Los Angeles Municipal Code Art. 1 Business Taxes

(Art. 1, Ch. II, Added by Ord. No. 115,044, Eff. 1/1/60; Title Amended by Ord. No. 178,101, Eff. 1/9/07.)

Section 21.00 Definitions. 21.01 Unlawful Business Not Authorized. 21.02 Constitutional Exemptions. 21.03 Imposition of Tax. 21.03.1 Automatic Tax Rate Reduction 21.04 Due Dates. 21.05 Delinquent Dates – Interest – Penalties. 21.06 Separate Registration Certificate Required for Each Location and Each Business Tax Classification. 21.06.1 Single Primary Tax Classification Election. 21.07 Refunds of Overpayments. 21.08 Business Tax Registration Certificate – Form. 21.09 Business Tax Registration Certificates – Posting and Keeping. 21.10 Business Tax Registration Certificates – Charge for Duplication. 21.11 Business Tax Registration Certificate – Transfer. 21.12 Business Tax Registration Certificates – Suspension. 21.13 Newly Established Businesses – Computation of Business Tax. 21.14 Written Statements – When Required – Computation of the Tax. 21.15 Director of Finance – Duty to Enforce – Powers – Rules and Regulations. 21.16 Assessment – Administrative Remedy. 21.16.1 Voluntary Disclosure. 21.17 Confidential Character of Information Obtained – Disclosure Unlawful. 21.18 Delinquent Taxes – Installment Payment. 21.19 Delinquent Taxes – Suit for Recovery. 21.20 Delinquent Taxes – Debt Not Discharged by Penal Conviction. 21.21 Delinquent Taxes – Uncollectible. 21.22 Religious, Charity, Etc.; Procedure for Issuance of Tax Exempt Registration Certificates. 21.23 Effect of Repeals and Amendments. 21.25 Relief for Earthquake Interruption. 21.25.1 Relief for Wildfire Interruption. 21.26 Empowerment Zone - City Business Tax Reductions, Limitations, and Exemptions. 21.27 Entertainment and Multimedia Business Tax Limitations. 21.29 Small Business Exemption. 21.30 New Business Exemption. 21.31 Settlement Bureau. 21.32 Rewards for Information. 21.33 [Tax Rates.] 21.41 Gross Receipts Fund Class 1. 21.43 Gross Receipts Fund Class 2. 21.46 Gross Receipts Fund Class 6. 21.47 Gross Receipts Fund Class 7. 21.48 Gross Receipts Fund Class 8. 21.49 Gross Receipts Fund Class 9.

21.50 Taxation of Medical Marijuana Collectives. 21.51 Taxation of Cannabis. 21.52 Taxation of Medical Cannabis. 21.53 Amusement Park. 21.55 Auctioneer. 21.62 Billiards, Etc. 21.63 Amusement Machines. 21.64 Coin-operated Phonographs and Music Machines. 21.65.1 Coin-operated Scales and Service Machines. 21.70 Bowling Alley, Skee-ball Shuffleboard, Etc. 21.74 Circuses. 21.75 Side Shows, Carnivals, Concessions. 21.83 Dance Hall. 21.85 Public Dance. 21.94 Rides. 21.108 Money Lenders. 21.109 Motion Picture, Television and Radio Producers. 21.142 Stevedores. 21.167.1 Sales of Firearms and Ammunition. 21.168.1 Out of State Sales. 21.168.2 Sale for Convenience. 21.168.3 Certain Solicitors Deemed Employees. 21.168.4 Exemption – Temporary Exhibitors at Tradeshows. 21.168.5 Certified Producers Deemed Employees. 21.169 Christmas Trees. 21.170 Christmas Tree Lot Clean-up Deposits. 21.171 Retailers of New Passenger Motor Vehicles. 21.187 Common Carrier Bus. 21.188 Contractors. 21.190.1 Exemption. 21.193 Sale of Real Property. 21.194 Transporting Persons for Hire. 21.195 Trucking – Hauling 21.196 Miscellaneous Trucking. 21.199 Sales Tax.

The following words and phrases whenever used in this article and in Article 1.5 shall be construed as defined in this section, unless from the context a different meaning is intended or unless a different meaning is specifically defined and more particularly directed to the use of such words or phrases:

(a) “GROSS RECEIPTS.” (Amended by Ord. No. 176,326, Eff. 1/16/05, Oper. 1/1/05.) Except as otherwise specifically provided, the term “gross receipts” as used in this article shall mean the gross receipts of the tax year and shall be calculated on either a cash or accrual basis in accordance with Internal Revenue Service guidelines. Gross Receipts is defined as follows:

The total amount charged or received for all sales and commissions for the performance of any act, service or employment of whatever nature it may be, whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not, for which a charge is made or credit allowed, including all receipts, cash, credits and property of any kind or nature, any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. Gross receipts shall also include the amount of any federal manufacturers or importers excise tax included in the price of the property sold, even though the manufacturer or importer is also the retailer thereof and whether or not the amount of such tax is stated as a separate charge.

The term “GROSS RECEIPTS” as used in this article shall not include the following:

(1) Cash discounts allowed or taken on sales;

(2) Any part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part

payment on any property so accepted for resale;

(3) The amount of any federal tax imposed on or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to

customers as a separate charge, or any California state, City, or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

(4) The amount derived from a business activity sold or otherwise transferred to another person during the preceding calendar year;

(5) Any amount received from or charged to any person which is a related entity to the tax-payer. A person is a related entity to a taxpayer if 80% or more of the ownership interests in both value and voting power of said person and the taxpayer are held, directly or indirectly, by the same person or persons. Notwithstanding the foregoing, any amount received from or charged to any person which is a related entity to a taxpayer shall be included in “gross receipts” when said amount is compensation for activities, including but not limited to, selling, renting and service performed by the taxpayer for any person which is not a related entity to the taxpayer; and

(6) Any uncollectible amount apportioned to the City of Los Angeles which has been written off as a “bad debt” in compliance with Internal Revenue Service guidelines. Any portion of bad debt

subsequently recovered by a taxpayer shall constitute taxable “gross receipts” in the year that it is recovered. The provisions of this exclusion shall apply to any person paying a tax under the provisions of this article.

The term “Tax Year” as used in this article shall mean the calender year unless there is a specific election to use the business’s fiscal year. After an election to use the fiscal year is made, a business may not change its tax measure year from that fiscal year, unless it changes its fiscal year or receives a waiver from the Director of Finance. The measure of tax for a business electing to use its fiscal year shall be attributable to the 12 month period ending on the last day of its fiscal year, and shall be for the fiscal year ending in the calendar year that would otherwise be the measuring year.

(b) “BUSINESS TAX” shall mean the privilege tax imposed upon persons engaged in the businesses or occupations described in Sections 21.50 to 21.198, inclusive, of this article for the privilege of engaging

in such businesses or occupations within the City of Los Angeles.

“SALES TAX” shall mean that tax imposed by Section 21.199 of Article 1, Chapter 2 of this Code.

“USE TAX” shall mean that tax imposed by Article 1.5 of Chapter 2 of this Code.

(c) “NEWLY ESTABLISHED BUSINESS ” shall mean a business which was not engaged in during the immediately preceding business tax period specified for that kind of business. A business to which a

valid existing registration certificate is transferred pursuant to the provisions of Sec. 21.11 is not a newly established business, and shall be taxed as if the ownership had not changed.

The following shall not be considered newly established businesses:

(1) The business engaged in from a new location whether within or outside the City when the business conducted and taxed at the location used during the preceding business tax period was discontinued at the same time or prior to commencement of business at the new location;

(2) The business engaged in during the current business tax period is the same kind as that engaged in during the immediately preceding period, but not at the close thereof;

(3) The business to be engaged in during the current tax period though not in fact the same kind of business, is taxed under the same section as the business engaged in during, but not necessarily

throughout the immediate preceding tax period.

Provided that the Director of Finance may, on written application by the taxpayer, and after considering all circumstances, find that a business described in this paragraph is in fact new and not a continuation of a business engaged in during the immediately preceding business tax period.

(d) “PERSON” shall mean any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, partnership, joint venture, club, company, joint stock company, business trust,

domestic or foreign corporation, association, syndicate, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. (Amended by Ord. No. 174, 272, Eff. 11/26/01.)

(e) “REGISTRATION CERTIFICATE” shall mean Business Tax Registration Certificate.

(f) “STREET” shall include all streets, avenues, highways, alleys, courts, lanes, places, squares, curbing, sidewalks or other public ways in this City which have been or may hereafter be dedicated as such and

open to public use.

(g) “SALE,” “SELL” shall be deemed to include and refer to: The making of any transfer of title, in any manner or by any means whatsoever, to tangible personal property for a price, and the serving, supplying or furnishing, for a price, of any tangible personal property fabricated or made at the special order of consumers who do or who do not furnish directly or indirectly the specifications therefor. A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definitions shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

(h) “BUSINESS” shall mean any activity, enterprise, profession, trade or undertaking of any nature conducted or engaged in, or ordinarily conducted or engaged in, with the object of gain, benefit or advantage, whether direct or indirect, to the taxpayer or to another or others. The term shall include operations of subsidiary or independent entities conducted for the benefit of others and at no profit to themselves, nonprofit businesses and trade associations. A person shall not be deemed to be engaged in business solely by reason of receipt of dividend or interest income from passive investments. (Amended by Ord. No. 174, 272, Eff. 11/26/01.)

(i) “ENGAGED IN BUSINESS” shall mean the conducting, operating, managing or carrying on of a business, whether done as owner, or by means of an officer, agent, manager, or employee. A person shall be deemed engaged in business within the City if:

(1) such person or the person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person, or

(2) such person or the person’s employee owns or leases real property within the City for business purposes, or

(3) such person or the person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business, or

(4) such person or the person’s employee regularly conducts solicitation of business within the City, or

(5) such person or the person’s employee performs work or renders services in the City on a regular and continuous basis involving not less than seven working days per year for all such employees, or

(6) such person or the person’s employee utilizes the streets within the City in connection with the operation of motor vehicles for business purposes.

The foregoing specified activities shall not be a limitation on the meaning of engaged in business. (Amended by Ord. No. 174, 272, Eff. 11/26/01.)

(j) “INDEPENDENT CONTRACTOR” shall mean: any entity, other than an individual, that performs services for a principal; and any individual who performs services for a principal for a specified

recompense for a specified result, under control of the principal as to the result of the work only and not as to the means by which such result is accomplished. An independent contractor receives income that should be reported to the Internal Revenue Service by the principal on IRS Form 1099, should report the income to the Internal Revenue Service on IRS Form 1040, Schedule C and may deduct the cost of the use of a home for business purposes on said Schedule C.

Factors which indicate status as an independent contractor are if an individual: (Added by Ord. No. 172,783, Eff. 9/30/99.)

(1) is not required to follow instructions on how to perform services;

(2) possesses the skills necessary to perform the task and does not need additional training;

(3) performs services that are not essential to the principal’s business or are not incorporated into the product or services sold by the principal;

(4) should be able to subcontract all or a portion of the project;

(5) can hire and supervise their own employees, but should not supervise, or be supervised by, the principal’s employees;

(6) generally works on one project and moves on, acquiring additional projects when and if the individual is available;

(7) establishes their hours of work, working as necessary to accomplish the end result;

(8) usually has the right to work simultaneously for the principal and others, as long as the end result is achieved;

(9) should be able to choose where to perform some, if not all, of the services;

(10) can control the manner and method of performing the services;

(11) is responsible only for the end result, and is not required to submit interim reports;

(12) generally is paid a flat rate for the completion of the project;

(13) is expected to assume the burden of business expenses;

(14) should have the tools and equipment necessary to perform the services independently;

(15) makes as an investment in tools, business equipment, publications and supplies appropriate for their business;

(16) accepts both the benefits and risks of a business transaction, in that the individual has the opportunity to profit from the project price and risks a loss if the end result is unacceptable or costs exceed the project price;

(17) can and does work for multiple firms simultaneously;

(18) offers their services to the general public;

(19) can be terminated only according to the terms of an agreement, and could recover damages for breach of contract if termination is outside the scope of the agreement; and

(20) has as an obligation to complete the work under contract.

(k) “EMPLOYEE” shall mean any individual who performs services for a principal in a capacity other than as an independent contractor. An employee receives income that should be reported to the Internal Revenue Service by the principal on IRS Form W2, should not report the income to the Internal Revenue Service on IRS Form 1040, Schedule C and may not deduct the cost of the use of a home for business purposes on said Schedule C. Factors which indicate status as an employee are if an individual: (Added by Ord. No. 172,783, Eff. 9/30/99.)

(1) can receive instructions concerning the means and methods of achieving a result;

(2) may receive training from the principal;

(3) provides the services essential to bringing the principal’s product or services to market;

(4) cannot delegate their responsibilities;

(5) deals with subcontractors and employees only within the framework of the principal’s directions or policies;

(6) has a continuing relationship with the principal;

(7) must work the hours that are dictated by the principal;

(8) usually must make a time commitment to the principal;

(9) must perform services at the location chosen by the principal;

(10) is subject to the principal’s control over the sequence of tasks;

(11) can be required to submit interim reports;

(12) is usually paid on an hourly or salary basis;

(13) is usually reimbursed for business expenses;

(14) is provided needed tools by the principal;

(15) is not required to invest in the principal’s business;

(16) is paid for their time and bears no risk of wage loss if the principal’s product is unprofitable;

(17) can be precluded from some alternative jobs;

(18) does not perform services directly for the public, but only for the principal;

(19) can be discharged at will; and

(20) normally may terminate their relationship with the principal without incurring liability.

(l) “INDUSTRY CODE” shall mean the industrial classification number assigned to an industry in the North American Industry Classification System (NAICS) by the Executive Office of the President, Office

of Management and Budget. (Added by Ord. No. 172,820, Eff. 10/28/99, Oper. 1/1/01.)

No registration certificate or permit issued under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code, or the payment of any tax required under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner.

Nothing in Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as requiring the payment of any tax for engaging in a business or the doing of an act when such payment would constitute an unlawful burden upon or an unlawful interference with interstate or foreign commerce, or which payment would be in violation of the Constitution of the United States or the Constitution of the State of California.

All business taxes shall be paid to the Director of Finance in lawful money of the United States and taxes required hereunder shall be paid in advance except where otherwise specifically provided, and shall be due and payable at the following times:

(a) Annual business taxes on the first day of January of each year;

(b) Quarterly business taxes on the first days of January, April, July and October of each year;

(c) Monthly business taxes on the first day of each month;

(d) Daily business taxes on each day;

(e) When a business discontinues, dissolves, or otherwise terminates before the expiration of a business tax period, any taxes accrued and owing to the City under the provisions of this article or Article 1.5,

including any business taxes that would not otherwise be payable under the close of the business tax period during which termination occurs, or until time for paying the tax for the next succeeding business tax period, shall be due on the date of termination.

(f) When a person first becomes subject to business tax by reason of an amendment of this article, or because of such an amendment, becomes subject to business tax under a section not previously applicable to

such person or on a basis not previously applicable to such person, any new or additional tax required to be paid by reason of this article, as so amended shall be due and payable upon the effective date of the amending ordinance unless an operative date different from the effective date of the amendment is specified therein. (Added by Ord. No. 128,639, Eff. 11/30/64.)

(Amended by Ord. No. 179,984, Eff. 8/3/08.)

(a) Delinquent Dates: (Amended by Ord. No. 181,857, Eff. 10/4/11.) Unless otherwise specifically provided for in other provisions of this Article, all business taxes required to be paid shall be deemed delinquent if not paid on or before or within the time prescribed in this Article:

1. Annual Business Taxes – on or before the close of business on the last day of the month following the month in which the tax is due.

2. Quarterly Business Taxes – on or before the close of business on the last day of the month in which the tax is due.

3. Monthly Business Taxes – on or before the close of business on the last day of the month for which the tax is due.

   4. Daily Business Taxes – on or before the close of business on each day for which the tax is due.

   5. Business Taxes Unpaid When a Business Has Been Discontinued, Dissolved or Otherwise Terminated – within 45 days of the termination of the business.

   6. Deficiency Determinations – within 60 days of the date on which the Office of Finance provides notice of determination on an assessment or notice of the decision of an Assessment Review Officer, if

   applicable, or within 30 days of the date on which the Office of Finance provides notice of the decision of a Board of Review, whichever is later.

   7. Notwithstanding any other provisions in this Code, any business tax owed for business activity conducted during the 2020 Calendar Year shall not be due until February 28, 2022, for the following business tax classifications: (Added by Ord. No. 187,119, Eff. 8/7/21.)

      (a) Section 21.53 (Amusement Park).

      (b) Section 21.62 (Billiards, Etc.).

      (c) Section 21.63 (Amusement Machines).

      (d) Section 21.64 (Coin Operated Phonographs and Music Machines).

      (e) Section 21.65.1 (Coin Operated Scales and Service Machines).

      (f) Section 21.70 (Bowling Alley, Skee- ball Shuffleboard, Etc.).

      (g) Section 21.74 (Circuses).

      (h) Section 21.83 (Dance Hall).

      (i) Section 21.85 (Public Dance).

      (j) Section 21.94 (Rides).

(b) Penalties:

1. Original Delinquency. Any person who fails to pay any tax required to be paid by this article, except deficiency determinations made by the Director of Finance under Subsection (i) of Section 21.15 of this article, within the time required shall pay a penalty of 5% of the amount of the tax in addition to the amount of the tax.

2. Continued Delinquency. Any person who fails to pay any delinquent tax, except deficiency determinations made by the Director of Finance under Subsection (i) of Section 21.15 of this article, on or before the last day of:

   (i) The first month in which the tax first became delinquent, shall pay a second penalty of 5% of the amount of the tax in addition to the amount of the tax and the 5% penalty first imposed;

(ii) The second month in which the tax first became delinquent, shall pay a third penalty of 5% of the amount of the tax in addition to the amount of the tax and the 10% in accumulated penalties previously imposed;

(iii) The third month in which the tax first became delinquent, shall pay a fourth penalty of 5% of the amount of the tax in addition to the amount of the tax and the 15% in accumulated penalties

previously imposed.

(iv) The fourth month in which the tax first became delinquent, shall pay a fifth penalty of 20% of the amount of the tax in addition to the amount of the tax and the 20% in accumulated penalties

previously imposed.

3. Deficiency Determinations. Any person who fails to pay a deficiency determination within 30 days after the Director of Finance has notified the person of the amount of the deficiency, shall pay a penalty of

20% of the amount of the deficiency determination in addition to the amount of the deficiency determination. Notice of a deficiency determination shall be given in writing in the manner provided for the service of notices of assessment in Subsection (b) of Section 21.16.

4. Overpayment. For the purpose of allowing overpayments as credit against underpayments of the above-mentioned taxes, whenever the overpayment has been received by the City within the three years prior

to an underpayment, or during any year for which the taxpayer, at the request of the Director of Finance, has executed a waiver of the defense of the statute of limitations with regard to any claim the City may have for business tax, the Director of Finance, when making determinations of the amount of taxes due the City, shall make an allowance of credit for any overpayment. Overpayments shall be applied to underpayments in the oldest period(s) before applying to a later period(s). Whenever an overpayment has been made prior to an underpayment, no penalty or interest shall apply upon the amount of the underpayment satisfied by the prior overpayment.

(c) Negligence. If the Director of Finance determines that the nonpayment of any tax due under this article or Article 1.6 is due to negligence or willful disregard of the provisions of this article or Article 1.6, a penalty of 10% of the amount of the tax shall be added to the tax due in addition to the penalties stated in Subdivisions 1. and 2. of Subsection (b) of this section. If the Director of Finance determines that any part of the deficiency of a deficiency determination is due to negligence or willful disregard of the provisions of this article or Article 1.6, a penalty of 10% of the amount of the deficiency determination shall be added in addition to the penalties stated in Subdivision 3. of Subsection (b) of this section.

(d) Fraud. If the Director of Finance determines that the nonpayment of any tax due under this article or Article 1.6 is due to fraud, a penalty of 25% of the amount of the tax shall be added, in addition to the penalties stated in Subdivisions 1. and 2. of Subsection (b) of this section. If the Director of Finance determines that any part of the deficiency determination is due to fraud, a penalty of 25% of the amount of the deficiency determination shall be added, in addition to the penalties stated in Subdivision 3. of Subsection (b) of this section.

(e) Interest. In addition to the penalties imposed, any person who fails to pay any tax required to be paid by this article or Articles 1.1, 1.3, 1.7, or 1.15 of this chapter shall pay interest on the amount of the tax, exclusive of any penalty, from the date on which the tax first became delinquent until the date it is paid, during each calendar year at the rate per month, or fraction of the month, determined by dividing by 12 the sum of the average Federal short-term rate during the months of July, August and September of the prior calendar year plus three percentage points. Unless the monthly rate is evenly divisible by one-tenth of a percentage point, it shall be rounded up to the next highest one-tenth of a percentage point. Interest shall run during any period of time for which the Director of Finance has granted an extension of time. Interest required by any of the provisions of this section shall not be subject to waiver or compromise other than in accordance with the provisions of Subsections (f) and (g) of Section 21.15 of this article, or as the Council may direct.

(f) Penalties and Interest Merge With Tax For Collection Purposes. For collection purposes only, every penalty imposed and the interest that is accrued under the provisions of this section shall become a part of the tax required to be paid.

(Amended by Ord. No. 181,051, Eff. 1/31/10.)

No refund of an overpayment of taxes imposed by Article 1 and 1.5 of Chapter 2 of this Code shall be made except under the following procedure:

(a) No claim for refund shall be allowed in whole or in part unless filed by the person claiming the overpayment, or the person’s authorized agent on the person’s behalf, with the City Clerk within a period of

one year from the date of the claimed overpayment, and all such claims for refund of overpayment must be filed with the City Clerk on forms furnished by the City and in the manner prescribed by the City.

(b) Nothing in this section shall be deemed to bring into being or validate any claim for refund arising from a cause heretofore existent if such claim, whether filed or not, was or would have been invalid because

of the then existing statutory term, and nothing in this section shall be deemed to validate, revive, restore or continue any claim for refund heretofore filed and denied.

(c) Insofar as the provisions of this section are in conflict with the provisions of Sections 22.12, 22.13 of this Code, the language of this section shall be construed to control and supersede the language of said

sections as to any such conflict.

(d) The City shall pay interest on the amount of each allowed claim for refund of overpayment of tax, from the date of filing the claim for refund or, in the case of a payment under protest or pursuant to a billing

from the Office of Finance, from the date of overpayment, until the date the overpayment is paid, during each calendar year at the rate per month determined by dividing by 12 the sum of the average Federal short- term rate during the months of July, August and September of the prior calendar year. Unless the monthly rate is evenly divisible by one-tenth of a percentage point, it shall be rounded up to the next highest one- tenth of a percentage point.

(a) Each business tax registration certificate shall be prepared and issued by the Director of Finance and shall state upon the face thereof the following:

1. The name of the person to whom issued.

2. The classification of business engaged in and the section of this article in which the business taxed is described.

3. The address of the location from which the business is conducted, and, where it is different, the mailing address of the business taxed; or where no fixed place of business is maintained, the mailing address of the person to whom the registration certificate has been issued. The mailing address so appearing shall be the address to which all notices required or authorized in this article shall be sent unless the registrant shall request in writing that another address be used for such purpose.

4. The period for which the certificate has been issued.

(b) Each business tax registration certificate shall state on the back thereof the following:

This business tax registration certificate signifies that the person named on the face hereof has fulfilled the requirements of Article 1 of Chapter II of the Los Angeles Municipal Code by registering with the

Director of Finance for the purpose of paying business tax for the classification of business for which this certificate is issued. This certificate does not authorize the person to conduct any unlawful business or to conduct any lawful business in an illegal manner or to conduct within the City of Los Angeles the business for which this certificate has been issued without strictly complying with all the provisions of the ordinances of said City, including but not limited to those requiring a permit from any board, commission, department or office of the City. THIS BUSINESS TAX REGISTRATION CERTIFICATE DOES NOT CONSTITUTE A PERMIT. Any failure to comply with the requirements of Article 1 or Article 1.11 of Chapter II of the Los Angeles Municipal Code shall constitute grounds for suspension of this certificate. (Amended by Ord. No. 160,389, Eff. 10/21/85.)

