Council Approves Extended Tax Exemption Ordinance

Los Angeles City Council voted Aug. 6 to extend tax exemptions for new businesses to three years. The new ordinance extends the exemption for the new businesses to three years, tracking back to the beginning of 2010 and ending Dec. 31, 2012. Starting in 2013, the period for the new exemptions would return to the existing two-year setup. The ordinance also removes the exemption’s $500,000 current maximum gross receipts qualification threshold. The ordinance defines a new business as a one that has not previously paid business tax receipts in the city of Los Angeles, and a business that is not currently operated in the city that should have filed for a business tax registration certificate in prior years. Jessica Selva