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We have updated and streamlined the look of our renewal form this year as we continue to strive to serve you better. The update breaks the renewal form into 7 sections: (1) Taxpayer Information, (2) Tax Reform & Incentives, (3) Tax Worksheet, (4) Certifications, (5) Payment Info, (6) Information Update, and (7) Vendor / Subcontractor / Commercial Tenant Listing. (At minimum, all 2009 renewals should complete sections I, II, III and IV)
Section I - Taxpayer Information
The Taxpayer Information section should be completed with the Account
Number, current Legal Name, DBA (if applicable) Business Address and
Mailing Address that the City of Los Angeles has on file for your
business.
If you either (1) received a pre-printed form that contains information that is no longer accurate or (2) are using a blank form and need to update information the Office of Finance has on file for your business, please check the Change of Information box and report changes or corrections on Section VI - Information Update.
You should also check the Change of Information box and complete Section VI if you have sold rental property, the business was either entirely or partially sold or discontinued, or would like to renew based on a fiscal year and need to report the beginning month of your fiscal year cycle.
Section II - Tax Reform and Incentives
This section includes steps for the Small Business Exemption, the
Newly Established Business (second year) Exemption and the Creative
Activities Exemption. Additionally, this section solicits the number of
persons employed by the business at this location and whether or not
leased parking is provided for such employees.
Small Business Exemption - The City of Los Angeles provides a small business exemption to businesses that (1) have worldwide gross receipts that did not exceed $100,000 for the 2008 calendar year and (2) file/postmark their renewal by March 2, 2009. If you meet both the monetary and timing requirements, check the box on line 1 and enter your worldwide gross receipts, which includes gross receipts from all operations inside and outside the City of Los Angeles for 2008, on the space provided.
Newly Established Business - The City of Los Angeles provides a second year exemption to certain newly established businesses. Businesses that began operations in 2008 and (1) have total taxable gross receipts that do not exceed $500,000 for the 2008 calendar year, (2) file their renewal by March 2, 2009, and (3) are not one of the following (i) Construction Businesses (as defined in §21.30(b)(1) of the Los Angeles Municipal Code (LAMC)); (ii) Film Producers (as defined in §21.109 of the LAMC); and (iii) any business owned in whole or in part by a person who was engaged in business in the City during the current tax period. If you meet all three qualifications, check the box on line 2.
Creative Activities Exemption - The City of Los
Angeles provides an exemption to "Creative Artists" if:
(1)
the worldwide gross receipts from "Creative Artist"
activities did not exceed $300,000 for the 2008 calendar year; and
(2) your renewal is filed on or before March 2,
2009.
A "Creative Artist" is defined as a person who
operates whether
(i) as an individual;
(ii) through a corporation
with one individual as the only shareholder and the only employee;
or
(iii) through a limited liability company with one individual as
the only member and the only employee.
Those who may be eligible for
this exemption are: actor/announcers; art directors, costume
designers, production designers, scenery/set designers;
choreographers; cinematographers; musical conductors; directors;
motion picture editors; sound dubbing, special effects, or titling
artists; creative writing; music/lyrics arrangers, composers, or
writers, authors; cartoon artists; lithographers/painters/sculptors
of visual fine arts; drawing, graphic, illustration or sketch
artists; and photographers (if primarily artistic and not
journalistic or commercial). Please refer to LAMC §21.29(b) for
more complete definitions or descriptions.
If you meet both
requirements for the Creative Activities Exemption, check the box on
line 3 and enter your worldwide gross receipts from Creative
Artist Activities on the space provided.
Number of Employees - Please enter the total Number of persons employed at this location on line 4.
Leased Parking - Please indicate whether or not your business provides leased parking for employees at this location by checking the appropriate box on line 5.
Section III - Tax Worksheet
This section consists of a table that will be used to perform tax
calculations for each fund/class associated with your business. Please
follow the steps below for calculation of the tax due for each activity.
Business Activity - If using a pre-printed
form, Column A should list all your taxable business activities that
are currently reported to the City of Los Angeles.
i. If you are in a business activity not listed on the Renewal Form
or are using a blank renewal form, write
a description
of the Business Activity on lines 6-12 under Column A.
ii. If you are still in business but have ceased one or more of the
activities listed, or if you are no longer in business, check the
Change of Information box in Section I and complete Section VI as
shown above.
iii. If you purchased your business from the owner shown on this
Renewal Form, please contact one of our offices listed here.
Fund/Class - Column B should list the fund/class
that correlates to each taxable business activity listed in Column
A. (A listing of Fund/Classes can be found in §21.41 et seq. of the
LAMC. You may also refer to the business tax rate charts available here.)
Primary Class - If you have 2 or more Business
Activities whose "Basis for Tax" is gross receipts listed
on lines 6-12, and one activity constitutes at least 80% of your
annual taxable gross receipts, you may then consolidate all gross
receipts and report them under this one Primary Class by checking
the appropriate box in Column C. This allows you to possibly lower
your tax liability if your primary classification has a lower tax
rate than other business activities. If electing to consolidate,
leave Columns D, F and H blank for the activities which were not
selected as the Primary Class. For more information on Single
Primary Tax Classification Election, please refer to §21.06.1 of
the LAMC.
The following example assumes a wholesale and retail business that
had gross receipts in 2008 of $1,000,000.00. $800,000.00 was
attributed to wholesale activities and $200,000.00 was attributed to
retail activities. Since the wholesale business constituted 80% of all
gross receipts from 2008, the business would be entitled to elect
wholesale as its primary class and take advantage of the lower tax
rate for wholesale activities.