(a) Every person engaged in a business subject to tax under the provisions of this article and which business is conducted at or from a fixed place of business shall keep the registration certificate issued therefor posted in a conspicuous place upon the premises at or from which the business is conducted.

(b) Every person engaged in a business subject to tax under the provisions of this article but not operating from a fixed place of business shall keep the registration certificate issued therefor upon their person at all times while engaging in the business for which it is issued.

(c) Whenever identifying stickers or symbols have been issued for each vehicle, device, machine, or other piece of equipment included in the measure of a business tax, or for each coin-operated machine the gross receipts from which are the measure of the tax, the person to whom such stickers or symbols have been issued shall keep firmly affixed upon each vehicle, device, machine, piece of equipment or coin-operated machine the identifying sticker or symbol which has been issued therefor. Such sticker or symbol shall not be removed from any vehicle, device, machine, piece of equipment or coin-operated machine kept in use, during the period for which the sticker or symbol is issued.

(d) It shall be a misdemeanor for any person to fail to affix as required herein any identifying sticker or symbol to the vehicle, device, machine, piece of equipment, or coin- operated machine for which it has been issued, or to give away, sell or transfer such identifying sticker or symbol to another person, or to permit its use by another person.

(Amended by Ord. No. 179,984, Eff. 8/3/08.)

Duplicate registration certificates may be issued by the Director of Finance to replace any previously issued certificate, which has been lost or destroyed, upon the filing of an affidavit by the registrant or an authorized representative attesting to that fact and upon paying to the Director of Finance a fee of $5.00.

No registration certificate shall be transferable except where the business taxed is transferred, whether by sale or otherwise, to another person under such circumstances that the real or ultimate ownership of the business after the transfer is substantially similar to the real or ultimate ownership existing before the transfer. For the purposes of this section, stockholders, bond-holders, partners, or other persons holding an interest in a corporation or other entity herein defined to be a person are regarded as having the real or ultimate ownership of such corporation or other entity.

(Title and Section Amended by Ord. No. 160,389, Eff. 10/21/85.)

(a) Whenever any person fails to comply with any provision of this article pertaining to business tax or Article 1.11 of this chapter pertaining to payroll expense tax, or any rule or regulation adopted pursuant thereto, the Director of Finance, upon hearing, after giving such person ten days’ notice in writing specifying the time and place of hearing and requiring the person to show cause why their registration certificate or certificates should not be suspended, may suspend any one or more of the registration certificates held by such person. The notice shall be served in the same manner as notices of assessment are served under Section 21.16 of this article.

(b) Any person who engages in any business after the registration certificate issued therefor has been suspended, and before such suspended certificate has been reinstated, shall be guilty of a misdemeanor.

(Amended by Ord. No. 177,246, Eff. 2/18/06, Oper. 1/1/06.)

(a) Except in cases where this article prescribes a different method to compute and pay the business tax for a newly established business, the business tax shall be obtained and paid in accordance with whichever of the following applies to the classification of newly established business:

1. When the annual business tax is measured by any of the following: gross receipts, gross production costs and gross receipts, gross cost of the work done, or gross receipts and salaries, wages, fees or other

compensation paid, the applicant for a business tax registration certificate shall at the time of making application, pay a minimum amount of tax that will apply for the first year of operation. This minimum tax cannot be pro-rated. At the end of the business tax period, the taxpayer shall file a written statement as prescribed in Section 21.14 disclosing all the particulars required for the classification of that business. At the time of renewal, the taxpayer shall pay the actual tax owed for the first year of operation deducting any minimum tax previously paid for that year. This additional tax is computed at the current rate specified for the classification of that particular business. This tax is then measured and paid in the manner prescribed in Section 21.14. In all cases, the business tax shall be determined and paid in all business tax periods subsequent to the first business tax periods in the manner prescribed in Section 21.14.

2. When the annual business tax is measured by any of the following: the number of vehicles, machines, devices or articles of equipment used, the number of persons employed, square foot area, seating

capacity, the scale of fees or other charges collected, the applicant for a business tax registration certificate shall file with the Director of Finance, a statement setting forth the applicable factors in use, expected to be in use, employed, or collected. The taxpayer is required to pay the business tax at the time of making the application when the business is started. The required application and the tax payment is due as follows: when the business tax period is daily, tax is due on or before the close of business on the day on which the business was started; when the business tax period is monthly or quarterly, the tax is due on or before the last day of the month in which the business was started; when the business tax period is annual, the tax is due on or before the last day of the month following the month in which the business was started. After the start of the business, the factor by which the tax is measured is increased in the first business tax period, an additional amount of tax becomes due, and this increase shall be reported and the additional amount of business tax paid in accordance with the provisions of Section 21.14. Business taxes in these cases for subsequent business tax periods shall be paid in accordance with the provisions of Section 21.14.

3. (i) When the provisions of this article impose a flat rate tax for a business tax period or a fractional part of a period, the applicant of a business tax registration certificate for a newly established business shall

pay the business tax required at the time the application is made, without proration for any portion of the business tax period expired at the time the business started.

(ii) When the provisions of this article impose a flat rate tax for a business tax period without the requirement that the full amount of the tax be paid for the business tax period or any fractional part of the

period, the applicant for a business tax registration certificate for a newly established business shall, at the time the application is made, pay the business tax required to be paid prorated for the even monthly portion of the business tax period, which is unexpired at the time the business is started.

(b) Except as otherwise provided in the foregoing cases, application by a newly established business for a business tax registration certificate and payment of the required business tax shall be made as follows: whenever the business tax period is daily, on or before the close of business on the day on which the business is started; whenever the business tax period is monthly or quarterly, on or before the last day of the month in which the business is started; whenever the business tax period is annual, on or before the last day of the month following the month in which the business started. In these cases, the business tax for subsequent business tax periods shall be paid when due and prior to the delinquency date provided in Section 21.05.

(a) Except where a provision of this article specifically provides a different method for the filing of a statement and payment of the business tax for a designated classification of business, statements required hereunder shall be filed and payment of the tax made in the following manner:

1. Whenever an annual business tax is measured by gross receipts, gross cost of production and gross receipts, gross cost of the work done, or gross receipts and salaries, wages, fees or other compensation paid,

the person subject to the business tax shall, before the tax becomes delinquent, file with the Director of Finance a written statement setting forth whichever of the following is applicable to the classification of business being engaged in: The gross receipts of the preceding year; the gross cost of production and gross receipts of the preceding year; the gross cost of the work done in the preceding year; or gross receipts and salaries, wages, fees or other compensation paid in the preceding year; and such person shall pay at such time the amount of the business tax computed upon the measure of the tax reported in the statement.

2. Whenever a quarterly business tax is imposed upon the number of oil wells operated and the number of barrels of oil produced, the person subject to the tax shall, before the business tax for each quarter

becomes delinquent, file with the Director of Finance a written statement setting forth the number of wells in operation and the number of barrels of oil produced by each well in the preceding calendar quarter and such person shall pay at such time the amount of the business tax computed upon the measure of the tax reported in the statement.

3. Whenever the business tax is measured by the number of vehicles, machines, devices, tables, articles of equipment used or persons employed, or whenever the business tax is measured by square foot area,

seating capacity, the scale of fees or other charges collected, the person subject to the tax shall before the tax becomes delinquent file with the Director of Finance a written statement setting forth the then applicable factor or factors that constitute the measure of the tax and shall pay at such time the amount of the business tax computed thereon. In each case where the factor by which the tax is measured is increased during the business tax period and an additional amount of business tax becomes due, the person subject to the tax shall notify the Director of Finance and pay the additional tax due in the following manner: When the business tax period is daily, on the day the increase occurs; when the business tax period is monthly or quarterly, within 30 days of the date on which the increase occurred; when the business tax period is annual, on or before the last day of the month following the month in which the increase occurred.

(b) The written statements shall be made upon forms prescribed by the Director of Finance and shall include a declaration substantially as follows:

“I declare, under penalty of making a false declaration, that I am authorized to make this statement, and that to the best of my knowledge and belief it is a true, correct and complete statement made in good faith for the period stated, in compliance with the provisions of the Los Angeles Municipal Code.”

(c) Such statements shall not be conclusive against the City as to the information set forth therein, nor shall the filing of a statement preclude the City from collecting by appropriate action any additional tax that is later determined to be due and payable under the provisions of this article.

(d) The Director of Finance and all of the Director’s deputies shall have the power and authority to require the person subject to the tax to provide any other information including a list of subcontractors, vendors and tenants that will help enforce the business tax. The operative date of this [sub]section will be January 1, 2005. (Added by Ord. No. 177,216, Eff. 2/8/06.)

(a) Duty to Enforce. It shall be the duty of the Director of Finance, and the Director of Finance is hereby directed, to enforce each and all of the provisions of this article and Article 1.5, and the Chief of Police shall render such assistance in the enforcement of this article and Article 1.5 as may from time to time be required by the Director of Finance.

(b) Inspection and Examination of Places of Business. The Director of Finance in the exercise of the duties imposed upon the Director, and acting through the Director’s deputies, shall inspect and examine all places of business in the City to ascertain whether or not the provisions of this article and Article 1.5 have been complied with.

(c) Audit and Examination of Records and Equipment. The Director of Finance and the City Controller, and deputies of each of them, shall have the power to audit and examine all books and records, and, where necessary, all equipment, of any person engaged in business in the City for the purpose of ascertaining the amount of business tax, sales or use tax, if any, required to be paid by the provisions hereof, and for the purpose of verifying the statements, or any item thereof, when filed by any taxpayer pursuant to the provisions of Secs. 21.13, 21.14 or 21.199, or Article 1.5. If such person, after written demand by the Director of Finance or City Controller, or a deputy of either, refuses to make available for audit, examination or verification such books, records or equipment as the Director of Finance, City Controller, or deputy of either, requests, the Director of Finance may, after full consideration of all information within the Director’s knowledge concerning the business and activities of the person so refusing, make an assessment in the manner provided in Sec. 21.16 of any taxes estimated to be due.

(d) Inspection of Registration Certificates, etc. The Director of Finance and all of the Director’s deputies shall have the power and authority to enter, free of charge, during business hours, any place of business required to be registered and taxed by the provisions of this article or Article 1.5, and to demand exhibition of a business registration certificate and sales or use tax permit and evidence of amount of tax paid. Any person having any such business tax registration certificate, or sales or use tax permit, heretofore issued in the person’s possession or under the person’s control who fails to exhibit the same as well as evidence of amounts of tax paid on demand shall be guilty of a misdemeanor and subject to the penalty provided for by the provisions of this Code.

(e) Extensions of Time for Filing. The Director of Finance may upon receipt of the written request of a taxpayer, and for good cause, extend the time for filing any statement required under the provisions of Section 21.13, 21.14 or 21.199, or Article 1.5 for a period of not to exceed 45 days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension if 90% or more of the total tax due is paid prior to the tax becoming delinquent. If less than 90% of the total tax due is paid prior to the tax becoming delinquent, a twenty percent (20%) penalty on any unpaid principal tax balance shall accrue. Interest shall accrue during said extension in the manner provided herein. (Amended by Ord. No. 176,160, Eff. 9/25/04.)

(f) Compromise of Claims. The Director of Finance, subject to the provisions of the Charter, may compromise a claim for business tax where the portion of the claim proposed to be released is equal to or less than the monetary limitations set forth in Section 22.13, as adjusted by the Controller in accordance with Subsection (e) of that section. Compromise of claims in excess of $15,000.00, requires the written approval of the City Attorney. The Director of Finance is further authorized to enter into releases of the approved compromises subject to the approval of the City Attorney. (Amended by Ord. No. 179,984, Eff. 8/3/08.)

(g) Minor Error in Payment. In the event a discrepancy exists between the amount of tax paid and the amount of tax due under this Article or Article 1.6, resulting in the underpayment or overpayment of the tax in an amount of $30.00 or less, the Director of Finance may accept and record the underpayment or overpayment without other notification to the taxpayer. (Amended by Ord. No. 181,860, Eff. 9/29/11.)

(h) Rules and Regulations – Apportionment. The Director of Finance may make such rules and regulations as are not inconsistent with the provisions of this article or Article 1.5 as may be necessary or desirable to aid in the enforcement of the provisions of this article and Article 1.5. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the business tax imposed by this article cannot be enforced without there being an apportionment according to the amount of business done in the City of Los Angeles, or in the State of California, as the case may be, the Director of Finance may make such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections. Such rules and regulations shall be approved by the City Attorney prior to becoming effective.

(i) Deficiency Determinations. If the Director of Finance is not satisfied that any statement filed as required under the provisions of this article or Article 1.5 of Chapter 2 of this Code is correct, or that the amount of tax is correctly computed, the Director of Finance may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in the Director’s possession or that may come into the Director’s possession. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior

to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Sec. 21.16.

(j) Payments, etc., Made by Mail. Whenever any payment, statement, report, request or other communication received by the Director of Finance is received after the time prescribed by this article or Article 1.5 for the receipt thereof, but is in an envelope bearing a postmark showing that it was mailed prior to the time prescribed in this article or Article 1.5 for the receipt thereof, or whenever the Director of Finance is furnished substantial proof that the payment, statement, report, or request for other communication was in fact deposited in the United States mail prior to the time prescribed for receipt thereof, the Director of Finance may regard such payment, statement, report, request or other communication as having been timely received.

(k) Earthquake Related Extension. Upon the receipt on or before August 31, 1994 of the written request of a taxpayer showing that such taxpayer’s business has been impacted by the earthquake of January 17, 1994 to the extent of preventing the filing of any statement required under the provisions of Sections 21.13 or 21.14 or Article 1.11 of this Code or the payment of any tax required in connection therewith for such business prior to the delinquency date, the Director of Finance shall extend the delinquency rate for filing any such statement and paying any such tax for such business to September 1, 1994. No penalty or interest shall accrue prior to September 1, 1994 by virtue of such extension of the delinquency date. The relief provided in this subsection shall be an alternative to the relief provided in Subsection (e) of this section and not in addition thereto, and shall be applicable only to annual taxes due in 1994. (Amended by Ord. No. 169,853, Eff. 7/4/94, Oper. 2/28/94.)

(l) Requirement of Payments by Electronic Funds Transfer. All tax payments in the amount of fifty thousand dollars ($50,000) or more shall be paid via a financial institution’s electronic funds transfer. (Added by Ord. No. 176,160, Eff. 9/25/04.)

(m) Credit Card Transaction Fee for On-line Payment. Every person who files their renewal online and pays their business tax with a credit card shall pay a transaction fee in the amount of $3.00. The purpose of this fee is to offset a portion of the administrative costs incurred by the City for those transactions. (Added by Ord. No. 180,358, Eff. 12/20/08.)

(n) Public Disclosure of Tax Delinquencies. (Added by Ord. No. 180,378, Eff. 1/4/09.)

(i) Notwithstanding any other provision of law, the Director of the Office of Finance shall make available as a matter of public record each calendar quarter a list of the largest 250 tax delinquencies in excess of

one hundred thousand dollars ($100,000.00) under this part. For purposes of compiling the list, a “tax delinquency” means an amount owed to the City of Los Angeles as to which all of the following apply:

(A) That has been submitted to the Director of Finance for a finding that the delinquent tax is unpaid and the administrative process has been completed pursuant to Los Angeles Municipal Code Section 21.16.

(B) The amount of tax has been delinquent for more than ninety (90) days.

(C) For purposes of the list, a tax delinquency does not include any delinquency that would be uncollectible by operation of law.

(ii) Each quarterly list shall include all of the following with respect to each delinquency:

(A) The name of the person or persons liable for payment of the tax and the person’s or persons’ last known business address.

(B) The amount of tax delinquency as shown on the notice or notices of the tax delinquency and any applicable interest or penalties, less any amounts paid.

(C) The type of tax that is delinquent.

(iii) Prior to making a tax delinquency a matter of public record as required by this section, the Director of Finance shall provide a preliminary written notice to the person or persons liable for the tax by certified

mail, return receipt requested, demanding payment of the amount owed and informing the person or persons that nonpayment may result in the tax delinquency being made a matter of public record. If within 30 days after issuance of the notice, the person or persons do not remit the amount due or make arrangements with the Director of Finance for payment of the amount due, the tax delinquency shall be included on the list.

(iv) The quarterly list described in subsection (n)(i) shall include the telephone number and address of the Office of Finance in order to provide a point of contact if a person believes the placement of the

person’s name on the list is in error.

(v) A person whose delinquency appears on the quarterly list, and who satisfies that delinquency in whole or in part, may request the Director of Finance to include in the quarterly list any payments that person

made to satisfy the delinquency. Upon receipt of that request, the Director of Finance may include those payments on the list as promptly as feasible.

(o) Liens for Unpaid Taxes. (Added by Ord. No. 181,238, Eff. 9/12/10.)

(i) The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city. If the tax is not paid when due, such tax, penalty and interest shall be a lien against the taxpayer’s

property for the amount thereof, which lien shall continue until the amount thereof including all penalties and interest are paid, or until it is discharged of record.

(ii) The Director of Finance may record liens against property to collect unpaid taxes, interest, and penalties upon the exhaustion of the administrative process to determine the amount of such liabilities under

this Chapter. Such liens may be recorded against real property used in connection with activities that generated the tax liability or against personal property used in connection with activities that generated the tax liability. Such liens shall be recorded according to applicable law in the jurisdiction in which the property is located.

(iii) Prior to recording a lien for unpaid taxes, interest, and penalties, the Director of Finance shall provide a report requesting approval of the lien to the City Council, with the taxpayer’s name, amount of tax,

interest, and penalties owed, and the tax periods for which taxes will be collected. The report shall be referred by the City Clerk to the full City Council without referral to any Council Committee, and duly placed upon the agenda of the City Council. No request for approval of a lien shall be made to the City Council unless the City Attorney has determined that a sufficient basis exists to support the liability and that assets exist to which the liability could attach. The Director of Finance shall provide at least 15 days notice of the hearing before the City Council to the taxpayer by mailing a copy of the report to the address contained in the most recent records of the Office of Finance. Notice shall be deemed complete at the time of deposit in the United States mail. (Amended by Ord. No. 182,111, Eff. 5/29/12.)

(iv) Upon a majority vote by the City Council to approve the recordation of lien(s), the Director of Finance or the Director’s designee may record in the proper office a certificate which specifies the amount of

tax, interest and penalties due, the name and last known address of the person liable for the same, a statement that the Director of Finance has determined the correct amount to be paid and a legal description of the property owned by the taxpayer to which the lien applies. From the time of the recording of the certificate, the amount required to be paid together with interest and penalties constitutes a lien upon all property to which the lien can attach and to property owned by the taxpayer used in connection with activities subject to taxation under this Chapter. The lien has the force, effect and priority of a state tax lien and shall continue for ten (10) years from the filing of the certificate unless sooner released or otherwise discharged, or unless a term is otherwise provided by applicable law.

(Amended by Ord. No. 180,380, Eff. 1/5/09.)

(a) It shall be unlawful for the Director of Finance or any person having an administrative duty under the provisions of this Article or Article 1.6 to make known in any manner whatever the business affairs and operations of, or the nature, amount or source of income, profits, losses, expenditures, net worth, or any particular thereof, or any other information set forth in any statement or return or obtained by an investigation of records and equipment of, any person required to obtain a business tax registration certificate or sales or use tax permit, or pay business, sales or use tax or any other person visited or examined in the discharge of official duty, or to permit any statement or return, or copy of either, or any book containing any abstract or particulars thereof to be seen or examined by any person.

(b) Nothing in this section shall be construed to prevent:

1. the disclosure of information to, or the examination of records and equipment by, another City official or employee or a member of the Board of Review for the sole purpose of administering or enforcing any provision of this article or Article 1.6;

2. the disclosure of information to, or the examination of records by federal or state officials, or the tax officials of another city or county, or city and county, if a reciprocal arrangement exists; or to a grand jury;

3. the disclosure of information and results of examination of records of a particular taxpayer, or relating to a particular taxpayer, with respect to any proceeding in a court of law or before an administrative body in which the existence or amount of any business, sales or use tax liability of the particular taxpayer to the City of Los Angeles is relevant and material and the particular taxpayer is a party to the proceeding, including but not limited to proceedings before any Board or Commission as set forth in Municipal Code section 22.02;

4. the disclosure after the filing of a written request to that effect, to the taxpayer, or to the taxpayer’s successors, receivers, trustees, executors, administrators, assignees and guarantors, if directly interested, of information as to the items included in the measure of any paid tax, any unpaid tax or amounts of tax required to be collected, interest and penalties; further provided, however, that the City Attorney approves each such disclosure and that the Director of Finance may refuse to make any disclosure referred to in this paragraph when in the Director’s opinion the public interest would suffer thereby;

5. the disclosure of the names and addresses of persons to whom registration certificates or sales tax and use tax permits have been issued;

6. the disclosure of such information as may be necessary to the City Council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of business, sales or use taxes, or submits an offer of compromise with regard to a claim for refund of business, sales or use taxes, or submits an offer of compromise with regard to a claim asserted against the taxpayer by the City for business, sales or use taxes, or where the existence or amount of business, sales, or use taxes are otherwise relevant to the determination of a matter required to be submitted to the City Council under the City of Los Angeles Charter, the Los Angeles Municipal Code, or the Los Angeles Administrative Code;

   7. the disclosure of information to, or the examination of records by, contractors or employees of contractors with whom the City of Los Angeles has contracted to assist the City of Los Angeles for the sole

   purpose of administering or enforcing any provision of this Article or Article 1.6, if the contract requires the persons granted access to such information or records to abide by the confidentiality requirements of this Section, and if the City Council has approved the award and execution of such contract;

   8. the disclosure of information to, or the examination of records by, purchasers of accounts receivable pursuant to Los Angeles Administrative Code section 5.186, or the disclosure to any employees of such

   purchasers of accounts receivable, if the purchase agreement requires the persons granted access to such information or records to abide by the confidentiality requirements of this Section;

   9. the disclosure of the identity of any particular taxpayer with delinquent business, sales, or use taxes and the type and amount of the delinquent business, sales, or use tax liability of that taxpayer, and the

   publication of such information at the discretion of the Office of Finance pursuant to Los Angeles Municipal Code section 21.15(m);

   10. the disclosure of information when compelled by an order of court or other judicial process; and

   11. the disclosure of statistical or cumulative information when the disclosure does not identify any particular taxpayer or reveal information in a manner that could identify a particular taxpayer.

(a) No registration certificate shall be issued, nor shall a suspended certificate be reinstated, to any person who, at the time of applying therefor, is indebted to the City of Los Angeles for any delinquent business, sales or use taxes, unless such person, with the consent of the Director of Finance, enters into an agreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not to exceed one year. (Amended by Ord. No. 160,389, Eff. 10/21/85.)

(b) Persons indebted to the City of Los Angeles for delinquent business, sales or use taxes may, with the consent of the Director of Finance enter into an agreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not to exceed one year.

(c) In any agreement so entered into, the person shall acknowledge the obligation owed to the City and agree that in the event of failure to make timely payment of any installment, the whole amount unpaid, together with accrued interest, shall become immediately due and payable; and that in the event legal action is brought by the City to enforce collection of any amount included in the agreement, the person will pay all costs of suit incurred by the City of Los Angeles, including a reasonable attorney’s fee. The execution of such a contract shall not prevent the accrual of interest on unpaid balances at the rate provided in Sec. 21.05. No penalties shall accrue on account of delinquency for taxes owed during the period covered by the contract after the execution of the contract and the payment of the first installment.

