L.A. City: Annual Business Tax Renewals Due by March 2, 2026
L.A. City: Annual Business Tax Renewals Due by March 2, 2026
Every person engaged in any trade, calling, occupation, vocation, profession or other means of livelihood in the City of Los Angeles, including the business of providing rental housing, must obtain a Tax Registration Certificate (TRC) and pay the required business tax due, specified in Sections 21.41 to 21.199 of the Business Tax Ordinance. You are considered to be engaged in business in the City of Los Angeles when you physically perform work within the City of Los Angeles for seven (7) or more days per year. The Office of Finance is responsible for the collection of business taxes.
The business tax renewal filing is due on January 1st and delinquent on the first business day of March. This year’s tax is due by March 2nd and considered delinquent starting on March 3rd. The amount of business tax due is calculated based on your gross receipts generated during the previous reporting period, subject to applicable reductions under City Clerk Rulings. Failure to obtain the required TRC and/or pay all business taxes in a timely manner may be subject to additional penalties and interest charges. There are also legal remedies that the City may seek.
In addition, under California and Federal law, business taxes must be apportioned in a manner that fairly reflects gross receipts earned from engaging in business in the City of Los Angeles, a process known as “apportionment.” The application of certain City Clerk Rulings may lower your total tax liability. The City has issued several Clerk’s Rulings providing guidance for apportionment, such as Ruling 14 (PDF), Ruling 15 (PDF), and the 1999 City Clerk Letter, see Ex.3 to First Amended Petition. Also, starting on January 1, 2007, a small business with $100,000 or less of taxable and nontaxable gross receipts within and without the City, may qualify for a Small Business Exemption (LAMC Section 21.29).
Important Disclaimer: The information and materials provided during this presentation is for general information purposes only. Absolutely no legal or tax advice is being given during this presentation. Keep in mind that every situation is unique, and the laws, rules and regulations are subject to change at any time. So, before acting, be sure to obtain tax and/or legal advice from your licensed professional.