2012 Business Tax Renewal Instructions (Hollywood Multimedia)
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 2012 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
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 2011
calendar year and (2) file/postmark their renewal by February 29,
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 2011, 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 2011 and (1) have
total taxable gross receipts that are less than $500,000 for the
2011 calendar year, (2) file their renewal by February 29, 2012, 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 2011 calendar year; and
(2) your renewal is filed on or before February 29, 2012.
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;
(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
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
iii. If you purchased your business from the owner shown on this
Renewal Form, please contact one of our offices listed
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
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 following example assumes a wholesale and retail business that
had gross receipts in 2011 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 2011, 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.
Basis for Tax
||Gross Receipts of $20,000 or more
|L055, L094, L108
||Number of Tables
|L063, L064, L265, L763
||Number of Machines
||Number of Alleys, Machines, Tables
|L109, L309. L142,
L193, L194, L195, L196
|All Other Funds/Classes
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 box on either 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."
- Tax Rate - This is the rate of tax for the correlating activity.
If you are using a preprinted form, the correct rates should be
printed in Column E. If you are using a blank form or adding a new
business activity, you can find tax rates from our Tax
Rate Tables. If you see "WKST" in Column E or are
renewing for business activities requiring a specialized worksheet,
please go to the appropriate supplemental worksheet to calculate the
- Tax Computation
- 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.
Back Tax - This column only applies to businesses or
activities newly established in 2011. 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
As a multimedia business located in the
Hollywood/North Hollywood redevelopment areas, your tax liability is
limited to $25,000 plus 10% of the amount in excess of $25,000. If line
13 is greater than $25,000, subtract $25,000 from line 13
and enter the result on line 14. If line 13 does not
exceed $25,000, copy the figure from line 13 onto line 15
and skip both line 14 and line 14A.
14A. Multiply line 14 by 10% (.10) and enter the result on line
This line is the total tax due and should reflect
either (1) the exact figure on line 13; or (2) the figure on line
14A plus $25,000.
Timely Filing: Business Taxes are due
January 1st of each year and are delinquent if not paid on or before the
last day of February of each year. If February 29th falls on Saturday or
Sunday, then the next business day will be considered timely. February
29th is the last day for timely filing for 2012 renewals. All payments
received at any of our branch offices by 5:00 P.M. on February 29th,
postmarked by the U.S. Post Office, or filed electronically not later
than 11:59 P.M. on February 29th, are considered timely. If you are
completing your renewal after February 29, 2012, then compute interest and
penalty on late payments as shown below.
Interest - Interest at the rate of 0.3% per month
applies as of March 1, 2012 and the first day of each month
thereafter until paid. Interest applies only to the amount of
principal tax due. To calculate, multiply 0.003 x number of months
delinquent x amount on line 15.
Example (Using the same figures from the tax computation above):
Penalty - A penalty of 5% applies to the amount of unpaid tax due
as of March 1, 2012; 10% as of April 1st, 15% as of May 1st, 20% as
of June 1st and caps at 40% as of July 1st. Penalty applies only to
the amount on line 15.
Example (Using the same figures from the tax computation above):
Total Amount Due - Add lines 15-17, and
enter the result on line 18. This is the total amount due to
the City of Los Angeles for your Business Tax Renewal.
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 $50,000 or more,
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 10th 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
Fee Disclosure: All Visa Debit Card payments will be assessed
a flat fee of $3.95 per transaction with a maximum allowed payment amount of $1,200.
All other credit or debit card payments will be assessed a fee equal to 2.7% of the payment amount with
a minimum fee of $3.95. This fee will be assessed to the same credit/debit card provided.
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
City of Los Angeles
Office of Finance
P.O. Box 513996
Los Angeles, CA 90051-3996
The renewal MUST BE POSTMARKED NO LATER THAN MIDNIGHT
on February 29, 2012. 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