(d) Notwithstanding the provisions of Section 21.05, in any agreement entered between the effective date of this ordinance and September 30, 2021, no interest or penalty shall accrue, provided the person makes timely payments of all installments. Should the person fail to make a timely payment, interest and penalty shall accrue and be due under Section 21.05 as if no installment agreement had been entered. This subsection shall apply only to installment agreements entered under the authority of this section and shall not apply to any other installment agreement or payment agreement. (Added by Ord. No. 187,119, Eff. 8/7/21.)

(Amended by Ord. No. 180,358, Eff. 12/20/08.)

(a) Any tax required to be paid under the provisions of this article, shall be deemed a debt owed to the City. Any person engaging in a business required to obtain a registration certificate and pay a business tax who fails to obtain such certificate shall be liable from the date they became subject to the tax, but in no event shall such person be liable for a period greater than eight (8) years. Any person owing any tax under the provision of this article shall be liable in an action brought in the name of the City of Los Angeles in any court of competent jurisdiction for recovery of any such amount.

(b) An action to collect the business tax and any related penalty and interest must be commenced within three years of the date the business tax becomes delinquent. The statute of limitations on an action by the City to collect unpaid taxes is tolled while the City is unaware of the existence or ongoing activities of a business due to the taxpayer’s failure to obtain a registration certificate and pay a business tax. The statute of limitations is also tolled while an administrative appeal is pending.

The conviction of any person for engaging in business without obtaining a registration certificate, or for failure to pay any tax due under or otherwise comply with the provisions of this article or Article 1.5, shall not relieve the person from the obligation to pay any taxes that the person may owe the City, nor shall the payment of any taxes owed prevent a prosecution under appropriate provisions of the Municipal Code for any violation of the provisions of this article or Article 1.5. The remedies provided in this Code are cumulative. The use of one or more of the remedies prescribed in this article shall not bar the use of any other remedy provided for the enforcement of the provisions of this article or Article 1.5.

(Amended by Ord. No. 141,263, Eff. 12/21/70.)

If the Director of Finance finds that any amount of tax due or believed to be due under the provisions of this article or Article 1.5 cannot be collected, or that efforts to collect any such amount would be disproportionately costly with relation to the probable outcome of the collecting efforts, the Director of Finance may prepare a report setting forth the Director’s finding and the reasons therefor, and submit it to a Board of Review constituted as provided in Sec. 21.16 of this Code. Upon unanimous approval of a finding by the Board of Review, the Director of Finance may remove from the Director’s active accounts receivable any unpaid tax owing or believed to be owing. If the Board of Review does not unanimously approve the finding, the matter shall be returned to the Director of Finance. The removal from the active accounts receivable of the Director of Finance of any unpaid tax as provided herein shall not preclude the City from collecting or attempting to collect any such tax that later proves to be collectible.

(Amended by Ord. No. 149,522, Eff. 5/23/77.)

(a) The provisions of this article shall not be construed to require the payment of any business tax to operate or carry on the functions of any charitable or religious institution, organization or association organized for charitable or religious purposes and conducted solely for such purposes, nor the payment of any business tax to engage in teaching, preaching or otherwise disseminating any religious tenets or the beliefs of any religion; nor shall any business tax be required to be paid by any religious or other charitable association, including fraternal, educational, civic, military, state, county and municipal organizations and associations, for the conducting or staging of any theatrical, art, or sporting exhibition or similar event, or any dance, concert, or lecture, when the net proceeds derived from any of the same are not used for the purpose of private gain to any individual but are used wholly for the benefit of such organization or for charitable or benevolent purposes, nor shall a business tax be required to be paid by any credit union corporation. Such persons are entitled to receive tax exempt registration certificates upon application for and qualification as provided in this section.

(b) An independent contractor who for profit or gain undertakes to carry on any business or activity, for the conduct or operation of which a registration certificate and business tax is required by any section of this article, shall not be exempted from the registration and tax requirements of this Article because of the fact that the independent contractor has paid or agreed to pay or turn over to any charitable institution or organization a portion of the receipts of the business or activity as a reward or recompense for the sponsorship of the business or activity, or for any other reason, and such a contractor shall not be deemed to be acting for purposes entitling the contractor to a tax exempt registration certificate.

(c) 1. The Director of Finance shall, upon application, issue a tax exempt registration certificate to any credit union corporation upon being furnished with satisfactory evidence of its incorporation and operation as such.

2. Any applicant for a tax exempt registration certificate authorized in Subsection (a), other than a credit union corporation, shall make an application upon a form furnished by the Director of Finance. The application shall be forwarded to the Board of Police Commissioners which shall make or cause to be made such investigation of the applicant and the activity carried on or proposed to be carried on as may be necessary to determine whether or not the applicant and the activity for which a tax exempt registration certificate is applied for meet the requirements of Subsection (a) hereof, and that the proceeds of the activity, if any, are to be used for the purposes mentioned therein. The Board of Police Commissioners shall endorse its finding upon the application and return the same to the Director of Finance. If the finding is to the effect that the requirements of Subsection (a) are met, the Director of Finance shall then issue a tax exempt registration certificate provided the applicant has complied with all other applicable provisions of this Code; provided further, however, that when the activity to be engaged in is of the kind for which the applicant must file a Notice of Intention as provided in Article 4 of Chapter 4 of this Code, no tax exempt registration certificate shall be issued until such Notice of Intention has been filed and an Information Card issued to the applicant as provided in said Article 4 . The registration certificate so issued shall show on its face that it is tax exempt. If the finding of the Board of Police Commissioners is that the requirements of Subsection (a) hereof are not met, no registration certificate shall be issued without payment of the tax prescribed in the appropriate section of this article. (Amended by Ord. No. 173,283, Eff. 6/26/00, Oper. 7/1/00.)

(d) If at any time any activity listed in Subsection (a) as being entitled to the issuance of a tax exempt registration certificate is conducted in such a manner that, had it been disclosed in the application described in Subsection (c), would not have entitled the person carrying on the activity to a tax exempt registration certificate, or if the net proceeds derived from those activities named in Subsection (a) are not used for a purpose approved therein, any tax exempt registration certificate therefore issued shall be void and the full amount of the tax shall be due and payable.

(e) Subject to the provisions of Subsection (d) hereof, upon the Director of Finance’s issuance of a tax exempt registration certificate to a person, any tax, including any penalty or interest accrued thereon, owing by such person pursuant to any provision of this article for any period prior to such issuance by virtue of carrying on any activity described in Subsection (a) hereof in the manner prescribed therein which would have entitled such person to receive a tax exempt registration certificate shall be canceled as if it had never become due or owing, and, if paid, a refund thereof shall be made, subject to the provisions of Section 21.07 of this Code, as if it had been overpaid. (Added by Ord. No. 149,522, Eff. 5/23/77.)

Except where a repealing or amendatory ordinance specifically provides otherwise, the amendment or repeal of any portion of Article 1 or Article 1.5 shall not be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City of Los Angeles from any person under the provisions of said articles as they existed prior to such amendment or repeal. The rule of construction required by this section is declared to be in clarification and confirmation of the existing intent of said articles, and is not to be construed as applying solely to the effect of repealing or amendatory ordinances adopted subsequent to the effective date of this section.

(Repealed by Ord. No. 174, 272, Eff. 11/26/01.)

(Amended by Ord. No. 172,358, Eff. 1/31/99.)

(a) Minimum Business Tax. After payment of a minimum business tax of $25.00, the amount of business tax relief to a person engaged in business at a location in the business tax economic incentive area described in Subsection (j) but not excluded from such tax relief by Subsection (h) shall be an exemption from the next $500.00 in business tax liability.

(b) Time Period of Business Tax Relief. The business tax relief described in Subsection (a) of this section shall be for the tax period beginning on or after January 1, 1995 and ending on or before the termination of the City’s Empowerment Zone as established by the City Council by ordinance. The time period for business tax relief for census tracts that are added to the City’s business tax economic incentive area will commence on the effective date of the Ordinance adding the census tracts and cover the entire calendar year.

A person will only be entitled to the additional business tax relief provided for in Subsections (c), (d), (e), and (f) for up to a maximum period of five years.

(c) Additional Business Tax Relief for Existing Businesses Within the Business Tax Economic Incentive Area. Notwithstanding any other provision of this Code, for the tax years beginning on January 1, 1999 the annual business taxes paid starting in 1999 by any person for a business located within the business tax economic incentive area described in Subsection (j) on or after January 1, 1998, shall not exceed the business taxes paid by such person for the year ended December 31, 1998. Such additional relief shall be for a period of up to five years, as set forth in Subsection (b) above.

(d) Business Tax Relief for Existing Businesses Within the City Relocating into the Business Tax Economic Incentive Area. Notwithstanding any other provision of this Code, the annual business taxes paid during any taxable year by any person for a business (1) located within the City of Los Angeles but outside the business tax economic incentive area on or before December 31, 1998 and (2) which relocates its business activity within the business tax economic incentive area on or after January 1, 1999, shall not exceed the annual business taxes paid by such person during the tax year during which the business relocated into the business tax economic incentive area, subject to the relief provided in Subsection (a) above. Such additional relief shall be for a period of up to five years as set forth in Subsection (b) above.

(e) Business Tax Relief for Existing Businesses Outside the City Relocating Into the Business Tax Economic Incentive Area. Any person whose business was located outside the City of Los Angeles as of December 31, 1997 and which locates its business activity within the business tax economic incentive area on or after January 1, 1998, shall pay no business taxes other than the $25 minimum tax specified in Subsection (a) above for up to a five-year period as set forth in Subsection (b) above.

(f) Business Tax Relief for Newly Established Businesses Within the Business Tax Economic Incentive Area. Any person who starts a “newly established business” as defined in Section 21.00(c) of this Code within the business tax economic incentive area on or after January 1, 1998 shall pay no business taxes other than the $25 minimum business tax specified in Subsection (a) above for up to a five-year period as set forth in Subsection (b) above.

(g) Change of Ownership of Existing Businesses. New proprietors of pre-existing businesses located within the business tax economic incentive area shall not be eligible to receive the incentives set forth in

Subsection (e) and (f) above.

(h) Excluded Businesses. The business tax relief described in Subsections (a) through (f) of this section is available to all business tax classifications located within the business tax economic incentive area except that no business tax exemption, waiver, decrease or freeze shall be available to any person whose primary activity at a location is the sale of alcoholic beverages for off-premises consumption or the sale of guns and ammunition, or which is an “adult entertainment business” as defined in the Los Angeles Municipal Code Section 12.70 B.

(i) Conditions to Receive Tax Exemption. The Director of Finance shall determine that one of the following conditions applies to each person seeking business tax relief under Subsections (e) and (f) above unless application of said conditions is waived by the Mayor’s Office.

(1) The business pays all of its work force at a rate at least equal to the living wage as identified in the City’s Living Wage Ordinance in Los Angeles Administrative Code Section 10.37.

(2) The business provides goods or services that are urgently needed in the business tax economic incentive area.

(3) The business can show proof of a significant investment in its workforce (For example: job training, childcare, retirement or investment programs; health or life insurance programs).

(4) A newly established business in the business tax economic incentive area hires at least 50% of its workforce locally from the business tax economic incentive area, or the buffer zone.

The Mayor’s Office shall provide annual reports to the Community and Economic Development Committee of the Council of waivers granted and the justification for those waivers.

(j) Description of Business Tax Economic Incentive Area. The business tax economic incentive area shall lie within the boundaries of the federal Empowerment Zone except that the business license tax economic incentive area shall extend beyond the boundaries of the Empowerment Zone to include both sides of a street in which there is business activity where only one side of that street is included in the Empowerment Zone.

(1) The business tax economic incentive area consists of the area included within the following United States Census Tract numbers, as extended by this subsection where applicable:

1041.020, 1047.010, 2045.000, 2051.000, 2060.000, 2062.000, 2063.000, 2073.000, 2260.000, 2270.000, 2281.000, 2282.000, 2286.000, 2287.000, 2288.000, 2289.000, 2291.000, 2371.000, 2372.000, 2383,000, 2392.000. 2393.000, 2397.000, 2400.000, 2402.000, 2405.000, 2408.000, 2409.000, 2420.000, 2421.000, 2422.000, 2423.000, 2426.000, 2427.000, 2430.000, 2431.000

(2) The map set forth below illustrates the location of the United States Census Tracts listed in Paragraph (1) of this subsection that comprise the business tax economic incentive area. The boundaries of said business tax economic incentive area are extended as set forth in this subsection where applicable.

LOCATION OF UNITED STATES CENSUS TRACTS THAT COMPRISE BUSINESS TAX ECONOMIC INCENTIVE AREA (NOT ALL TRACTS PICTURED ARE LOCATED IN BUSINESS TAX ECONOMIC INCENTIVE AREA - SEE LAMC SEC. 21.26(j)(1))

Editor’s Note: The map referred to in this section is on file in the official City documents located in the Office of the City Clerk in Council File No. CF-97-0401-S1.

(3) The business tax economic incentive area is described in the table set forth below. The boundaries of said area are extended as set forth in this subsection where applicable.

BUSINESS TAX ECONOMIC INCENTIVE AREA FOR THE CITY OF LOS ANGELES

The table describes both part A and part B in a continuous loop. The loop starts southward by describing part A’s western half and going down to the Slauson and South Central Avenue intersection where part B begins. At the intersection the loop travels in a westwardly direction around part B. Eventually the loop travels back North to describe part A’s eastern half.

SECTION ONE FIRST HALF OF PART A

INTERSECTION OF N. BROADWAY AND THE LOS ANGELES RIVER

BEGINNING POINT DIRECTION ENDING LIMIT N. Broadway Southwest to College Street College Street East to N. Alameda N. Alameda South to Temple Street Temple Street West to San Pedro San Pedro South to E. 1st E. 1st West to Los Angeles Street Los Angeles Street South to 2nd Street 2nd Street West to S. Hill S. Hill South to 9th Street 9th Street East to Maple Ave. Maple Ave. South to E. 21st Street E. 21st Street East to Central Ave. Central Ave. South to 42nd Street 42nd Street West to Avalon Avalon South to E. 48th Street E. 48th Street East to McKinley Ave. North to McKinley Ave. E. 48th Street & back up E. 48th Street East to Central Ave. Central Ave. South to Slauson Ave.

BEGINNING OF PART B OF SECTION ONE

INTERSECTION OF CENTRAL AVE. & SLAUSON AVE.

BEGINNING POINT DIRECTION ENDING LIMIT Slauson Ave. West to Van Ness Ave. Van Ness Ave. South to 62nd Street 62nd Street East to S. Broadway Ave. S. Broadway South to Florence Ave. Florence Ave. East to S. Central Ave. S. Central Ave. North to X-section Slauson Ave.

SECOND HALF OF PART A SECTION ONE INTERSECTION OF S. CENTRAL & SLAUSON

BEGINNING POINT DIRECTION ENDING LIMIT Slauson Ave. East to S. Alameda S. Alameda North to E. 25th Street Southern City Limits With E. 25th Street East to & following Vernon Southern City Limits with Vernon Follow to Spence Street Spence Street North to E. 8th Street E. 8th Street Northwest to Soto Street Soto Street North to Santa Monica FWY. Santa Monica FWY. West to S. Boyle Ave. S. Boyle Ave. North to Golden State FWY. Golden State FWY. North to E. 4th Street E. 4th Street West to N. State Street N. State Street North to E. 1st Street E. 1st Street West to Los Angeles River Los Angeles River North to N. Broadway

END OF SECTION ONE (PARTS A&B)

SECTION TWO

INTERSECTION OF S. CENTRAL AVE. & E. MANCHESTER

BEGINNING POINT DIRECTION ENDING LIMIT E. Manchester West to San Pedro Street San Pedro Street North to E. 79th Street E. 79th Street West to S. Vermont Ave. S. Vermont Ave. South to Manchester Ave. Manchester Ave. East to Figueroa Figueroa South to 104th Street 104th Street East to Wall Street Wall Street North to 93rd Street 93rd Street East to E. City Limits with Walnut Park Intersection of Manchester & S. E. City Limits with Walnut Park North to Central Avenues

END OF SECTION TWO

SECTION THREE

INTERSECTION OF 104TH & SAN PEDRO STREET

BEGINNING POINT DIRECTION ENDING LIMIT San Pedro St. South to Imperial Hwy Imperial Hwy East to Wadsworth & E. 114th 114th St. East to S. Central Ave S. Central Ave South to Imperial Hwy E. City/County Limits at Mona Imperial Hwy. East to Blvd. E. City/County Limits at Mona North to 92nd Street Blvd. 92nd Street West to Maine St. Maine St. North E. 91st Street E. 91st Street West to Compton Compton South to E. 92nd Street E. 92nd Street West to Success Street Success Street South to E. 103rd Street E. 103rd Street West to S. Central Ave S. Central Ave South to E. 104th Street E. 104th Street West to X-section San Pedro

END OF SECTION THREE

SECTION FOUR

INTERSECTION OF THE VAN NUYS BLVD. & THE FOOTHILL FWY.

BEGINNING POINT DIRECTION ENDING LIMIT Van Nuys Blvd. Southwest to San Fernando Rd. San Fernando Rd. Southeast to Pierce Street Pierce Street Northeast to Glenoaks Blvd. Glenoaks Blvd. Southeast to Osborne Street Osborne Street North to West side of the Hansen Dam West side of the Hansen Dam Follow East to the Rancho Tujunga Rancho Ex Mission DE San Fernando line

Rancho Tujunga Rancho Ex North to Foothill FWY. Mission DE San Fernando line Foothill FWY. West to X-section Van Nuys Blvd.

END OF SECTION FOUR

(k) Administration. The business tax economic incentive program shall be administered by the Director of Finance who shall notify all known persons engaged in business at a location in the business tax economic incentive area of the program.

(l) Business Tax Forms. It shall be the responsibility of each person engaged in business to compare its activity to the tax relief provided by this section and complete its business tax forms accordingly.

(m) Annual Report to the Mayor and Council by Director of the Office of Administrative and Research Services. The Director of the Office of Administrative and Research Services shall report annually on the measurable costs and benefits of the Business Tax Economic Incentive program. (Amended by Ord. No. 173,304, Eff. 6/30/00, Oper. 7/1/00.)

(Added by Ord. No. 170,798, Eff. 1/21/96, Oper. 1/1/96.)

(a) For every person engaged in an entertainment or multimedia business, which business is located in either the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area, the total tax due under Sections 21.79, 21.109, 21.166, 21.167, 21.189.2, 21.189.4, 21.190 and 21.192 of this article at each such business shall not exceed $25,000.00 plus 10 percent of the amount of tax in excess of $25,000.00 that would otherwise be due. (Amended by Ord. No. 171,521, Eff. 3/27/97, Oper. 1/1/97.)

(b) The “Hollywood Redevelopment Area” is the area established by Ordinance No. 161,202 of the City of Los Angeles, adopted on May 7, 1986. The “North Hollywood Redevelopment Area” is the area established by Ordinance No. 152,030 of the City of Los Angeles, adopted on February 21, 1979.

(c) For the purposes of this section, the following definitions shall apply:

1. An “Entertainment Business” shall mean a business which has as its primary purpose the development, production, post-production, distribution, licensing, or marketing of motion pictures, television

programming, video or audio recordings, video graphic images, and/or animation.

2. (Amended by Ord. No. 171,521, Eff. 3/27/97, Oper. 1/1/97.) A “Multimedia Business” shall mean a business that primarily:

   i. Produces films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media, which media include, without limitation, computer generated

   graphics and video, film, slides, video tapes, audio tapes and photographs;

   ii. Provides computer programming services on a contract or fee basis to the producer of films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or

more media, which media include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs, such services to include computer software design and analysis, modification of custom software, digital imaging and other related programming services; and

iii. Develops online and internet services, including the design of WEB sites, for clients.

(d) The terms “entertainment business” and “multimedia business,” as used in this section, shall not include any “adult entertainment business,” as defined in Section 12.70 B. of this Code.

(e) The provisions of this section shall apply only to businesses that generate more than 50% of their gross receipts from entertainment and/or multimedia business activities.

(f) The provisions of this section shall not become operative prior to January 1, 1997, except that they shall become operative upon the commencement of operations for businesses which commence operations in the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area on or after January 1, 1996.

(g) If either the Hollywood Redevelopment Area or the North Hollywood Redevelopment Area, or both, shall become dissolved, the provisions of this section shall not apply thereafter to businesses located within what had been the boundaries of the dissolved area.

(Repealed by Ord. No. 176,326, Eff. 1/16/05, Oper. 1/1/05.)

(Amended by Ord. No. 176,342, Eff. 1/19/05, Oper. 7/1/05.)

(a) Small Business. No tax is required to be paid under this Article by any Small Business. A Small Business shall mean any person whose total taxable and nontaxable gross receipts from within and without the City do not exceed $50,000.00. The $50,000.00 amount shall be increased to $100,000.00 on July 1, 2006.

(b) Creative Artist. No tax is required to be paid by a person under this Article for gross receipts attributable to “Creative Activities”, earned when that person is engaged in business as a “Creative Artist”, unless the total taxable and nontaxable gross receipts from within and without the City which are attributable to “Creative Activities” exceed $300,000.00 annually.

For purposes of this exemption, a “Creative Artist” shall mean only a person who operates either (1) as an individual, (2) through a corporation with one individual as the only shareholder and the only employee (commonly referred to as a “loan-out”), or (3) through a limited liability company with one individual as the only member and the only employee. “Creative Activities” shall mean activities described herein. Gross receipts from Creative Activities shall not include any gross receipts received by a Creative Artist from activities that are not Creative Activities (for example, public appearances or product endorsements, or teaching as opposed to performing). Such other receipts shall not be exempt under this subsection, and shall be taxable as otherwise provided in this Article. In implementing the intent of this subsection, the Director of Finance shall consider that Creative Activities are distinct from a craft, and that this exemption applies to Creative Artists for their Creative Activities but not to craft persons. References to “multi-media” are to be interpreted as defined in subsection (b) of Section 21.189.4.

Eligibility for the small business exemption provided in subsection (a), above, shall be based on total taxable and non-taxable gross receipts from within and without the City, including receipts for Creative Activities.

Creative Activities shall mean activities performed by Creative Artists primarily for entertainment and/or aesthetic purposes, including assistants or professional trainees performing those same Creative Activities, in the following professions:

1. The following professions to the extent they are directly involved with motion picture, radio or television productions, commercials, multi-media or recorded or live music or theater:

   • Actor or announcer; or

   • Art director, costume designer, production designer, scenery or set designer; or

   • Choreographer; or

   • Cinematographer; or

   • Conductor of bands, chorales, orchestras, and other musical groups; or

   • Director; or

   • Motion picture editor, sound dubbing, special effects, or titling artist; or

• Writer (where the writing is the writer’s own creative work, but not writing that is compilation, documentation or description of a non-artistic nature, such as technical writing, the writing of technical or scientific reports, etc.); or - Music or lyrics arranger, composer or writer; or 2. Author of books, essays, poems or short stories; or 3. Cartoon artist, including animated media; or 4. Creator of visual fine arts, using artist’s materials (i.e., lithographer, painter, sculptor, or the equivalent); or 5. Drawing, graphic, illustration or sketch artist; or 6. Performing artist, including comedian, dancer, impersonator, juggler, magician, mime, musician, or singer; or 7. Photographer, to the extent the photography is primarily artistic in nature and not primarily journalistic or commercial.

(c) Any person exempt from tax under Subsections (a) or (b) shall be required to timely file for registration and subsequent renewals before the delinquency date. The failure to timely file or renew prior to the date the taxes would otherwise have been delinquent pursuant to Section 21.05 of this Article, shall render inapplicable the exemption provided in Subsections (a) and/or (b) and subject the person to the tax that would otherwise be payable and to any interest and penalty applicable thereto.

