The City of LA has a gross receipts tax, and the rate of this tax varies by type of business. Currently, “Internet based businesses” are paying at a reduced rate that is set to expire at the end of 2014. Unless the Council and Mayor extend this ordinance or adopt a new one, the business tax liability for all Internet companies in LA will increase from about $1 per $1000 of gross receipts to $5 per $1000, for revenues that are deemed to be generated in LA. There is a hearing on this in Committee that should be scheduled for August 25, 2014.
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