City Cuts Business Tax

The City Council has voted unanimously to reduce the city’s business tax and reconfigure the number of tax categories for businesses. The move cuts the business tax by 4 percent and reduces 42 business tax categories to nine. Second District City Councilwoman Wendy Greuel, who represents the eastern portion of the Valley, and Council President Eric Garcetti introduced the measure. “We have demonstrated that if you are a business-friendly city you reap the benefits. By rolling back business tax rates and extending breaks to new businesses we are pulling in more revenue and creating more jobs,” Greuel said in a statement. The cuts are part of a phased reduction to the city’s business tax. A 15 percent cut for all businesses was introduced in 2004 and has been phased in over five years. Garcetti and Greuel also introduced a measure to extend a new-business tax exemption.