(Amended by Ord. No. 175,029*, Eff. 2/5/03, Oper. 2/1/03.)

(a) (Amended by Ord. No. 182,275, Eff. 11/20/12.) A business that establishes a new fixed location within the City and is not owned, in whole or in part, by a person that was engaged in business in an existing fixed location in the City in the immediately preceding tax year, is a “New Business” that shall be exempt from the applicable minimum tax for its first tax year of operation. This business shall also be exempt from any other tax imposed under this Article for up to its first two tax years of operation, or its first three tax years of operation if the business first commenced operations between January 1, 2010, and December 31, 2015, as follows:

1. For its first two tax years of operation, a New Business that has less than $500,000.00 of total taxable yearly gross receipts shall be exempt from any additional tax imposed pursuant to this article for any tax

year in which it has less than $500,000 in total taxable gross receipts. However, if a New Business first commences operations between January 1, 2010, and December 31, 2015, a New Business shall be exempt from any minimum or additional tax imposed pursuant to this Article for its first three tax years of operation, regardless of how much tax would be imposed absent this exemption. A business qualifying for exemption under this subdivision for its first tax year of operation shall also be exempt from the applicable minimum tax for its second tax year of operation, or its second and third tax years of operation if it first commences operations between January 1, 2010, and December 31, 2015.

(i) The exemption for tax in the second tax year of business operation is extended to December 31, 2017. The exemptions for tax for the second and third tax years of business operations are subject to

review and may result in a suspension under any of the following circumstances as determined by the Council, subject to the approval of the Mayor:

(A) The City experiences a major natural or human-made disaster including, but not limited to, earthquakes, fires, or terrorist incident, for which the response and recovery require expenditure of more than one percent of General Fund revenues (i.e., $40,000,000 in 2006-07); or

(B) An economic downturn resulting in a greater than one percent overall actual decline in all General Fund revenue for the fiscal year ended June 30th of that year (i.e., $40,000,000 in 2006-07); or

(C) The City is legislatively, legally or otherwise precluded from levying and collecting General Fund revenue that results in a greater than one percent total decline in budgeted General Fund

revenue for the fiscal year (i.e., $40,000,000 in 2006-07); or

(D) The City receives a legal judgment for which either an option for legal appeal does not exist, or the City Council and Mayor decline to pursue that legal appeal, and the judgment exceeds ten percent of the Reserve Fund (i.e., $18,500,000 in 2006-07); or

(E) There is a non-discretionary occurrence requiring expenditure of funds from the Emergency Reserve Account of the Reserve Fund.

(ii) To implement a suspension of the exemption in a given calendar year, action by the Council, subject to the approval of the Mayor, must be made by September 30th of the preceding calendar year.

(iii) The exemption period shall be in effect for ten years unless the Council takes one of the following actions: (a) before September 30th of the fifth year the Council takes an affirmative action not to

extend the exemption period for a second consecutive five year period; or (b) prior to September 30th of the tenth year of the exemption period, the Council extends the exemption period beyond ten years.

A suspension of the tax exemption will result in an equivalent period being added to the original ten-year exemption period, or five-year exemption period if the Council takes action not to extend the exemption period for the second five-year period. This would result in the sunset clause of the ordinance expiring at the end of ten years, or the number of years the exemption was in effect plus any suspension period, whichever is greater, but in no event would the actual number of years of second year tax exemption exceed ten, unless the Council takes an affirmative action to extend the exemption period beyond ten years, or if the council takes an action not to extend the exemption period for a second five-year period, the sunset clause of the ordinance would expire at the end of the fifth year, or the number of years the exemption was in effect plus any suspension period, whichever is greater, but in no event would the actual number of years of second year tax exemption exceed five.

(iv) Reinstatement of the tax exemption shall require approval of the Council, subject to the approval of the Mayor.

2. A new business shall not include a construction business involved in the following activities: single-family housing construction (as defined by the 1997 NAICS Industry Code 233210); multi-family housing construction (as defined by the 1997 NAICS Industry Code 233220); manufacturing and industrial building construction (as defined by the 1997 NAICS Industry Code 233310); commercial and institutional building construction (as defined by the 1997 NAICS Industry Code 233320); highway and street construction (as defined by the 1997 NAICS Industry Code 234110); bridge and tunnel construction (as defined by the 1997 NAICS Industry Code 234120); water, sewer and pipeline construction (as defined by the 1997 NAICS Industry Code 234910); power and communication transmission line construction (as defined by the 1997 NAICS Industry Code 234920); plumbing, heating, and air-conditioning contractors (as defined by the 1997 NAICS Industry Code 235110); painting and wall covering contractors (as defined by the 1997 NAICS Industry Code 235210); electrical contractors (as defined by the 1997 NAICS Industry Code 235310); masonry and stone contractors (as defined by the 1997 NAICS Industry Code 235410); drywall, plastering, acoustical, and insulation contractors (as defined by the 1997 NAICS Industry Code 235420); carpentry contractors (as defined by the 1997 NAICS Industry Code 235510); floor laying and other floor contractors (as defined by the 1997 NAICS Industry Code 235520); roofing, siding and sheet metal contractors (as defined by the 1997 NAICS Industry Code 235610); water well drilling contractors (as defined by the 1997 NAICS Industry Code 235810); structural steel erection contractors (as defined by the 1997 NAICS Industry Code 235910); glass and glazing contractors (as defined by the 1997 NAICS Industry Code 235920); excavation contractors (as defined by the 1997 NAICS Industry code 235930); security systems services (except locksmiths) (as defined by the NAICS Industry Code 561621); or a film producer (as defined in Section 21.109 of this Code or the applicable industry code).

   (b) Any new business that is exempt from tax under Subsection (a) above shall be required to obtain a Tax Registration Certificate and an exemption letter from the Director of Finance. Failure to obtain these documents prior to the taxes becoming delinquent pursuant to Section 21.05 of this Code, shall render inapplicable the exemption provided in Subsection (a) and subject the business to the tax that would otherwise be payable and to any interest and penalty applicable pursuant to Section 21.05 of this Code.

   • Section 3 of Ord. No. 175,029 provides that “[t]his section is repealed effective December 31, 2006.”

(Added by Ord. No. 174,083, Eff. 8/19/01, Oper. 1/1/02.)

(a) There shall be a Settlement Bureau in the City Attorney’s office, which shall be staffed by one or more representatives of the City Attorney. The purpose of the Settlement Bureau shall be to receive and respond to offers of settlement from persons who have been assessed or otherwise billed for delinquent taxes, or who have filed claims for refund of overpaid taxes which have been denied in whole or in part, under this article or Articles 1.1, 1.3, 1.7, 1.11 or 1.15 of this chapter. The tender of an offer of settlement shall not constitute any part of the offeror’s administrative remedy process. The amount of any unaccepted offer or counteroffer of settlement shall not be disclosed by the Settlement Bureau staff to any person outside of the Settlement Bureau, whether within or without the City Attorney’s office, except as may be necessary to obtain approval of a provisionally accepted settlement, as provided in subsection (c) hereof.

(b) Any person may tender to the Settlement Bureau an offer of settlement of a claim by or against the City, described in subsection (a) hereof, prior to the commencement of litigation on the merits of said claim. Each such offer shall be in writing and contain the amount the offeror proposes to pay to or receive from the City and the factual and legal grounds in support of the offer. In response to any offer or counteroffer of settlement, the Settlement Bureau, on behalf of the City, shall accept it, reject it or make a counteroffer. The terms of any settlement between the offeror and the City shall be set forth in a written agreement executed on behalf of both parties. The tender or pendency of an offer of settlement in the Settlement Bureau shall not affect the timing or disposition of any administrative proceeding under Section 21.16 of this article. Upon execution of a written settlement agreement on behalf of both parties, any pending administrative proceeding on a claim which is the subject of the settlement shall terminate. Upon the commencement of litigation by or against the City on the merits of a claim which is the subject of a pending settlement offer or counteroffer, said pending offer or counteroffer shall be deemed rejected.

(c) Any settlement offer or counteroffer accepted by the Settlement Bureau, which requires the approval of a person or entity, other than the City Attorney, pursuant to Charter Section 273 or Los Angeles Administrative Code Sections 5.173 or 5.175, shall be accepted provisionally on behalf of the City, subject to obtaining such other required approval.

(Added by Ord. No. 174,088, Eff. 8/19/01.)

(a) Reward Program. The Director of Finance is authorized to pay such sums as the Director deems necessary for detecting nonpayments and underpayments of City of Los Angeles business tax. Any amount payable under this section shall be paid from the proceeds of the amount collected as a result of the information provided.

(b) Eligibility to File Claim for Reward. Any person, other than certain present or former City of Los Angeles employees, who submits to the Office of Finance information relating to the nonpayment or

underpayment of business tax is eligible to file a claim for reward under this section. No person who was employed by the City of Los Angeles in the Office of Finance, at the time the person came into possession of information relating to the nonpayment or underpayment of business tax, or at the time the person submitted such information to the Office of Finance, shall be eligible for reward under this section. Any other City officer or employee, or former City officer or employee, is eligible to file a claim for reward if the information submitted to the Office of Finance came to the officer’s or employee’s knowledge other than in the course of the officer’s or employee’s official duties.

(c) Submission of Information and Filing Claim for Reward. Any person desiring to claim a reward under this section must submit information relating to the nonpayment or underpayment of business tax to the Office of Finance on a form furnished by, and in the manner prescribed by, the Director of Finance. As early as the time of such submission of information, but no later than one year after the City’s recovery of unpaid or underpaid business tax pursuant to the submitted information, the person must file a claim for reward with the City Clerk on a form furnished by, and in the manner prescribed by, the Director of Finance.

(d) Payment of Reward. All relevant factors, including the value of the information furnished in relation to the facts developed by the investigation of the nonpayment or underpayment, shall be taken into account by the Director of Finance in determining whether a reward shall be paid, and if so, the amount thereof. Reasons for rejecting a claim for reward include, but are not limited to:

(1) the information submitted by the informant was of no value;

(2) the information submitted by the informant was already known to the City; and

(3) payment would be contrary to law.

(e) Amount of Reward. The amount of a reward shall represent what the Director of Finance deems to be adequate compensation in the particular case, not to exceed 10 percent of the additional taxes, interest and penalties which are recovered as a result of the information. No reward shall be paid if the Director of Finance determines that the recovery was so small as to call for a reward of less than $50.00. Payment of a reward will be made as promptly as the circumstances of the case permit, but not until the taxes, interest and penalties involved have been collected. However, the informant may waive any claim for reward with respect to an uncollected portion of the taxes, interest and penalties, in which case the claim may be immediately processed. Only a duly authorized representative of the Director of Finance is authorized to make any offer or promise, or statement otherwise purporting to bind the Director of Finance with respect to the payment of any reward or the amount thereof, and any such offer, promise or statement must be in writing.

(f) Protest by Informant Against Action on Claim. If an informant protests the action taken on the claim, the Director of Finance or the Director’s representative may confer with the informant or the Director’s

representative to resolve the protest. In the course of such conferring, the Director or the Director’s representative may disclose the amount collected pursuant to the information furnished by the informant, notwithstanding the provisions of Section 21.17 of this article. However, the results of any audit or examination shall not be revealed to the informant or the informant’s representative in violation of Section 21.17 of this article.

(g) Anonymity of Informant. In order to fairly distribute the burden of taxation among the subjects thereof, it is the policy of the City of Los Angeles to encourage informants to submit information concerning unpaid and underpaid business taxes. In furtherance of this policy, no person shall disclose the identity of an informant to any unauthorized person, except to the extent required by law. If other than the informant’s true name is used in furnishing the information, the claimant must include with their claim satisfactory proof of the claimant’s identity as the informant.

(Added by Ord. No. 178,101, Eff. 1/9/07.)

Unless specifically listed under other areas of this article, the annual tax rates are as follows:

(a) Tax Rate A shall be $1.05 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(b) Tax Rate B shall be $1.32 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(c) Tax Rate C shall be $2.65 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(d) Tax Rate D shall be $3.28 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(e) Tax Rate E shall be $3.70 for each $1,000 of gross receipts or fractional part. (Amended by Ord. No. 179,171, Eff. 10/8/07.)

(f) Tax Rate F shall be $5.07 for each $1,000 of gross receipts or fractional part. For tax years beginning after December 31, 2015, the rate shall be reduced from this maximum rate as follows: (Amended by

Ord. No. 183,419, Eff. 3/20/15.)

1. For the tax year beginning on January 1, 2016, Tax Rate F shall be $4.75 for each $1,000 of gross receipts or fractional part;

2. For the tax year beginning on January 1, 2017, Tax Rate F shall be $4.50 for each $1,000 of gross receipts or fractional part;

3. For tax years beginning after December 31, 2017, Tax Rate F shall be $4.25 for each $1,000 of gross receipts or fractional part.

(Amended by Ord. No. 183,419, Eff. 3/20/15.)

For every person engaged in business as a Child Care Provider, Multimedia Business, Internet-based Application Service Provider, Internet-based Data Manipulation Businesses, Telephone Company, or Tugboat and/or Barge Operator, or engaged in Wholesale Sales, Tax Rate A, set forth in Section 21.33(a), shall be applicable.

(a) CHILD CARE PROVIDERS.

1. A child care provider means providing non-medical care for children under 18 years of age in need of personal services, supervision or assistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis.

2. As used in this section, the term “gross receipts” does not include receipts earned by:

   (i) Community chests, funds, foundations and/or corporations: (A) that are organized and operated for religious, hospital or charitable purposes; (B) that are not conducted for profit; and (C) for

which no part of the organization’s net earnings inures to the benefit of any private shareholder or individual;

(ii) Non-profit secondary schools which are duly accredited by the University of California;

(iii) Non-profit elementary schools in which instruction is given to students in the pre-primary and primary grades in the several branches of studies required to be taught in the public schools of

the State of California;

(iv) Rotary, Kiwanis and Lions Clubs;

(v) Non-profit automobile clubs, chambers of commerce, and other community service organizations; and

(vi) Trade associations such as the Merchants Plumbers Association, Merchants and Manufacturers Association, and labor organizations.

(b) MULTIMEDIA BUSINESSES.

1. A multimedia business means a business that produces films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media, which media

include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs or provides computer programming services on a contract or fee basis to the producer of these media. These services shall include computer software design and analysis, modification of custom software, digital imaging and other related programming services, the development of online and internet services and the design of web sites for clients.

2. A multimedia business shall not include: a business that utilizes multimedia to sell goods or further its business; motion picture, television or radio producers; radio or television broadcasters; or an

adult entertainment business, as defined in Section 12.70 B. of this Code.

(c) INTERNET-BASED APPLICATION SERVICE PROVIDERS.

1. An internet-based application service provider (ASP) means a business that provides its customers access, exclusively through the internet, to electronic applications that are available exclusively on computer devices operated by or on behalf of the ASP. An “electronic application” is a computer program that provides the user with the ability to accomplish a specific task. An ASP shall not include a business that provides electronic applications, including but not limited to computer software, for customers to download through the internet. A business does not qualify as an ASP unless its internet-based electronic application provides information to the user directly without any substantial intermediation by any person except for technical support related to the use of the electronic application. An ASP shall not include a business that sells electronic applications through the internet, or any business that obtains its income from the use of its electronic applications by itself, on its behalf, or by any related entity as defined in section 21.00(a). 2. An ASP business shall not include: a business that utilizes an application to sell goods or further its business; motion picture, television or radio producers; telephone companies; radio or television broadcasters; or an adult entertainment business as defined in Section 12.70 B. of this Code. 3. The ASP business tax classification shall apply only for the 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 tax years unless the Council acts by ordinance to amend this Section and extend the length of time for which this classification shall apply. (d) INTERNET-BASED DATA MANIPULATION. 1. An internet-based data manipulation business means a business that exclusively provides access to internet-based applications that allow a user to search, compile, and otherwise manipulate data,

including but not limited to a business that operates or provides access to one or several “search engines”. A “search engine” is an internet-based application that retrieves documents or files or data from the internet, a computer network, a database, or other data sources. “Data” includes visual, numerical, and written information. A business does not qualify as an Internet-based Data Manipulation Business unless its internet-based application provides information to the user directly without any substantial intermediation by any person except for technical support related solely to the use of the internet-based application.

2. An internet-based data manipulation business shall not include: a business that utilizes internet-based data manipulation to sell goods or further its business; motion picture, television or radio

producers; telephone companies; radio or television broadcasters; or an adult entertainment business as defined in Section 12.70 B. of this Code.

3. The internet-based data manipulation business tax classification shall apply only for the 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018 tax years unless the Council acts by ordinance to amend this Section and extend the length of time for which this classification shall apply. (e) TELEPHONE COMPANIES. 1. A person engaged in the business of providing telephone services means a telephone company as the term is used in Article XIII, Section 19 of the Constitution of California. 2. For the purpose of this section, “gross receipts” shall have the same meaning as in Subsection (a) of Section 21.00, except that only those receipts derived from providing telephone services within the City of Los Angeles shall be included, and further excepting, that only receipts resulting from intrastate telephone services shall be included. “Gross receipts” shall also include receipts from the selling of advertising or advertising space in any directory, other printed matter or any other media only for business tax purposes commencing on or after January 1, 1984. (f) TUGBOAT AND BARGE OPERATORS. Tugboat and barge operator means any person engaged in the business of operating a tugboat or barge. (g) WHOLESALE SALES. A wholesale sale or sale at wholesale means a sale of goods, wares or merchandise for the purpose of resale in the regular course of business; provided that a blind person, within the meaning of this section, need not include the first $100,000.00 of gross receipts in the computation of the amount of tax due. This exemption shall not subject these persons to the provisions of Section 21.49, Professions and Occupations, of this article.

   (1) A blind person, within the meaning of this section, means a person having not more than ten percent visual acuity in the better eye, with correction as certified by a licensed physician and surgeon who

   specialize in diseases of the eye or the Bureau of Vocational Rehabilitation of the Department of Education of the State of California. The exemption provided by this section shall not apply until a certificate as to the blindness shall be furnished to the Director of Finance.

   (2) No tax under this article shall be required to be paid by any non-profit wholly owned retailer food cooperative by reason of its sales to its owner-members.

   (3) For the purpose of this section, newspapers, magazines, periodicals, books and other printed matter is deemed to be included in the term “goods, wares or merchandise” and the term “gross receipts”

   means California receipts from the selling or furnishing of advertising or advertising space in printed matter in addition to California receipts from the sale of goods, wares or merchandise. The provisions of this subsection shall apply only to business tax periods commencing on or after January 1, 1984.

(Repealed by Ord. No. 183,419, Eff. 3/20/15.)

(Tile and Section Amended by Ord. No. 183,419, Eff. 3/20/15.)

For every person engaged in business: as an Antique Show or Collectors Exchange Show Promoter; as a Swap Meet Operator; in the Rental of Accommodations or Residences; in the Rental of Office, Commercial Buildings, etc.; in Retail Sales; in the Laundry, Cleaning or Service, or Shoe Repair field; as a Radio or Television Broadcaster; or as a Theater Operator; Tax Rate B, as set forth on Section 21.33(b), shall be applicable.

(a) ANTIQUE SHOW AND COLLECTORS EXCHANGE SHOW PROMOTER.

1. Antique show, collectors, exchange show, antique show or collectors exchange show promoter and antique show or collectors exchange show exhibitor shall be as defined in Article 3, Division 9,

Section 103.301.1 of this Code.

2. In addition to the tax stated here, there is an additional $0.59 per space for each show space rented for each day of show operation. The portion of the tax measured by space rentals shall be paid to the

Director of Finance on a monthly basis, and shall be delinquent if not paid within the calendar month following the month during which the tax is accrued, notwithstanding any other provision of this article. If the promoter of the antique show or collectors exchange show is an organization otherwise exempted from the payment of taxes under this chapter, it shall be required, notwithstanding any other provision of this article, to obtain a business tax registration certificate and pay to the Director of Finance the above noted space rental taxes. The promoter must pass the space rental tax on to the antique show or collectors exchange show exhibitor and the reimbursement shall not be included in the promoter’s gross receipts under this section.

3. For the purpose of taxation of antique shows and collectors exchange shows, the definitions contained under Rental of Office, Commercial Buildings, etc., in this section shall apply, except that the

definition of “tenant” and “tenancy” shall include land or space on land, and is not limited to the occupation of a building or structure or space.

4. No registration certificate shall be required or a tax paid by any person engaged in one or more of the businesses described in this section, unless the total gross receipts derived from being so engaged

are equal to or in excess of $20,000.00 per calendar year.

(b) SWAP MEET OPERATOR.

1. A swap meet operator is defined in Article 3, Division 9, Section 103.311 of the Los Angeles Municipal Code.

2. In addition to the tax stated here, there is an additional $.059 per space for each swap meet space rented for each day of swap meet operation. The portion of the tax measured by space rentals shall be paid to the Director of Finance on a monthly basis and shall be delinquent if not paid within the calendar month following the month during which the tax is accrued, notwithstanding any other provision of this article. If the operator of the swap meet is an organization otherwise exempted from the payment of taxes under this chapter, it shall be required, notwithstanding any other provision of this article, to obtain a business tax registration certificate and pay to the Director of Finance the above noted space rental taxes. The swap meet operator may pass the space rental tax on to the swap meet vendor and the reimbursement shall not be included in the swap meet operator’s gross receipts for purposes of this section. 3. For the purpose of taxation of swap meets, the definitions contained under Rental of Office, Commercial Buildings, etc., in this section shall apply, except that the definition of “tenant” and “tenancy” shall include land or space on land, and is not limited to the occupation of a building or structure or space. 4. No registration certificate shall be required or a tax paid by any person engaged in one or more of the businesses described in this section, unless the total gross receipts derived from being so engaged are equal to or in excess of $20,000.00 per calendar year. (c) RENTING ACCOMMODATIONS OR RESIDENTIAL RENTALS. 1. Renting accommodations or residential rentals means every person engaged in the business of conducting or operating a hotel, rooming house, boarding house, apartment house, lodging house, house court or bungalow court, and every person engaged in the business of renting or letting rooms, apartments or other accommodations for dwelling, sleeping or lodging in any similar place, and every person engaged in the business of operating any public camp, or trailer camp, park or lot where the public may rent camping, trailer or tent space, or services provided or available in connection with that space. 2. Notwithstanding the provisions of Section 21.06 to the contrary, a person required by this section to pay a tax need obtain only one registration certificate by reason of that requirement; but the person shall include in the measure of the tax the gross receipts derived from all businesses taxed by this section engaged in by the person within the City of Los Angeles, whether at one or more than one location. At the time the tax provided here is remitted, the Director of Finance may require the registrant to furnish a statement of the number of these businesses conducted by the registrant, giving the street address of each location, the amount of gross receipts attributable to each location, and designating a location at which the registration certificate issued shall be posted as provided in Section 21.09. The location so designated shall be considered the location of the business for the purpose of Section 21.08. 3. The Director of Finance may require a person engaged in any business taxed by this section to furnish information necessary in order for the Director of Finance to determine the nature of the ownership of the business, and the amount of interest that parties to the ownership of the business claim or possess. Where the Director of Finance determines that the parties claiming or possessing an ownership interest in two or more businesses taxed by this section, one or more of which produces less than $20,000.00 in gross receipts in a particular calendar year, are substantially the same, the Director of Finance may require that the receipts of all these businesses be used as the measure of any tax that may be due, and issue a registration certificate and the identifying symbols as may be required in the manner prescribed in Subsection (c)2. Notice of the determinations made by the Director of Finance shall be served on the persons or parties affected by the Director’s determination in the same manner as notices of assessment are served under the provisions of Section 21.16. Any person or party affected by the determination of the Director of Finance may protest the determination by making written application for a hearing within ten days after the mailing or serving of the notice of the Director of Finance’s determination. Within 15 days after receiving a request for a hearing, the Director of Finance shall cause the matter to be set for hearing before a board constituted as provided in Section 21.16. The Board shall consider the evidence, make findings, serve a copy of the findings, and receive and consider any exceptions that may be filed, and make any modification of its findings it may deem necessary. Once the Board completes those steps, the findings of the board shall be considered final. 4. No tax under this section shall be required to be paid by any cooperative housing corporation by reason of its renting or letting to its tenant-stockholders. 5. No registration certificate shall be required or a tax paid by any person engaged in one or more of the businesses described in this section, unless the total gross receipts derived from being so engaged are equal to or in excess of $20,000.00 per calendar year.

