Medical Marijuana Collectives Annual Business Tax Renewal and Affidavit FAQ

I have already submitted my 2017 Business Tax renewal form for medical marijuana collective business activity, is any additional documentation required?

Yes, an affidavit is required to be submitted in person by February 28, 2017 by one of the following individuals: Individual owner, Manager of the LLC, Member of the LLC,  Partner, or an Officer of the Corporation.  Any person who makes a false statement or representation in the affidavit is guilty of a misdemeanor.  A government issued identification is needed for verification purposes.  A copy of the said  identification will be kept by the Office of Finance.

If I filed my 2016 renewal and affidavit and received my 2016 L050 Business Tax Registration Certificate, do I need to file and submit another affidavit for the 2017 tax year?

Yes, according to Ordinance 184135, amending Subsection (b) of Section 21.50 of ArticleI, Chapter II of the Los Angeles Municipal Code, "every medical marijuana collective taxed under 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."  Please note that 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.

I want to begin a medical marijuana collective business activity after December 31, 2015, can I apply for a Business Tax Registration Certificate?

No, Subsection (b) of Sec 21.50 of Article I, Chapter II of the Los Angeles Municipal Code states that no new Business Tax Registration Certificates shall be issued for any medical marijuana collective business activity, pursuant to the elapsed registration requirements  of Proposition D.

I am a business that is conducting medical marijuana collective business activity and also conducting business activity that is not related to medical marijuana. Can I apply for a Business Tax Registration Certificate for the business activity that is not related to medical marijuana?

Yes, a new Business Tax Registration Certificate may be issued for any business activity other than medical marijuana collective business activity.

Can I mail my annual renewal and annual affidavit?

The annual renewal can be mailed (postmarked) or renewed on-line at finance.lacity.org by February 28, 2017.  The 2017 affidavit must be submitted in person at the City Hall branch office by February 28, 2017.  The City Hall address is 200 N. Spring St., Room 101, Los Angeles, CA 90012.

Can I have a messenger submit my annual renewal and annual affidavit?

A messenger may submit the annual renewal; however, only one of the following may submit the annual affidavit in person: Individual owner, Manager of the LLC, Member of  the LLC, Partner, or an Officer of the Corporation.  Any person who makes a false statement or representation in the affidavit is guilty of a misdemeanor.

Do I need an identification in order to submit my annual renewal and annual affidavit in person?

A government issued identification is needed for verification purposes for the annual affidavit, which must be submitted in person.  A copy of the said identification will be kept by Office of Finance as part of the annual affidavit. The annual renewal can be mailed in or submitted on-line at finance.lacity.org.

Will Office of Finance accept my annual renewal and payment without my annual affidavit?

Yes, the Office of Finance will accept the 2017 annual renewal without the annual affidavit, however, the completed annual affidavit must be submitted in person by February 28, 2017.  The Business Tax Registration Certificate will not be issued unless a 2017 affidavit is submitted.

Will a new Business Tax Registration Certificate be issued to me?

A new L050 Business Tax Registration Certificate will be issued in March 2017, upon timely receipt of the annual renewal, review of annual affidavit and full payment.

Can I display an expired Business Tax Registration Certificate at my business?

No, Subsection (h) of Section 21.50 of Article I, Chapter II of the Los Angeles MunicipalCode states that it is a misdemeanor to maintain or display an expired, suspended, or otherwise invalid Business Tax Registration Certificate.

Where can I make the payment for my L050 2017 Business Tax Renewal?

All in person payments must be made at the City Hall public counter, located at 200 N. Spring Street, Room 101, Los Angeles, CA 90012.  This payment information was provided to you on your 2017 Business Tax Renewal.

Can I request an Installment Agreement for my 2017 Business Tax Renewal liability?

No.  As of January 1, 2017, Medical Marijuana Collective taxpayers will NOT have an opportunity to request a new installment agreement for 2017 business tax year liabilities and/or prior tax year liabilities.  Per Los Angeles Municipal Code Section 45.19.6.3.F, all liabilities for tax year 2017 must be paid in full to comply with the affidavit requirements.  Consequently, taxpayers must fully comply with their tax payment obligations. 

When will Office of Finance issue my 2017 L050 Business Tax Registration Certificate?

Please note that the 2017 L050 Business Tax Registration Certificate will not be mailed to qualifying taxpayers, instead taxpayers will be required to pick up the Business Tax Registration Certificate at City Hall Public Counter when notified by the Office of Finance. The individual who signed the original 2017 affidavit will be required to sign for and pick up the 2017 L050 Business Tax Registration Certificate in March. 

What happens if I am unable to pick-up my Business Tax Registration Certificate when notified by Office of Finance staff?

If a business operates without a valid Business Tax Registration Certificate, it may be in violation of Section 21.09 (a) of the Los Angeles Municipal Code which states, "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 therefore posted in a conspicuous place upon the premises at or from which the business is conducted."

Does the issuance of the 2017 L050 Business Tax Registration Certificate mean I have a license to operate a medical marijuana business?

No.  The issuance of the 2017 L050 Business Tax Registration Certificate is not a license or permit to operate a medical marijuana business and does not indicate compliance with Los Angeles Municipal Code Section 45.19.6/Proposition D.

Can I transfer my Business Tax Registration Certificate to another individual?

No, per Section 21.11 of the Los Angeles Municipal Code, "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."

What should I do with my expired 2016 L050 Business Tax Registration Certificate?

Please note that all 2016 L050 Business Tax Registration Certificates expired on December 31, 2016.   You should, however, keep your expired BTRC until your 2017 L050 Business Tax Registration Certificate is issued by the Office of Finance in March or until otherwise notified.