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New Business Exemption for First Two Years of Operation

The business tax exemption for qualifying new businesses (under LAMC Section 21.30) covers the first two years of operation. A qualifying new business will not be required to pay the applicable minimum tax or any additional business tax for the first two years of operation if its taxable gross receipts are less than $500,000 and their annual tax renewal form is filed timely. Effective February 1, 2003, the two-year start-up business exemption was extended to out-of-city businesses that establish a new location in the City.

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