(d) RENTAL OF OFFICE, COMMERCIAL BUILDINGS, ETC.

1. Commercial Rental means renting or letting a building or structure of any kind on land located in the City of Los Angeles to a tenant for purposes other than dwelling, sleeping or lodging, or renting or letting space or the use or possession of space, or the right to use or possess space in a building or structure to a tenant for those purposes, and for every lessor engaged in the business of renting or letting boat slips or moorings. Tenant and tenancy shall include tenants and tenancies of all types, and persons occupying and the occupation of a building or structure, or space in a building or structure under any license or any concession agreement with a lessor. The right to use or possess the space shall be deemed to be the same as actual occupation. 2. The foregoing definition includes renting and letting of every kind and character, whether by an owner, lessee or sublessee, and licensing, and the granting of a concession by any of them, without regard to the length of the term of the tenancy, the date of its commencement, expiration or renewal, without regard to the number of tenants a lessor may have, or the number of buildings or structures, or the quantity of space in the buildings or structures, or the number of boat slips or moorings a lessor may have available for renting or letting to a tenant. It shall not fail to be a commercial rental by reason of the fact that one or more persons may reside within the building or structure where either the primary purpose of the particular tenancy or the primary use or right of use by the particular tenant is for some purpose other than dwelling, sleeping or lodging. It also shall not fail to be a commercial rental by reason of the fact that the tenant proposes to operate or does in fact operate the building or structure as a premises for a hotel, apartment or other dwelling.

   Commercial rental specifically does not include any of the following:

   (i) Maintaining a storage or warehouse and required to pay a tax for that business under other provisions of this article;

   (ii) Providing space in a building or structure for the parking or storage of automobiles, and required to pay a tax for that business under other provisions of this article;

   (iii) Operating a theater, exhibition hall or any similar place of public assemblage or entertainment, to the extent that the receipts are charges collected from patrons for admission to the premises;

(iv) To the extent that a business activity includes renting to casual tenants, where casual tenant and casual tenancy means any tenant or tenancy where the consideration paid or agreed to be paid consists exclusively of services; or where, after examining all the facts, the Director of Finance determines that the only tenancy is that of one or more tenants paying to a sublessor, primarily on a cost-sharing basis for the space used, involving less than 25% of the space under the control of the sublessor, and is terminable at will, a business otherwise subject to tax as a commercial rental;

(v) A business where the gross receipts are received as compensation for permitting coin-operated machines and devices to be placed, or to remain on or within the premises under the control of the lessor;

(vi) Conducting, operating, promoting or sponsoring a bona fide trade show as defined in Section 21.168.4(b) of this article, where the bona fide trade show does not exceed 14 days; neither shall

these persons be subject to tax under any other provision of this article by virtue of engaging in any activity for which an exemption is granted in this paragraph.

(vii) Acting as an antique show or collectors exchange show promoter or as a swap meet operator, both of which are defined in Article 3, Division 9, Section 103.311 of this Code.

(viii) Renting or letting boat slips or moorings to the extent that the boat slips or moorings are used exclusively for commercial purposes.

3. Notwithstanding the provisions of Section 21.06 to the contrary, a lessor required by this section to pay a tax need obtain only one registration certificate; but the lessor shall include in the measure of

the tax the gross receipts derived from all businesses taxed by this section engaged in by the lessor within the City of Los Angeles, whether at one or more than one location. At the time the tax provided here is remitted, the Director of Finance may require the registrant to furnish a statement of the number of these businesses conducted by the registrant giving the street address of each location, the amount of gross receipts attributable to each location, and designating a location at which the registration certificate issued shall be posted as provided in Section 21.09. The location so designated shall be considered the location of the business for the purposes of Section 21.08.

4. A promoter or operator of a consumer show, exhibition or fair shall submit to the Director of Finance a list containing the legal name, doing business as name (DBA), business address, mailing address

and telephone number of each participating exhibitor 30 days prior to the date of the consumer show, exhibition or fair and shall provide each participating exhibitor with information of the City’s Business Tax requirements.

5. No registration certificate shall be required or a tax paid by any person engaged in one or more of the businesses described in this section, unless the total gross receipts derived from being so engaged

are equal to or in excess of $20,000.00 per calendar year.

(e) RETAIL SALES.

1. A retail sale or sale at retail means a sale of goods, wares or merchandise for any purpose other than resale in the regular course of business; provided that a blind person need not include the first

$75,000.00 of gross receipts in the computation of the amount of tax due. This exemption shall not subject these persons to the provisions of Section 21.49, Professions and Occupations, of this article.

2. A blind person, within the meaning of this section, means a person having not more than ten percent visual acuity in the better eye, with correction as certified by a licensed physician and surgeon who specializes in diseases of the eye, or the Bureau of Vocational Rehabilitation of the Department of Education of the State of California. The exemption provided by this section shall not apply until a certificate of blindness has been furnished to the Director of Finance.

3. Whenever a person engages at the same location in two or more businesses of the kind taxed in this section, a joint Registration Certificate shall be issued for all these businesses and the tax shall be

measured by the sum of the gross receipts of all these businesses so conducted.

4. For the purpose of this section, newspapers, magazines, periodicals, books and other printed matter shall be deemed to be included in the term “goods, wares or merchandise” and the term “gross receipts” means California receipts from the selling or furnishing of advertising or advertising space in printed matter in addition to California receipts from the sale of goods, wares or merchandise. The

provisions of this subsection shall apply only to business tax periods commencing on or after January 1, 1984.

5. The provisions of this section shall not apply to an exhibitor who displays, exhibits or offers for sale or exchange any secondhand personal property at an antique show or at a collectors exchange show,

or a vendor who sells, exchanges, displays or offers for sale or exchange new or secondhand goods at a swap meet, as defined in Article 3, Division 9, Section 103.311 of this Code. This exemption applies only to that portion of an exhibitor’s or vendor’s receipts from sales or exchanges at an antique show, collectors exchange show or swap meet.

(f) LAUNDRY, CLEANING OR SERVICE AND SHOE REPAIR. Laundry, cleaning and dyeing agent, collector, linen supply and shoe repair means washing, ironing, drying, cleaning, dyeing, sizing,

blocking or pressing any clothing, wearing apparel, garment, linen, fabric or similar material, or similar article of personal property, whether accomplished by hand, machine or any coin-operated machine operated by a person, the person’s employee or any customer, or furnishing or letting the use of any towels, linens, aprons, bedding, napkins, table covers, or any other article of personal property of a similar nature, or collecting or delivering any similar article as an agency or otherwise, for a fee or charge, or repairing or rebuilding shoes; provided that a person engaged in business subject to tax under this section, makes minor alterations or repairs to the clothing, wearing apparel, garments, linens, fabrics or similar material being washed, ironed, dried, cleaned, dyed, sized, blocked or pressed, in lieu of paying a separate business tax and obtaining a separate registration certificate under this article for the conduct of each business, may combine the gross receipts of all these businesses at that location and upon the basis of that computation pay a combined business tax and obtain a single registration certificate under this section for all these businesses at that location.

(g) RADIO AND TELEVISION BROAD- CASTER.

1. Radio Broadcaster means any person engaging in the business of producing and broadcasting or broadcasting local or network radio programs or advertising material, including the furnishing of

services, program elements or facilities in connection with production, production and broadcasting, or broadcasting.

2. Television Broadcaster means any person engaging in the business of producing and broadcasting or broadcasting local or network television programs or advertising materials, including the furnishing

of services, program elements or facilities in connection with production, production and broadcasting, or broadcasting. A “television broadcaster” shall include any person operating a television system where the viewing audience pays a fee to view the broadcast.

3. When gross receipts are constitutionally required to be apportioned and are derived from or attributable to activities engaged in both within and without the City, gross receipts shall be apportioned in a

manner that is fairly calculated to determine the amount of gross receipts derived from or attributable to engaging in business in the City. This apportionment shall be made on the basis of payroll, value and situs of tangible property, general expense, or by reference to any of these or other factors, or by any other method of apportionment, that will fairly determine the amount of gross receipts derived from or attributable to engaging in business in the City. Gross receipts derived from or attributable to sources within the City shall include gross receipts from any activities carried on in this City.

4. Notwithstanding the foregoing, the gross receipts used in the measurement of the tax under this section shall be limited to receipts that are generated, produced, or attributable to local activities in the

State of California.

5. The provisions of this section shall apply only to business tax periods commencing on or after January 1, 1984.

(h) THEATER OPERATOR. Theater Operator means any person engaged in the business of conducting a theater containing a permanent stage upon which movable scenery and theatrical appliances are used, where regular theatrical or vaudeville performances are given and for the privilege of viewing the performances, a fee is charged, collected or received, or conducting, managing or carrying on a moving picture theater or drive-in theater, where moving or motion pictures are exhibited and a fee is charged, collected or received, or conducting, operating or promoting any entertainment, show or exhibition not otherwise required to pay a tax under other provisions of this article, where an admission fee is charged, collected or received, or where no admission fee is charged, collected or received but donations of any kind or character are solicited or accepted. Provided, that in connection with any entertainment, show or exhibition, if no admission fee is charged, collected or received, and no donations of any kind or character are solicited or accepted, or if the person conducting, operating or presenting the entertainment, show or exhibition taxed under this section is a person mentioned in Section 21.49 (c)3.(iv), Professions and Occupations, or if the person is a strolling musician who performs on sidewalks, in parks and similar publicly owned places where no admission fee is charged, collected or received, even though donations are solicited and collected, no tax shall be required to be paid for those performances by that person.

(i) ELECTRIC VEHICLE CHARGING STATION BUSINESS. (Added by Ord. No. 187,713, Eff. 1/23/23.) An Electric Vehicle Charging Station Business provides access to a fixture that supplies the

electrical power for charging the batteries used to power one or more electric motors in the electric vehicle. This classification includes only the business that provides electrical power to the user of the electric vehicle. This classification will apply only for the 2023, 2024, 2025, 2026 and 2027 tax years.

(Repealed by Ord. No. 183,419, Eff. 3/20/15.)

(Repealed by Ord. No. 183,419, Eff. 3/20/15.)

(Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of Promoting or Staging Sporting Events, Operating or Maintaining Vending Machines, Collection Agencies, Storage, Freight Forwarding/Steamship Agency, and Personal Property Rental, Tax Rate C, as set forth in Section 21.33(c), shall be applicable.

(a) SPORTING EVENT. Sporting Event means the business of promoting or staging any baseball, football, soccer, tennis, polo, swimming, boxing, wrestling, or similar exhibition, event or contest; provided, however, as used in this section, “gross receipts” shall not include any of the following:

1. Receipts from a trade, calling, occupation, vocation, profession or other means of livelihood, which this City is prohibited from taxing under the Constitution or laws of the United States, or under the

Constitution or laws of the State of California;

2. Receipts of community chests, funds, foundations or corporations organized and operated for religious, hospital or charitable purposes, not conducted for profit and no part of the net earnings of which

inures to the benefit of any private shareholder or individual;

3. Receipts of non-profit educational institutions of collegiate grade, defined here to mean institutions incorporated as colleges or seminaries under the laws of the State of California, which require for

regular admission the completion of a four-year high school course, or its equivalent, and which confer upon their graduates at least one academic or professional degree, based on a course of at least four years in liberal arts and sciences, or on a course of at least three years in professional studies such as law, theology, education, medicine, pharmacy, architecture, fine arts, commerce or journalism; receipts of non-profit secondary schools which are duly accredited by the University of California; and receipts of non-profit elementary schools in which instruction is given to students in the pre-primary and primary grades in the several branches of studies required to be taught in the public schools of the State of California;

4. Receipts of Rotary, Kiwanis and Lions Clubs, non-profit automobile clubs, Chambers of Commerce, and other community service organizations; also receipts of trade associations such as Merchants

Plumbers Association, Merchants and Manufacturers Association and labor organizations.

(b) VENDING MACHINES.

1. Vending Machine Operator means the business of operating, maintaining or letting the use of any coin-operated vending machine for the dispensing of goods, wares, merchandise or other tangible

property.

2. Except as otherwise provided in this section, each coin-operated vending machine, which is operated, maintained or used within this City, shall have conspicuously stamped upon it or affixed on it for identification purposes, the name and address, Business Tax Registration Certificate number, and the telephone number, if any, of the owner or operator. The identification shall be provided by the owner or operator of the machine and at the owner’s or operator’s expense, notwithstanding the provisions of Section 21.06(b) to the contrary, and shall be removed from the machine by the owner or operator when the authority to use the machine is transferred to another person, whether by sale, lease, license or otherwise. 3. No business tax or identification shall be required for the maintenance or operation of: (i) Any postage stamp machine; (ii) Any machine dispensing sanitary or hygienic articles, or drinking cups, towels or medicine, which machine is entirely owned and supplied by the owner or operator of the premises where the machine is installed, and is maintained solely for the convenience of employees, visitors or customers and, not for profit to the owner or operator or to any other person; (iii) Any machine, which is entirely owned, operated and supplied by the owner or operator of the premises where the machine is installed, and the owner or operator holds a valid registration certificate at that location to engage in a business taxed under the provisions of Section 21.42, Wholesale Sales or Section 21.44, Retail Sales, of this article, and the owner or operator includes the gross receipts from the sale of all goods, wares, merchandise or other tangible property dispensed by the machine in the measure of the applicable business tax paid under Section 21.42, Wholesale Sales or Section 21.44, Retail Sales, of this article; (iv) Any machine dispensing newspapers or other printed matter. (c) COLLECTION AGENCIES.

3. Collection agency means and includes all persons engaged directly or indirectly and as primary or secondary object, business or pursuit, in soliciting claims for collection or in the collection of claims owed or due or asserted to be owned or due to another, and any person, when engaged in collecting accounts for another, where the employment is for one or more persons, shall be deemed to be engaged in the collection business within the meaning of this section. Any person using a fictitious name in collecting the person’s own accounts receivable with the intention of conveying to the debtor that a third party has been employed, is a collection agency as contemplated by this section and shall be subject to these provisions. The term “collection agency” shall not include attorneys-at-law, individuals regularly employed on a regular wage or salary, in the capacity of creditors or in other similar capacity upon the staff of employees of any one person not engaged in the business of a collection agency, banks, abstract companies doing an escrow business, duly licensed real estate brokers or agents doing a real estate business, nor a merchant-owned non-profit credit association unless they are conducting a collection agency. 2. In computing the tax imposed by this section, there shall be deducted from gross receipts the amount received as the result of collections made outside of the State of California. (d) STORAGE, FREIGHT FORWARDING. 1. Freight Forwarding means the business of preparing the documentation and otherwise arranging for the importation or exportation of goods, wares or merchandise, or of collecting or consolidating for shipment in carload lots or less, truck load lots or less, any goods, wares or merchandise, as agent or bailee for any person where a fee is charged for that service. 2. Steamship Agency means the business of soliciting, receiving or handling outbound or inbound freight aboard vessels attending to operational requirements of vessels while they are entering, within and departing from a port, and performing husbanding services, such as arranging for ships stores, bunker fuel, crew changes, vessel repairs and delivery or re-delivery of vessels pursuant to charter. 3. Storage or Warehousing means the business of storing goods, ware or merchandise of any kind. (e) PERSONAL PROPERTY RENTAL. 1. Personal Property Rental means the business of leasing or renting any tangible personal property. For the purpose of this section, Tangible Personal Property means personal property that may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses. 2. Nothing in this section shall be construed to require the inclusion of the amount received for the leasing or renting of tangible personal property, the entire use of which is made wholly outside the State of California.

(Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of Commission Broker and Independent Telemarketing, Tax Rate D, as set forth in Section 21.33(d), shall be applicable.

(a) COMMISSION BROKERS. Commission Broker means any person engaged in the business of buying and selling of goods, wares or merchandise by a person to the extent that the person:

1. Does not engage in the business of manufacturing, refining, fabricating, milling, treating or other processing of the goods, wares or merchandise bought and sold and, does not cause the goods, wares or

merchandise to be manufactured, refined, fabricated, milled, treated or otherwise processed;

2. Does not obtain or retain title to the goods, wares or merchandise, except while the goods, wares or merchandise may be in transit, or for short periods of time before transportation commences or after it ceases; and

3. Does not store or warehouse the goods, wares or merchandise, except while the goods, wares or merchandise are actually in transit, or for short periods of time before transportation commences or after it ceases. (b) INDEPENDENT TELEMARKETING AGENCY. Independent Telemarketing Agency means any person who engages in the business of marketing services or goods, wares or merchandise on behalf of three or more clients continuously, none of which has any ownership interest in the person, by use of a telecommunications device at a call center. An Independent Telemarketing Agency shall not include a person who sells their own services or goods, wares or merchandise. A call center means a location in which 25 or more persons are continuously employed or utilized to make and/or receive telephone calls by means of a centralized telecommunications system.

(Added by Ord. No. 178,101, Eff. 1/9/07.)

(a) For every person engaged in business providing miscellaneous services as an Advertising Agency, Aircraft Support Contractor, Apparel Subcontractor, Bookbinder, Check Cashing Service, Drapery Subcontractor, Heat Treater, Mailing Service, Metal Plater, Music Teacher, Public Relations Agency, Refuse Contractor, Shoe Shining Stand, Parlor Operator, Silk Screen Apparel Subcontractor, Temporary Help Agency, Ticket Seller, Travel Agency, Typesetter or Wire Terminator, Tax Rate E, as set forth in Section 21.33(e), shall be applicable.

(b) For purposes of this section, the following terms are defined as follows:

Miscellaneous Services means any person engaged in business as an advertising agency, aircraft support contractor, apparel subcontractor, bookbinder, check cashing service, drapery subcontractor, heat treater, mailing service, metal plater, music teacher, public relations agency, refuse contractor, shoe shining stand or parlor operator, silk screen apparel subcontractor, temporary help agency, ticket seller, travel agency, typesetter or wire terminator.

Advertising Agency means any person who engages in the business of advertisement counseling, including the writing, composing, designing and placement of advertisements for clients, regardless of the advertising media employed; provided however that the extent the person employs the use of the person’s own media, the person shall not be considered an advertising agency with regard to either the promotion or placement of advertisements in that media.

Aircraft Support Contractor means any person who engages in the business of furnishing ground support services to airline carriers, including the providing of ramp services, baggage and freight handling services, ticket services, mechanical services, fueling services or other similar services normally performed at an airport.

Apparel Subcontractor means any person who engages in the business of cutting, sewing, or fabricating any clothing, wearing apparel, garment, or similar material belonging to an apparel manufacturer or pursuant to a contract with another apparel subcontractor.

Bookbinder means any person engaged in the business of binding books.

Check Cashing Service means any person engaged in the business of cashing payroll checks, for a fee or charge and for every person whose business consists in whole or in part of cashing checks for others for a fee or charge.

Drapery Subcontractor means any person who engages in the business of cutting, sewing, or fabricating any draperies, curtains, or similar material belonging to a drapery manufacturer, drapery jobber, or drapery seller, or pursuant to a contract with another drapery subcontractor.

Heat Treater means any person who engages in the business of changing the hardness and/or strength of metal materials of another by controlled heat process methods.

Mailing Service means any person who engages in the business of preparing printed matter for mailing (such as, by sorting, collating, tying, inserting, addressing, and metering), mailing the printed matter, or providing (without selling), advising as to, compiling, or maintaining lists of persons, businesses, or locations for use in mailing printed matter.

Metal Plater means any person who engages in the business of plating, anodizing or galvanizing metal articles of another electrolysis or any other plating process.

Music Teacher means any person who engages in the business of teaching music.

Public Relation Agency means any person who engages in the business of promoting rapport and goodwill between a person and other persons, special publics, or the community at large through the distribution of interpretative material, the development of neighborly interchange and the assessment of public reaction.

Refuse Contractor means any person who engages in the business of hauling refuse.

Shoe Shining Stand or Parlor Operator means any person who engages in the business of operating or maintaining a shoe shining stand or parlor.

Silk Screen Apparel Subcontractor means any person who engages in the business of performing silk screen printing work upon any clothing, wearing apparel, garment, or similar material belonging to an apparel manufacturer or pursuant to a contract with another silk screen apparel subcontractor.

Temporary-Help Agency means any person engaged in the business of supplying their employees to others on a temporary basis, provided however that this term does not include an agency for the brokerage of labor for a fee to be paid either by the applicant for employment or the prospective employer.

Ticket Seller means any person, who engages in the business of selling rights, evidenced by tickets, which entitle the purchaser to view, hear and/or attend a theatrical, cultural, sporting or similar event and who does not sponsor, promote, produce or contribute to the event. Ticket seller includes persons selling rights on their own account and persons selling rights as broker or agent for another person.

Travel Agency means any person who engages in business as a broker of travel services, and who arranges for transportation, tours, lodging facilities, food, entertainment, and other similar accommodations or related services.

Typesetter means any person who, as a typesetter, compositor, typographer, or type founder, engages in the business of setting type for another by hand, cold type process, hot metal process, photographic process, or any other similar mechanical or photochemical “type assembly” process.

Wire Terminator means any person who engages in the business of connecting components and circuits of electronic panels of another configured wiring by means of fully automatic equipment.

As used in this section, the term “gross receipts” includes all receipts included by the provisions of Subsection (a) of Section 21.00 of this article. In the case of persons acting as agents or brokers for another person, the term gross receipts includes and excludes, respectively, those receipts that are included and excluded under Subdivision 6. of Subsection (c) of Section 21.49, Professions and Occupations; provided, however, that with regard to a person engaged in business as a Travel Agency the cost of transportation, tours, lodging facilities, food, entertainment, and other similar accommodations or services shall be deemed to be the legal obligation of the recipient.

(Added by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in business conducting Auto Parks, Health Maintenance Organizations, Any Trade, Calling, Occupation, Vocation, Profession or other means of livelihood, as an independent contractor and not an employee of another, and not specifically taxed by other provisions of this article, Tax Rate F, as set forth in Section 21.33(f), shall be applicable.

(a) AUTO PARK. Auto Park means engaged in the business of conducting any automobile parking place, storage lot or storage place where motor vehicles are parked or stored, and a charge is made directly

or indirectly for the parking or storage.

(b) HEALTH MAINTENANCE ORGANIZATIONS. Health Maintenance Organization means engaged in business arranging for the provision of health care services to subscribers or enrollees, or to pay for or to reimburse any part of the cost for those services, in return for a prepaid or periodic charge paid by or on behalf of the subscribers or enrollees.

1. For the purposes of this section, gross receipts of a Health Maintenance Organization, which are attributable to a place of business within the City, shall be apportioned by using the total cost method to

determine the amount of gross receipts that are subject to tax. The total cost method uses a ratio to derive a percentage that is multiplied by the total gross receipts. The numerator of the ratio is the total in- City costs. The denominator of the ratio is the sum of the total in-City costs and the total out-of-City costs. The percentage derived by dividing the numerator by the denominator is multiplied by the total gross receipts to determine the amount of gross receipts that are subject to tax. Total costs shall include a Health Maintenance Organization’s payroll and related costs, property and related costs, and contract health care provider costs, incurred within and without the City.

