should consult with the finance office for details.