Basis for Tax - Column D describes the manner in
which your fund(s)/class(es) are taxed. Please refer to the table
below and enter your Basis for Tax for each Fund/Class code you are
reporting on your renewal.
|
Fund/Class |
Basis for Tax |
| L043 | Gross Receipts of $20,000 or more |
| L055, L094, L108 | Flat Rate |
| L062 | Number of Tables |
| L063, L064, L265, L763 | Number of Machines |
| L070 | Number of Alleys, Machines, Tables and Courts |
| L109, L309. L142,
L188 L193, L194, L195, L196 |
See Worksheet |
| All Other Funds/Classes | Gross Receipts |
The term "gross receipts" shall mean gross receipts (including reimbursed expenses) from the previous calendar year or your previously designated fiscal year reported on an accrual or cash basis in accordance with Internal Revenue Service (IRS) guidelines. If reporting on an accrual basis, you may exclude from your reportable gross receipts any uncollectible amount ('bad debt") apportioned to the City of Los Angeles, which has been written off as a "bad debt" in compliance with IRS guidelines. Any portion of "bad debt" subsequently recovered by a taxpayer shall constitute taxable gross receipts in the year that it is recovered. Gross receipts associated with certain activities may be excluded from the basis for tax for businesses conducting only part of their activities within the City or whose gross receipts include amounts received from or paid to a related entity.
Small Business/New Business Exemption - If you checked the either box on line 1 or line 2, as described above, and meet the requirements for either the small business or new business exemption, enter "0" on line 18 and proceed to line 19 of Section IV.
Creative Artist Exemption - If you checked the box on line 3 of Section II and meet both requirements of the Creative Artist Exemption, do one of the following for each fund/class listed:
- If all gross receipts for the fund/class are derived from "Creative Activities," enter "0" in Column D "Basis for Tax"
- If all gross receipts are not derived from "Creative Activities," enter the taxable gross receipts (gross receipts not attributable to creative activities) in Column D, "Basis for Tax."
- For gross receipts, the tax computation is based on the rate shown in Column E (or found on our tax rate tables if using a blank form) per one thousand dollars ($1,000) of gross receipts or fractional part thereof. Round up total gross receipts in Column D to the next highest $1,000, then multiply the result by Column E and enter the result in Column F.
Example: Gross receipts of $237,461 would be rounded up to $238,000. The tax would then be calculated as 238 x the applicable tax rate = Tax Computation.
For all others, multiply Column D with Column E and enter the result in Column F.
Back Tax - This column only applies to businesses or activities newly established in 2008. Copy the amount from Column F into Column G, unless "N/A" is printed in Column G.
Tax Due - Add Columns F and G and enter the result in Column H
Add lines 6-12 in Column H and enter the sum on line 13.
As a business in the EZA, you may be entitled to a tax incentive. If line 13 is less than $25, write the amount from line 13 on line 15. If line 13 is greater than $25, subtract $500 from line 13 and enter the result on line 14. If the result is less than "0", enter "0" on line 14.
If line 14 is less than $25, then write $25 on line 15. If line 14 is greater than $25, then copy the figure on line 14 onto line 15.
Timely Filing: Business Taxes are due January 1st of each year and is delinquent if not paid on or before the last day of February of each year. If February 28th falls on Saturday or Sunday, then the next business day will be considered timely. March 2nd is the last day for timely filing for 2009 renewals. All payments received at any of our brank offices by 5:00 P.M. on March 2nd, postmarked by the U.S. Post Office, or filed electronically not later than 11:59 P.M. on March 2nd are considered timely. If you are completing your renewal after March 2, 2009, then compute interest and penalty on late payments as shown below.
Interest - Interest at the rate of 0.5% per month
applies as of March 3, 2009 and the first day of each month
thereafter until paid. Interest applies only to the amount of
principal tax due. To calculate, multiply 0.005 x number of months
delinquent x amount on line 13 (line 15 if an EZA
Business).
Example (Using the same $706.66 figure from the tax computation above):
| Date Filed | Interest Rate | Months Delinquent | Principal | Interest Due |
| 04/15/09 | 0.5% | 2 | $706.66 | $7.07 |
| Date Filed | Penalty Rate | Months Delinquent | Principal | Penalty Due |
| 04/15/09 | 10% | 2 | $706.66 | $70.67 |
Section IV - Certifications
19-21 - the owner, partner, or officer must sign and print their
name on line 19. Indicate your title and daytime phone number,
with extension if applicable, on line 20. Enter the date and
provide an email address where the City may contact you on line 21.
Section V - Payment Information
22 - If payment is due, please check the appropriate box on line
22 corresponding to the method of payment you will be using. Only
one form of payment is allowed.
If paying by check, please write your account number on your check.
If the total amount due is in excess of $50,000, you must remit your payment to the City electronically via Automated Clearing House (ACH) transaction through your bank in addition to submitting the completed Renewal Form. You must pre-register no later than February 14th in order to make an ACH transaction. Please click here for more details.
If you have chosen to pay with a credit card, please complete lines 23-25, providing all required cardholder information.
Make a copy of your completed Renewal Form to retain for your records. If mailing your form, please ensure that your check is enclosed and mail the original with required signatures to the following address:
City of Los Angeles
Office of Finance
File 57065
Los Angeles, CA 90074-7065
The renewal MUST BE POSTMARKED NO LATER THAN MIDNIGHT on March 2, 2009. Your cancelled check, credit card transaction, or ACH confirmation is your receipt if payment is due. Proof of mailing is highly recommended.
A new "Business Tax Registration Certificate" will not be mailed to you unless changes or corrections were required. The certificate you have remains valid unless it is suspended or revoked.
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