2. The apportionment formula set forth in Subdivision 1. shall be applicable to all tax years not barred by the statute of limitations on January 1, 1998. Notwithstanding the foregoing, no person shall be entitled to a refund for any tax year prior to 1998, due to the application of the apportionment formula set forth in Subdivision 1. In computing any person’s tax liability due for tax years prior to 1998, offsets of applicable credits not barred by the statute of limitations shall be allowed before determining the total tax due.

3. The Director of Finance shall levy an assessment pursuant to Section 21.16 of this article in the amount of the underpayment against any person who has underpaid tax for any tax year prior to 1998, to

which the apportionment formula set forth in Subdivision 1. is applicable.

4. Notwithstanding the provisions of Section 21.05 of this Code, no penalty shall apply, and interest shall accrue at the rate equal to the annualized rate of return on the general pool earned by the City

Treasurer for the calendar year prior to the tax year involved, on any underpayment described in Subdivision 3.

5. No interest described in Subdivision 4. shall accrue during the period commencing on January 1, 1997, and ending on June 30, 1998.

6. Notwithstanding the provisions of Section 21.05 of this Code, the tax under this section for the 1998 tax year shall not be delinquent until July 1, 1998, and prior to that date, no penalty shall apply and

no interest shall accrue.

(c) PROFESSIONS AND OCCUPATIONS.

1. Professions and Occupations means a person engaged in any trade, calling, occupation, vocation, profession or other means of livelihood, as an independent contractor and not as an employee of

another, and not specifically taxed by other provisions of this article.

2. A person engaged in more than one trade, calling, occupation, vocation, profession or other means of livelihood embraced within this section shall consolidate all gross receipts and shall be issued one registration certificate covering all these activities. Any person engaged in any activities embraced within this section, in addition to activities covered by any other section of this article, shall obtain separate registration certificates for the activities covered by those other sections.

3. As used in this section, the term “gross receipts” does not include:

   (i) Receipts from a trade, calling, occupation, vocation, profession or other means of livelihood, which this City is prohibited from taxing under the Constitution or laws of the United States, or

under the Constitution or laws of the State of California;

(ii) Receipts of community chests, funds, foundations or corporations organized and operated for religious, hospital or charitable purposes, not conducted for profit and no part of the net earnings

of which inures to the benefit of any private shareholder or individual;

(iii) Receipts of non-profit educational institutions of collegiate grade, defined here to mean institutions incorporated as colleges or seminaries under the laws of the State of California, which require for regular admission, the completion of a four-year high school course, or its equivalent, and which confer upon their graduates at least one academic or professional degree, based on a course of at least four years in liberal arts and sciences, or on a course of at least three years in professional studies such as law, theology, education, medicine, pharmacy, architecture, fine arts, commerce or journalism; receipts of non-profit secondary schools which are duly accredited by the University of California; and receipts of non-profit elementary schools in which instruction is given to students in the pre- primary and primary grades in the several branches of studies required to be taught in the public schools of the State of California;

(iv) Receipts of Rotary, Kiwanis and Lions Clubs, non-profit automobile clubs, Chambers of Commerce, and other community service organizations; also receipts of trade associations such as

Merchants Plumbers Association, Merchants and Manufacturers Association and labor organizations;

(v) Receipts of:

a. Railroad companies including street railways, defined here to include interurban electric railways;

b. Sleeping car, dining car, drawing-room car, and palace car companies, refrigerator, oil, stock, fruit and other car-loaning and other car companies operating upon railroads in this City;

c. Companies doing express business on any railroad, steamboat, vessel in this City;

d. Telegraph and telephone companies;

e. Companies engaged in the transmission or sale of gas or electricity.

(vi) Receipts of persons acting as agents or brokers for other persons to be paid over to those other persons, or to pay for those other persons’ legal obligations, or as reimbursements for sums

advanced by the agent for those other persons’ legal obligations, or to be invested on behalf of those other persons. Notwithstanding the foregoing, however, the term “gross receipts” includes but is not limited to:

Receipts of any person received as commissions or fees earned, or charges of any character made or compensation of any character received, for the performance of any service by that person or any of that person’s employees;

Receipts of any person received as partial or full compensation or reimbursement for salaries, payroll taxes, free benefits and any and all similar expenses for persons who are employees of that person under the criteria set forth in Division 4, Part 1, Chapter 2, Article 2 of the Labor Code of the State of California as effective on July 1, 1976.

Receipts of any person received as partial or full compensation or reimbursement for equipment, supplies, utilities, or other items or services acquired by that person in that person’s name

and used or consumed in the performance of services subject to tax under this section.

Provided, further, that any agent or broker dealing in stocks or other similar written instruments evidencing the right to participate in the assets of any business, or dealing in bonds or other

evidences of indebtedness, who also deals in that property as a principal, shall include the gross receipts by which the tax is measured the amount of the agent’s or broker’s trading profits resulting from these dealings. No deduction from receipts attributable to trading as a principal shall be made unless the deduction is provided for under Subsection (a) of Section 21.00 of this article.

(vii) Receipts from the publication and sale of newspapers, magazines and other periodicals regularly issued at average intervals not exceeding three months. The exclusion contained in this

paragraph shall apply only to business tax periods commencing on or after January 1, 1984.

(viii) Receipts derived by a radio or television studio, station or network business from the production or broadcasting of local or network radio or television programs or advertising materials,

including but not limited to the furnishing of services, program elements or facilities in connection with the production or broadcasting; provided, however, that nothing in this paragraph shall exempt any person from the tax imposed under Section 21.109 or exclude from the measure of the tax any receipts derived by any person from the operation of a television system where the viewing audience pays a fee to view the broadcast; provided, further, that nothing in this paragraph shall be construed as entitling any studio, station or network business to engage in a business subject to tax under Section 21.42, Wholesale Sales, or Section 21.47, Retail Sales, or Section 21.46, Personal Property Rental, without paying the tax required in those sections. The exclusion contained in this paragraph shall apply only to business tax periods commencing on or after January 1, 1984.

(ix) Receipts of a person acting as a real estate salesperson as that term is defined in Section 10016 of the California Business and Professions Code.

(x) Receipts (whether considered in total or measured by cost of operations in the City or any other proxy) of a mutual fund that is registered under the Investment Company Act of 1940, as amended (15 U.S.C. § 80a-1 to 80b-2), as an open-end management investment company provided that it qualifies as a Regulated Investment Company under Subchapter M of the Internal Revenue Code of 1986, as amended (26 U.S.C. § 851) (the “IRC”). However, Receipts of a mutual fund that fails to qualify under Subchapter M or of a mutual fund that receives more than ten percent of its gross income from other than qualifying sources as described in section 851(b)(2) of the IRC shall not be excluded under this paragraph. The exemption for qualified mutual funds contained in this paragraph shall apply in full only to business tax periods commencing on or after January 1, 2014, and shall be phased in as follows: For business tax periods commencing on or after January 1, 2012, and before January 1, 2013, said Receipts shall be taxed at 2/3 of the rate set forth in Section 21.33(f), and for business tax periods commencing on or after January 1, 2013, and before January 1, 2014, said Receipts shall be taxed at 1/3 of the rate set forth in Section 21.33(f). (Added by Ord. No. 181,951, Eff. 1/8/12.)

4. When the gross receipts are derived from or attributable to activities engaged in within and without the City, gross receipts shall be allocated in a manner that is fairly calculated to determine the

amount of gross receipts derived from or attributable to engaging in business in the City. This allocation shall be made on the basis of payroll, value and situs of tangible property, general expense, or by reference to any of these or other factors, or by another method of allocation that will fairly determine the amount of gross receipts derived from or attributable to engaging in business in the City. Gross receipts derived from isolated or occasional transactions at places outside the City but within the State of California, where the registrant is not regularly engaged in a course of business transactions shall be deemed to be gross receipts derived from engaging in business in the City. Gross receipts derived from or attributable to sources within this City include: (a) gross receipts from tangible or intangible property located or having situs in this City; and (b), when not contrary to law, gross receipts from any activities carried on in this City regardless of whether carried on in interstate, intrastate or foreign commerce.

5. Allocation formulae designed to carry into effect the purpose of this subsection shall be adopted by the Director of Finance by rules and regulations. The Director of Finance is hereby authorized, in the

application to individual cases of the rules and regulations and the formulae they contain, to make any modifications in formulae that may be necessary to carry out the intent of this subsection. If the Director of Finance reallocates gross receipts upon the Director’s examination of any return, the Director of Finance shall, upon the written request of the registrant, disclose to the registrant the basis upon which the reallocation has been made.

(Added by Ord. No. 181,638, Eff. 4/18/11.)

(a) No registration certificate or permit issued under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code, or the payment of any tax required under the provisions of Article 1 or Article 1.5 of Chapter 2 of this Code shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this section implies or authorizes that any activity connected with the distribution or possession of cannabis is legal unless otherwise authorized and allowed by California and federal law. Nothing in this Section shall be applied or construed as authorizing the sale of marijuana.

(b) Every person engaged in operating or otherwise conducting a medical marijuana collective that attests under penalty of law to compliance with Proposition D and not otherwise specifically taxed by other business tax provisions of this Chapter, shall pay a business tax of $60.00 for each $1,000.00 of gross receipts or fractional part thereof. No new business tax registration certificates shall be issued for any medical marijuana collective business activity. Any medical marijuana collective that does not attest to compliance with Proposition D shall not be taxed under any Section of this Article for any medical marijuana collective business activity for tax year 2016 and forward. It shall be the burden of the medical marijuana collective to determine and accurately represent to the Office of Finance whether it complies with Proposition D. (Amended by Ord. No.

184,135, Eff. 1/22/16.)

(c) For purposes of this section, a “medical marijuana collective” means any activity regulated or permitted by Article 5.1 of this Code or Health and Safety Code sections 11362.5 et seq., that involves planting, cultivating, harvesting, transporting, dispensing, delivering, providing, manufacturing, compounding, converting, processing, preparing, storing, packaging, or testing any part of the marijuana plant for medical purposes.

(d) For purposes of this section, “gross receipts” includes all amounts that would be considered gross receipts under section 21.00, including without limitation:

(i) Membership dues;

(ii) The value of in-kind contributions;

(iii) Reimbursements provided by members, regardless of form; and

(iv) Anything else of value obtained by a medical marijuana collective.

(e) All taxpayers subject to this section must pay the full tax imposed by this section regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in the Municipal Code, except as required by California or Federal Law. No provision in the Municipal Code can lower the tax rate set forth in this section or otherwise reduce the amount of taxes paid hereunder unless the provision specifically states that the reduction applies.

(f) The City Council may impose the tax authorized by this section at a lower rate and may establish exemptions, incentives, or other reductions as otherwise allowed by the Charter and California law. No action by the Council under this paragraph shall prevent it from later increasing the tax or removing any exemption, incentive, or reduction and restoring the maximum tax specified in this section.

(g) Every medical marijuana collective taxed by this section shall remit with its annual renewal of business taxes an affidavit in a form approved by the Director of Finance attesting to its compliance with Proposition D and such affidavit shall be subject to public disclosure. Any person who makes a false statement or representation in the affidavit is guilty of a misdemeanor. An updated business tax registration certificate in a form approved by the Director of Finance, further clarifying that such certificate is not a permit to operate a business, shall be issued to all medical marijuana collectives subject to tax as set forth in Section 21.50 (b). All medical marijuana collective business tax registration certificates in their current form shall be invalid effective March 31, 2016. A medical marijuana collective that remitted its annual payment of business taxes in 2016, before the effective date of this ordinance shall, before March 31, 2016, complete the affidavit attesting to its compliance with Proposition D. (Added by Ord. No. 184,135, Eff. 1/22/16.)

(h) It shall be a misdemeanor for any person operating a medical marijuana collective as defined by Section 21.50(c) to maintain or display a business tax registration certificate for any classification other than that set forth in Section 21.50(b) for medical marijuana collective business activity or to maintain or display an expired, suspended or otherwise invalid business tax registration certificate. (Added by Ord. No. 184,135, Eff. 1/22/16.)

(Added by Ord. No. 184,841, Eff. 4/4/17.)

Editor's note: Section enacted pursuant to Proposition M, adopted by the voters at the election on March 7, 2017.

Nothing in this Section shall be construed as requiring the City to allow, permit, license, authorize, or otherwise regulate cannabis, cannabis products or any business related to cannabis and/or cannabis products.

(a) For the purpose of this Section, the following words and phrases shall be defined as follows:

1. “Cannabis” shall means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified,

extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, resin, separated resin, the mature stalks of the plant, fiber produced

from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination, or industrial hemp, as defined by Section 11018.5 of the Health and Safety Code.

2. “Cannabis products” shall mean any product that includes cannabis that has undergone a process whereby the plant material has been transformed into a concentrate or such other form in order to

enhance or deliver the cannabinoid active ingredient.

3. “Cultivating” shall mean to plant, grow, harvest, dry, cure, grade, or trim cannabis.

4. “Gross receipts” shall have the same meaning as set forth in Section 21.00(a) of this Code and shall include, without limitation, membership dues, value of in kind contributions, reimbursements, the

amount of any tax imposed by a county or rapid transit district whether imposed upon the retailer or the consumer, and any other property received by the business in its ordinary course. (Amended by Ord. No. 188,654, Eff. 7/30/25.)

5. “License” shall consist of (i) a state license issued under Division 10 of the California Business and Professions Code, Chapter 3.5 of Division 8 of the California Business and Professions Code, or

such other applicable cannabis related provisions under state law, and (ii) any such other applicable City authorization, permit, or license (not including a business tax registration certificate which shall not be construed as a permit in any way).

6. “Manufacturing” shall mean to compound, blend, extract, infuse, or otherwise make, process, or prepare cannabis or cannabis products.

7. “Testing” shall mean to perform a test of cannabis and/or cannabis products in a testing laboratory that is accredited by an accrediting body that is independent from all other persons involved in commercial or medical cannabis, and registered with the State Department of Public Health. 8. “Testing laboratory” shall mean a facility, entity, or site in the City of Los Angeles that offers or performs testing. 9. “Transporting” shall mean to transfer cannabis and/or cannabis products from the location of one person with a license to the location of another person with a license. (b) For purposes of this Section, the business tax to be imposed shall be as follows: 1. Every person with a license that is engaged in business of conducting the sale of cannabis and/or cannabis products shall pay a business tax of $100.00 for each $1,000.00 of gross receipts or fractional part thereof. The sale of medical cannabis shall be taxed as provided under Section 21.52 of this Article. 2. Every person with a license that is engaged in business of transporting cannabis and/or cannabis products shall pay a business tax of $10.00 for each $1,000.00 of gross receipts or fractional part thereof. 3. Every person with a license that is engaged in business of testing cannabis and/or cannabis products shall pay a business tax of $10.00 for each $1,000.00 of gross receipts or fractional part thereof. 4. Every person with a license that is engaged in business of researching cannabis and/or cannabis products shall pay a business tax of $10.00 for each $1,000.00 of gross receipts or fractional part thereof. 5. Every person with a license that is engaged in business of manufacturing or cultivating cannabis and/or cannabis products shall pay a business tax of $20.00 for each $1,000.00 of gross receipts or fractional part thereof. 6. Every person with a license that is engaged in business relating to the commercialization of cannabis and/or cannabis products not specifically taxed under this Section shall pay a business tax of $20.00 for each $1,000.00 of gross receipts or fractional part thereof. (c) The Office of Finance shall file quarterly reports summarizing the amount of business taxes collected from the persons described in subsection (b) of this Section with the City Council, Mayor, Controller, and City Administrative Officer beginning April 1, 2018.

   (d) All business taxes shall be due and payable quarterly as provided under Section 21.04(b) of this Article beginning July 1, 2018, which shall include any taxes owed from January 1, 2018, and then monthly as

   provided under Section 21.04(c) of this Article beginning July 1, 2019.

(e) The Office of Finance shall prescribe and implement a reasonable process, including set times and secure conditions, whereby every person subject to business tax under this Section is allowed to pay, in cash, the amount of business tax reported on their written statement, as prescribed under Section 21.14 of this Article.

(f) The Director of Finance may prescribe such additional requirements or conditions, as provided under Section 21.15(h) of this Article, when granting a business tax registration certificate under Section 21.08
of this Article with respect to a person subject to this Section, which may include an affidavit of compliance and/or proof of license. Any person who makes a false statement or misrepresentation in any required
affidavit under this Section is guilty of a misdemeanor.

(g) It shall be a misdemeanor for any person operating a non-medical cannabis business to maintain or display a business tax registration certificate for any classification other than that set forth herein for non-
medical cannabis business activity or to maintain or display an expired, suspended or otherwise invalid business tax registration certificate.

(h) No business tax registration certificate issued for purposes of this Section or the payment of any tax required under this Section shall be construed as authorizing the conduct or continuance of any illegal
business or of a legal business in an illegal manner. Nothing in this Section implies or authorizes that any activity in connection with cannabis and/or cannabis products is legal unless otherwise authorized by federal
and any other applicable law.

(i) Every person subject to this Section must pay the full tax imposed by this Section regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in the Municipal Code, except as

required by state or federal law. No provision in the Municipal Code shall lower the tax rate set forth in this Section or otherwise reduce the amount of taxes paid hereunder unless the provision specifically states that the reduction applies.

(j) The City Council may impose the tax authorized by this Section at a lower rate and may establish exemptions, incentives or other reductions as otherwise allowed by the Charter and state law. No action by

the Council under this paragraph shall prevent it from later increasing the tax or removing any exemption, incentive, or reduction and restoring up to the maximum tax specified in this Section.

(k) The provisions of this Section shall be effective January 1, 2018.

(Added by Ord. No. 184,841, Eff. 4/4/17.)

[Editor's note: Section enacted pursuant to Proposition M, adopted by the voters at the election on March 7, 2017.]

Nothing in this Section shall be construed as requiring the City to allow, permit, license, authorize, or otherwise regulate medical cannabis or any business related to medical cannabis.

(a) For the purpose of this Section, the following words and phrases shall be defined as follows:

1. “Cannabis” shall have the same meaning as set forth in Section 21.51(a)(1) of this Article.

2. “Cannabis products” shall have the same meaning as set forth in Section 21.51(a)(2) of this Article.

3. “Gross receipts” shall have the same meaning as set forth in Section 21.51(a)(4) of this Article.

4. “License” shall have the same meaning as set forth in Section 21.51(a)(5) of this Article.

5. “Medical cannabis” shall mean a product containing cannabis or cannabis products sold for use by medical cannabis patients in California pursuant to the Compassionate Use Act of 1996, found at
Section 11362.5 of the California Health and Safety Code.

(b) For purposes of this Section, the business tax to be imposed shall be as follows:

1. Every person with a license engaged in business of conducting the sale of medical cannabis shall pay a business tax of $50.00 for each $1,000.00 of gross receipts or fractional part thereof.

(c) The Office of Finance shall file quarterly reports summarizing the amount of business taxes collected from the persons described in subsection (b) of this Section with the City Council, Mayor, Controller,
and City Administrative Officer beginning April 1, 2018.

(d) All business taxes shall be due and payable quarterly as provided under Section 21.04(b) of this Article beginning July 1, 2018, which shall include any taxes owed from January 1, 2018, and then monthly as
provided under Section 21.04(c) of this Article beginning July 1, 2019.

(e) The Office of Finance shall prescribe and implement a reasonable process, including set times and secure conditions, whereby every person subject to business tax under this Section is allowed to pay, in
cash, the amount of business tax reported on their written statement, as prescribed under Section 21.04 of this Article.

(f) The Director of Finance may prescribe such additional requirements or conditions, as provided under Section 21.15(h), as may be necessary when granting a business tax registration certificate under Section
21.08 of this Article with respect to a business subject to this Section, which may include an affidavit of compliance and proof of License. Any person who makes a false statement or misrepresentation in any
required affidavit under this Section is guilty of a misdemeanor.

(g) It shall be a misdemeanor for any person operating a medical cannabis business to maintain or display a business tax registration certificate for any classification other than that set forth herein for medical
cannabis business activity or to maintain or display an expired, suspended or otherwise invalid business tax registration certificate.

(h) No business tax registration certificate issued for purposes of this Section or the payment of any tax required under this Section shall be construed as authorizing the conduct or continuance of any illegal
business or of a legal business in an illegal manner. Nothing in this Section implies or authorizes that any activity in connection with cannabis and/or cannabis products is legal unless otherwise authorized by federal
and any other applicable law.

(i) Every person subject to this Section must pay the full tax imposed by this Section regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in the Municipal Code, except as
required by state or federal law. No provision in the Municipal Code shall lower the tax rate set forth in this Section or otherwise reduce the amount of taxes paid hereunder unless the provision specifically states
that the reduction applies.

(j) The City Council may impose the tax authorized by this Section at a lower rate and may establish exemptions, incentives or other reductions as otherwise allowed by the Charter and state law. No action by
the Council under this paragraph shall prevent it from later increasing the tax or removing any exemption, incentive, or reduction and restoring up to the maximum tax specified in this Section.

(k) The provisions of this Section shall be effective January 1, 2018, at which time the language of this Section shall govern in the event of any conflict between this Section and Section 21.50 regarding taxation
of medical marijuana collectives.

(Amended by Ord. No. 140,833, Eff. 9/28/70, Oper. 1/1/71.)

For every person engaged in the business of conducting an amusement park, the tax shall be $923.83 per quarter. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For the purpose of this section, an amusement park shall mean any grounds or enclosure wherein concessions and adult rides of a permanent nature and having a fixed location are situated and shows or exhibitions are presented, shown, staged, or offered to the public.

For the purpose of this section, adult rides shall be defined to include any Ferris wheel, scenic railway, merry- go-round, swing, or similar device offered for the amusement of the public for a fee or charge and not of a miniature type intended primarily for the use of children; and, concession shall be defined to include any permanent booth or stand or any space, court or area at or in which any game or test of skill, science or amusement is offered and at or in which the public is permitted or invited to participate for a fee or charge. Concessions shall not include coin- operated games of skills, science or amusement.

(Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every individual person who as an employee or as an independent contractor engages in the business of auctioneer, the tax shall be $886.88 per year or fractional part thereof.

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of conducting or operating any pool or billiard room, or who for a fee or charge of any kind lets to players the use of any pool table, billiard table or similar device, or who keeps any such table or device available for such use, the tax shall be $106.43 per year for each table or device, whether used or not, which is kept upon the premises. This section shall apply regardless of whether the table is maintained as an incident to the conduct or operation of a social or athletic club, or as an adjunct of any other private institution or activity, if a charge is imposed for the use thereof. (First Sentence Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every person who lets or permits, upon premises over which the person has control, the use or operation of any amusement machine, device, game or apparatus, except such machines, devices, games or apparatus as are described and referred to in Sections 21.64 or 21.70 of this article, and the operation or use of which results from, or is permitted or allowed by, insertion of any coin, slug or token of value into the machine, device, game or apparatus, or any device attached thereto, or by the payment of any fee or fees, the tax shall be $22.17 per year or fractional part thereof for each such machine, device, game or apparatus, whether or not such person is the owner or such machine, device, game or apparatus.

(a) For every person who lets or permits, upon premises over which the person has control, the use of any coin-operated phonograph, television instrument, radio or other device for the playing or furnishing of music or other programs, the operation of which results from the insertion of a coin, slug or token of value, whether placed or inserted directly into such machine, or into a device causing its operation, the tax shall be $22.17 per year or fractional part thereof for each such machine or device, whether or not such person is the owner of such machine or device. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(b) The tax imposed under this section shall not apply to a person letting or permitting the use of any such device in any room used solely for dwelling purposes and which was installed for the use of the occupants thereof; but a person engaged in the business of maintaining or operating any such coin-operated machine installed for use by occupants of dwelling quarters, shall be taxed under the provisions of Sec. 21.65.1.

(Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every person engaged in the business of operating any bowling alley, ping-pong court, skee-ball machine, alley or court, or any shuffleboard table or court, or who, in the conduct of any business, uses, operates or maintains any such alley, court, table or machine, or rents or lets the use of any such alley, court, table or machine for the purpose of being used in playing any of the aforementioned games, the tax shall be $54.99 per year or fractional part thereof for each such alley, court, table or machine, provided that nothing in this section or in this article shall require the payment of a tax for engaging in the activities set forth in this section when engaged in by a bona fide social club which is organized for social purposes and maintains or operates the facilities required for the members of the club as an incident to the purpose of the club and not as a primary purpose thereof.

(a) “CIRCUS” shall mean an exhibition or entertainment at which feats of horsemanship, acrobatic feats and trained, or wild animals are exhibited or displayed in the City of Los Angeles to which exhibition or entertainment an admission fee is charged, and which exhibition or entertainment is conducted by a person having no regular established place of business in the City of Los Angeles for the exhibition thereof.

(b) (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) For every person engaged in the business of conducting a circus or similar exhibition, the tax shall be:

For a seating capacity of 11,000 or more, $6,652.00 for the first day, and $3,548.00 for each additional day;

For a seating capacity of 8,000 or more, and less than 11,000, $4,434.00 for the first day, and $2,661.00 for each additional day;

For a seating capacity of 5,000 or more, and less than 8,000, $2,661.00 for the first day, and $1,552.00 for each additional day;

For a seating capacity of 1,000 or more, and less than 5,000, $1,552.00 for the first day, and $887.00 for each additional day;

For a seating capacity of less than 1,000 and more than 300, $222.00 for the first day, and $133.00 for each additional day;

For a seating capacity of 300 or less, $133.00 for the first day, and $89.00 for each additional day.

(c) Notwithstanding the provisions of Subsection (b), for every person conducting a circus or similar exhibition where the principal performance takes place in a permanent structure such as a theatre, arena, stadium, auditorium, amphitheatre or similar structure, the tax shall be $887.00 per day. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) For every person engaged in the business of conducting a side show, or an after show to the circus, where a separate fee of $0.75 or less, is charged, received or collected, the tax shall be $44.34 per day; where the fee charged, received or collected amounts to more than $0.75, but less than $1.50, the tax shall be $88.69 per day; where the fee charged, received or collected, is $1.50 or more the tax shall be $177.38 per day.

(b) For every person operating or conducting any carnival, the tax shall be $88.69 for each concession for the first day of the carnival and $44.34 for each concession for each additional day.

(c) For the purpose of this section, a “carnival” means any fair, festival or like activity of a temporary nature having a concession or concessions. A “concession” is defined to include any booth or stand or any space, court or area at, or in which, any game or test of skill, science or amusement is offered and at or in which the public is permitted or invited to participate for a fee, charge or donation.

(d) When the carnival is sponsored solely by a religious, charitable, educational, civic, veteran or other non-profit benevolent organization, or by a group of these organizations, the organization or group shall be deemed to be the person operating or conducting the carnival. Provided, however, that in the event any person other than this organization or group receives any proceeds or personal gain or profit by operating or participating in the operation of any concession in, at or adjacent to the carnival on behalf of the person or on behalf of any person other than the sponsoring organization or organizations, that person shall be deemed to be the person operating or conducting the carnival.

(e) In the case of more than one non-sponsoring operator or conductor, each shall be jointly and severally liable and responsible for making application for the business tax registration certificate and for payment of the business tax for the carnival; provided, however, if one non-sponsoring operator or conductor has also rented, leased or otherwise furnished for use in the carnival equipment as concession booths or stands, or games or tests of skill, science or amusement, that person shall be deemed to be the operator or conductor of the carnival; and if more than one non-sponsoring operator or conductor has rented, leased or furnished equipment to the carnival, that person whom the Director of Finance, after full investigation of all the facts, determines to be the one who has leased, rented or furnished the greater amount of equipment shall be deemed to be the operator

or conductor of the carnival.

(f) Where the operator or conductor of the carnival is a religious, charitable, educational, civic, veteran or other non-profit benevolent organization, or a group of these organizations, and the net proceeds of the carnival are to be used exclusively for religious, charitable, benevolent, educational or civic purposes, the operator or conductor shall be entitled to a tax exempt registration certificate upon application and qualification for the certificate as provided in this subsection.

The application for this exemption shall be made in the manner provided in Section 21.22 of this article not less than 30 calendar days prior to the starting date of the carnival; provided however, an application for this exemption, which is not filed within the time period prescribed here, may be accepted by the Director of Finance upon a showing that the failure to file a timely application was not a result of an intentional disregard of the prescribed statutory provisions. The Board of Police Commissioners shall investigate as provided in Section 21.22 and shall forward its report to the Director of Finance at least 16 calendar days prior to the starting date of the carnival in all cases where the application has been timely filed; otherwise the report shall be forwarded within 16 calendar days subsequent to the filing of the application for the exemption. If the report certifies that the sponsorship of the carnival and the use to be made of the net proceeds meet the requirements of this subsection for a tax exempt registration certificate, and if all other charges, fees and taxes required to be paid to the Director of Finance by reason of the operation of the carnival or activities conducted in connection with the carnival have been paid, the Director of Finance shall issue a tax exempt registration certificate. Any application not reported upon by the Board of Police Commissioners within the time limits prescribed here shall be deemed to be approved and the Director of Finance may issue the tax exempt certificate in lieu of payment of the tax.

If at any time the carnival or any part of it is conducted in a manner which, had it been disclosed in the application for the exempt certificate approved by the Board of Police Commissioners, would not have entitled the organization or organizations conducting the carnival to a tax exempt registration certificate, or if the net proceeds from the carnival are not used for the purposes stated in this subsection, if any tax exempt registration certificate so issued shall be void and the full amount of the business tax for the carnival shall be immediately due and payable to the City, and no other tax exempt registration certificate for a carnival shall be issued to the sponsoring organization or organizations until the tax has been paid.

(g) No business tax registration certificate and no business tax shall be required for any religious, charitable, educational or other non-profit benevolent institution to operate or conduct a carnival held within and upon buildings or grounds owned or occupied by the institution where none of the rides set forth in Section 21.94 are operated in, at or adjacent to the carnival and the concessions of the carnival are operated exclusively by and for the entertainment or benefit of the members of that institution and the net proceeds derived from the concessions are not used for the purpose of private gain to any individual but are used wholly for the benefit of the organization or for charitable or benevolent purposes; provided, that no advertising for the carnival is placed, exhibited, shown, or otherwise permitted outside the premises of the buildings or grounds and the non-member public is not invited to participate in or attend the carnival.

(h) No tax shall be required for any person conducting or operating a carnival at any fair, festival or like activity of a temporary nature conducting or operated by a California Agricultural District.

(i) For every person engaged in the business of conducting a circus procession or circus parade, and not having a registration certificate for conducting, managing or carrying on a circus within the limits of the City of Los Angeles, the tax shall be $4,434.00 for each procession or parade.

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(a) “DANCE HALL” shall mean any place where the business of holding or conducting public dances is regularly carried on provided that nothing in this section contained shall be deemed or construed to require the holder of a registration certificate to conduct the business of a public dance hall to procure any additional registration certificate to conduct a dancing academy, provided that such dancing academy is conducted at the same location and under the same management as the public dance hall.

(b) (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) For every person engaged in the business of conducting any public dance hall, the tax shall be:

For 1,000 square feet or less of dance floor area in such dance hall, $133.05 per quarter;

Over 1,000 square feet and not more than 2,000 square feet, $254.90 per quarter;

Over 2,000 square feet and not more than 3,000 square feet, $365.75 per quarter;

Over 3,000 square feet and not more than 4,000 square feet, $465.60 per quarter;

Over 4,000 square feet and not more than 5,000 square feet, $554.30 per quarter;

Over 5,000 square feet and not more than 6,000 square feet, $631.80 per quarter;

Over 6,000 square feet and not more than 7,000 square feet, $698.35 per quarter;

Over 7,000 square feet and not more than 8,000 square feet, $753.85 per quarter;

Over 8,000 square feet and not more than 9,000 square feet, $798.20 per quarter;

Over 9,000 square feet and not more than 10,000 square feet, $831.35 per quarter;

Over 10,000 square feet and not more than 11, 000 square feet, $853.55 per quarter;

Over 11,000 square feet, $853.55 per quarter, plus $11.00 per quarter for each additional 1,000 square feet or fractional part thereof.

(Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

For every person conducting or staging any public dance, whether for profit or not, to which the public at large is admitted or in which the public at large is allowed to participate, the tax shall be $177.38 per day.

(Amended by Ord. No. 174,241, Eff. 11/3/01, Oper. 1/1/01.)

(a) For every person engaged in the business of conducting or operating a ferris wheel, scenic railway, or any ride by boat or car for the amusement of the public, any merry-go-round, swing or similar device, the tax shall be $443.44 per year or fractional part thereof.

(b) The provisions of this section shall not apply to the holder of a registration certificate issued in connection with the conduct of an amusement park under other sections of this article.

(c) No tax shall be required for any person conducting or operating a ride at any carnival, fair, festival or like activity of a temporary nature conducted or operated by a California Agricultural District. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) Subject to the exceptions stated here, for each person engaged in the business of lending money, advancing credit or lending credit, or arranging for the loan of money or advancing of credit or lending of credit, for and on the person’s own behalf or on behalf of any other person as principal, agent or broker, whether security of any kind is taken for the loan or advance or not, or purchasing or discounting or arranging for the purchase or discounting of any obligation or evidence of money due or to become due, whether the obligation or evidence is secured or guaranteed or not, and whether the person so purchasing or arranging for the purchase of items and acts mentioned above, as principal, agent or broker, the tax shall be $2,660.63 per year.

(b) The tax imposed under the provisions of Subsection (a) shall not apply to the business of lending money or advancing credit or arranging for the loan of money or the advancing of credit as principal or agent, where the obligation to repay the money lent or debt incurred or to compensate for the advance of credit is secured by a lien on real property, or some interest in real property; nor shall the provisions of this section apply to the business of purchasing, either as principal or agent, any debt or evidence of debt secured by any lien upon real property; nor shall the provisions of this section apply to any transaction involving the purchase or sale of real property. All persons engaged in businesses as are described in this subsection shall be subject to tax under Section 21.49, Professions and Occupations.

(c) The tax imposed under the provisions of Subsection (a) shall not apply to a person who, in the conduct of another business in the City, engages in a business of the kind described in Subsection (a) solely with customers or suppliers of that other business; nor shall the tax apply to a person engaged in this type of business, whether or not the relation of customer or supplier exists, when the person confines the business dealings to other persons who are their employees, stand in the relation of parent or subsidiary to the person, are so constituted as to have substantially common ownership with the person or are employees of any person who is the person’s parent or subsidiary or has substantially common ownership with the person; provided, however, if the other business is subject to a tax under this article measured by gross receipts, all interest and other charges received as a result of the activity described in Subsection (a) shall be included in the gross receipts by which the tax elsewhere imposed by this article is measured; and if the other business is not subject to a tax measured by gross receipts, or if there is no other business, the person shall pay a tax under the provisions of Section 21.49, Professions and Occupations, for engaging in the kind of activity described in Subsection (a).

(Title amended by Ord. No. 167,416, Eff. 12/27/91, Oper. 1/1/84.)

(a) (Amended by Ord. No. 167,416, Eff. 12/27/91, Oper. 1/1/84.) For the purposes of this section a motion picture, television, or radio producer is a person who engages in the business of producing motion pictures, television programs, radio programs or advertising material for such media, including pictures or programs in which animation is used. Said businesses include, but are not limited to, the development of a story, whether based on fact or fiction, the photographing of the story or program, whether by means of photographic film, magnetic tape, or other device, the recording of the program, and the cutting, scoring, editing, and final preparation of the picture, program or commercial for release or viewing, and when performed by a person engaged in the foregoing activities also includes either or both of the following:

1. The lending by a motion picture, television, or radio producer of the services of employees for which the producer has contracted to one or more other producers; and

2. The furnishing of motion picture, television or radio studio facilities to other such media producers where the facilities include, in addition to physical equipment, the services of technicians such as camera operators, sound engineers, carpenters, electricians and set decorators.

Every person engaged in the business of being a motion picture, television, or radio producer shall pay a tax in the amount provided in Subsection (c). The measure of the tax in each instance shall be the total of the following sums: the gross cost of production of motion pictures, television programs, radio programs and advertising materials; the gross receipts received by the producer in return for the lending of the services of employees as described herein; and the gross receipts received by the producer in return for the furnishing of studio facilities in the manner described herein.

(b) Every person engaged in the business of reconstructing motion pictures, television programs or commercials by synchronizing pictures with sound, or making or producing sound scores, other than a sound score made or produced by a motion picture, television or radio producer in the preparation for release of a production, shall pay a tax measured by the gross cost of the work done in the amount provided in Subsection (c). (Amended by Ord. No. 167,416, Eff. 12/27/91, Oper. 1/1/84.)

(c) The taxes imposed for the privilege of engaging in the businesses described in this section shall be $145.00 per year or fractional part thereof for the first $5,000,000.00 of the measure of tax, plus $1.30 per year for each additional $1,000.00 of the measure of tax or fractional part thereof in excess of $5,000,000.00, provided that the maximum tax shall be $9,245.00 for all measures of tax greater than $12,000,000.00. (Amended by Ord. No. 181,477, Eff. 1/21/11.)

(d) Any motion picture, television, or radio producer as defined in Subsection (a) of this section and subject to the tax imposed by this section, shall not be subject to tax under Section 21.45 of this article for production activity. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 171,411, Eff. 12/22/96, Oper. 1/1/96.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Added by Ord. No. 155,060, Eff. 5/10/81.)

(a) For every person engaged in the business of stevedoring from a fixed place of business within the City of Los Angeles, the tax shall be $106.43 per year or fractional part thereof, plus $8.87 per year or fractional part thereof for each employee, plus (i) $177.38 per year or fractional part thereof if there are more than 24 and less than 100 employees, or (ii) $302.72 per year or fractional part thereof if there are more than 99 employees. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(b) “Stevedoring” shall mean the business of loading and unloading cargo on and from vessels supplying and supervising labor and supplying and operating equipment for such loading and unloading, and performing port terminal operations such as management consulting and data processing in connection with such loading and unloading.

(c) For the purpose of Subsection (a) of this section “employees” shall mean the sum of the number of individuals who are permanently employed by such person within the City of Los Angeles as of the 15th day of each of the 12 calendar months immediately preceding the due date of the tax, divided by 12, with any remainder constituting another employee.

(d) Engaging in the business of stevedoring without a fixed place of business within the City shall not subject any person to taxation under the provisions of Section 21.49, defined as Professions and Occupations, of this article. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Amended by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of selling or offering for sale Christmas trees at retail, and not from a fixed place of business dealing in other commodities and previously taxed under Section 21.44 of this article, the tax shall be $29.56 per quarter or fractional part.

If the lot, or portion thereof actually used for the sales operation, for the retail sale of Christmas trees pursuant to Subdivision 4 of Subsection A of Section 12.22 of this Code, is not cleaned on or before the January fifth next following the cessation of the annual retail sale of Christmas trees to the satisfaction of the Department of Building and Safety, the City, through the Department of Public Works, shall undertake the necessary cleanup of the lot, or portion thereof, and the deposit referred to in Paragraph (e) of Subdivision 4 of Subsection A of Section 12.22 of this Code or whatever portion thereof is necessary shall be retained by the City to offset the cost of the City cleaning services. For the purpose of this section only, “cleaned” shall include, but not be limited to, the removal of all Christmas trees, temporary structures, trailers, fencing, light poles, tree limbs, sawdust, debris, trash, lumber, etc., used in conjunction with or existing as a result of the Christmas tree sales operation. Upon written request of the operator of the sale of Christmas trees, and upon the receipt of advice in writing from the Department of Building and Safety that the lot of such operator has been cleaned to the satisfaction of the Department, the Director of Finance shall take steps to reimburse the unused portion of such deposit, if any, to the operator. (Added by Ord. No. 151,712, Eff. 11/24/78.)

(Added by Ord. No. 182,184, Eff. 8/20/12.)

(a) Notwithstanding the provisions of Section 21.44, all gross receipts from the retail sales of new passenger motor vehicles by a dealer of new passenger motor vehicles are exempt from taxation under this Article.

(b) For the purpose of this Section:

1. A “dealer of new passenger motor vehicles” is a person who acquires for resale new and unregistered passenger motor vehicles from manufacturers or distributors of those motor vehicles. A “dealer of new

passenger motor vehicles” must be subject to and comply with the provisions of Chapter 6 of Division 2 of the California Vehicle Code (i.e., the requirements of the New Motor Vehicle Board).

2. The term “motor vehicle” shall have the same meaning as that set forth for “motor vehicle” in California Vehicle Code Section 415, as of the effective date of this Section.

3. This Section shall only apply to the sale of passenger vehicles. A “passenger vehicle” shall have the same meaning as that set forth for “passenger vehicle” in California Vehicle Code Section 465 as of the

effective date of this Section. “Passenger vehicle” shall not include housecars, mobile homes, motorcycles, motor-driven cycles, motorized bicycles, motorized quadricycles, motorized scooters or similar motorized vehicles.

(c) This section and the tax treatment for retailers of new passenger motor vehicles shall be operative effective January 1, 2013, through the 2020 tax year.

(Title Amended by Ord. No. 178,101, Eff. 1/9/07.)

(a) For the purpose of this section the following words and phrases shall be defined as follows:

1. The word “bus” shall include motorbus, motor coach, trolley bus, omnibus, passenger stage, or similar vehicle using either a self–contained source of power or power obtained from another source such as an overhead trolley system not operated upon fixed tracks or rails, and primarily designed for the transportation of more than seven passengers, excluding the driver.

2. The word “operator” shall mean any person engaging in the business, either directly or indirectly, as a common carrier in the transportation of persons by bus, upon any street in this City.

3. The phrase “bus revenue mile” shall mean the operation, for one mile, of a bus then and there made available for use as a common carrier in the transportation of persons or property for hire.

4. The phrase “base week” shall mean the third week in January, the third week in April, the second week in July, and the first week in October; provided that the Director of Finance may from time to time order that there be substituted in lieu of any of the four weeks hereinabove designated the week next preceding or next succeeding such designated week. In the event of any such order by the Director of Finance the operator shall be notified thereof at least ten days prior to the first day of the substituted week. The word “week” means a Sunday and the six next succeeding days.

5. The phrase “gross receipts” shall have the same meaning as that set forth in Sec. 21.00(a) of this Code and shall include the total gross receipts of the operator, together with the full cash value of any

consideration received in a form other than cash from:

(i) The transportation of persons and property by bus, as a common carrier, and from advertising and all other privileges or services in, on, or by buses while being so operated, including receipts from the

sale of tokens, tickets, and passes, and from all contracts by the terms of which the operator agrees to furnish transportation by bus, as a common carrier, whether or not such transportation be actually furnished; and

(ii) The rental

(A) of any bus operated in this City as a common carrier;

(B) of property operated, installed, or maintained in any street in the City for use in connection with the operation of any bus as a common carrier;

(C) from permitting others to use or occupy any part thereof; and

(D) from allowing to others any privilege whatsoever with respect thereto; provided that for any operator transporting passengers in areas outside this City, only that proportion of Item (i) shall be included, which the number of bus revenue miles operated in this City in the last four consecutive base weeks, the latest of which terminates within the next preceding tax period, bears to the total number of bus revenue miles operated in said base weeks.

(b) Every person engaged in the business of transporting persons as a common carrier for hire, by bus, upon or over any street in this City, which business includes the loading or discharging of passengers on the streets of this City, shall pay for each calendar year or portion thereof (or, if required by the Director of Finance, for each calendar quarter or portion thereof) commencing January 1, 1971, a sum equal to 1.48% of the gross receipts of the next preceding tax period, but not less than $14.78 per year or $3.67 per quarter, as the case may be. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

(c) The provisions of this section shall not apply to:

1. Any municipal corporation or other public entity.

   2. The gross receipts derived from, or the bus revenue miles traveled by, any bus while being operated solely pursuant to any registration certificate issued under any other section of this article.

   3. The business of operating busses in this City pursuant to a franchise granted by ordinance of this City, which franchise provides for payment to this City of not less than 2-1/2% of the gross receipts. The

   exemption extended by this subsection shall apply to all such franchise operations commencing January 1, 1947.

(d) If any subsection, sentence, clause, phrase or portion of this section is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this section. The Council of this City hereby declares that it would have adopted this section and each subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

(Amended by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in business as a contractor, the tax shall be $165.60 per year or fractional part for the first $60,000.00 or less of gross receipts, plus $1.09 per year for each additional $1,000.00 of gross receipts or fractional part in excess of $60,000.00; provided that every contractor having a fixed place of business in the City of Los Angeles shall pay, in addition to the tax computed in the manner set forth above, a further tax of $2.76 per year for each $1,000.00 or fractional part of all salaries, wages, fees and other compensation paid to the contractor’s employees or consultants, other than legal or accounting consultants, for services rendered by the employees and consultants in the City of Los Angeles in connection with jobs and projects located outside the City.

1. The term “contractor” as used here means any person, except an owner who contracts for a project with another person who is licensed by the State of California as a contractor or architect or registered civil engineer acting solely in their professional capacity, who in any capacity other than as an employee of another with wages as the sole compensation, undertakes to, or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does themselves or by or through others construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation, or other structure, project, development or improvement, or to do any part of those actions, including the erection of scaffolding, or other structures or works in connection with that work.

2. The meaning of the term “gross receipts,” as used here, shall be that set forth in Section 21.00(a) and shall also include the total cost of the job or project covered by the contract to which the contractor is a party, without deduction for subcontracts, and irrespective of whether the contract is one on a fixed price or on a cost plus basis or one under the terms of which the contractor acts as agent for the owner. The term “gross receipts,” however, shall include only receipts from jobs or projects located within the City limits of the City of Los Angeles.

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(Amended by Ord. No. 178,101, Eff. 1/9/07.)

For every person engaged in the business of developing and selling real property in which the person has equity or title, the tax shall be $165.60 per year or fractional part for the first $60,000.00 or less of gross receipts, plus $2.76 per year for each additional $1,000.00 of gross receipts or fractional part in excess of $60,000.00.

1. Real Property Seller means a person engaged in the business of developing and selling real property in which the person has equity or title.

2. A person shall be deemed to be engaged in the business of Real Property Sales if the person:

   (i) As a subdivider, as that term is defined in Section 11508 of the Business and Professions Code, has recorded a subdivision map respecting the property sold in accordance with the Subdivision Map

Act of California, provided, however, that a person filing or joining in the filing of a subdivision map for the sole purpose of accomplishing a street vacation shall not be considered a subdivider; or

(ii) Has prior to sale, divided the property held pursuant to the “lot-split” regulations of the Los Angeles Municipal Code (commencing at Section 17.50); or

(iii) Sells two or more pieces of real property within a calendar year and upon each of which a building was constructed or caused to be constructed by the seller, provided the sales were within three

years of the recordation by anyone of a subdivision map respecting the property sold pursuant to the Subdivision Map Act; or

(iv) Sells any real property upon which the person has constructed or caused to be constructed an apartment house or commercial building, provided the sale is either prior to or within three years after the

issuance of a Certificate of Occupancy or its equivalent respecting the property sold.

3. For purposes of this section, the term “gross receipts” shall not include:

   (i) proceeds realized from the sale of property:

   a. through foreclosure; or

   b. to an agency proposing to take the land under eminent domain proceedings; or

   c. through the exercise of a power of sale contained in a deed of trust or mortgage; or

   d. through bankruptcy; or

   e. through assignment for the benefit of creditors; or

   f. through court order; or

   (ii) the unpaid balance on the date of sale of any encumbrance of record upon the property;

   (iii) existing prior to the sale and remaining in existence between the same parties following the sale;

   (iv) existing of record 180 days prior to the date of sale; or

(v) existing prior to the sale and with respect to which a deficiency judgment is prohibited under the provisions of California Code of Civil Procedure Section 580b, whether or not it is extinguished by reason of the sale.

4. No person shall engage in this business or perform any act required to be taxed under this section during any tax period without first obtaining a registration certificate and paying a tax in the minimum amount

of $165.00.

5. At the close of each tax period, the person shall file a statement with the Director of Finance setting forth the amount of gross receipts derived from the business for that period, and shall pay on or before the

last day of February in the next subsequent tax period any additional tax that may be due under this article for the preceding expired tax period.

6. In the event the business is discontinued, dissolved or otherwise terminated before the close of the tax period, the required statement of gross receipts shall then be filed, and any additional tax due under this

section shall be paid on or before the close of business on the last day of the month following the month in which discontinuance, dissolution or termination occurred.

7. When any person’s activities occurring both within and without the City contribute to the production of receipts from the business taxed under this section, the person’s gross receipts shall be apportioned in a

manner that is fairly calculated to determine the amount of gross receipts derived from or attributable to engaging in business in the City. The apportionment shall be made on the basis of payroll, value and situs of tangible property, general expense, or by reference to any of these or other factors, or by another method of apportionment that will fairly determine the amount of gross receipts derived from or attributable to engaging in business in the City. In the absence of substantial information to the contrary, 80% of the total gross receipts shall be deemed attributable to activities conducted in the jurisdiction in which the subject real property is located and 20% of the total gross receipts shall be deemed attributable to activities conducted in the jurisdiction in which is located a place or premises, other than the subject real property, from which business activities are conducted. The percentages may be increased or decreased by the Director of Finance where after consideration of all of the facts, circumstances warrant the deviation.

8. The sale of any real property, which would not subject the owner to taxation under the provisions of this section, shall not subject the owner to taxation under the provisions of Section 21.49, Professions and

Occupations, of this article.

(Added by Ord. No. 123,096, Eff. 12/1/62.)

(a) Definitions:

1. Operator. The term “operator” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California, with reference only, however, to persons engaging in the transportation of persons for hire.

2. Transportation for Hire. The term “transportation for hire” shall be deemed to include transportation for gain or profit, direct or in direct.

3. Motor Vehicle. The term “motor vehicle” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California.

(b) Tax Imposed.

1. Every person whose business in whole or in part is that of operator, as defined herein, of any motor vehicle for the transportation of persons for hire, and who in the course of that business uses the public streets and highways of the City for the purpose of such business, shall pay a business tax as provided in this section.

2. The business taxed under the provisions of this section shall be the transportation of persons by an operator:

   (i) Wholly within the City;

   (ii) From a place or places outside the City to a place or places within the City;

   (iii) From a place or places within the City to a place or places outside of the City;

   (iv) From a place or places within the City to a place or places also within the City even though such transportation involves going outside the City in the course thereof.

3. This section shall not apply to the business of operating motor coaches or other motor vehicles under the provisions of a franchise granted pursuant to provisions of the City Charter and the Franchise

Procedures Ordinance of the City of Los Angeles, which requires a franchise fee or charge based upon such operations to be paid to the City of Los Angeles, when such fee or charge has been paid. Nor shall this section apply to an operator who transports persons for hire from a place or places outside the City to a place or places within the City by taxi cabs when said operator does not also transport persons for hire from a place within the City of Los Angeles. (Amended by Ord. No. 139,139, Eff. 9/14/69.)

4. No business tax shall be required to be paid for the business of operating a single taxicab in the City pursuant to a written vehicle permit issued under Section 71.02. (Added by Ord. No. 150,105, Eff.

10/9/77.)

(c) Measure of Tax Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The tax required to be paid by this section shall be reported and paid annually. Every person engaged in the business subject to tax under this section shall pay a minimum tax of $54.99 per year at the beginning of each calendar year which shall be given as a credit against the total tax due for such year. The tax required to be paid under this section shall be measured as follows:

1. For each vehicle having a seating capacity of 10 or less persons, the tax shall be $1.06 for each day or fraction thereof of its operation as specified in Subsection (b);

2. For each vehicle having a seating capacity of 11 to 30 persons, inclusive, the tax shall be $1.60 for each day or fraction thereof of its operation as specified in Subsection (b); and

3. For each vehicle having a seating capacity of 31 or more persons, the tax shall be $2.19 for each day or fraction thereof of its operation as specified in Subsection (b).

In determining seating capacity of any vehicle used to measure the tax imposed under this section, the capacity to hold adult passengers as set forth in the specifications of the manufacturer shall be the determining factor, and seats provided for the driver, and announcer or conductor, if any, shall be included in addition to such specified capacity.

(d) Method of Reporting.

1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining a registration certificate and paying a minimum tax for that year

in the amount of $54.99. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due setting forth a summary of the vehicles of each graduation specified in Subsection (c) above

used during such proceeding tax period and the number of days or fractions thereof of such use, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such proceeding tax period.

3. In making such statement, the person may at their option elect to compute such summary and pay such tax on a “test week” basis, by separately computing the tax which would be due for each of the four test

weeks specified in Subsection (d) 4 hereof, dividing the total of the tax due for the four test weeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which the conducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such elections shall be irrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain the records used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such tax on a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such persons in the manner provided by Los Angeles Municipal Code Section 21.16.

4. The test weeks which may be used by a person in computing the tax imposed under this section are the second full week in January, the second full week in April, the second full week in July and the second

full week in October. If a person does not conduct operations subject to tax under this section in any one or more of such test weeks, then the person may use the next succeeding week following such test week in which the person does conduct such operations in the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four test weeks which may, under this subsection, be used in computing the tax, such person may not elect to compute their tax on a test week basis without prior written application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.

5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required by Subsection (d)2 hereof shall thereupon be filed, and any additional tax

due hereunder shall be paid within 45 days following the date of such continuance, dissolution or termination.

(e) Exemption for Vehicles Operated Exclusively in Interstate Commerce. No tax hereunder shall be required for the operation of any motor vehicle for any day or fraction thereof when such vehicle is operated exclusively between points within this City and points without this State.

(f) Exemptions and Exceptions. No tax hereunder shall be required for the operation of any motor vehicle for any day or fraction thereof when such vehicle is operated exclusively between fixed termini or over regular routes in passenger stage operations under certificate issued by the Public Utilities Commission pursuant to Division 1, Part 1, Chapter 5, Article 2 of the Public Utilities Code of the State of California and for which operation a certificate of public convenience and necessity has been issued by the Interstate Commerce Commission. (Former (h) Relettered (f) by Ord. No. 159,384, Eff. 11/ 8/84.)

(g) Measure of Tax for Certain School Buses. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The provisions of Subsection (c) notwithstanding, the tax required to be paid under this section for the operation of any motor vehicle for any day or fraction thereof when such vehicle is operated exclusively on any day to transport students or members of bona fide youth organizations and their supervising adults to or from public or private schools, school events or other youth activities, without regard to the manner or source of compensation to the operator, shall be measured as follows:

1. For each vehicle having a seating capacity of 10 or less persons, the tax shall be $0.30 for each day or fraction thereof of its operation as specified in Subsection (b);

2. For each vehicle having a seating capacity of 11 to 30 persons, inclusive, the tax shall be $0.44 for each day or fraction thereof of its operation as specified in Subsection (b); and

3. For each vehicle having a seating capacity of 31 or more persons, the tax shall be $0.60 for each day or fraction thereof of its operation as specified in Subsection (b).

(Added by Ord. No. 123,096, Eff. 12/1/62.)

(a) Definitions.

1. Operator. The term “operator” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California, with reference only, however, the persons engaging in the transportation of property for hire or compensation.

2. Motor Vehicle. The term “motor vehicle” is used in this section as defined in the Motor Vehicle Transportation License Tax Act of California.

3. Tractor. The term “tractor” as used herein shall mean “truck- tractor” as defined in the Vehicle Code of California.

(b) Tax Imposed. Every person whose business in whole or in part is that of operator, as defined herein, of any motor vehicle for the transportation of property for hire or compensation, and who in the course of that business uses the public streets and highways of this City for the purpose of such business, shall pay a business tax as provided in this section.

(c) Measure of Tax – Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The tax required to be paid by this section shall be reported and paid annually. Every person engaged in the business subject to tax under this section shall pay a minimum tax of $88.69 per year at the beginning of each calendar year which shall be given as a credit against the total tax due for such year. The tax required to be paid under this section shall be measured as follows:

1. For each motor vehicle, other than a tractor, trailer, semitrailer or dolly, used to receive or discharge, pickup or deliver property within the city, the tax shall be as follows:

Where the unladen weight thereof is 4,000 pounds or less, the tax shall be $0.28 for each day or fraction thereof of its operation as specified in Subsection (b);

Where the unladen weight thereof is over 4,000 pounds, and not more than 8,000 pounds, the tax shall be $0.71 for each day or fraction thereof of its operation as specified in Subsection (b); and

Where the unladen weight thereof is over 8,000 pounds, the tax shall be $0.78 for each day or fraction thereof of its operation as specified in Subsection (b).

2. For each tractor which is so used to haul one or more trailers or semitrailers, the tax shall be $0.78 for each day or fraction thereof of its operation as specified in Subsection (b).

(d) Method of Reporting.

1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining a registration certificate and paying a minimum tax for that year in the amount of $88.69. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due and setting forth a summary of the vehicles of each graduation specified in Subsection (c) above used during such preceding tax period and the number of days or fractions thereof of such use, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such preceding tax period.

   3. In making such statement, the person may at their option elect to compute such summary and pay such tax on a “test week” basis, by separately computing the tax which would be due for each of the four test

   weeks specified in Subsection (d)4 hereof, dividing the total of the tax due for the four test weeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which the person conducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such election shall be irrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain the records used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such tax on a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such person in the manner provided by Los Angeles Municipal Code Section 21.16. 4. The test weeks which may be used by a person in computing the tax imposed under this section are the second full week in January, the second full week in April, the second full week in July and the second full week in October. If a person does not conduct operations subject to tax under this section in any one or more of such test weeks, then the person may use the next succeeding week following such test week in which the person does conduct such operations in the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four test weeks which may, under this subsection, be used in computing the tax, such person may not elect to compute their tax on a test week basis without prior written application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.

   5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required by Subsection (d)2 hereof shall thereupon be filed, and any additional tax

   due hereunder shall be paid within 45 days following the date of such discontinuance, dissolution or termination.

(e) Exception for Vehicle Operated Exclusively in Interstate Commerce. No tax hereunder shall be required for the operation of any motor vehicle for any day or fraction thereof when such vehicle is operated exclusively between points within this City and points without this State.

(f) Exemption and Exceptions. No tax under this section shall be required to be paid by any person who is subject to tax under the Household Goods Carriers Uniform Business License Tax Act or the Motor Carriers of Property Permit Fee Act. (Amended by Ord. No. 178,101, Eff. 1/9/07.)

(Added by Ord. No. 123,096, Eff. 12/1/62.)

(a) Definitions. For purposes of this section, the term “motor vehicle” is defined to mean the same as that term is defined in the Motor Vehicle Transportation License Tax Act of California: the term “ trailer” and “semi- trailer” are used as those terms are defined in the Vehicle Code of California; the term “tractor” shall mean a “truck tractor” as defined in the Vehicle Code of California.

(b) Tax Imposed. Every person engaged in any business not otherwise specifically taxed by other provisions of this article who uses any motor vehicle over the public streets and highways of this City for hauling or carrying the person’s tools, equipment or supplies, or for delivering or carrying goods, wares or merchandise sold, let or handled by the person in the course of their business, shall pay a business tax as provided in this section.

(c) Measure of Tax Reporting Period. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.) The tax required to be paid by this section shall be reported and paid annually. Every person engaged in the

business subject to tax under this section shall pay a minimum tax of $88.69 per year at the beginning of each calendar year which shall be given as a credit against the total tax due for such year. The tax required to be paid under this section shall be measured as follows:

1. For each motor vehicle, other than a tractor, trailer, semitrailer or dolly, the tax shall be as follows:

Where the unladen weight thereof is 4,000 pounds or less, the tax shall be $0.28 for each day or fraction thereof of its operation as specified in Subsection (b);

Where the unladen weight thereof is over 4,000 pounds, and not more than 8,000 pounds, the tax shall be $0.71 for each day or fraction thereof of its operation as specified in Subsection (b); and

Where the unladen weight thereof is over 8,000 pounds, the tax shall be $0.78 for each day or fraction thereof of its operation as specified in Subsection (b).

2. For each tractor which is so used to haul one or more trailers or semitrailers, the tax shall be $0.78 for each day or fraction thereof of its operation as specified in Subsection (b).

(d) Method of Reporting.

1. No person shall engage in such business or perform any act required to be taxed under this section during any tax period without first obtaining a registration certificate and paying a minimum tax for that year

in the amount of $88.69. (Amended by Ord. No. 166,204, Eff. 10/11/90, Oper. 1/1/91.)

2. At the close of each tax period such person shall file a statement with the Director of Finance showing the tax due and setting forth a summary of the vehicles of each graduation specified in Subsection (c)

above used during such preceding tax period and the number of days or fractions thereof of such use, and shall pay on or before the last day of February in the next subsequent tax period any additional tax that may be due hereunder for such preceding tax period.

3. In making such statement, the person may at their option elect to compute such summary and pay such tax on a “test week” basis, by separately computing the tax which would be due for each of the four test

weeks specified in Subsection (d)4 hereof dividing the total of the tax due for the four test weeks by four to ascertain the average weekly tax, and multiplying said average weekly tax by the number of weeks of the tax period during which the person conducted operations subject to tax under this section. If the person elects to compute the tax imposed hereunder on a test week basis, such election shall be irrevocable and conclusive as to the tax period for which such election is made. Any person electing to compute such tax on a test week basis shall retain the records used for such computation for a period of four years from the date of filing such report. Upon the failure of any person electing to compute such tax on a test week basis to retain such records, the Director of Finance may determine the amount of any additional tax estimated to be due from such person in the manner provided by Los Angeles Municipal Code Section 21.16.

4. The test week which may be used by a person in computing the tax imposed under this section are the second full week in January, the second full week in April, the second full week in July and the second

full week in October. If a person does not conduct operations subject to tax under this section in any one or more of such test weeks, then the person may use the next succeeding week following such test week in which the person does conduct such operations in the place of such test week; provided, however, that if a person does not conduct operations subject to tax under this section during each of the four test weeks which may, under this subsection, be used in computing the tax, such person may not elect to compute their tax on a test week basis without prior written application to and prior written approval of the Director of Finance as to what alternate test period or periods may be used.

5. In the event the business is discontinued, dissolved or otherwise terminated before the close of such tax period, the statement required by Subsection (d)2 hereof shall thereupon be filed, and any additional tax

due hereunder shall be paid within 45 days following the date of such discontinuance, dissolution or termination.

(Repealed by Ord. No. 178,101, Eff. 1/9/07.)

(a) Imposition and Rate of Sales Tax. (Reenacted, Amended by Ord. No. 137,130, Oper. 10/1/68) For the privilege of selling tangible personal property at retail a tax is hereby imposed, in addition to any other tax imposed under this article or under this chapter, upon all retailers at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of Los Angeles on or after October 1, 1968, and to and including March 31, 1969.

Notwithstanding the foregoing provisions of this subsection, the tax imposed by this section shall not apply to selling tangible personal property at fixed prices agreed to in contracts executed in good faith prior to October 1, 1968.

For the purposes of this section, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or the retailer’s agent to an out-of-state destination, or to a common carrier for delivery to an out-of-state destination. The gross receipts from sales shall include delivery charges when such charges are subject to the sales and use tax imposed by the State of California, regardless of the place to which delivery is made. In the event a retailer having a place of business within the City also has a place of business outside the City, both of which participate in some degree in a particular sale, the sale shall be deemed to have occurred within the City of Los Angeles if the principal negotiations were carried on there or by personnel normally assigned to that place of business. In the event a retailer has no permanent place of business in the City, but nevertheless engages in selling tangible personal property in the City, the sales shall be deemed to have occurred within the City if the sales were solicited or otherwise promoted by the seller or the seller’s agent within the City and the seller or the seller’s agent delivered the property within the City to a purchaser or to the purchaser’s agent.

(b) Reimbursement. The retailer shall reimburse themself for the tax due from the consumer substantially in accordance with the following table up to the amount specified herein:

[Sales Tax — Retailer Reimbursement]

1 %

Price Tax .01 - .49 .00 .50 - 1.49 .01

The remainder of the schedule shall show amounts of reimbursement computed by applying the applicable tax rate to the sales price, rounded off to the nearest cent by eliminating any fraction less than one–half cent and increasing any fraction of one–half cent or over to the next higher cent.

(c) Unlawful Advertising. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly that the tax or any part thereof will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold, or that, if added, it or any part thereof will be refunded.

(d) Tax Levied as State Sales & Use Tax Law. The tax hereby levied, except as otherwise provided, is levied in the same manner, to the same extent and under the same conditions as sales taxes are levied pursuant to Part 1 of Division 2 of the California Revenue and Taxation Code, known as the “Sales and Use Tax Law,” as amended and in force and effect on October 1, 1968.

(e) Extension of Time; Due Date: Penalties. The Director of Finance, for good cause, may extend for not more than 45 days the time for making any return or paying any sum required to be paid hereunder. The extension may be granted at any time provided a written request therefor is filed with the Director of Finance prior to the delinquency date.

All taxes payable monthly and all taxes payable quarterly hereunder shall be deemed delinquent if not paid on or before the close of business on the last day of the month following the monthly or quarterly period for which the tax is payable. Taxes payable hereunder for periods other than monthly or quarterly periods shall be deemed delinquent at the times designated by the Director of Finance in the Director’s rules and regulations. Whenever tax required to be paid by this section is not paid on or before the date on which it becomes delinquent, penalties and interest shall accrue and deficiency determinations shall be made in the manner provided in Sec. 21.05 and Sec. 21.15.

Each retailer shall, on or before the last day of the month following the close of each calendar quarter, make a statement to the Director of Finance on forms provided by the Director, of the total gross receipts received during the preceding quarter. At the time the statement is filed, the full amount of tax due shall be paid to the Director of Finance. Where the Director of Finance determines that efficiency in the administration of the tax would be promoted, the Director of Finance may establish reporting periods greater than quarterly, but not to exceed one year, for retailers who sell tangible personal property only occasionally or seasonally. The Director of Finance may establish shorter reporting periods for any retailer if the Director of Finance deems it necessary in order to insure connection of the tax and the Director of Finance may require further information in the statement. Statements and payments are due immediately upon cessation of business for any reason.

In addition to the powers of the Director of Finance mentioned in the foregoing paragraphs, the Director of Finance may, under circumstances set forth in Subsection (j) of this section require prepayment of taxes.

(f) Registration; Permits. Every person desiring to engage in or conduct business as a seller within the City of Los Angeles shall secure from the Director of Finance of said City a permit for each place of business.

Such permits shall be issued by the Director of Finance upon receipt of a written application therefor setting forth the name under which the applicant transacts or intends to transact business, the location of the applicant’s place or places of business and such other information as the Director of Finance may require. A permit is not assignable and is valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. A change of location may be endorsed upon the permit by the Director of Finance. The permit shall at all times be conspicuously displayed at the place for which issued.

(g) Revocation of Permit; Renewal of Permit. Whenever any person fails to comply with any provision of this section or any rule or regulation adopted pursuant hereto, the Director of Finance, upon hearing, after giving such person ten days’ notice in writing specifying the time and place of hearing and requiring the person to show cause why the person’s permit or permits should not be revoked, may revoke or suspend any one or more of the permits held by such person. The notice may be served personally or by mail in the manner prescribed for service of notice in Sec. 11.00(i) or in Sec. 21.16 of this Code. The Director of Finance shall not issue a new permit unless the Director of Finance is satisfied that the former holder of the permit will thereafter comply with the provisions of this section and the rules and regulations adopted hereunder.

(h) Selling Without Permit. A person who engages in business as a seller in the City without a permit or permits, or after a permit has been suspended, and each officer of any corporation which so engages in business is guilty of a misdemeanor.

(i) Violation of Ordinance. The Director of Finance may at the Director’s option accept a State of California Resale Certificate as evidence that any sale is not a sale at retail, or the Director of Finance may in the Director’s discretion require an affidavit from the seller setting forth such information respecting such sale as the Director of Finance deems necessary to determine the nature of such sale.

(j) State Resale Certificate Optional. All provisions of the Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Tax Code of the State of California, as amended and in force and effect on October 1, 1968, except the provisions pertaining solely to the Use Tax and Sections 6051, 6052, 6052.5, 6053, 6066, 6067, 6068, 6069, 6070, 6071, 6072, 6271 to 6292 inclusive, 6451, 6459, 6470, 6481 to 6592, inclusive, 6701 to 6799, inclusive, 6826 to 6828, inclusive, 6901 to 6937, inclusive, 6961 to 6963, inclusive, 6981, 7051 to 7056, inclusive, 7057, 7101 to 7154, inclusive, and 7176 applicable to sales of property at retail, are hereby adopted and made a part of this section as though fully set forth herein and all provisions of this Code conflict therewith are inapplicable to this section and the tax hereby imposed. All of the provisions of the California Sales and Use Tax Law hereby adopted, providing for the performance of official action on the part of the State Board of Equalization shall be performed by the Director of Finance of the City of Los Angeles.

(k) Sections of State Law Adopted by Reference; Suit for Collection of Tax. The term “gross receipts” as used herein does not include (l) the amount of any federal tax imposed upon or with respect to retail sales, whether imposed upon the retailer or upon the consumer, and regardless of whether or not the amount of federal tax is stated to customers as a separate charge; and (2) the amount of any California State or local Sales or Use Tax.

(l) Gross Receipts Defined. In addition to the exemptions contained in Part 1 of Division 2 of the Revenue and Taxation Code of the State of California, there shall be excluded from the computation of the tax gross receipts from;

1. Sales of property which is shipped to a point outside this City pursuant to the contract of sale by delivery by the retailer to such a point by means of (A) facilities operated by the retailer; (B) delivery by the retailed to a carrier for shipment to a consignee at such point; or (C) delivery by the retailer to a customs broker or forwarding agent for shipment outside this City.

(m) Administration of Ordinance; Rules and Regulations. The Director of Finance shall administer and enforce the provisions of this section and, with the approval of the City Attorney, shall prescribe, adopt and enforce reasonable rules and regulations for the purpose of administering and enforcing the section. Each of said rules and regulations which relate to the time, form and manner of making returns and payments of the taxes imposed hereby shall govern, notwithstanding any other provision of this article to the contrary. Such rules and regulations, among other things, require each retailer to keep such records, receipts, invoices and other pertinent papers in the manner therein set forth.

Inasmuch as this section is patterned after the Sales Tax provisions of the Revenues and Taxation Code of the State of California, and the State Board of Equalization has made various rules and regulations pertaining to the interpretation, administration and enforcement of said provisions of the Revenue and Taxation Code, and it may be reasonably assumed that the City of Los Angeles will be confronted with many of the problems dealt with in the state rules and regulations, each such rule and regulation, in so far as applicable, shall apply in the interpretation of this section until specifically abandoned by rules and regulations adopted by the Director of Finance pursuant to the authority of this section.

(n) Inclusion of Portion of State Law. The inclusion of any clause, portion or part of the State Sales and Use Tax Law, Part 1, Division 2 of the Revenue and Taxation Code of the State of California, verbatim in this section shall not in or of itself be deemed to exclude any of the remaining provisions of said Sales and Use Tax Law that are made a part hereof by reference only.

(z) Validity of Ordinance. If any subsection, sentence, clause, phrase or portion of this section, including but not limited to any exemption, is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this section. The Council of this City hereby declares that it would have adopted this section and each subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more subsections, clauses, phrases or portions be declared invalid or unconstitutional.